Self-Checkout System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The self-checkout systems market is expected to register a CAGR of 10.2% over the forecasted period. The market is expected to witness an upward trend owing to the increasing adoption among retail stores and financial institutions. Further, the growing technological advancements in the self-checkout system are anticipated to provide acceleration to the market over the forecast period.

Key Highlights

• Self-service checkout systems have grown in popularity in a variety of end-user industries in recent years.Retail automation and the increasing need to optimize the customer experience drive the need to adopt various technological trends, thereby affecting the retail sector. Customers demand seamless shopping experiences, along with AI product recommendations, propelling the adoption of self-service kiosks in the market. Self-service kiosks play a major role in stimulating self-checkout at retail stores.
• Moreover, self-service kiosks have become a vital part of various organizations, businesses, and locations due to the growing need for self-service in some applications for better customer satisfaction, self-control, and privacy, which is expected to augment the demand for self-checkout systems.
• Technological advancements, a growing demand for increased speed at checkout, the gradual shift from traditional payment systems to a cashless environment, the addressing of labor shortage issues across emerging countries, and the growing demand for modern store formats are some of the major factors influencing the growth of the self-checkout systems market. However, reluctance or lack of awareness to use self-checkout systems is expected to hinder the growth of the market.
• Additionally, the growth of the digital payments sector globally will support the expansion of the market. Customers are using online payments, digital wallets, and smart cards due to the increased convenience and payment security. For instance, according to the India Brand Equity Foundation, digital payments in the country will increase around threefold to USD 100.61 trillion by 2025. The expanding e-payments market is eliminating the need for sales personnel at counters to enable financial transactions. There is an increasing demand for self-checkout systems that enable seamless financial transactions, resulting in fast checkouts.
• The COVID-19 pandemic hampered the market's growth, which was attributed to the temporary closure of retail stores, entertainment venues, hotels, and transportation terminals following the lockdowns imposed. However, the urge to curb the infection during the pandemic is expected to benefit the market in the long term. These systems address the need to reduce the risk of infection both in stores and in queues outside stores, as they allow stores to reduce the number of people waiting in line using a simple virtual queuing system and control the number of people within the store.

Self-checkout System Market Trends

Retail Segment is Expected to Occupy a Significant Share of the Market

• Self-checkout systems are becoming increasingly popular in retail stores across the world. In addition to the checkout process, these models are also used for digital promotions, cross-selling, and displaying attractive loop videos that provide detailed information about the product features, prices, and offers in retail stores.
• Further, the growing demand for less installation space forced retailers to adopt countertop self-checkout systems in their retail stores. In addition, stores with space constraints (mostly retail) are more inclined towards deploying these systems as they usually occupy less space than stand-alone systems.
• Further, several players in the market are increasing their investments in R&D activities to provide advanced software solutions integrated into these checkout models to enhance retail stores' performance and features. Such expeditious developments are expected to boost market growth during the forecast period.
• In September last year, MUJI announced the deployment of MishiPay's self-checkout kiosks at their London location. The self-service kiosks integrate MishiPay's Mobile Self-Checkout technology, which the company has previously implemented in its European locations, to provide a comprehensive self-checkout solution and enable autonomous checkout for all customers.
• Furthermore, the growing need for a self-checkout system in retail stores augmented the market's growth, resulting in widespread adoption among retail stores worldwide. For instance, in September last year, Grupo Exito, one of Latin America's largest grocery retailers, announced the deployment of Toshiba Global Commerce Solutions' self-checkout solution at its Exito and Carulla branded stores, according to a press release. There will be 300 system installations in the company's Columbia stores.

North America Expected to Dominate the Market

• North America has a huge amount of growth potential for the vendors in the studied market. This is because more and more retail stores, like hypermarkets, supermarkets, department stores, and convenience stores, are using these systems.
• Further, the increasing minimum wage levels across the United States and Canada (for example, the minimum wage exceeded USD 15 nationwide in the United States) are forcing employers to relieve their cashiers and deploy these systems. For instance, recently, McDonald's deployed self-service ordering kiosks at all their U.S. locations. Similarly, casual-dining brands like Chili's and fast-casual brands like Panera have already embraced this trend.
• Retailers in the region have recognized the need to incentivize digital payments and, thus, are offering more tangible benefits in the mind of the consumer, such as loyalty benefits. The technology has been better connected to a number of apps and mobile shopping sites to make things run more smoothly.​
• Self-checkout kiosks are among some of the standard automation solutions deployed in supermarkets. Grocery chain Kroger uses sensors and predictive analytics to forecast when more cashiers will be needed.
• For instance, using interactive kiosks at the checkout counter in several stores, such as Wal-Mart and other big retail stores, may also drive the market in the United States and North America. Self-checkout systems are expected to become more popular and grow in North America because of these initiatives and the large investments made in the regional market.

Self-checkout System Market Competitor Analysis

The self-checkout system market is moderately competitive and is currently dominated by a few players with technological expertise. The market is expected to be moderately consolidated, with the major players holding a prominent share. The market players are focusing on expanding their customer base across foreign countries by leveraging growth strategies, such as facility expansions, partnerships, and product launches, to increase their market share and profitability.

In March 2022, BP announced the deployment of Mashgin's artificial intelligence (AI) self-checkout technology at four AMPM convenience stores as it explored options for a wider rollout. The technology will go live in Fairfield, Elk Grove, Pleasanton, and Millbrae in Northern California between April and June 2022. Mashgin's checkout system is a touchless self-checkout powered by AI and uses computer vision to scan items for purchase instantly.

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