(Point of Sale) POS Terminals Market Size By Application (Entertainment, Healthcare, Hospitality, Retail, Warehouse), By Product (Mobile, Fixed), By Component (Software, Hardware), Industry Analysis Report, Regional Outlook (U.S., Canada, Mexico, Germany, UK, France, Italy, Russia, South Korea, China, India, Japan, Brazil), Application Potential, Price Trends, Competitive Market Share & Forecast, 2017 - 2024
Published Date: July 2017 | 280 Pages | Report ID: GMI390 Report Format: PDF
POS Terminals Market size exceeded USD 40 billion in 2016 with shipments of over 30 million units and the industry revenue will witness 13.5% CAGR from 2017 to 2024.
China POS Terminals Market Size, By Application, 2016 & 2024 ($Bn)
Developments in information technology, and rising internet penetration coupled with emerging focus on digital payments across the globe is driving the POS terminals market growth. Moreover, the large-scale adoption of these devices across various industry verticals such as hospitality and retail to allow quick transactions that enhances customer experience will contribute to the industry growth.
Increasing demand for connected devices is anticipated to impact the market revenue over the future. These devices are capable of easily communicating with the back-office inventory management system. They also eliminate the need for the merchant to manually enter the transaction amount while making payments and allows to generate a consolidated report payment history at the end of the day. Connected POS terminals market enhances security as it transmits encrypted tokens during the payment process, although it requires more upfront costs and complexity in the process. Technological advancements have led to the integration of biometrics into POS systems to boost the security of these systems and reduce the loss of critical customer and financial information. These eliminate instances of employee theft and buddy punching by permitting access to only authorized personnel.
Security concerns pertaining to the confidentiality of the personal information of the customers may inhibit the industry growth. Various hackers try to gain insights about the customers’ card information to carry out fraudulent transactions. However, to address the issue, manufacturers are developing systems with hidden or virtual keyboards that may control the prevailing cybercrimes in the industry.
POS Terminals Market, By Product
Mobile POS terminals market is anticipated to witness a high growth of approximately 20% CAGR owing to the high demand for wireless technologies. Businesses are becoming more customer-centric and are employing technologies that boost the interaction and build a relationship between the customer and the business. These systems reduce the customer waiting time, consume less space and are largely coupled with a card swipe for immediate transactions. Additionally, the customer data can be continuously updated into the outlet’s ERP system without waiting till the end of the customer transaction.
Fixed POS terminals are traditionally used for a range of applications across businesses such as employee time clocks, cash drawers, and management of customer loyalty programs. These are widely recognized technologies for payments in 95% of brick-and-mortar stores and is a main reason contributing to their dominance of the market.
POS Terminals Market, By Component
Hardware dominated the POS terminals market share in 2016 due to higher costs and widespread utilization across industry verticals including retail, restaurants, healthcare and industrial. The manufacturers are constantly upgrading the hardware system to provide access to cloud services and better cater the requirements industry requirements. Moreover, the EMV liability shift and the government initiatives to encourage digital payments will provide growth opportunities to the segment.
The software segment in the market is anticipated to grow significantly in the future owing the technological advancements and wide adoption in the retail and hospitality sectors to provide functionalities such as business process monitoring and obtaining insights into the customer behavior. It allows the retailers to increase their revenues and identifying the loyal customers. Developers in the industry are investing in providing cloud-based online POS solutions that can be easily accessible from computing devices, facilitating flexibility during digital transactions.
POS Terminals Market, By Application
The retail point of sale terminals market will witness growth due to the evolvement of the vertical into an organized sector. The penetration of various e-commerce industries and the need for increasing the profit is transforming the industry, which will further drive the revenue. Real-time dashboards are being used to access and manage devices, transactions, and user profiles to distinguish between different users, supporting the widespread adoption in the retail sector.
The need to restructure the payment options and monitoring the patient’s health conditions will offer growth opportunities to the market growth in the healthcare industry. Rising healthcare infrastructure in the form of clinics, diagnostic labs, and hospitals will further provide opportunities. The advancements in technology used for approximating payment amounts, rise in deductible insurance plans, and patients’ requirement to negotiate healthcare expenses in real-time have led to increase in card-based payments, which necessitate the POS terminals market demand.
POS Terminals Market, By Region
U.S. POS terminals market is anticipated to grow over the forecast timeline owing to the government support to encourage the migration from traditional to advanced NFC and EMV-enabled devices. It is aimed at minimizing the security breaches and transaction related frauds in the digital payments. The retailers and other businesses are increasingly adopting EMV cards as it secures them from the deceitful transactions. The integrated chip in the cards is difficult and expensive to forge as the transmitted information is dynamic in nature and varies each time.
Increasing penetration of organized retail such as supermarkets and hypermarkets across China and India is anticipated to fuel the APAC point of sale terminals market. Moreover, increasing penetration of mobile devices such as smartphones and tablets coupled with the high demand for these devices across SMEs is expected to catapult the regional growth.
Competitive Market Share
The companies operating in the industry include Ingenico SA, VeriFone Systems, New POS Technology, NCR Corporation, NEC Corporation, PAX Technology, etc. The industry is witnessing increasing investments in the R&D to improve the functionality and operations of these terminals. POS software developers focus on creating a software that delivers POS functionality such as reporting capabilities, sales transactions, and management of the customer information. The developers tend to tailor their software for numerous industries, such as grocery, retail, liquor stores, and salons.
POS Terminals Industry Background
In North America and Europe, the decreasing cost of the mobile devices and the growing popularity of wireless technology has resulted in rising adoption of mobile POS terminals market across the restaurant sectors. Growing modernizations in the industry with a focus on offering customized solution to the restaurant owners specific to the business operation is anticipated to contribute to the growth factor. Businesses adopting point of sale solutions range from small single-store outlets to online vendors. The system can hold numerous benefits for hospitality applications, restaurants, automotive shops, grocery stores, and e-commerce sites. An appropriate POS terminal can save money and time, significantly increase efficiency, and enhance custom.
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