Report

The European retail automation market is expected to register a CAGR of 12.5% during the forecast period (2023 - 2028). The COVID-19 outbreak has accelerated the significance of online shopping channels, as consumers are considering online platforms as their primary shopping channel. This has given retailers and consumer goods organizations an excellent opportunity to adopt sustainability initiatives that integrate with their digital presence. Therefore, retailers are using the e-commerce platform and online marketplaces to capitalize on this changing trend.

Key Highlights
The European Union has set a vision for AI. According to the EU, 75% of European Firms will Adopt AI by 2030. The framework also focuses on launching various cross-border projects, combining EU funding with national governments and private investors. By 2030, three out of four companies will use cloud computing services, big data, and AI. More than 90% of SMEs should reach at least a basic level of digital intensity, and the number of EU unicorns should double.
POS terminal systems have evolved from being transaction-oriented terminals/devices to systems that can integrate with the company's CRM and other financial solutions. This evolution has empowered end-users with business intelligence to manage their revenue streams and inventory better. Lower maintenance costs, accurate transactions, and real-time inventory are key advantages of POS systems. With the functional benefits that the advanced POS systems offer, companies have replaced their traditional billing software with POS systems, thus, securing the growth of the POS system market.
Moreover, contactless payments have been gaining traction and are expected to enter the mainstream, owing to the acceptance of NFC pay points and online transactions. Moreover, technological advancements, such as facial recognition, have already made payments possible without a device or card and are expected to enter the mainstream through deployment in chain-based retail companies.
The Swedish brand H&M is using AI in its assortment planning. The retailers aim to forecast trends months in advance. H&M employs more than 200 data scientists, analysts, and engineers to use AI to review purchasing patterns of all items in each store. The data includes all the information from five billion footfalls from last year to its stores and traction on its websites.
Furthermore, UiPath, a provider of enterprise automation software, has announced the launch of the UiPath Automation Awards 2021, its third annual competition designed to champion the most promising start-ups and scale-ups in enterprise software automation. UiPath aims to enable creative business ideas through its innovative awards program and foster the capacity to scale early-stage companies and entrepreneurial ventures from Central and Eastern Europe (CEE).


Europe Retail Automation Market Trends

Grocery Retailers are Expected to Hold a Significant Market Share


Grocery retailers in the region are implementing AI technologies to combat intense competition. For instance, Kaufland uses dynamic pricing with digital shelf labels, with AI analyzing large amounts of data, such as competitors' prices, to instantly update prices and launch store promotions.
According to Microsoft's IoT Signals research, 90.8% of European businesses have used IoT. With 95% adoption, Italy leads the world. It also reveals that more companies in Europe (91.5% on average) perceive IoT as a business-critical technology than in Asia (90.3%) or the United States (85%). The study also found that, throughout Europe, companies in Spain are more likely to regard IoT as vital to their company's performance (96%) - second only to China (99%) - and that those in the Benelux markets are the happiest with IoT. In fact, every single one of those polled expressed a high degree of pleasure. It was also discovered that firms in France had the greatest success rates with their IoT initiatives in Europe.
Moreover, Carrefour would complete an 18-month trial period and utilize the SAS solution to collect and process data from its stores, warehouses, and e-commerce websites. It would allow the company to predict demand and refine supplier orders. Furthermore, the deployment of the SAS platform would help Carrefour turn the corner in optimizing its supply chain. By freeing up time for teams, AI would focus on developing differentiated forecasting strategies and meeting customer expectations while reducing waste.
Additionally, operating as both manufacturers and retailers, Intermarche, Netto, and their networks have a wealth of data, from production to sale. Symphony RetailAI's AI-based technologies would enable the 360-degree view of this data, utilizing it much more efficiently and driving all aspects of the supply chain with greater agility.


France Accounts for the Largest Market Share


E-commerce is one of the few sectors that have witnessed increased consumer interaction in many segments. The same trend is also reflected in France. As non-essential shops have closed and nationwide lockdown orders were issued, many businesses have been forced many companies to adapt and respond quickly to the changing consumer priorities. As digital has become the new method in these circumstances, some segments of the French e-commerce sector witnessed significant growth.
In May 2021, EU4Digital launched its eCommerce pilot, establishing national virtual warehouses in the pilot countries to support retailers, marketplaces, delivery operators, and customs to place the products for sale abroad and facilitate cross-border delivery.
According to the Cisco VNI Complete Forecast report 2021, From 2016 to 2021, IP traffic in France will increase thrice, with a compound annual growth rate of 22%. In 2021, monthly IP traffic will exceed 5.6 Exabytes, up from 2.1 Exabytes in 2016. M2M modules accounted for 3.5% of IP traffic in France in 2016 and will account for 8.7% in 2021.
Furthermore, in March 2021, Fanplayr, the provider of online behavioral personalization and artificial intelligence, accelerates its global growth plans by opening new offices in London and Manchester. The company's rapid expansion in the UK is driven by its ability to convert online users into buyers using real-time online behavior analysis. With an enormous surge in e-commerce, Fanplayr is anticipating significant revenue growth in the UK, reflecting its success across Europe, where it has already had an increase in year-over-year revenue of more than 70%.
Moreover, In November 2021, Cloudpick, the leading provider of AI-based smart store solutions to the global retail industry, announced the formal opening of Auchan's first autonomous convenience store in Lille, France, in collaboration with the major French multinational retailer Auchan. Auchan and Cloudpick place a high value on sensitive identifying information, and they've worked closely with the CNIL in France to guarantee GDPR (General Data Protection Regulation) compliance. Computer vision does not gather photos or biometrics; instead, it analyzes consumer activity around the shop and records the things purchased to link them to their account.


Europe Retail Automation Market Competitor Analysis

The European retail automation market is moderately competitive. The major players with a significant share in the market are expanding their customer base across various regions. In addition, many companies are forming strategic and collaborative initiatives with multiple companies to increase their market share and profitability. Some of the recent developments in the market are:


May 2021 - For a fashion e-commerce customer in France, XPO Logistics implemented an automated system to manage high-volume reverse logistics. To manage the throughput of up to 12 million returned items each year, the solution incorporates numerous technologies, including a state-of-the-art mechanized sortation system. XPO has employed an industrial baling press to condense old boxes, decreasing environmental consequences and enhancing recycling value.
April 2021 - SES-imagotag, the global provider of electronic shelf labels (ESLs) and digital solutions for physical retail, announced a strategic partnership with Hornbach, a DIY and home improvement German chain. The main focus of this collaboration will be to enable the implementation of Captana in their stores, artificial intelligence-powered automation platform, the new camera-based shelf monitoring, product recognition, and out-of-shelf detection solution from SES-imagotag.


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