Point-of-Sale (POS) Terminals Market Size, Share & Trends Report

Point-of-Sale (POS) Terminals Market Size, Share & Trends Analysis Report By Product (Fixed, Mobile), By Component (Hardware, Software, Services), By Deployment (Cloud, On-Premise), By Application, And Segment Forecasts, 2019 - 2025

  • Published Date: Feb, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-263-1
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 189

Industry Insights

The global Point-of-Sale terminals market size was valued at USD 62.34 billion in 2018 and is projected to expand at a CAGR of 7.8% during the forecast years. The industry has witnessed a significant turnaround, owing to substantial and rapid technological developments in POS terminal solutions. Growing demand for contactless payments, along with proliferation of Near Field Communication (NFC) devices in the industrial ecosystem, has led to a surge in adoption of integrated POS terminals.

Increased investments in technologies, such as end-to-end encryption for providing secured payment solutions and convenience to customers, are expected to augment the demand for such terminals over the next few years. Major companies in the industry are focusing more on software owing to increased penetration of smartphones. Contactless payment is considered to be the latest trend in POS.

U.S. Point-of-Sale (POS) terminals market

Such payment method works through NFC technology, wherein the issued card has a special symbol, unique to contactless payments, and can only be scanned using a contactless reader. This renders the entire transaction secure and is done within seconds. This technology not only reduces the overall transaction time but also improves convenience of purchase of small goods. However, need for government certifications, strict rules and regulations, and rising data security concerns are expected to act as restraints to market growth.

Non-compliance to the Payment Card Industry Data Security Standards (PCI DSS) increases the probability of card data breaches, which could negatively impact customer trust and reputation of the representatives. However, solutions, such as Omnishield Assure, are being developed to protect card information through Point-to-Point Encryption (P2PE). This reduces the risk of financial breach and minimizes the burden of PCI compliance.

Component Insights

On the basis of component, the industry can be classified into hardware, software, and services. Hardware components comprise tablets and smartphones paired with a debit/credit card reader, cash drawers, monitors, and others. Services is anticipated to be the second fastest-growing component segment over the forecast period. Penetration of these systems in developing countries is one of the major factors driving the segment.

The software segment is anticipated to register the fastest CAGR of 11.0% during the forecast period due to advancements in cloud computing, resulting in growing use of Software-as-a-Service (SaaS) platform-based POS systems. The efficient software integrates functionalities of barcode scanners and screen terminals across these systems and provides data restoring and backup features.

Deployment Insights

Based on deployment, the market can be classified into cloud and on-premise. On-premise deployment accounted for the largest market share in 2018. On-premise deployment comprises manual installation at the customer’s place, which includes cabling and cabling permits, electrical work, and hardware and software installation. Cloud-based deployment involves 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 small- and medium-sized businesses. Brick-and-mortar vendors 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.

Application Insights

Based on application, the market can be segmented into restaurants, hospitality, healthcare, retail, warehouse, entertainment, and others. POS terminals help avoid manual errors in financial billings and inventory management, offering better reliability to businesses. As a result, there is a rise product demand in medium- and large-scale retail stores, such as shopping malls and supermarkets. The retail segment is expected to record a CAGR of 7.0% over the forecast period.

High degree of portability and accessibility enhances the exploitation of mobile terminals across this sector. These terminals provide inventory management with reporting facilities, thus making it easier to track inventory and third-party billing. Different organizations are shifting from conventional transaction methods to POS systems to offer personalized, interactive, and unique customer experience.

Product Insights

On the basis of product, the global industry is bifurcated 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 continuous power supply, and have high maintenance costs. On the other hand, mPOS are more convenient, chargeable, and low-cost products. Like fixed POS, mPOS can perform various functions, such as financial transactions and inventory management.

Global Point-of-Sale (POS) terminals market

The mPOS segment is estimated to expand at a CAGR of over 13.9% from 2019 to 2025. Ever-changing consumer expectations, rising number of debit/credit card transactions, and sophisticated data analytics are projected to fuel demand for these devices. Paper-free receipt services, enhanced security, free floor space, and reduced customer wait time are other factors driving the segment growth.

Mobile applications have the ability to create new channels for revenue growth; thus, vendors are adopting numerous marketing channels to leverage their technologies to compete in the market. Advent of affordable wireless communication technologies has led to increased consumer acceptance for these systems. Furthermore, the flexibility of having a smartphone- or tablet-based POS, due to low installation costs, has attracted SMBs to invest in this technology.

Regional Insights

Asia Pacific is expected to emerge as a lucrative market registering the highest CAGR of 9.5 % over the forecast period. Increasing income levels and better living standards in developing countries, such as India, are resulting in flourishing retail markets, thereby boosting the demand product demand. Government initiatives in India to support a cashless economy are driving the market in this region. Low penetration and considerable unbanked population in developing countries in APAC are also expected to provide lucrative growth opportunities the market.

North America was the second-largest regional market in 2018. Increasing number of payment technologies, such as Near-field Communication (NFC), chip transaction, and contactless payments, has favorably impacted the regional market. In addition, enhanced security, with the help of compliance requirements including regulations from Europay, MasterCard, and Visa (EMV), has driven the product demand.

Point-of-Sale (POS) Terminals Market Share Insights

Companies in the global market include Ingenico S.A., Verifone Systems, PAX Technology, HP Company, Cisco Systems, Panasonic Corporation, Toshiba Corporation, Samsung Electronics, and. Technological and product developments and M&A are some of the key strategies adopted by industry players to strengthen their foothold in the global industry. For instance, in July 2017, Ingenico acquired Bambora, a Swedish payment-services company.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

Country scope

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

Report coverage

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

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. 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 Billion, 2015 - 2025)

    • Fixed

    • Mobile

  • Component Outlook (Revenue, USD Billion, 2015 - 2025)

    • Hardware

    • Software

    • Services

  • Deployment Outlook (Revenue, USD Billion, 2015 - 2025)

    • On-Premise

    • Cloud

  • Services Outlook (Revenue, USD Billion, 2015 - 2025)

    • Managed Services

    • Repair and Maintenance services

    • Professional Services

  • Application Outlook (Revenue, USD Billion, 2015 - 2025)

    • Restaurant

    • Hospitality

    • Healthcare

    • Retail

    • Warehouse

    • Entertainment

    • Others

  • Regional Outlook (Revenue, USD Billion, 2015 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

      • Singapore

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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