Point-Of-Sale Terminals Market Size, Share & Trends Report

Point-Of-Sale Terminals Market Size, Share & Trends Analysis Report By Product (Fixed, Mobile), By Component (Hardware, Software), By Deployment (Cloud, On-premise), By Application (Healthcare, Retail), And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-263-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 189

Report Overview

The global point-of-sale terminals market size was valued at USD 75.08 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 6.9% from 2021 to 2028. The COVID-19 pandemic led to a decline in the overall market growth owing to disruption in supply chain and end-user revenue loss, yet the need for mobile point-of-sale (POS) terminals was realized to facilitate contactless payment. Increasing demand for cashless and contactless payments and the need for employee and customer management, inventory tracking, and online & in-store sale unification have boosted product adoption. The digital transformation across retail, hospitality, healthcare, and other sectors has compelled the users to adopt the product to keep track of business activity and offer cashless payment. The increasing use of smartphones has also augmented the demand for portable POS systems, supporting the market growth.

U.S. point of sale terminals market size, by component, 2016 - 2028 (USD Billion)

The POS system hardware and software have been improved and upgraded over years to ensure secure transaction and portability. POS providers have increased investments in end-to-end encryption technology to secure payment gateways that would build customer trust and help in impelling the product demand. In addition, multifunctional software integrated with a POS system would offer safe payment, customer data analysis, and employee information storage facility to the end-user. The product demand is also boosted by its capability to act as a powerful employee management tool to monitor employee performance and generate a contented workforce.

The POS terminal adoption has supported the vision of governments in bringing a cashless economy, specifically across developed countries, owing to the hassle-free payment option, reduced waiting time in queue, and online payment without carrying cash. The idea of cashless payment promoted product implementation in the retail and hospitality industries. Moreover, with the changing technologies in debit and credit cards, contactless payment became popular for making a quick purchase without entering a PIN. The Radio-Frequency Identification (RFID) or Near Field Communication (NFC) technology is used in this payment to render secure transactions within seconds. This technology not only reduces transaction time but also improves the convenience of purchasing small goods, thus supporting the product demand. Furthermore, affordable cloud-based POS systems that facilitate automatic regular updating of the software without the physical presence of professionals help save additional upgrading costs. Also, the need for barcode reading, image scanner, inventory management, invoice management, and payment facility is driving the product demand across the healthcare, retail, entertainment, restaurant, and hospitality sectors.

The growth trajectory of this market was impacted due to the COVID-19 pandemic. As lockdown and social distancing became the new norms, several end-use sectors suffered losses, subsequently hindering the demand for new fixed POS terminals in 2020. However, the demand for mobile POS (mPOS) systems was boosted as it does not require using a common terminal. The pandemic had a negative impact on the tourism sector across the globe. With tourist activities coming to a halt in 2020, sectors such as retail, entertainment, and restaurants, which were gold mines for POS vendors, suffered losses.

Product Insights

The fixed product segment dominated the market and accounted for more than 61% of the global revenue share in 2020. Fixed POS terminals are preferred mainly by large-scale vendors due to high procurement and installation costs, which have currently contributed to the market growth. Furthermore, end-users wary about cloud data storage are inclined towards installing fixed POS terminals to store data with the on-premises server. The POS system has a wide range of applications, such as supporting payments devices, printing bills, inventory management, and Customer Relationship Management (CRM).

The mPOS segment is expected to expand at the fastest CAGR from 2021 to 2028. These terminals allow ease of payments during busy hours, avoiding loss of sales due to delays, and helps in improving customer satisfaction. Sale and payment transactions can be carried out at any part of a store or in the field using these terminals. The high degree of portability and accessibility have enhanced the exploitation of mobile terminals across the retail sector. These systems provide inventory management with reporting facilities, thus making it easier to track inventory and third-party billing. Moreover, the ease of installing these systems on smartphones and tablets boosts their demand.

Component Insights

The hardware segment emerged as the largest segment in 2020, accounting for a revenue share of more than 63%. Hardware components comprise interfaces or devices to register transaction details, such as tablets, monitors, cash drawers, receipt printers, barcode scanners, EFT-POS machines, and network devices. The fixed POS terminal involves most of the hardware components to complete the system and facilitate a complete experience of managing daily activity using the system.

The software segment is estimated to register the fastest CAGR over the forecast period. This growth can be attributed to data support functionality, multifunctional feature, and ease in sales analysis. Moreover, advancements in cloud computing and the growing use of Software-as-a-Service (SaaS) platform-based POS systems are driving the segment growth. The efficient software integration functionalities of barcode scanners and screen terminals across these systems provide data restoring and backup features, which also support segment growth.

Application Insights

The retail segment generated the highest revenue share of over 30% in 2020 and is expected to grow further at a significant rate over the forecast period. The rising adoption of modern payment options by small retailers is expected to drive the segment growth. Some of the retailers that have announced chain-wide adoption of mPOS solutions include Home Depot, Disney Stores, Target, Urban Outfits, and Nordstrom. The growth of omnichannel retailing systems for a unified shopping experience across all channels via smartphones is expected to generate a high growth avenue for the retail industry.

The emergence of mobile wallet technology is anticipated to proliferate the penetration of retail-oriented products over the forecast period. The healthcare segment is projected to exhibit the highest CAGR over the forecast period owing to a wide scope of product application in facilitating quick payment processes, managing patient information, and tracking employee statistics. The increasing need to streamline the payment process and manage vaccination and COVID-19 patient records are expected to impel the market growth during and post-pandemic.

Deployment Insights

On-premise deployment emerged as the largest deployment segment in 2020 and accounted for over 76% of the global revenue share. On-premise deployment comprises manual installation at the customer’s premise. The installation includes cabling and cabling permits, electrical work, and hardware and software installation. As large businesses are often wary of data theft, they prefer on-premises deployed POS solutions to ensure on-premises storage of critical data.

Global point of sale terminals market share, by deployment, 2020 (%)

However, the cloud deployment segment is expected to exhibit the highest CAGR over the forecast period due to the advancements in cloud computing, which has resulted in the growing use of the Software-as-a-Service (SaaS) platform-based POS systems. The efficient software integrates functionalities of barcode scanners and screen terminals across these systems and further provides data restoring and backup features. The POS software functionalities are specifically formulated on the basis of the industry business process. For instance, restaurant POS software features include open table management, gift and loyalty card, online ordering, kitchen displays, menu displays, floorplan, and inventory of raw materials.

Regional Insights

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. Moreover, government initiatives to support a cashless economy are increasing the demand for POS terminals in this region. A surge in the adoption of digital payment technologies in Asia Pacific has created a pool of opportunities for mPOS in countries, such as China, Japan, and India, which is expected to restrict the regional market growth for the fixed POS terminal segment over the forecast period. However, demand from large enterprises to secure their information and ensure the processing of a large volume of customer data is helping the rise in demand for fixed POS terminals. The pandemic affected the most lucrative sectors in the region including retail, hospitality, and entertainment, leading to a decline in demand for new POS terminals. China, which is a manufacturing hub for POS terminal hardware, recovered early compared to other Asian countries, while Japan implemented control measures to avoid impact on its businesses. The remaining Asian countries are striving to revive consumer-related industries, which is expected to help increase the product demand in 2021. Moreover, low penetration and considerable unbanked population in other developing countries, such as Vietnam, Japan, South Korea, Turkey, and Thailand, are expected to provide lucrative growth opportunities to the market players.

North America was the second-largest regional market in 2020 and will expand further at a steady CAGR from 2021 to 2028. The growing number of payment technologies, such as NFC and contactless payments, has been driving the product demand in the region. The U.S. has a high number of large retail brand outlets, such as Wal-Mart, Costco Wholesale Corporation, Target, The Kroger Co, The Home Depot, and Amazon, which need POS terminals to manage payment, billing, employee duty, and inventory on a daily basis. Moreover, the U.S. government is encouraging the adoption of contactless payment systems in the wake of COVID-19 to limit the spread of the virus. However, recession in the retail and other service sectors due to the pandemic slowed down the overall growth of the regional market.

Key Companies & Market Share Insights

The market is highly competitive. Major companies opt for a mix of organic and inorganic business growth strategies. For instance, in January 2020, HP Inc. introduced new cloud services for its product line, Engage POS. The launch was aimed at helping retailers and hospitality operators in reducing manual IT work. Also, the POS terminal giant, Ingenico, was acquired by Worldline to enter the global market. Some prominent players in the global point-of-sale (POS) terminals market include:

  • Ingenico Group (acquired by Worldline)

  • NCR Corp.

  • VeriFone Systems, Inc.

  • PAX Technology, Inc.

  • Fujian Newland Payment Technology Co. Ltd.

  • Revel System, Inc.

  • Oracle Corp.

  • ShopKeep

Point-Of-Sale Terminals Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 81.86 billion

Revenue forecast in 2028

USD 130.91 billion

Growth rate

CAGR of 6.9% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, competitive ranking, competitive landscape, growth factors, and trends

Segments covered

Product, component, deployment, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; France; U.K.; Germany; China; India; Japan; Singapore; Australia; Brazil; Mexico

Key companies profiled

Ingenico Group (acquired by Worldline); NCR Corp.; VeriFone Systems, Inc.; PAX Technology, Inc.; Fujian Newland Payment Technology Co. Ltd.; Revel System, Inc.; Oracle Corp.; ShopKeep

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global point-of-sale (POS) terminals market report on the basis of product, component, deployment, application, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2028)

    • Fixed

    • Mobile

  • Component Outlook (Revenue, USD Million, 2016 - 2028)

    • Hardware

    • Software

    • Services

  • Deployment Outlook (Revenue, USD Million, 2016 - 2028)

    • On-Premise

    • Cloud

  • Application Outlook (Revenue, USD Million, 2016 - 2028)

    • Restaurants

    • Hospitality

    • Healthcare

    • Retail

    • Warehouse

    • Entertainment

    • Other

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

      • Singapore

      • Australia

    • Latin America

      • Brazil

      • Mexico

    • MEA

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