Smart Vending Machine Market - Forecasts from 2022 to 2027

The global smart vending machine is expected to grow at a CAGR of 13.30% from the market value of US$4.807 billion in 2020 to reach US$11.522 billion in 2027.The growth is attributed to the rising rate of cashless transactions or UI- based transactions in many countries in recent times.



A smart vending machine is one example of an advancement in digital technology. It is a device that, in exchange for tokens or coins, dispenses items that are stored inside it. It delivers products without any human staff by creating an automated retail solution through the use of digital technology. With the help of the internet of things, it is possible to meet consumers' expectations with retailers. A smart vending system enables retailers to engage with the customer in a personalised way through a digital way. Smart vending machines make retail business easier. The surging dependency on ATM cards and net banking for transactions is boosting the market growth of smart vending machines. The rapid penetration of the internet worldwide is another factor driving the rising demand for smart or intelligent vending machines in developed as well as developing countries.

The primary market drivers

Since the last decade, the usage of advanced transaction systems such as ATMs, net banking, or mobile banking is expanding. This is making consumers more comfortable with cashless transactions or cashless purchases. Along with the customer, the cashless transaction is also beneficial for retailers. Even several banks encourage customers to use their debit/credit cards for shopping. For instance, recently in January 2022, the State Bank of India announced a 10% discount to its cardholders on shopping at  Amazon's great republic day sale. Due to such initiatives, consumers have become more inclined towards card payments rather than cash payments.

Moreover, government initiatives and other cashless campaigns aimed at making cashless transactions easier are boosting the use of cards and UPI payment. For instance, in December 2020, Mastercard launched a campaign called Team Cashless India. In this, the Mastercard volunteers made interactions with merchants and consumers to spread the importance of digital transactions. Such campaigns are likely to boost the number of smart vending machines installed in underdeveloped countries around the world.  Restraint

The price of smart vending machines is not affordable for every retailer. These machines are commonly found in supermarkets and airports. Small retailers,  due to the high price of smart vending machines and high rental space costs, do not prefer to install these machines. Hence, this is predicted to hamper the growth in the smart vending machine market.

Latest developments

The growth of the smart vending machine is proportionate to the rise in card payment and digital payment expansion. Hence, such developments pave the way for a bright future for smart vending machines globally.

• In December 2021, a Green Globe International subsidiary, HempBox, signed a partnership with High Street CBD. To spread awareness regarding CBD products, HempBox and High Street CBD have announced plans to place smart vending machines in outlet centers in Tanger, United States. After a 90-day  trial, they plan to set up more vendor machines in 30 other Tanger centers.
• In July 2021, Hindustan Unilever launched its new in-store vending machine model named “Smart-Fill”. With the partnership with Reliance Retail, this model has been placed in the Reliance Smart Acme Mall, Mumbai.

Regional analysis

Due to the early adoption of self-service advanced technologies by countries such as the USA and Canada, North America holds XX% of the market share in the smart vending machine market in 2019.  That is a  market size of US $ XX billion and is expected to dominate the market share by XX% in 2026, a market size of US $ XX billion. While Asia-Pacific is also expected to grow rapidly during the forecast period,   in 2019, the market size in Asia-Pacific was registered at US $ XX billion and is expected to grow to US $ XX billion in 2026.  Growing urbanisation and rapid westernisation are the factors driving the growth of supermalls and e-commerce shopping sectors. This is expected to be driven by the growth in demand for smart vending machines in the urban areas of the region, leading to the growth of the market share in upcoming years.

The impact of COVID-19 on the global smart vending machine market

The outbreak of COVID-19 made the governments of many countries impose several restrictions, such as the shutdown of retail, supermarkets, malls, and other business sectors. This had a slight impact on the smart machine business too, as the demand from the existing supermarkets and malls decreased and the projects of new malls went to a halt. This had an impact on the overall smart vending machine market globally. However, with the easing of restrictions by the end of 2020 worldwide, the market experienced momentum. Many companies applied strategies such as offering masks, sanitizers, etc.  These factors are expected to help the market rebound and grow in upcoming years.

Segmentation

By Application

• QSR
• Shopping Centers
• Public Transport
• Others

By Product Dispensed

• Salty and Sour Snacks
• Bakery Products
• Confectionery Products
• Beverages
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Israel
• Saudi Arabia
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Thailand
• Indonesia
• Taiwan
• Others