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The vending machine market 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 growth of the market depends on several factors, including the growing demand for cashless vending machines, the growing demand for intelligent vending machines from the retail industry, and the increasing popularity of vending machines.
This 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. Furthermore, the report includes historic market data from 2017 to 2021.
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In 2017, in terms of market size, North America dominated the market with a share of USD 2,330.31 million. Additionally, US was the largest contributor of market share USD 1,591.32 million. The market segment low-end vending machines recorded the largest contribution in market share of USD 3,671.93 million and continues to grow.
Technavio categorizes the global vending machine market as a part of the global electronic equipment and instruments market within the overall electronics market. The parent global electronics market includes manufacturers of communications equipment, technology hardware storage and peripherals, electronic equipment and instruments, electronic components, consumer electronics, and industrial electronics products, as well as electronic manufacturing services. The global electronic equipment and instruments market is expected to grow at a moderate pace. Technavio calculates the global electronic equipment and instruments market size by considering the revenue generated from sales of the associated information communication and technology and electronics products, equipment, and components. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The growing demand for cashless vending machines is notably driving the market growth, although factors such as the high initial investments and maintenance costs for vending machines may impede the 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 Vending Machine Market Driver
The growing demand for cashless vending machines is the key factor driving the global vending machine market growth. Cashless payments through vending machines are expected to grow at a significant growth rate during the forecast period. The increase in smartphone adoption and payments using Internet-enabled devices, debit cards, and credit cards are some factors responsible for the growth of cashless payments.
Intelligent vending machines are becoming popular in offices, commercial complexes, institutes, hospitals, hotels, and other public places. Retailers operating in the market prefer purchasing vending machines that offer cashless features. With a retrofitting option in place, most vendors are opting for features that allow cashless transactions. The significant growth in near-field technology (NFT) is also responsible for the increase in the adoption of cashless transactions. Cashless payments are expected to go mainstream in the near future as more customers are switching to cashless transactions. Such factors will fuel the growth of the market during the forecast period.
Key Vending Machine Market Trend
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 behavior 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 sales of these machines.
Key Vending Machine Market Challenge
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.
Key Vending Machine 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 Vending Machine Market Customer Landscape
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 market
azkoyen.com - The company offers vending machines such as Vitro S1, Vitro S5, Novara Espresso, Neo Q Espresso, Neo Q Double Espresso, and Novara Instant.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 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.
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.
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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.
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.
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 17231.5 million from 2022 to 2027, at a CAGR of 24.94%.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, distribution channel, and region.
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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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Historical year |
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 12,426.7 million |
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Market structure |
Fragmented |
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YoY growth (%) |
14.69 |
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Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key consumer countries |
US, Japan, China, Germany, and UK |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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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 & 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, and Market condition analysis for the 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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