Companies developing robotic technology for automated online order preparation solutions and micro-warehousing centers designed to assist SME retailers with order fulfillment.

Companies developing stock counting, price tagging, and consumer data aggregation robots mainly targeted for use in supermarkets and department stores.  

Companies that develop autonomous cleaning and sanitation robots for use in retail floors. 

Companies developing robots that offer directions, assist with queries, and provide in-store entertainment to customers while providing insights on customer behavior. 

Speeding up sales, cutting costs, and preparing for the future of retail—whether brick-and-mortar or online.

Retail Industry Robots

Overview

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    Retailers are increasingly seeking to improve operational efficiency through robots to carry out tasks such as micro-fulfillment operations, inventory management, cleaning, and customer assistance. Pressure to enter the e-commerce market, optimize efficiency, and increase sales drives demand for retail robots. Advancement in sensor technology and retail availability of advanced chips facilitates adoption of these technologies. The Covid-19 pandemic has further fueled adoption of retail robots as a solution for improving in-store sanitation and inventory management with minimal employee contact.
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The total addressable market size for retail robots in the US is estimated at ~USD 17.9 billion

Market Sizing

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        A surge in online retail sales and increased demand for rapid delivery during the pandemic expedited retailers’ adoption of automated micro-fulfillment technology 
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        Demand for retail robots is rising based on reduced staff in most retail areas and the need for contactless services such as sanitization and inventory management. 
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        Brain Corp’s robotic scrubbers’ usage rose 11.5% Year-over-Year (YoY) during the first three quarters of 2020.
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        Retail giants including Walmart, Kroger, and Tesco have significantly expanded their in-store robotics fleets to improve inventory management with less human contact
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COVID19-IMPACT

Market Mapping

<p>The majority of incumbents and disruptors in the retail robotics space provide offerings in inventory management. The micro-fulfillment segment is witnessing increased interest and several companies are entering the market through partnerships with retailers. Incumbents are likely to gain access to technology through acquisition and partnerships as well as development of in-house technology. The majority of disruptors develop proprietary technology in-house.</p>

The Disruptors

<p>Among the startups supplying micro-fulfillment centers, Takeoff Technologies has already made strides, forming at least 10 sales partnerships—including three overseas. Fabric is the next most active disruptor in terms of US partnerships with retailers such as FreshDirect. Newer companies such as Ohi have also been able to expand their operations by forming partnerships with companies such as OUAI and Olipop.</p><p>On the inventory robotics side, Simbe Robotics (Tally) has gained significant traction through sales partnerships with Schnucks Markets and Decathlon as well as through an agreement with SoftBank Robotics and several other companies to market its products internationally. Bossa Nova Robotics is also a notable inventory robot disruptor due to its partnerships formed with several large scale retailers such as Albertsons. However, its flagship inventory tracking partnership with Walmart was canceled in November 2020.</p>

Disruptor Funding History

The Incumbents

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    Most incumbents already operate as business-to-business robotic providers with acquisitions and partnerships used as the most common market entry strategies
    Most retail robotics industry incumbents develop technology in-house or partner with companies that provide related services to obtain and co-develop their technology. Most of these companies already operate as established robotic suppliers focusing on the business-to-business (B2B) market. There are also some retailers—such as Amazon and Ocado—who have developed their own technology, especially in the micro-fulfillment area, while also selling their technology to other retailers. Several incumbents such as FANUC Corporation and Vargo that were already developing robots in related areas such as warehouse robots have recognized the opportunity and entered the micro-fulfillment space.
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Retail Industry Robots

Retail Industry Robots

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