The point of Sale (POS) terminal market is expected to grow at a CAGR of 11.5% during the forecast period of 2023 to 2031. Nearly 40% of the worldwide payments industry's revenue comes from POS terminal systems. The market for point-of-sale terminals is expanding at a rapid rate due to a number of factors, one of which is an increase in the adoption of wireless payment systems by retailers. Another factor is the surge in access to various kinds of payment modes, such as Visa (EMV) cards, EuroPay, and MasterCards. Despite this, numerous end-use sectors have been observed transitioning toward cashless and contactless payment methods as the severity of the virus has decreased. The demand for POS terminals has surged as a direct result of the spike in interest in reasonably priced wireless communication technologies. In order to process payments for goods or services, point of sale terminal systems make use of wireless terminals. The implementation of wireless technology has the potential to improve the efficiency of a variety of business processes, from taxi services to dining establishments. POS terminals are used for payments and extra operational activities, such as inventory management, sales tracking, and accounting, in the hospitality and retail sectors of the economy. For example, bars, restaurants, and other businesses that provide food service heavily rely on point-of-sale technology to keep tabs on their sales, operations, products, and inventories.
Users are able to better monitor their spending habits and transactions as a result of the increased simplicity and speed afforded by digital payment systems. In addition, industry growth is being driven by initiatives undertaken by governments to encourage the use of digital payment systems. In addition, the advent of mobile wallets and smartphone services that are enabled by Near Field Communication (NFC) is anticipated to raise the demand in the POS terminals market over the research period. As a consequence of this, a rise in the use of contactless payments has prompted an increase in the deployment of mobile point-of-sale (mPOS) terminals, which are designed to take contactless payments made directly through the cellphones of customers. The increasing prevalence of mobile point-of-sale terminals has opened more options for the expansion of the sector. The market has been positively impacted as a result of the simplicity of use and increased Return on Investment (ROI) provided by these solutions. A further factor that has contributed to the increased demand for tablets is the growing requirement for personnel and customer management, inventory control, and the unification of online and in-store sales.
The Point-of-Sale Terminal Market Will Be Driven by the Growing Demand for Contactless Payments
In spite of the fact that the COVID-19 epidemic caused a decrease in overall market growth as a consequence of an interruption in the supply chain and a loss of revenue from end-users, the requirement for mobile point-of-sale terminals to support contactless payment was recognized as being essential. The rising desire for cashless and contactless payment methods has been a driving force behind the rising rate of product adoption. In addition, the desire for employee and customer management, as well as the unification of online and in-store sales, and inventory tracking, has resulted in the demand for digitalization. The digital revolution has prompted businesses in a wide variety of sectors, including retail, healthcare, hospitality, and others, to make use of a product that can retain records of corporate activities and enable cashless payment. In the years to come, the widespread use of digitalization across a variety of industries is projected to propel the expansion of the worldwide POS terminal market. The ever-increasing use of mobile phones has led to an increase in demand for portable point-of-sale systems, which in turn has contributed to the expansion of existing markets.
Rising Consumer Demand for An Increased Number of Safe Payment Methods Expected to Drive Market Expansion
The software and hardware of the point-of-sale system have both been developed and improved over the course of its history in order to provide secure transactions and portability. In order to ensure the security of payment gateways, POS terminal suppliers have increased their investments in end-to-end encryption technology. This will help to inspire consumer confidence and stimulate demand for products. In addition, multifunctional software that is connected to a point-of-sale system would offer the end-user safe payment options, storage for staff information, and an analysis of data relating to customers. The capability of the product to function as an efficient tool for employee management, including the monitoring of employee performance and the creation of a contented workforce, has contributed to the product's increased demand.
The adoption of point-of-sale terminals has assisted governments in achieving their goal of introducing a cashless economy, particularly in developed nations. This is due to the fact that POS terminals offer convenient payment options, enable online payment, and reduce the amount of time spent waiting in line. The hospitality and retail industries have both seen product development as a direct result of the concept of cashless payment. In addition, as the technology behind credit cards and debit cards advanced, contactless payment became increasingly popular as a means to complete a transaction quickly without having to enter a PIN. This payment method makes use of a technology known as radio-frequency identification (RFID) or near-field communication (NFC), which enables secure transactions to be completed in a matter of seconds. This technology not only accelerates the processing of transactions but also makes it more comfortable to purchase smaller products, which in turn boosts demand for the product. In addition, cloud-based POS terminal systems that are reasonably priced and enable automated, regular software updates without requiring the presence of professionals help businesses save money on future upgrades. It is anticipated that advancements of this kind will propel the expansion of the worldwide POS terminal market.
No Checkout the Use of Point-Of-Sale Systems Becomes Commonplace in Most Retail Establishments
The ability of point-of-sale terminals to generate electronic receipts and accept payments face-to-face are two of the most important features that are helping manufacturers differentiate themselves from their rivals in the market. Retail owners are demanding new advancements in point-of-sale (POS) systems in order to match the convenience expectations of their customers. The market for point-of-sale terminals is currently being dominated by the growing trend of no checkout POS. The unique no-checkout POS system implemented by the e-commerce giant Amazon, which immediately began generating payments as soon as a customer exited the building, contributed significantly to the company's meteoric rise to prominence.
Mobile Point-Of-Sale Applications Guarantee Repeat Business by Providing a Hassle-Free Experience at The Counter.
In the market for point-of-sale terminals, companies are gathering the experience necessary to innovate in mobile point-of-sale application software. At coffee shops, customers are given the option to pay immediately or pay for their purchases at a later time. This is done because people who are in a hurry sometimes prefer to pay as they are leaving the establishment. Mobile point-of-sale (mPOS) applications are getting growing visibility among individuals as a result of their ability to speed up procedures and reduce the amount of time spent eating. In order to ensure that consumers will return, proprietors of retail shops and businesses in the HoReCa (Hotel, Restaurant, and Café) sector are concentrating on delivering a hassle-free experience at the counter. Coffee shops and retail outlets in the United Kingdom are increasingly adopting the use of mobile point-of-sale apps. The companies that operate in the market for point-of-sale terminals are stepping up their efforts to build apps that make it easier to just scan the code located on products to produce payments automatically.
Outdated Systems with Spinning Discs Are Less Desirable Than Energy-Efficient Point-Of-Sale Terminals.
In due time, businesses will be required to address a number of drawbacks of POS terminal systems, such as the necessity for significant financial investment and reliance on the Internet due to the fact that most point-of-sale terminals function in the cloud. Therefore, companies that sell point-of-sale terminals are educating their customers on the things they should and should not do when purchasing a system so that they can save money.
Companies that are active in the market for point-of-sale (POS) terminals are educating their clientele about the benefits of POS terminal systems and the ways in which these advantages contribute to an improved shopping experience for the customer. On the other side, as consumers look for ways to cut costs, there has been an increase in the demand for point-of-sale terminals that are efficient in their use of energy. When compared to the more traditional spinning disc point-of-sale terminal systems, the new solid-state drive (SSD) technology being introduced by manufacturers allows for point-of-sale devices to be lighter, more robust, and more quickly.
Fixed POS Terminal Take Over Half of the Market Revenues
In 2022, the leading product segment for the market was the fixed POS terminal, which accounted for more than 50% of the worldwide revenue share. Fixed point-of-sale terminals are preferred by large-scale suppliers primarily because to the high costs of installation and high procurement, both of which have currently supported the expansion of the market. In addition, end-users who are hesitant to save their data in the cloud are likely to install fixed POS terminals for the purpose of saving data with the on-premises server. The point-of-sale (POS) system can be used for a wide variety of purposes, including inventory management, the facilitation of various payment methods, customer relationship management (CRM), and the generation of invoices.
From 2023 through 2031, it is anticipated that the mobile POS (mPOS) category would expand at a compound annual growth rate (CAGR) of above 10.5%. Customers are using their mobile devices more frequently to make in-store purchases, which has contributed to this development. Mobile point-of-sale terminals make it possible to process payments from anywhere within the store. Numerous end-users, such as restaurants, have begun embracing mPOS because it makes it easier to process payments during busy hours, prevents the loss of revenue due to delays, and, as a result, increases customer satisfaction. For the purpose of displaying menus and taking orders, for instance, quick-service restaurants in China have begun employing the use of technologies such as digital kiosks and tablets. This assist restaurants in improving their operational efficiency as well as the quality of the experience they provide for their customers, which in turn is likely to boost the market in the country.
Cloud Segment to Lead the Growth During the Forecast Period Among Deployment Models
The cloud and on-premise deployment models are the two primary submarkets in the market for point-of-sale terminals. It is anticipated that the cloud segment would experience a high CAGR of over 9.8% during the forecast period of 2023 to 2031. The demand for cloud-based point-of-sale systems is growing as a result of the fact that these systems offer secure online storage without the possibility of any kind of malfunction or incompatibility. Cloud-based point-of-sale (POS) systems offer a higher level of security than on-premises solutions. These systems simplify the transactional processes that clients go through by providing a variety of payment options and automatically sending invoices through the customer's selected channel or method. Using a point-of-sale system that is hosted in the cloud relieves business owners of the burdensome task of hosting and maintaining a server on their premises.
This expansion is also due to the growing use of SaaS technology as well as software integration. The SaaS business model requires users to pay a minimal monthly charge on a subscription basis rather than making a one-time payment that covers the cost of all the software, hardware, and support services. This helps restaurants and other end-users decrease the initial costs associated with using their services. Manual installation at the location of the customer's business is a component of the on-premise deployment method. In addition to installing hardware and software, the installation process also involves obtaining the necessary cabling permits and installing the necessary cabling. As a result of the numerous advantages that cloud POS has over on-premises deployment, a growing number of businesses have begun transitioning to using it.
Hardware Segment Dominates the Components Segment
In 2022, the hardware segment accounted for more than 62% of the market share, making it the most dominant market. During the forecast period 2023 to 2031, it is anticipated that the market sector would grow at a compound annual growth rate of roughly 7.0%. Monitors, tablets, receipt printers, cash drawers, barcode scanners, network devices, and EFT-POS machines are all examples of hardware components. These components are devices or interfaces that are used to register transaction details. The majority of the hardware components needed to finish the system are contained within the fixed POS terminal. This component also makes the experience of using the system to manage day-to-day activities easier. The continuous change in EMV liability and the increasing demand to upgrade existing payment solutions are the primary forces behind the expansion of the hardware sector. In addition, the growing demand for energy-efficient gadgets, which has motivated key product makers to make positive strides in the development of POS terminal hardware with low power consumption characteristics, may boost the market outlook.
In addition, it is anticipated that the software segment will record the greatest CAGR of more than 10% during the forecast period. This expansion can be linked to the functionality of data support, the features that are multifunctional, and the convenience of sales analysis. There is a variety of specialist software available for use in various applications. Retail point-of-sale (POS) software, for instance, typically includes features such as inventory management, transaction alerts, accounting, and so on. The expansion of the market is supported by the systematic software integration functionalities of screen terminals and barcode scanners that are present throughout these systems. These functionalities enable backup features and data restoring.
Retail Segment Remained as the Most Dominant Application Segment
In 2022, the retail sector became the most important part of the whole market, accounting for around 30% of the total revenue. A growing number of stores are adopting more straightforward methods of conducting business in order to reduce the length of customer wait times and speed up the processing of transactions. Because of this, stores are beginning to integrate their point-of-sale (POS) systems with their inventory, merchandising, marketing, and Customer Relationship Management (CRM) databases in order to provide customers with experiences that are personalized, interactive, and one-of-a-kind. In addition, the retail industry can be broken down further into supermarkets and hypermarkets, convenience stores, grocery stores, specialty stores, and gas stations. During the time being forecasted, it is anticipated that the supermarkets and hypermarkets segment would expand at a compound annual growth rate (CAGR) of over 8%.
During the time under consideration, it is anticipated that retail-based product penetration will expand as a result of increased exposure to mobile wallet technology. During the period covered by the projections, it is anticipated that the healthcare sector will demonstrate a CAGR of over 10%. This expansion can be attributed to the expansive product application scope, which includes the management of patient information, the facilitation of speedy payment processes, and the recording of personnel statistics. It is anticipated that the growing requirement to arrange the payment process, conduct vaccination programs, and maintain patient information for COVID-19 will be a driving force behind market expansion both during and after the pandemic.
The Asia Pacific emerged as the Dominant Geographic Segment
The Point of Sale (POS) terminals market in the Asia Pacific was the largest in the world in 2022, accounting for more than 30 percent of the total revenue in that industry. It is anticipated that the Asia Pacific retail point of sale terminals market size will depict approximately a 14% growth rate through the year 2031. The region has been able to maintain its position as the leader in the market thanks to the regulated demand coming from well-established retail chains and the entertainment industry. The supportive government measures that are concentrating on establishing a digital economy and the progressive posture of the retail industry in countries such as China and India are driving regional business development. The market in India is expected to report significant growth, with a CAGR of 16.0% during the period 2023-2031. This will be the highest growth rate seen anywhere in the Asia Pacific. According to estimates provided by the Reserve Bank of India (RBI), the proportion of non-cash retail payments comprised of digital or online transactions increased from 98.8% in 2021 to almost 99.3% in 2022. This represents a significant increase from the previous year's figure of 98.8%. The growing prevalence of cashless transactions, together with rising incomes for discretionary spending, robust economic expansion, and shifting demographics, are all factors that will contribute to an increase in the market share held by the industry.
On the other hand, it is anticipated that Europe and the Rest of the World (RoW) will see relatively superior growth throughout the forecast period of 2023 - 2031. This is because these regions are home to expanding retail chains, quick-service restaurant chains, and hotel institutions. It is anticipated that India, China, and Brazil will each have enormous growth prospects throughout the period 20232031 covered by the prediction.
It is projected that the market in the United States will present a significant opportunity during the forecast period. The country has seen a rise in the use of contactless payment solutions as well as Near Field Communication as a direct result of the growing demand for more sophisticated payment technology (NFC). This creates a climate that is favorable for the growth of the point-of-sale terminal market in the United States. Because there are a large number of retail outlets in the country, such as Costco Wholesale Corporation, Wal-Mart, Target, The Home Depot, and The Kroger Company, among others, the use and reach of POS terminals are higher in the country. These terminals are utilized for the purpose of managing payments, billing, and inventory daily, as well as employee duty.
Intense Competition Compelling Markey Players to Focus on Market Expansion
The global market for point-of-sale terminals is extremely fragmented due to the presence of a large number of players. These players include iMetrics Pte Ltd, Samsung Electronics Co. Ltd, Panasonic Corporation, Casio Computer Co. Ltd, NEC Corporation, and others. Together, these players hold approximately half of the market share. In addition, these competitors are spending significant sums of money on research and development operations in order to bring cutting-edge payment technology to the market. The market will be driven by stringent government laws and policies in multiple nations, which will make it more appealing to consumers and more competitive. The following are some of the most significant recent trends in the market. In order to maintain their footing in the cutthroat business environment, the companies are pursuing a variety of inorganic growth strategies such as geographical expansion, mergers and acquisitions, partnerships, and other business combinations. For example, Elo Touch Solutions, Inc. teamed with CERTIFY Health in September 2021 to offer a patient self-service solution. This relationship brought together CERTIFY Care's cloud-based interface, Elo's All-in-One touchscreen PCs, and the healthcare providers and institutions that CERTIFY Care works with to improve the workflows associated with patient registration. The market players are also focusing on expanding their company's size and scope but also on doing research and development to develop products that incorporate the most recent technological advancements. For example, in September of 2021, Presto released Presto Flex, which is the company's platform for the next generation of products. Tablet computer with a high degree of adaptability and versatility, purpose-built specifically for use in the hospitality industry It is possible to install it for a variety of restaurant dine-in and drive-thru applications, such as pay-at-table, staff handheld, drive-thru, and kiosk queue buster, among others. To provide restaurants with comprehensive front-of-house adaptability, the platform also integrated Presto's contactless QR Code payment solution and ordering system.
Historical & Forecast Period
This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2023 to 2031.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Point Of Sale (POS) Terminals market are as follows.
- -Research and development budgets of manufacturers and government spending
- Revenues of key companies in the market segment
- Number of end users and consumption volume, price and value.
- Geographical revenues generate by countries considered in the report
- Micro and macro environment factors that are currently influencing the Point Of Sale (POS) Terminals market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
Market Segmentation
Product
- Mobile
- Tablet
- Others
- Fixed
- Kiosks
- Others
Component
- Software
- Hardware
- Services
- Professional services
- Support & maintenance services
- Training services
Deployment
- Cloud
- On-premise
End Use
- Restaurants
- FSR
- Fine Dine
- Casual Dine
- QSR
- Drive-Thru
- Others
- Institutional
- Fast Casual
- Drive-Thru
- Others
- Others
- Retail
- Supermarkets/Hypermarkets
- Convenience Stores
- Grocery Stores
- Specialty Stores
- Gas Stations
- Others
- Hospitality
- Spas
- Hotels
- Resorts
- Healthcare
- Pharmacies
- Others
- Warehouse
- Entertainment
- Cruise Lines/Ships
- Cinemas
- Casinos
- Golf Clubs
- Stadiums
- Amusement Parks
- Others
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