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The vending machine market size is estimated to grow by USD 12.42 billion at a CAGR of 16.81% between 2022 and 2027. Vending machines offer a range of benefits for retailers, including enhanced customer interaction experiences and the ability to customize services and product offerings. These machines can provide valuable insights into customer behavior and preferences, allowing retailers to tailor their offerings to meet specific requirements. Additionally, they can improve operational efficiency and reduce costs for retailers, making them a valuable investment in today's competitive retail environment. They also offer convenience and accessibility, allowing customers to make purchases at any time without the need for human intervention. Furthermore, these machines can be equipped with advanced payment systems and interactive displays, enhancing the overall shopping experience for customers.
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This 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, the Middle East, Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
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. They are traditional/conventional and 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 behavior. The strong increase in the number of retail outlets is contributing to the growth of the segment of the market in focus. Unlike major retail establishments that can afford to purchase, most small and medium-scale retailers use low-end vending machines. These retailers are increasingly adopting these 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 these by retailers. They 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 is expected to grow steadily in developing economies, although the 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, 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 and is expected to grow at a significant growth rate during the forecast period owing to the rising adoption 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 from retailers and part-time and home-based businesses. Other North American countries, such as Mexico and Canada, are also contributing to the regional market.
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The market is evolving with innovative features like touch-screen controls, video, audio, and even scent options, enhancing consumer experience. These machines offer a variety of products, from packaged food to beverages, catering to different needs. With the rise of cashless payment systems, they are becoming more convenient in places like hotels, restaurants, and corporate offices. The industry is also focusing on profit maximization strategies, adapting to consumer behavior and preferences for healthier options like zero-sugar beverages and snacks. 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 market is fueled by the growing demand for cashless vending machines. Cashless payments, fueled by the widespread adoption of smartphones and electronic payment methods, are poised for substantial growth. They are gaining popularity in diverse environments such as offices, commercial complexes, hospitals, and hotels. These machines are equipped with touch-screen controls and smart customer service technologies, offering convenience to users. They are often integrated with cashless payment systems, making transactions seamless for customers. This trend is particularly notable in hotels, restaurants, corporate offices, and public places where convenience and efficiency are highly valued. These machines cater to a wide range of consumer needs, offering convenience food items and on-the-go snacks. Retailers are showing a preference for cashless-enabled machines, with retrofitting options available to facilitate seamless transactions. The increasing use of near-field technology (NFT) and the growing customer inclination towards cashless payments are expected to fuel the market's growth in the coming years.
The real-time data collection capabilities of intelligent vending machines will fuel the market growth. Most of these 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. They have advanced features, such as operations management, inventory management, customer analytics, transaction management, software and platform management, and digital advertising and content management systems.
Customized software analytics and cloud-based servers are used to manage large real-time customer data. Machine-learning algorithms and real-time customer data tracking allow retailers to analyze customer profiles based on their behavior and the number of purchases. They also help in tracking real-time operational data like daily sales, footfalls, and inventory levels. The increase in real-time data collection through these is trending in the 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 market growth. End-users are required to make huge capital investments in procuring the software and hardware. 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, companies need to launch innovative products, which require heavy investments in R&D. However, while the cost of manufacturing is very high, the cost of renting them is also increasing every year.
Additionally, with the evolution of new technology and changing preferences, owners 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, companies 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 will prove to be a price challenge for the market during the forecast period.
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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. One of the major companies in the market include:
Azkoyen SA- 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 20 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. Furthermore, it is also quantitatively analyzed to categorize companies 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 provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The market is rapidly evolving with the integration of smart and gesture-based interaction technologies, offering consumers a convenient way to access a variety of products. These machines are found in various locations such as airports, malls, and railway stations, catering to fast-moving cities where people have busy lifestyles. They offer a range of items from food and beverages to tobacco products and beauty & personal care items. With the rise of cashless payment modes, the industry is also addressing environmental concerns such as carbon footprint.
The market is a diverse and dynamic sector catering to various consumer needs. These machines, ranging from food vending machines to beverage vending machines, offer a wide array of products like ready-to-eat food products, high-sugar content beverages, and candy & confectionery. With the advent of smart machines, the industry is evolving to meet the demands of consumers' busy lifestyles and environmental concerns. The market also extends to sanitary pad vending machines, addressing health and hygiene needs. Additionally, they are often found in corporate buildings, schools, and other public spaces, offering convenience and accessibility.
The market is a key player in the consumer goods industry, offering a range of products from ready-to-eat food and beverages to cigarettes and lottery tickets. These machines, available in various forms such as automatic machine and semi-automatic machine, accept cash and sometimes even feature reverse vending machines (RVM) for recycling. In regions like India, initiatives like the Small Industries Development Bank of India (SIDBI) support the deployment of Plastic Reverse Vending Machines (RVMSs), promoting environmental sustainability. With a focus on convenience and accessibility, they cater to diverse preferences, including nutritious food, high-sugar content, and low-calorie beverages, all while leveraging self-service technology.
In the heart of fast-paced cities, upscale restaurants and crowded pubs cater to diverse tastes. Amidst the flurry of activity, coins and tokens jingle, facilitating seamless transactions in automated processes. But amidst the hustle, a shift towards healthier snacks emerges, reflecting evolving lifestyles. Upscale eateries tantalize with culinary masterpieces, while pubs buzz with camaraderie and laughter. Coins and tokens exchange hands effortlessly, fueling the city's economy. As urbanites navigate the whirlwind, they seek balance, opting for nutritious bites amidst the chaos. In these bustling hubs, where time never stands still, every moment savored is a testament to the vibrant pulse of city life.
Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.81% |
Market growth 2023-2027 |
USD 12.42 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.69 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, Japan, China, Germany, and UK |
Competitive landscape |
Leading companies, market forecast, Market Positioning of companies, Competitive Strategies, and Industry Risks |
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 companies Inc., Sanden Corp., Seaga Manufacturing Inc., Sielaff GmbH and Co. KG, The Coca Cola Co., Westomatic Vending Services Ltd., and Worldline SA |
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, Market condition analysis for the 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 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
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