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The global vending machine market size is estimated to grow at a CAGR of 16.81% and the size of the market is forecast to increase by USD 12,426.7 million between 2022 and 2027. The market growth is propelled by the retail industry's appreciation for the benefits of intelligent vending machines, which enhance customer interaction experiences. These machines enable retailers to customize their services and product offerings to meet their specific requirements.
This vending machine research report extensively covers market segmentation by product (low-end vending machines and intelligent vending machines), distribution channel (offline and online), and geography (APAC, North America, Europe, Middle East, and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The global vending machine market is fueled by the growing demand for cashless vending machines. Cashless payments, driven by smartphone adoption and electronic payment methods, are set to witness significant growth. Intelligent vending machines are gaining popularity in various settings like offices, commercial complexes, hospitals, and hotels. Retailers prefer cashless-enabled machines, with retrofitting options available for seamless transactions. The rise of near-field technology (NFT) and increasing customer preference for cashless payments will drive the market's growth in the forecast period.
The real-time data collection capabilities of intelligent vending machines will fuel the global vending machine market growth. Most vending machines focus on dispensing products. The functionality of the machine is based on the hardware and the software, along with the microprocessors and controllers used in designing the machine. Intelligent vending machines have advanced features, such as operations management, inventory management, customer analytics, transaction management, software and platform management, and digital advertising and content management system.
Customized software analytics and cloud-based servers are used to manage large real-time customer data from vending machines. Machine-learning algorithms and real-time customer data tracking allow retailers to analyze customer profiles based on their behaviour and the number of purchases. Intelligent vending machines also help in tracking real-time operational data like daily sales, footfalls, and inventory levels. The increase in real-time data collection through intelligent vending machines is trending in the global vending machine market. Thus, during the forecast period, the incorporation of advanced features, such as real-time data collection, is projected to raise the value and volume of sales of these machines.
The high initial investments and maintenance costs for vending machines are a major challenge to the global vending machine market growth. End-users require to make huge capital investments in procuring the software and hardware for intelligent vending machines. Although they can customize the hardware and software according to their needs, such customization can also be outsourced to third-party suppliers, which leads to considerable additional costs. To withstand the competition in the market, vendors need to launch innovative products, which require heavy investments in R&D. However, while the cost of manufacturing vending machines is very high, the cost of renting them is also increasing every year.
Additionally, with the evolution of new technology and changing preferences, owners of intelligent vending machines need to continuously upgrade their software and other related services, which again incur high costs for them. Sometimes upgrading and troubleshooting can take days to resolve, thereby resulting in a loss of revenue. Hence, vendors are coming up with various strategies to reduce such losses. These include absorbing extra costs, rearranging routes, reducing product variety, eliminating unprofitable accounts, raising product prices, and lowering commissions. Thus, the high maintenance costs incurred by intelligent vending machines will prove to be a price challenge for the market during the forecast period.
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Based on product, the market is segmented into low-end vending machines and intelligent vending machines. The market share growth by the low-end vending machines segment will be significant during the forecast period. Low-end vending machines are traditional/conventional vending machines mostly used for dispensing consumer products. In recent years, the number of retail outlets has increased at an exponential rate globally, especially in developing countries, amid rapid urbanization, the substantial growth of the organized retailing sector, the rise in overall household disposable incomes, and a noteworthy shift in consumer buying behaviour. The strong increase in the number of retail outlets is contributing to the growth of the low-end vending machines segment of the market in focus. Unlike major retail establishments that can afford to purchase intelligent vending machines, most small and medium-scale retailers use low-end vending machines. These retailers are increasingly adopting such vending machines to minimize the recurring costs associated with hiring and retaining labour/manpower to enhance productivity and promote cashless and quick shopping practices.
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Emerging economies such as India and Brazil are the largest adopters of low-end vending machines. This is attributed to the presence of a large number of small- and medium-scale retailers in these countries. Also, major transactions for food and beverages are conducted in cash, which promotes the adoption of low-end vending machines by retailers. Low-end vending machines also allow small shops to innovate and allow customers to quickly shop for products after office hours and on any day of the week. The demand for low-end vending machines is expected to grow steadily in developing economies, although the intelligent vending machines segment is expected to grow faster. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027. The growth of this segment is primarily attributed to the increasing adoption of Vending Machines, which is driven by an increase in the global demand for the Vending Machine Industry.
North America is projected to account for 37% of the global market share growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is a major market for vending machines and is expected to grow at a significant growth rate during the forecast period owing to the rising adoption of vending machines by different end-user industries. In 2022, the US is the highest contributor to the market in North America. North America is witnessing the rising demand for vending machines from retailers and part-time and home-based businesses. Other North American countries, such as Mexico and Canada, are also contributing to the regional vending machine market.
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This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 led to a decline in demand for vending machines in North America. In 2020, the COVID-19 pandemic negatively impacted the travel and food and beverages industries and many more non-essential businesses in the region. The increase in the number of COVID-19 cases compelled governments of various countries in the region to impose lockdowns and stay-at-home policies, which led to the closure of many shopping outlets, cafeterias, airports, and other places that use vending machines. This significantly affected the demand for vending machines in the region. However, the initiation of large-scale vaccination drives led to the lifting of lockdown restrictions and the resumption of travelling operations in the last quarter of 2020. Moreover, the rising demand for intelligent vending machines and the growing demand for vending machines in the food and beverage industry will drive the growth of the regional market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Vending Machine Market. One of the major vendor in the market include:
Azkoyen- The company offers vending machines such as Vitro S1, Vitro S5, Novara Espresso, Neo Q Espresso, Neo Q Double Espresso, and Novara Instant.
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. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Vending Machine Food and Beverages market - The market share is expected to increase to USD 1.84 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.26%.
Intelligent Vending Machine market - The market report is a comprehensive research document that provides in-depth qualitative and quantitative intelligence. Technavio’s analysts estimate a market share growth of USD 17,231.5 million from 2022 to 2027, at a CAGR of 24.94%.
The market research 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.
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Vending Machine Market Scope |
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Report Coverage |
Details |
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Page number |
158 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.81% |
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Market growth 2023-2027 |
USD 12426.7 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
14.69 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key countries |
US, Japan, China, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Azkoyen SA, Bianchi Industry Spa, BULK VENDING SYSTEMS Ltd., Compass Group Plc, Continental Vending Inc., Crane Payment Innovations Inc., Ellab AS, Federal Machine, Furukawa Electric Co. Ltd., Future Techniks India Pvt. Ltd., Glory Ltd., Intel Corp., Orasesta Spa, Royal Vendors Inc., Sanden Corp., Seaga Manufacturing Inc., Sielaff GmbH and Co. KG, The Coca Cola Co., Westomatic Vending Services Ltd., and Worldline SA |
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Market dynamics |
Parent market analysis, 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 |
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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 Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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