Cloud POS Market Size By Component (Software, Service [Maintenance & Support, Consulting & Training]), By Organization Size (SMEs, Large Enterprises), By Application (Retail & E-Commerce, Restaurant, Hospitality, Transportation & Logistics, Entertainment & Media, Healthcare), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Dec 2020  |  Report ID: GMI3418  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 250   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Cloud POS Market size exceeded USD 1.5 billion in 2019 and is poised to grow at a CAGR of over 27% from 2020 to 2026. Increasing usage of cloud-based payment systems for inventory, employee, order, and customer management in small businesses will boost the market growth.

A rise in the adoption of mobile and contactless payments among consumers will drive the cloud POS market demand. According to the Mastercard Contactless Consumer Polling survey, in April 2020, 51% of consumers in the U.S. used contactless payment including mobile wallets and tap-to-go credit cards. The growing adoption of digital payments is encouraging several industries, such as retail, restaurant, and healthcare, to adopt advanced solutions for facilitating rapid payment transactions. These industries are increasingly deploying cloud POS solutions to offer enhanced customer service experience and remain competitive in the market.

Cloud POS Market

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Restaurants are adopting cloud POS solutions to simplify customer engagement operations and sales tasks. These solutions enable restaurant owners to track and record transactions with customer purchase histories and necessary information required for growth and increased profits. Several cloud POS market players offer these solutions based on the specific restaurant’s application to manage daily operations and maximize profits.

The coronavirus (COVID-19) pandemic has slightly impacted the cloud POS market growth in Q1 to Q2, owing to closure of businesses and restaurants. Stringent lockdowns have forced consumers to purchase necessary products online as it provides them contactless ways to shop and pay. In March 2020, data from the Bazaarvoice Network showed that there was 21% increase in online orders in March 2020 compared to March 2019. The rise in online shopping will encourage businesses to adopt solutions that integrate mobile ordering and digital payment capabilities. The market will witness growth in 2021, as cloud POS solutions are allowing merchants, retailers and business owners to efficiently deploy and meet multi-payment & channel requirements of managing large-scale inventory and other business processes.

Demand for faster and secure payment transactions across businesses

Software solutions in the cloud POS market are projected to witness a growth of 24% during the forecast timespan. Businesses are using cloud POS software to manage daily operations efficiently with access to data from any location. The software provides businesses with regular updates on transactions and tasks performed across all sales channels seamlessly. It also provides useful data analytics, allowing businesses to monitor customer behavior and increase profitability. Market players have developed cloud POS software compatible with NFC payments to enable faster and secure payment transactions.

Manufacturers in the cloud POS market offer industry-specific software solutions that are customizable based on their business operations. For instance, Toast, Inc. offers tablet-based restaurant management solution, catering to quick-service and full-service in nightclubs, pizzerias, bars, and small restaurant chains. The software allows restaurant owners to manage their sales, stocks, and payments with the help of a single solution while reducing the additional cost of installing multiple systems.

Growing adoption of cloud computing services and advanced payment technologies among SMEs

Singapore Cloud POS Market By Organization

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The Singapore cloud POS market is anticipated to expand at 30% CAGR through 2026 due to a surge in the cloud payment services. According to a survey conducted by the United Overseas Bank (UOB) in November 2019, 65% of SMEs in Singapore adopted cloud and automation solutions, particularly CRM and accounting. The usage of these services provides flexibility and cost-effectiveness benefits to SMEs, supporting the availability of data and services needed for business continuity. The cloud adoption in SMEs has also been driven by rising demand for replacing traditional on-premise infrastructures. The benefits of high scalability and enhanced data security has encouraged SMEs to adopt cloud models.

QSRs, restaurants, and small retailers have witnessed a higher inclination toward cloud POS and mobile integration in the market. These systems are highly secure, flexible, and can be accessed from anywhere & anytime, providing speedy customer service and deliveries. Market leaders are offering modern solutions that allow SMEs to perform multiple tasks or functions through a single solution. For instance, MEGAPOS, a Singapore-based POS solution company, offers POS solution that includes hardware, software, and service for 80% of SMEs in Singapore. The hassle-free installation and affordability of cloud-based POS coupled with enhanced user-experience are expected to spur the industry revenue.

Growing number of e-commerce transactions will surge the demand for advanced POS solutions

The increasing competition to attract more customers among brick-and-mortar stores has compelled them to adopt innovative payment solutions. Cloud POS solutions help retailers in managing inventory, improving customer loyalty, increasing sales, and streamlining their business operations. Several leading retail brands are deploying cloud POS in their stores to scale up business and manage their billing & other channels.

In 2019, retail & e-commerce sector held around 30% of the India cloud POS market share. The growing adoption of online shopping and easy availability of products through online platforms have led to an attractive e-commerce landscape. According to the India Brand Equity Foundation (IBEF), online retail sales in India grew by 31% reaching USD 32.7 billion in 2018, which are led by established e-commerce giants such as Flipkart, Amazon India, and Paytm Mall. The integration of POS systems in e-commerce platforms enables retailers to rapidly manage online stores, sell across all channels, automate inventory management, and offer customers more options for payment transactions.

Improving network infrastructure and growing adoption of digital payments in European region

Europe Cloud POS Market By Country

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The Europe cloud POS market accounted for over 30% revenue share in 2019 attributed to the advent of 5G technology, resulting in growing popularity of online payment trends in the region. At the end of September 2020, 5G services were deployed in 18 European countries, ensuring uninterrupted network coverage in urban areas. As cloud POS requires high transmission speeds of over 10 Mbps, the deployment of the 5G infrastructure serves as a key enabling factor in the market, allowing industries to adopt these platforms. The 5G technology also solves latency issues, providing customers with a seamless payment experience and promoting the usage of cloud-based platforms.

Increasing trend of cashless economies along with the adoption of mobile wallets in Europe will fuel the regional cloud POS terminals market growth. Sweden aims to lead the way in becoming the first complete cashless nation globally by 2023. Other Nordic countries including Finland, Norway, Denmark, and Iceland reported that 80% of their retail transactions are conducted electronically, resulting in the fast adoption of a cashless lifestyle.

New product launches to strengthen market position form a key strategy among players operating in the industry

Prominent companies operating in the cloud POS market are Kounta Holdings Pty Limited, Upserve, Inc., Revel Systems, Inc., Shopkeep, Inc., Phorest Salon Software, Oracle Corporation, Celerant Technology, Cegid Group, Clover Network, Inc., ePOS Inc., ERPLY, Future POS, Lightspeed POS Inc., NCR Corporation, PAR Technology, Shopify, Square, Inc., Toast, Inc., TouchBistro, Inc., and Vend Limited.

Industry players are focusing on launching innovative products to cater to the growing demand for advanced POS solutions. In February 2019, Upserve, Inc. launched Upserve Tableside Mobile POS and Upserve Workforce solutions. The new products were introduced to provide inventory solution, workforce tools, & POS solutions in a single and reliable platform to manage restaurant operations.

The cloud POS market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2026 for the following segments:

Market, By Component

  • Software
  • Services
    • Maintenance & Support
    • Consulting & Training

Market, By Organization Size

  • SMEs
  • Large Enterprises

Market, By Application

  • Retail & E-commerce
  • Restaurant
  • Hospitality
  • Transportation & Logistics
  • Entertainment & Media
  • Healthcare
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Benelux
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • Singapore
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • GCC
    • South Africa

Frequently Asked Questions (FAQ) :

The global market for cloud POS was valued at USD 1.5 billion in 2019 and will expand at around 27% CAGR up to 2026 with increased demand for cloud-based payment systems among small businesses.
The industry share from the software segment will record around 24% growth over 2020-2026 due to the growing use of cloud POS software for managing daily business processes and access data.
The Singapore industry share is projected to register over 30% CAGR through 2026 with a rapid growth in cloud payment service adoption across SMEs in the region.
Europe held more than 30% share of global industry during 2019 and will expand with the adoption of 5G technology and the resulting growth of online payment systems.

Premium Report Details

  • Published Date: Dec 2020
  • Pages: 250
  • Tables: 217
  • Charts / Figures: 28
  • Companies covered: 20
  • Countries covered: 17

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