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The cloud point of sale market is estimated to increase by USD 10.25 billion and grow at a CAGR of 26.72% between 2023 and 2028. Market growth hinges on various factors, such as the expanding implementation of cloud point of sale systems in the retail sector, rising consumer demand for contactless payment solutions, and the burgeoning e-commerce industry. However, challenges persist, including apprehensions regarding data security, inadequate infrastructure, and limited consumer awareness. Despite the promising trajectory driven by advancements in retail technology and changing consumer preferences towards seamless payment experiences, uncertainties surrounding data protection and infrastructure readiness pose obstacles to sustained growth. Overcoming these challenges necessitates strategic measures to address data security concerns, invest in robust infrastructure development, and enhance consumer education efforts to foster confidence in emerging payment technologies. Such initiatives are crucial for ensuring the continued evolution and success of the market in meeting the demands of a rapidly changing retail landscape.
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The market share growth by the retail and consumer goods segment will be significant during the forecast period. The retail and consumer goods segment of the market refers to the use of these solutions by retail establishments such as grocery stores, department stores, and specialty stores. These solutions are used to process sales, manage inventory, and receive payments from customers.
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The retail and consumer goods segment was valued at USD 830.20 million in 2018 and continued to grow by 2022. In the last few years, the retail and consumer goods industries have moved to e-commerce, and cloud point of sale solutions play a key role in facilitating online transactions. Overall, the use in the retail segment is expected to continue to grow as businesses look for ways to improve efficiency and provide a better customer experience. These factors are, therefore, expected to drive the growth of the featured global market during the forecast period.
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APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. China and India are the major countries contributing to the growth of the market in this region. An increasing number of retail outlets such as supermarkets, specialty stores, department stores, and malls are driving the growth of the retail industry. Merchants in the region are adopting cloud point of sale to make shopping easier and faster. Therefore, the growth opportunity for such solutions in this region is great. The rising purchase power of consumers, a large potential consumer base, and the growing sales of debit and credit cards in the region have increased the demand, which, in turn, is driving the growth of the regional market during the forecast period.
Cloud Point of Sale (POS) systems have become increasingly popular in various industries including restaurant, retail, aviation, hospitality, and manufacturing. These systems allow quick data consolidation and inventory management from a remote server, enabling real-time sales tracking and easy access to important business information. Cloud POS systems eliminate the need for expensive hardware and installation costs, making them an affordable option for start-ups and small businesses. The market is witnessing significant growth due to the increasing trend of cashless transactions and the need for contactless payment solutions. Chain stores and large retailers are adopting cloud POS systems to manage their sales and inventory across multiple locations. An internet connection is required for these systems to function, making them suitable for businesses with a strong online presence. However, limitations such as the need for a stable internet connection and potential security concerns may hinder the growth of the market. The COVID-19 pandemic has led to store closures and travel restrictions, forcing businesses to rely on digital payments and cloud-based solutions for sales. The market is expected to continue growing as more businesses adopt cloud POS systems to streamline their operations and adapt to changing consumer behavior. Sale prices for cloud POS systems vary depending on the features and the size of the business. Manufacturers offer different packages for various industries, including auto, retail, and aviation. Despite the benefits, businesses should consider the potential limitations and evaluate the costs before making the switch to cloud POS systems.
The growing application of cloud point of sale in retail is the key factor driving the growth of the market. In the retail segment, point-of-sale solutions offer a point-of-sales operating system, easy payment methods, and the ability to create and manage a customer database in a structured format. Additionally, with increasing digital transformation, e-commerce, and cashless payments are becoming more prevalent, and retailers require additional capabilities in their point of sale software to manage both online and in-store sales. Additionally, retailers around the world are facing the impact of the COVID-19 pandemic, ongoing labor shortages, supply chain issues, and rising consumer expectations.
Thus, vendors are launching cloud point-of-sale solutions specifically for retailers, which will help the retail sector overcome these negative impacts. For instance, In January 2022, NCR and Alphabet Inc. (Google Cloud) announced a partnership to bring additional platform and cloud capabilities, including AI and machine learning solutions, to retailers worldwide. This will give them access to best-in-class tools and high flexibility to deliver excellent in-store experiences to consumers, which will drive the growth of the market in focus during the forecast period.
Continuous development of new solutions is the primary trend in the global cloud PoS market growth. Continuous development of new solutions by providers is one of the main trends in the market. The development of sophisticated solutions by some vendors also encourages other vendors to develop innovative solutions to remain competitive in the market. For instance, in May 2022, NCR launched NCR Aloha Cloud, a cloud-based point-of-sale solution. Aloha Cloud delivers a refreshed user interface (UI), the smallest handheld device on the market, and seamless payment processing with next-day funding of deposits.
Similarly, in January 2021, Block announced the launch of Square for Retail. It is a new full point-of-sale system that will help retailers with their operations and run their businesses better. Therefore, the above factors are expected to drive the growth of the global market during the forecast period.
Data security concerns are major challenges to the growth of the global cloud PoS market. Various security risks and privacy concerns associated with implementing the solutions hinder their adoption. End users need to spend more on effectively deploying cybersecurity processes and systems to make their solutions in the cloud safer and more secure. This increases the cost of owning and implementing a solution. Retailers are highly vulnerable to threats of unauthorized access and data leakage, but retailer administrators should pay attention to cybersecurity when implementing these solutions.
End users need reliable internet connectivity and third-party services that mitigate the vulnerabilities inherent in these solutions. Additionally, providing system access to third parties for upgrades and implementing the solutions increases the risk of data leakage. Therefore, such privacy and security concerns are expected to hamper the growth of the global market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Fiserv Inc.: The company offers point of sale software that helps in taking orders and accepting payments and the point of sale software syncs with the cloud, so one can access the sales, refunds, deposits, and reports, under the brand name of Clover.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Cloud Point of Sale (POS) systems have revolutionized sales and inventory management in various economic sectors, including retail, manufacturing, auto, aviation, hospitality, and more. These systems enable quick data consolidation, remote server access, and real-time reporting, making business operations more efficient. A cloud POS system consists of a cashier's kiosk and a hostess' desk, both connected to the internet for seamless transactions. Chain stores benefit significantly from cloud POS systems due to their ability to manage sales, inventory, and promotions centrally. The system allows for the implementation of loyalty software, coupons, and discounts, enhancing customer engagement and retention.
Moreover, payment options are diverse, including cashless transactions, digital payments, and contactless payments, ensuring flexibility and convenience. Cloud POS systems offer several advantages, such as speed, accuracy, and secure software. However, they come with start-up expenses, including hardware costs, installation fees, and internet connection charges. Economic sectors, such as retail, tendering, online transaction, safety, cleanliness, standard POS systems, and discretionary consumer, have seen a surge in cloud POS adoption due to the lockdown and social distancing measures. However, limitations, such as store closures and travel restrictions, may impact the growth of the market. In conclusion, cloud POS systems offer numerous benefits to businesses, including real-time reporting, inventory management, and payment flexibility. Despite some limitations, the market is expected to grow significantly in the coming years, driven by the increasing adoption of digital transactions and the need for contactless payments.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 26.72% |
Market growth 2024-2028 |
USD 10.25 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
23.38 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, UK, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ARBA Retail Systems, Dotykacka CR s.r.o., Bindo Labs Inc., Block Inc., CDW Corp, Epicor Software Corp., Fiserv Inc., Intuit Inc., Lightspeed Commerce Inc., NCR Voyix Corp., Oracle Corp., PAR Technology Corp, Paychex Inc., Poster Pos Inc, Revel Systems Inc., Shopify Inc., Teraoka Seiko Co. Ltd., Toast Inc., TouchBistro Inc., and TRANSACT LLC |
Market dynamics |
Parent market analysis, Market forecasting, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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