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, By Deployment (Cloud, On-Premise), By Application, And Segment Forecasts, 2020 - 2027

  • Published Date: Feb, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-263-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 189

Report Overview

The global point-of-sale terminals market size was valued at USD 69.0 billion in 2019 and is expected to expand at 7.5% CAGR during the forecast period. Increasing demand for contactless and cashless payments, the unification of in-store and online sales, employee and customer management, and the need to keep track of inventory has boosted the adoption of integrated Point-of-Sale (POS) terminals. Moreover, the retail, healthcare, hospitality, and other sectors have witnessed a digital transformation owing to technological advancements that have compelled the users to adopt point-of-sale terminals. The digital transformation and POS demand are also supported by the increasing use of the smartphone as a portable POS system.

U.S. POS terminal market

Both hardware and software of the POS system have improved over the past few years, which has ensured portability and secure transaction. Increasing investment in end-to-end encryption technology for secure payment solutions and suitability to customers is expected to augment the reliability and demand for point-of-sale terminals. Additionally, the integration of multifunctional software in the POS system will benefit various applications in ensuring safe payment, customer data analysis, and storing employee information. A POS system is also a powerful employee management tool for monitoring their performance and generating a contented workforce.

The cashless economy is booming across developed countries owing to the ease of payment, hassle-free shopping, and online payment. Cashless payment has augmented the implementation of POS systems within the retail and hospitality industry. Moreover, with changing technologies in debit and credit cards, contactless payments have become popular for making a quick purchase without entering a PIN. This payment method uses radio-frequency identification or Near Field Communication (NFC) technology to render secure transactions within seconds. The technology not only reduces transaction time but also helps enhance the shopping experience, thus growing the demand for point-of-sale systems. Furthermore, the introduction of a cloud-based POS system that is affordable and can be remotely updated, reduces the downtime. Also, the growing demand for convenience features such as invoice management, inventory management, and image scanner are driving the demand for POS in retail, healthcare, and restaurants.

However, the need for extensive government certifications, strict regulations, rising data security concerns, and unprecedented economic conditions are expected to challenge the POS terminals market growth. Non-compliance to Payment Card Industry Data Security Standards (PCI DSS) increases the probability of card data breaches, which could negatively impact customer trust and the reputation of the market. However, the use of ‘OmniShield Assure’ can protect card information through point-to-point encryption. This further reduces the risk of financial breach and minimizes the burden of PCI compliance.

Product Insights

The point-of-sale (POS) terminals market is bifurcated on the basis of product into fixed and mobile POS (mPOS) terminals. Fixed terminals are traditional PC/ monitor POS systems installed on counters or reception areas. These systems are complex in nature, need a continuous power supply, and have high maintenance costs. On the other hand, mPOS are more convenient, chargeable, and low-cost products. Similar to fixed POS terminals, mPOS can also perform various functions such as financial transactions, data analysis, and inventory management.

The mPOS terminals segment is estimated to grow at a CAGR of 12.8% from 2020 to 2027. Ever-changing consumer expectations, rising debit/credit card payments, and sophisticated data analytics are projected to fuel demand for mobile POS terminals. mPOS systems are preferred over traditional systems owing to advantages such as paper-free receipt services, enhanced security, free floor space, and reduced customer wait time. Mobile applications have the ability to create new channels for revenue growth, due to which, vendors are adopting numerous marketing channels to compete in the market.  The advent of affordable wireless communication technologies has led to increased consumer acceptance of these systems. Furthermore, the flexibility of having a smartphone- or tablet-based POS, due to low installation costs, has attracted small and medium-sized businesses (SMBs) to invest in the mPOS system.

Component Insights

On the basis of component, the market is classified into hardware, software, and services. Hardware components comprise tablets and smartphones paired with a debit/credit card reader, cash drawers, monitors, etc. The services segment is anticipated to register a CAGR of over 8% during the forecast period owing to the need for upgrading software version, licensing, and maintenance of hardware systems. High penetration of POS terminals in developing countries is also driving the segment growth.

The software segment recorded a market size of USD 8.2 billion in 2019 and is anticipated to expand at a CAGR of 10.1% 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 terminals are also driving the demand in the market. The efficient software integration functionalities of barcode scanners and screen terminals across these systems provide data restoring and backup features.

Application Insights

Based on the application, the market is segmented into restaurants, hospitality, healthcare, retail, warehouse, and entertainment. POS terminals help avoid manual errors in financial billings and inventory management and offer better reliability to businesses. As a result, there is a considerable increase in demand for POS terminals in medium and large industries. The healthcare segment is expected to record the highest CAGR of 9.8% over the forecast period owing to the growing need for managing patient information, smooth payment process, and tracking employee statistics.

A high degree of portability and accessibility enhances the exploration of mobile terminals across the retail sector. These terminals provide inventory management with reporting facilities, thus making it easier to track inventory and third-party billing. Different organizations are moving away from conventional transaction methods and are integrating POS systems with inventory, merchandising, marketing, and Customer Relationship Management (CRM) data. This will help retailers offer a personalized, interactive, and unique customer experience.

Deployment Insights

Based on deployment, the market is categorized into on-premise and cloud. On-premise deployment was the largest contributor, accounting for over USD 52.0 billion in 2019. On-premise deployment comprises manual installation at the customer’s premises. The installation includes cabling and cabling permits, electrical work, and hardware and software installation.

Global POS terminal market share

Cloud POS deployment involves the installation of SaaS-based software in retailers’ existing personal computers. Cloud-based systems do not require installation of any separate hardware and can work on existing computers, tablets, or smartphones. This significantly reduces operational costs, especially for SMB owners. Brick-and-mortar retailers are more inclined toward using smartphones or tablets for POS rather than spending on a complex system. Thus, cloud-based software is expected to gain significant traction over the forecast period.

Regional Insights

Asia Pacific is expected to emerge as a lucrative market registering the highest growth of 9.5% over the forecast period. Increasing disposable income and higher standards of living in developing countries such as India and China have resulted in booming retail markets, thereby boosting the demand for retail POS solutions. Moreover, government initiatives to support a cashless economy are boosting the demand for POS terminals in this region. Low penetration and growing demand for mobile POS terminals from developing economies in Asia Pacific, such as the Philippines, India, Vietnam, Singapore, and Thailand, are expected to provide lucrative growth opportunities over the forecast period.

North America region emerged as the second-largest revenue contributor for the market in 2019. The growing number of payment technologies, such as Near-field Communication (NFC) and contactless payments, has favorably impacted the North American market growth. Additionally, growing security, with the help of compliance requirements including regulations from Europay, MasterCard, and Visa (EMV), has driven the demand for POS terminals. However, sluggish growth in retail and other service sectors has slowed down the overall growth of the POS market.

Point-of-Sale Terminals Market Share Insights

Companies active in the market include Ingenico Group; Hewlett-Packard Inc.; Cisco Systems, Inc.; Panasonic Corporation; VeriFone Systems, Inc.; PAX Technology Corp.; Toshiba Corporation, and Samsung Electronics, Co., Ltd. The industry players adopt product launches, partnerships, and acquisitions as their key strategies for gaining a competitive edge over their competitors in the market. For instance, in October 2019, Valsoft acquired a hospitality point-of-sale system vendor, H&L Australia. Also, in April 2019, Just Eat Holding Limited acquired a software service provider of point-of-sale and restaurant management systems vendor named PRACTI. Furthermore, in October 2018, Electronic Merchant Systems (EMS) acquired a point-of-sale solutions provider in the hospitality industry called ‘Total Touch POS’.

Point-of-Sale Terminals Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 76.0 billion

Revenue forecast in 2027

USD 125.9 billion

Growth Rate

CAGR of 7.5% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company share, 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; Germany; U.K.; France China; India; Japan; Singapore; Australia; Mexico; Brazil

Key companies profiled

Ingenico Group; Hewlett-Packard Inc.; Cisco Systems, Inc.; Panasonic Corporation; VeriFone Systems, Inc.; PAX Technology Corp.; Toshiba Corporation

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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 2027. For the purpose of this study, Grand View Research has segmented the global point-of-sale terminals market report on the basis of product, component, deployment, application, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2027)

    • Fixed

    • Mobile

  • Component Outlook (Revenue, USD Million, 2016 - 2027)

    • Hardware

    • Software

    • Services

  • Deployment Outlook (Revenue, USD Million, 2016 - 2027)

    • On-premise

    • Cloud

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Restaurant

    • Hospitality

    • Healthcare

    • Retail

    • Warehouse

    • Entertainment

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

      • Singapore

      • Australia

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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