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The point of sale (POS) terminal market is estimated to grow by USD 54.9 billion at a CAGR of 8.98% between 2023 and 2028. The growth of the market is indeed driven by various factors, including the increasing demand from end-users for more efficient and convenient payment options. The rise in contactless payments is also a significant driver, as it offers a faster and more hygienic way to complete transactions. Additionally, the need for self-service POS terminals is growing, especially in industries like retail and hospitality, where customers prefer quick and autonomous transactions. Moreover, the market is witnessing a shift towards mobile POS solutions, which offer flexibility and mobility for businesses. The integration of advanced technologies like AI and analytics in POS systems is also driving market growth, as it enables businesses to gain valuable insights and enhance customer experiences. Furthermore, the report includes historic market data from 2018 - 2022.
The market is witnessing significant growth, driven by technological advancements and the increasing adoption of electronic appliances. Fixed and mobile POS terminals are extensively used in various sectors, such as retail, hospitality, and rental cabs for tasks like sales tracking, inventory management, and accounting. The market is also influenced by the rise of online transactions and the integration of in-store and online sales. However, security and privacy concerns, particularly with contactless and NFC devices, remain key challenges for market growth. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growth in end-user demand for POS terminals is the key factor driving the growth of the market. The growing demand for advanced technologies for managing payments in large end-user industries is a notable driver for market growth. This trend is driven by factors such as major applications/end users, technological advancement, growth strategies, brand fresh entrants, electronic appliances, wireless devices, rental cabs, and the retail and hospitality sectors. The end-user industries include hospitals, retail stores, and restaurants among others. Many end-users demand a wide variety of payment solutions.
Moreover, this leads to POS terminal providers focusing on meeting their needs to retain existing customers and attract new ones. This trend is driven by factors such as sales tracking, inventory management, computers, online transactions, mobile-based POS terminals, and payment technologies. There is a great penetration of wireless POS terminals like mobile phones and tablets, which improves convenience for customers.Many small-sized retailers in various developing countries are adopting POS terminals for secure and convenient payments, which is driving the demand for the global market during the forecast period.
The advent of HCE-based POS transactions is the primary trend in the market growth. With HCE software, you can use your mobile phone at a physical POS terminal in the form of a card for credit or debit transactions. The advent of HCE has opened up alternative routes for contactless payments. This allowed service providers to eliminate the integration and commercial deployment challenges associated with the secure element model.
Moreover, HCE brings convenience to users by reducing physical card payments. HCE software manages transactions and leverages the POS metadata of users, phones, and merchants to perform dynamic risk management. With HCE, your sensitive payment information is stored in a secure shared repository, ensuring your privacy and security. Such advantages may increase the demand for his POS transactions based on HCE during the forecast period.
Security concerns related to the use of POS terminals are a major challenge to the growth of the market. If a POS terminal goes down, it might take time to identify and fix the technical issue, which will result in retailers wasting their time and resources in managing and overseeing the repairs. These are subjected to various attacks like direct attacks, spoofing, replay risks, brute force attacks, and reverse engineering.? The operational cost of POS terminals is considered higher than a conventional setup. Setup costs, individual transaction costs, monthly subscription costs, and cancelation costs are some of the major costs.
Moreover, this poses a challenge to the market’s demand. For instance, in July 2018, Macy's, a department store chain in the U.S., revealed that third parties had gained access to the credit card numbers and expiration dates of its customers.? Such a rise in the number of data breaches is likely to create fear among consumers regarding the security risks associated with POS terminals and can negatively impact customer trust. Thus, the security concerns related to the use of POS terminals are expected to adversely affect the market during the forecast period.
The market forecasting 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 market growth and forecasting strategies.
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.
BBPOS Co. – The company offers point of sale terminals such as Chipper Mini 2, Chipper OTA, and Chipper 2X. Also, it offers end-to-end mobile POS products and solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the entertainment segment will be significant during the forecast period. The use of POS terminals in the entertainment segment is expected to continue to grow as businesses look for ways to streamline their operations and offer a seamless customer experience. As technology continues to advance, they are likely to become even more sophisticated and offer new features that further enhance the entertainment experience for customers. Therefore, owing to these factors, the growth of the market in focus is expected to propel during the forecast period.
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The entertainment segment was valued at USD 27.70 billion in 2018. The entertainment segment of POS terminals refers to the use of these terminals in companies that provide entertainment services such as movie theaters, amusement parks, casinos, and sports venues. This segment uses these terminals to process ticket sales, merchandise purchases, and food and beverage sales. Using these in the entertainment segment brings several benefits to your business, including increased efficiency and accuracy in transaction processing, the ability to track sales data and inventory levels, and the ability to offer your customers a variety of payment options. In addition, the entertainment segment's new terminals could include features such as touch screens, barcode scanners, and mobile payment options, which could improve customer experience and reduce waiting times. increase. Such factors will boost the growth of the segment during the forecast period.
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APAC is estimated to contribute 46% 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. Countries such as China and India are adopting these terminals due to the high penetration of organized retail outlets such as supermarkets and hypermarkets. In addition, China, Australia, India, and Indonesia are increasing the adoption of contactless payment methods. Factors like these could drive the adoption of these terminals across APAC.
Various government initiatives are taking place in different countries in APAC to improve cashless payment scenarios. Many end-users in APAC are also focusing on improving their payment experience with terminals. For instance, in 2020 Network for Electronic Transfers (Singapore), in collaboration with United Overseas Bank, deployed 2,000 integrated terminals in more than 650 retail stores across Singapore. Such an increase in terminal deployment among end-users is expected to boost the growth of the regional point of sale (POS) terminal market during the forecast period.
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.
The market is a dynamic sector driven by technological advancements and the increasing demand for efficient electronic appliances in various industries. Major applications include deployment in pharmacies, resorts, hotels, gas stations, and food service providers. The market is characterized by the adoption of wireless devices and the integration of EMV cards for secure transactions. The market continues to evolve with innovations like Artificial Intelligence (AI), digital menu boards, and dual lanes, enhancing customer and employee management in fast-casual businesses like Chipotle.
The market is a critical component of modern electronic appliances used in various industries, particularly the retail and hospitality sectors. These terminals facilitate secure transactions and are compatible with EMV cards for enhanced security. They find applications in bars, cash registers, and kitchens, improving inventory tracking and unifying in-store and online sales. However, challenges such as privacy issues, data leakage, and identity threats persist, emphasizing the need for robust network security solutions like VeriFone's VeriShield. The market is evolving with advancements in artificial intelligence and wireless communication technologies, enhancing customer management and optimizing e-commerce operations.
The Point-of-Sale (POS) terminal landscape is evolving rapidly, with various trends and technologies shaping its trajectory. Drive-thrus and Near Field Communication (NFC) devices are enhancing convenience and speed at checkout points. Fixed POS terminals remain a staple, while mobile POS (mPOS) systems are gaining ground, offering flexibility and mobility. Hardware components are integral, but software integration is equally crucial, facilitating seamless operations and enhanced functionality. The market landscape depends on Downstream application, consumption area, electronic appliance, remittance, e-commerce and retail sector. Deployment options include both cloud and on-premises solutions, catering to diverse business needs. Retail environments, including supermarkets, convenience stores, grocery stores, and specialty stores, are embracing POS systems to streamline transactions and improve customer service. Customer Relationship Management (CRM) and Business Intelligence (BI) tools are integrated into POS systems to enhance customer satisfaction and drive business insights.
Payment modes are diversifying, with companies offering e-wallet facilities, tap-and-pay cards, and mobile payment options. Governments are promoting digital payments, Supermarkets/hypermarkets, CRM (Customer Relationship Management), and BI (Business Intelligence) fostering a shift towards cashless transactions. Security remains a paramount concern, with cloud-based POS terminals emphasizing data safety to mitigate the risk of fraudulent transactions. Industries such as healthcare and retail are increasingly reliant on POS systems to manage transactions efficiently. From debit and credit cards to small shops, POS systems are ubiquitous, driving strategic partnerships between businesses and payment service providers to deliver seamless payment experiences. Both Cloud deployment and On-premises deployment are on the rise, bolstering the POS system market.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.98% |
Market growth 2024-2028 |
USD 54.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.02 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
China, US, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BBPOS International Ltd., Bitel Corp., Castles Technology Co. Ltd., Cegid SA, CitiXsys Holdings Inc., Diebold Nixdorf Inc., Elavon Inc., Fiserv Inc., Ingenico Group SA, NCR Corp., Newland Europe BV, Oracle Corp., PAX Global Technology Ltd., PayPal Holdings Inc., Revel Systems Inc., Squirrel Systems U.S. Inc., TouchBistro Inc., VeriFone Inc., and WInpos Group AB |
Market dynamics |
Parent market analysis, market report, Market forecast, 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 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 End-user
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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