Global POS terminals market by End-user, Component and Geography - Forecast and Analysis 2023-2027

POS Terminals Market Forecast 2023-2027 

The point of sale (POS) terminal market is estimated to grow by USD 46.07 billion at a CAGR of 8.23% between 2022 and 2027. 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.

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

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Market Segmentation

This report extensively covers market segmentation by end-user (entertainment, hospitality, healthcare, retail, and others), component (hardware, software, 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.

By End-User

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 26.25 billion in 2017. The entertainment segment of POS terminals refers to the use of POS 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 POS 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. 

By Region

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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 POS terminals. For instance, in 2020 Network for Electronic Transfers (Singapore), in collaboration with United Overseas Bank, deployed 2,000 integrated POS terminals in more than 650 retail stores across Singapore. Such an increase in POS terminal deployment among end-users is expected to boost the growth of the regional point of sale (POS) terminal market during the forecast period. 

Market Dynamics and Customer Landscape

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 2022 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.

Key Market Driver

• 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. 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.

Significant Market Trend

• 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.
• 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.

Major Market Challenge

• 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. 
• POS terminals 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. 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.

Key Market Customer Landscape

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

Who are the Major POS Terminals Market Companies?

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:

• Bitel Corp.
• Castles Technology Co. Ltd.
• Cegid SA
• CitiXsys Holdings Inc.
• Diebold Nixdorf Inc.
• Elavon Inc.
• Fiserv Inc.
• Ingenico Group SA
• Lightspeed Commerce Inc.
• NCR Corp.
• Newland Europe BV
• Oracle Corp.
• PAX Global Technology Ltd.
• PayPal Holdings Inc.
• Revel Systems Inc.

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.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-User Outlook 
  • Entertainment
  • Hospitality
  • Healthcare
  • Retail
  • Others

• Component Outlook
  • Hardware
  • Software
  • Services

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

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. 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 vendors 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	169
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.23%
Market growth 2023-2027	USD 46.07 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	7.63
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 46%
Key countries	US, China, Japan, Germany, and UK
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, Lightspeed Commerce Inc., 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 Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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