Self-Service Kiosk Market - Forecasts from 2022 to 2027

The self-service kiosk market has a CAGR of 6.78% during the forecast period to reach US$61.594 billion by 2027, from US$38.903 billion in 2020.

Introduction

A self-service kiosk is an interactive terminal that automates, eliminates, or streamlines wait times and costs by allowing consumers to do tasks at their convenience. This might include everything from placing food orders to booking train or bus tickets to making deposits and withdrawals from bank accounts. The self-service kiosk industry has been emerging as a popular option for companies for decreasing wait times and ensuring customer satisfaction.

Market Trend:

The global self-service kiosk market is expected to grow substantially, mainly due to the increasing relevance among companies with an ever-growing consumer network. Industries such as airports, fast food joints, and healthcare sectors have started using self-service kiosks to help in making tasks easier and more efficient. The emerging fast-food sector and the increasing healthcare costs among countries are expected to drive up the demand for the self-service kiosk industry. The Asia Pacific region has been reported to have the largest market share, owing to its rapid developments in the electronics sector.

Growth Factors

The rising food industry

Self-service kiosks have been an increasing part of restaurants. Restaurants find it easier to receive orders and feedback from kiosks, instead of employing people. Kiosks have also made it convenient for customers to place food orders, without having to stand in tiring queues, and also by streamlining payment options. Fast-food companies such as Subway, McDonald’s, and Burger King have been using kiosks for a couple of years, and have received a lot of positive feedback from customers. Customers also reportedly spend more when ordering from a kiosk interface, as compared to a physical order. Customers have also been reported to create more customized orders when ordering from a kiosk, mostly due because consumers' fear of being misunderstood when ordering in person.

McDonald’s released their 2022 Q1 and reported revenue of US$5.67 billion, an 11.8% increase in global sales, as compared to last year; and a 3.5% increase in the U.S. sales from the previous year.  Burger King also reported an increase of 15.2% in the first quarter of 2022, reaching revenue of US$ 1.45 billion. With the ever-growing fast food industry, the self-service kiosk market is expected to rise.              

Restrain

Increasing upfront costs

Even though self-service kiosks have been known to be convenient and efficient, the upfront costs of a kiosk are extremely high. Most interactive kiosks would cost about US$ 3500 on an average, also considering that software, management, and technical support would cost extra. Most healthcare kiosks would easily cost about US$10000-US$15000. Hence, installing kiosk systems might only be beneficial for organizations that operate on a very large scale, since smaller organizations might find it difficult to earn a return on such an investment. Moreover, with the increasing number of thefts reported for self-service kiosks, the kiosk systems become a risky investment for businesses. Such kiosk systems require careful administration and repair costs for these systems are also considerably high.

COVID-19 Impact

The COVID-19 pandemic had a positive impact on the self-service kiosk market. Even though the initial market impact was slow, the market was quick to rebound. With the increasing infection cases and panic among people, the demand for minimal contact services grew significantly. As businesses started to reopen, they had to adapt to better alternatives for consumers. Hence, the self-service kiosk market grew rapidly in sectors like the airport industry, restaurants, hospitals, consumer services, supermarkets, etc.

Key developments

The self-service kiosk market has seen a major demand in recent times. Airports, restaurants, convenience stores, etc have been a major driver for the industry since self-service kiosks eliminate the requirement for manpower deployment and supervision by more than 50%. With the adoption of minimal contact services in industries, the self-service kiosk market has grown. Consumers have been careful about their contact with people, ever since the outbreak of the COVID-19 pandemic.

Cake Box recently announced that it is going to set up self-service kiosks across 10 new Asda supermarket locations. Cake Box also announced that it recorded an increase of almost 50% in revenue after the pandemic.

Babylon Health recently acquired Higi Health, a health kiosk firm, in its latest endeavour to assist a fundamental shift in healthcare services. Higi's remote monitoring capabilities, which range from grocery store health kiosks to at-home linked devices, will be added to Babylon's platform, allowing the firm to reach considerably more clients and collect far more essential health data than before. Developments like these help in expanding the reach of the self-service kiosk market and consequently drive up the market.

Market Segmentation:

By Component

• Hardware
• Software
• Services

By End-user Industry

• Retail
• BFSI
• Transport
• Government
• Healthcare

By Geography

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