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The cloud point of sale (PoS) market is estimated to increase by USD 5.29 billion and grow at a CAGR of 19.38% between 2022 and 2027. 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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This report extensively covers market segmentation by application (retail and consumer goods, travel and hospitality, media and entertainment, transport and logistics, and healthcare), component (solution and services), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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 721.82 million in 2017 and continued to grow by 2021. 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.
In the market, businesses increasingly rely on cloud solutions providers for maintenance and upkeep, reducing the burden on internal IT teams and minimizing payroll costs associated with traditional on-premises POS systems. Cloud dominance extends across vertical industries, offering benefits such as environmental flexibility and continuous functionality. End users, including essential stores like pharmacies and grocery supply stores, leverage cloud technology to facilitate cash on delivery payments and support contactless payment technologies. Cloud-based solutions cater to diverse business needs, serving e-commerce websites and online marketplaces while providing growth prospects for businesses worldwide. With data hosted on remote vendor servers, businesses can enjoy the flexibility and scalability of cloud-based POS solutions, ensuring seamless operations and enhanced customer experiences.
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 cloud point of sale 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 2023 to 2027 as well as historical data from 2017 to 2021 for the following segments.
The market experiences rapid growth driven by the increasing adoption of cloud technology in the retail sector, offering benefits such as environmental flexibility and continuous functionality. Traditional on-premises POS solutions face competition from cloud computing providers offering web-based financial services through remote vendor servers. Cloud POS systems cater to various vertical industries, including e-commerce websites and online marketplaces, with support for contactless payment technologies and cash on delivery options. Essential stores like pharmacies and grocery supply stores in regions like Asia-Pacific and LAMEA witness growth prospects with cloud-based POS solutions, enhancing workplace productivity and dynamic decision-making abilities. Major companies leverage Software as a Service (SaaS) models for real-time monitoring, price adjustment, and customer data analysis, ensuring sales efficiency and market competition. Despite concerns about costs and reliability, cloud POS systems offer efficient support services and data analytics expertise, aligning with company goals and operational needs.
Cloud Point Of Sale Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.38% |
Market growth 2023-2027 |
USD 5.29 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.4 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, Canada, China, Japan, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ARBA Retail Systems, Dotykacka CR s.r.o., Bindo Labs Inc., CDW Corp., Intuit Inc., Lightspeed Commerce Inc., Oracle Corp., PAR Technology Corp., Paychex Inc., Revel Systems Inc., Shopify Inc., Teraoka Seiko Co. Ltd., TouchBistro Inc., TRANSACT LLC, Block Inc., Epicor Software Corp., Fiserv Inc., NCR Corp., Toast Inc., and Poster Pos Inc |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our Market forecast 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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