Point-of-Sale (POS) Terminals Market Report

Point-of-Sale (POS) Terminals Market Analysis Report By Product (Fixed, Mobile), By Component (Hardware, Software, Services), By Deployment (Cloud, On-premise), By Service, By Application, And Segment Forecasts, 2018 - 2025

  • Published Date: Mar, 2018
  • Base Year for Estimate: 2016
  • Report ID: 978-1-68038-263-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 148

Industry Insights

The global point-of-sale (POS) terminals market size was valued at USD 47.95 billion in 2016. 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 POS terminals in the market. Companies are focusing more on software owing to increased penetration of smartphones.

Global POS terminals market

Contactless payment is considered to be the latest trend in point of sales. This 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 transaction time but also improves convenience of purchase of small goods.

However, need for extensive government certifications, strict regulations, and rising data security concerns are expected to act as restraints to market growth. Non-compliance to PCI Data Security Standards (DSS) increases the probability of card data breaches, which result could negatively impact customer trust and reputation of representatives. However, solutions such as Omnishield Assure are being developed to protect card information through point-to-point encryption. This reduces the risk of financial breach and minimizes the burden of PCI compliance.

Product Insights

The industry can be 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 continuous power supply, and high maintenance costs are involved. 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.

The mPOS terminals segment is estimated to expand at a CAGR of over 16.0% from 2017 to 2025. Ever-changing consumer expectations, rising debit/credit card payments, and sophisticated data analytics are projected to fuel demand for mobile POS terminals. Paper-free receipt services, enhanced security, free floor space, and reduced customer wait time are other factors driving preference for mobile POS over traditional systems.

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.

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. The services segment is anticipated to register the fastest growth among other POS terminal components owing to increasing security threats to financial and personal data. Penetration of these systems in developing countries is also driving segment growth.

The software segment recorded a market size of USD 5.01 billion in 2016 and it is anticipated to expand at CAGR greater than 11.0% over the forecast period. This growth can be attributed 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 point-of-sale (POS) terminals market can be classified into cloud and on-premise. On-premise deployment accounted for the largest market share in 2016, amounting to USD 34.91 billion that year. 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 POS deployment involves installation of Software as a Service (SaaS)-based software in retailers’ existing personal computers. Cloud-based POS 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 business owners. 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 for point-of-sale terminals 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 considerable increase in demand for POS terminals in medium and large retail stores such as shopping malls, supermarkets. The retail segment is expected to record an adoption rate of over 10.0% during 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 moving away from conventional transaction methods and are integrating POS systems with inventory, merchandising, marketing, and Customer Relationship Management (CRM) data to offer personalized, interactive, and unique customer experience.

Services Insights

Based on service, the market for POS terminals can be classified into managed services, repair and maintenance services, and professional services. In 2016, managed services dominated the market with an estimated revenue of USD 4.73 billion. These include specialized services such as remote download of software applications on to merchant terminal, helpdesk and call centre services for POS, comprehensive maintenance and software up-gradation from time to time, and MIS and call analysis report.

Global POS terminals market

Repair and maintenance services comprise changing spare parts and accessories, troubleshooting, and repairing POS terminals. Professional services are estimated to exhibit the fastest growth rate over the forecast period; these services include data recovery, professional training, installation, and after-sales services.

Regional Insights

North America dominated the market for POS terminals in 2016, accounting for over 30.0% of the revenue. However, Asia Pacific is expected to emerge as a lucrative player over the forecast period. Increasing income levels and standards of living of people in developing countries such as India are resulting in flourishing retail markets, thereby boosting the demand for POS solutions. Moreover, government initiatives to support a cashless economy are increasing demand for POS terminals in this region. Low penetration and considerable unbanked population in developing countries in APAC are expected to provide lucrative opportunities for growth over the forecast period.

Point-of-Sale Terminals Market Share Insights

Companies actively participating in the market for POS terminals include Ingenico S.A., Verifone Systems, PAX Technology, HP Company, Cisco Systems, Panasonic Corporation, Toshiba Corporation, Samsung Electronics, and MICROS Systems. Mergers and acquisitions are some of the key strategies adopted by industry players. For instance, in July 2017, Ingenico acquired Bambora, a Swedish payment-services company.

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Revenue in USD Billion and CAGR from 2017 to 2025

Regional scope

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

Country scope

U.S., Canada, U.K., Germany, China, Japan, India, Brazil, Mexico

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. 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, service, application, and region:

  • Product Outlook (Revenue, USD Billion, 2014 - 2025)

    • Fixed

    • Mobile

  • Component Outlook (Revenue, USD Billion, 2014 - 2025)

    • Hardware

    • Software

    • Services

  • Deployment Outlook (Revenue, USD Billion, 2014 - 2025)

    • Cloud

    • On-premise

  • Service Outlook (Revenue, USD Billion, 2014 - 2025)

    • Managed Services

    • Repair and Maintenance Services

    • Professional Services

  • Application Outlook (Revenue, USD Billion, 2014 - 2025)

    • Restaurants

    • Hospitality

    • Healthcare

    • Retail

    • Warehouse

    • Entertainment

    • Others

  • Regional Outlook (Revenue, USD Billion, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • Japan

      • South Korea

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

Key questions answered by the report
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