AI-powered checkout provides various benefits such as quickly and easily installed, reducing the queue line in the shops, reducing labor costs, improving the customer experience, and improving profit margins. They are thereby increasing acceptance of AI-powered checkout, which triggers the growth of the AI-powered checkout market. Further, growing digitalization in the retail stores, coupled with the increase in the number of retail stores, supermarkets, and hypermarkets across the globe, provides a lucrative opportunity for the AI-powered checkout market player.
The pandemic COVID-19 continues to enforce the temporary closure of retail stores in the global market, signaling an unprecedented disruption of commerce. Retailers and brands are facing various short-term challenges regarding health and safety, supply chain, labor force, cash flow, consumer demand, and marketing. In North America, stores started closing at the beginning of March, and this trend is expected to continue as cities and states battle to contain the spread of the virus.
The market for AI-powered checkout has been segmented based on component, end-user, and geography. Based on component, the market is segmented into solution and services. The solution segment represented the largest share of the overall market throughout the forecast period, owing to the increasing number of technology advancements in machine vision, facial recognition, shelf sensors, barcodes, quick response (QR) codes, and RFID tags. However, services segment is expected to be the fastest-growing AI-powered checkout component. Further, the AI-powered checkout market is segmented into the supermarket and hypermarket, departmental stores, and others based on the end-user. In 2019, supermarket and hypermarket held a substantial share in the global AI-powered checkout market. While others segment is anticipated to grow at the highest CAGR from 2020 to 2027.
The rising impact of e-commerce and continuous changes in consumer preferences are among the primary reasons that have led to stagnancy in the performance of the traditional retail sector. A few of the e-commerce market players are vigorously expanding their offline business operations to secure a share larger than the existing market share. Considering this, retailers operating worldwide are also continually looking forward to adopting more effective strategies to drive their revenue growth. Before the introduction of automation in the retail sector, retailers faced tremendous pressure to surpass customer expectations and enhance organizational efficiencies. The AI-powered checkouts provide the ability to overcome all the challenges faced by them, further helping them automate their workflows and multiple processes that ease their operations.
Based on component, the AI-powered checkout market is segmented into solution and services. AI-powered checkout solution is provided to different retail outlets. This help the retailers to deliver greater shopping experience to the customers by eliminating need to standing in long-queues for making payments of the items purchased. Moreover, this software is provided with an array of services which assist the retailers to solve their grievances whenever they need.
Based on end user, the AI-powered checkout market is segmented into departmental store, supermarket and hypermarket, and others. The AI-powered checkout solution is gaining high momentum across different retail outlets to eliminate a need to stand in long-queues for making payments. With the rising number of retail outlets, the scope of integrating advanced and autonomous technologies in them is increasing.
Players operating in the AI-powered checkout market focus on strategies, such as market initiatives, acquisitions, and product launches, to maintain their positions in the AI-powered checkout market. A few developments by key players of the AI-powered checkout market are:
In July 2020, AiFi announced plans to deploy 330 new and retrofitted autonomous stores by the end of 2021.
In January 2020, Focal Systems announced a partnership with Connors Group to provide impactful results to retailers by combining the technologies of both the companies.
The regional trends and factors influencing the AI-Powered Checkout Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses AI-Powered Checkout Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 169.94 Million |
| Market Size by 2027 | US$ 1,182.81 Million |
| Global CAGR (2021 - 2027) | 37.2% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2027 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The AI-Powered Checkout Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the AI-Powered Checkout Market are:
Disclaimer: The companies listed above are not ranked in any particular order.