POS Terminals Market In Retail Sector 2024-2028 Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, India, Japan, Germany - Size and Forecast 2024-2028

POS Terminals Market In Retail Sector Size 2024-2028 

The POS terminals market in retail sector size is forecast to increase by USD 878.4 million at a CAGR of 4.5% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. One major factor is the need for efficient inventory management, which is driving the adoption of advanced POS systems. Additionally, security concerns have become a top priority for retailers, leading to an increase in the implementation of digital payment initiatives and cloud-based POS systems. Hardware, software, and services providers are responding by offering payment processing solutions that support advanced payment technologies, ensuring seamless transactions. The integration of customer relationship management (CRM) tools into POS systems is also enhancing the ability of retailers to personalize customer interactions and drive loyalty. Another key trend is the rise of self-service checkout systems, which are streamlining the payment process and reducing wait times for customers. These systems are becoming increasingly popular in high-traffic retail environments, offering greater convenience and efficiency. These trends are shaping the future of the market in the retail sector, with a focus on enhancing functionality, improving security, and providing a more seamless customer experience.

What will be the Size of the Market During the Forecast Period?

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Point-of-Sale (POS) terminals have revolutionized the retail sector, offering a hassle-free shopping experience in various industries such as restaurant, healthcare, and hospitality. The increasing penetration of smartphones and the internet has fueled the adoption of contactless payments, mobile payments, and digital payments through POS terminals. These terminals cater to both large retail outlets and micro-merchants, with NFC technology enabling near field communication for wireless transactions. POS technology has evolved to include cloud-based and integrated solutions, ensuring data safety and transaction efficiency. Credit card users and cashless transactions have become the norm, with e-wallet facilities and mobile payments further simplifying transactions. The retail landscape is witnessing a shift towards automation, with the emergence of automated supermarkets and the integration of POS technology in various sectors. The future of POS terminals lies in their ability to offer seamless, secure, and convenient payment modes, shaping the retail industry's digital transformation.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Technology
  • EMV
  • Non-EMV
• Product
  • Contact
  • Contactless
• End-user
  • Supermarket
  • Specialty store
  • Hypermarket
  • Gas stations
  • Others
• Geography
  • APAC
    • China
    • India
    • Japan
  • North America
    • US
  • Europe
    • Germany
  • South America
  • Middle East and Africa

By Technology Insights

The EMV segment is estimated to witness significant growth during the forecast period. In the retail sector, the use of mPOS terminals has become increasingly popular due to the rise in internet penetration and the growing number of credit card users. Advanced POS machines equipped with digital payment processing capabilities have replaced traditional cash registers, enabling businesses to accept various electronic payment methods. Cloud computing technology and mobile terminals have further facilitated seamless transactions, making POS systems more accessible and convenient. However, the adoption of these advanced systems has also brought about new challenges. The vulnerability of mPOS terminals to malware attacks, such as identity thefts and financial fraud, has become a significant concern.

Additionally, hackers employ techniques like random access memory (RAM) scraping and keyloggers to obtain sensitive information, including passwords and PINs. Keylogger software can be unintentionally downloaded when users install pirated software and can operate as a Remote Administration Trojan horse (RAT). In response to these threats, the demand for EMV POS terminals has surged, offering enhanced security features to protect against such fraudulent activities.

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The EMV segment accounted for USD 2.58 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 42% 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.

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In the retail sector, POS (Point of Sale) terminals have become indispensable tools for businesses in APAC (Asia Pacific) due to the region's significant growth potential. With an increasing number of retail outlets, such as supermarkets, specialty stores, warehouses, and shopping malls, the demand for secure and efficient checkout solutions is on the rise. Cloud-based and integrated POS terminals are popular choices among merchants in the region to ensure data safety and streamline consumer transactions. The presence of numerous retail chains in countries like China and India further boosts the market growth. These advancements are increasing the penetration of POS terminals in the region, with the adoption of checkouts, self-service electronic cash registers (ECRs), and receipt printers becoming increasingly common. As the digital economy continues to expand, the use of POS software and fixed terminals is expected to become more widespread, offering significant growth opportunities for POS terminal providers in APAC.

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.

Market Driver

Enhanced functionality of POS is the key driver of the market. In the retail industry, merchants are implementing modern Point of Sale (POS) terminals to deliver a superior shopping experience for consumers. These advanced POS systems offer retailers the ability to optimize operational savings and efficiency, enabling them to prioritize customer-centric initiatives to expand their customer base. Furthermore, POS technology facilitates the creation of customer loyalty programs, which foster upselling, cross-selling, and customer retention. The advanced functionalities of POS terminals include features such as stock management, purchase orders, staff management, and taxation. These capabilities streamline business processes, allowing for faster checkout and improved customer service.

Additionally, POS terminals offer cloud-based solutions, contactless payments through Near Field Communication (NFC) and mobile wallet integration, and analytics integration to help retailers make data-driven decisions. By adopting these advanced POS solutions, retailers can enhance their overall transaction efficiency and better cater to the evolving retail landscape. The integration of contactless payments and mobile wallets provides a seamless and convenient shopping experience for consumers, while the cloud-based solutions enable real-time access to critical business data from anywhere.

Market Trends

Increased demand for self-service checkout is the upcoming trend in the market. In today's business landscape, Point-of-Sale (POS) terminals have become essential tools for various industries, particularly in the retail sector. These terminals facilitate quick and secure transactions, enhancing the shopping experience for consumers. The self-service market, which includes retail checkout and kiosks, is experiencing significant growth. Self-service kiosks featuring specialized software and hardware are increasingly being adopted to minimize wait times at offices and retail stores. Contactless payments, such as those made using smartcards, add an extra layer of security to transactions.

However, self-service without a POS terminal can be time-consuming and lead to lengthy queues. Conversely, transactions processed through POS terminals are hassle-free and efficient. The expansion of the self-service market is expected to fuel the demand for POS terminals in sectors like retail, restaurant, healthcare, hospitality, and SMEs. By offering a seamless and automated shopping experience, POS terminals cater to the growing preference for convenience and speed among consumers.

Market Challenge

No fixed merchant bases is a key challenge affecting the market growth. In the retail sector, merchants have the flexibility to switch companies for POS terminal solutions due to low switching costs and minimal long-term commitments. This dynamic market environment can lead to price competition or consolidation among companies. To remain competitive, POS terminal providers must focus on delivering advanced payment processing technologies and ensuring secure transactions. Inventory management capabilities and seamless integration with digital payment initiatives are also essential features for retailers.

Cloud-based POS systems are gaining popularity due to their flexibility and cost-effectiveness. companies must continually innovate to meet the evolving needs of retailers, offering hardware, software, and services that cater to the unique requirements of various retail segments. By prioritizing security concerns and offering competitive pricing, companies can attract and retain customers in this dynamic market.

Exclusive Customer Landscape

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 analysis strategies.

 Customer Landscape

Key Companies & Market Insights

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.

Cybernet Manufacturing Inc. - The company offers POS terminal namely iPOS G45.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• BBPOS International Ltd.
• Block Inc.
• Fiserv Inc.
• HP Inc.
• NBS Payment Solutions Inc.
• NCR Voyix Corp.
• NEC Corp.
• New POS Technology Ltd.
• Newland Digital Technology Co. Ltd.
• Oracle Corp.
• PAX Global Technology Ltd.
• Posiflex Technology Inc.
• Qashier Pte Ltd.
• Samsung Electronics Co. Ltd.
• Toshiba Corp.
• Touch Dynamic
• UICPayworld
• VeriFone Inc.
• Worldline SA

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.

Research Analyst Overview

Point-of-Sale (POS) terminals have revolutionized the retail sector, offering a hassle-free shopping experience for consumers in various industries such as restaurant, healthcare, hospitality, and SMEs. The increasing penetration of smartphones and the internet has led to a wave in contactless payments and digital payments, making advanced POS machines an essential electronic device for businesses. POS terminals offer payment processing capabilities through various modes, including mobile terminals, self-service terminals, and virtual POS terminals. Cloud computing technology enables real-time monitoring, inventory tracking, auto-replenishment, order generation, and analytics integration. POS systems come in various forms, including integrated and cloud-based solutions, catering to the needs of retail outlets, retail chains, and e-commerce businesses.

Further, security concerns are addressed through advanced payment technologies like NFC, biometric payment cards, and encryption. POS technology has transformed the retail landscape, enabling fast checkout, wireless transactions, e-wallet facilities, and mobile payments. The integration of payment systems with POS software and hardware has streamlined transaction efficiency, offering a seamless experience for both businesses and consumers. Digital payment initiatives have gained momentum, with the rise of smart POS terminals, solid-state technology, and near-field communication. These advancements have addressed the need for data safety, multi-store management, and supplier order management, making POS technology an indispensable part of the digital economy.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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