Point-of-Sale Terminals Market Size, Share & Trends Analysis Report By Product (Fixed, Mobile), By Component (Hardware, Software), By Deployment (Cloud, On-premise), By End Use (Healthcare, Retail), And Segment Forecasts, 2022 - 2030

Report Overview

The global point-of-sale terminals market size was valued at USD 85.16 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 8.5% from 2022 to 2030. In 2020, the COVID-19 pandemic negatively impacted the overall market growth due to supply chain disruption and end-user revenue loss. Nevertheless, as the severity of the virus subsided, several end-use industries were seen moving towards cashless and contactless payments.

As a result, increased usage of contactless payments has encouraged the adoption of mobile POS (mPOS) terminals in order to accept contactless payments directly through customers’ smartphones. The growing prominence of mobile POS terminals has provided avenues for market growth. The ease of use and improved Return on Investment (ROI) offered by these systems has favorably impacted the market. Also, the rising need for employee and customer management, inventory tracking, and online & in-store sale unification through tablets has boosted product adoption.

The surge in demand for affordable wireless communication technologies has increased the demand for POS terminals. POS systems utilize wireless devices to facilitate payments for services or products. The use of wireless technology can streamline various processes, from rental cabs to restaurants. Companies in the hospitality and retail sectors use POS terminals for payments and additional operational tasks, such as inventory management, sales tracking, and accounting. For instance, bars, restaurants, and foodservice providers rely highly on POS technology to track sales, operations, products, and inventory.

The rise of the modern drive-thru is one of the prominent factors influencing the growth of POS terminals. Many companies have started adopting POS systems to connect their drive-thru line, kitchen, and back-office operations for a smooth order and delivery process. For instance, fast-casual brands, such as Chipotle, Panera, and Starbucks, have added drive-thru components to some of their drive-thru locations. Moreover, benefits offered by modern drive-thrus, such as increased convenience, have resulted in an improved customer experience. This, in turn, is expected to provide growth opportunities for the POS terminals market.

However, POS systems are challenging to secure, owing to their role and exposed location across the network. These systems handle critical information and are required to be managed from remote areas. Therefore, a substantial impact of POS breaches is the possibility of identity threats. These victims can encounter damaged credit standing, financial loss, and fraudulent purchases. Hence, compensating controls to manage the data flow is expected to improve

POS security. For instance, VeriFone’s VeriShield is an example of provisional power for transmitting data between different parts of the POS systems.

During the COVID-19 pandemic, the growth of this market slowed down due to social distancing and lockdown restrictions. As a result, many end-use verticals suffered losses, eventually hindering the demand for new fixed POS terminals in 2020. Nevertheless, as the severity of the pandemic has mellowed due to a dip in positive cases and vaccination drives, countries across the globe have eased out restrictions and have started operating as usual. Moreover, the COVID-19 pandemic has triggered a shift in consumer habits, resulting in a surge in demand for digital menu boards, artificial intelligence, and the expansion of drive-thrus into dual lanes for increased convenience. Owing to this, the hospitality, restaurant, and entertainment sectors are likely to witness substantial growth during the forecast period.

Product Insights

The fixed product segment leading the market accounted for more than 50.0% of the global revenue share in 2021. The fixed POS segment is further bifurcated into kiosks and others. Large-scale vendors prefer fixed POS terminals mainly due to installation costs and high procurement, which have currently supported the market growth. Moreover, end-users cautious of cloud data storage are likely to install fixed POS terminals for storing data with the on-premises server. The POS system has many applications, such as inventory management, supporting payments devices, customer relationship management (CRM), and printing bills.

The mobile POS segment is expected to expand at the fastest CAGR of over 10.0% from 2022 to 2030. This growth is attributed to the rising adoption of in-store mobile payments among customers across the globe. Mobile POS terminals help carry out payments from any part of the store. Many end-users, such as restaurants, have started adopting mPOS as it helps ease payments during busy hours and avoids loss of sales due to delays, thereby improving customer satisfaction. For instance, quick-service restaurants in China have started using systems such as digital kiosks and tablets to display menus and place orders. This helps the restaurants to enhance operational efficiency & customer experience, which, in turn, is likely to drive the market in the country.

Deployment Insights

Based on deployment, the point-of-sale terminal market is segmented into cloud and on premise. The cloud segment is expected to witness a significant CAGR of over 10.0% from 2022 to 2030. This growth is attributed to the increasing adoption of SaaS technology and software integration. In the SaaS model, rather than paying for all the software, hardware, and support services in advance, customers pay a minimum monthly fee on a subscription basis. This helps restaurants and other end-users to reduce their up-front expenses. On-premise deployment incorporates manual installation at the client’s premise. The installation includes cabling permits and cabling, hardware and software installation, and electrical work. Many companies have started adopting cloud POS due to its various benefits over on premise deployment. For instance, In January 2022, Xenial, Inc. launched a development for Xenial Cloud POS, named 3.6 Xenial Ordering. This cloud POS offers seamless process workflow, user experience, and infrastructure updates and improvements for this developed version of Xenial Ordering UI and API.

Component Insights

The hardware segment appeared as the largest segment in 2021, accounting for a market share of more than 60.0%. The segment is expected to expand at a CAGR of nearly 6.0% from 2022 to 2030. Hardware components include devices or interfaces to register transaction details, such as monitors, tablets, receipt printers, cash drawers, barcode scanners, network devices, and EFT-POS machines. The fixed POS terminal comprises most of the hardware components to complete the system and facilitates the experience of managing daily activity using the system.

Further, the software segment is estimated to register the highest CAGR of over 10.0% during the forecast period. This growth can be attributed to data support functionality, multifunctional features, and sales analysis ease. There is specialized software for different applications. For example, retail POS software offers functions such as inventory management, transaction alerts, accounting, etc. The systematic software integration functionalities of screen terminals and barcode scanners across these systems provide backup features and data restoring, supporting the segment growth.

End-use Insights

The retail segment emerged as the largest segment in 2021, accounting for around 28.0% of the overall market. Several retailers are moving towards the simple mode of transactions to avoid long waiting queues and delays in transactions. As a result, retailers are now integrating the POS system with inventory, merchandising, marketing, and Customer Relationship Management (CRM) data to offer personalized, interactive, and unique customer experiences. Further, the retail segment is bifurcated into supermarkets/hypermarkets, convenience stores, grocery stores, specialty stores, and gas stations. The supermarkets/hypermarkets segment is expected to expand at the highest CAGR of over 8.5% during the forecasting period.

The exposure of mobile wallet technology is forecasted to increase the penetration of retail-based products during the forecast period. The healthcare segment is estimated to exhibit a greater CAGR of above 9.5% during the forecasting period. This growth is accredited to a broad product application scope in managing patient information, facilitating quick payment processes, and tracking employee statistics. The rising need to organize the payment process, and manage vaccination drives and COVID-19 patient records are expected to urge the market growth during and post-pandemic period.

Regional Insights

The Asia Pacific is projected to come out as the fastest-growing regional market during the forecast period. Government initiatives to support a cashless economy is increasing the demand for POS terminals in this region. A rise in digital payment technologies in the region has opened many opportunities for mPOS in countries such as Japan, China, and India. Nevertheless, the demand for fixed POS terminals from large enterprises to protect their business details and ensure the processing of high amounts of data of their customers is supporting the segment growth.

The pandemic impacted the most profitable sectors in the region, including hospitality, entertainment, and restaurant which led to a shrink in demand for POS terminals. China, one of the manufacturing hubs for POS terminal hardware components, recouped early compared to other countries, while Japan executed control measures to minimize the impact on its businesses. The other Asian countries are implementing measures to revive their businesses, which is expected to increase the demand for products in the coming years. Moreover, a considerable unbanked population and low penetration in other developing countries, such as Vietnam and Thailand are likely to create lucrative opportunities for market growth.

North America emerged as the second-largest regional market in 2021 and is expected to witness at a steady growth rate of over 5.0% during the forecast period. Several demanding payment technologies, such as contactless payments and NFC has been driving the product demand in the region. Moreover, the U.S. has many large retail brand outlets, such as Wal-Mart, Costco Wholesale Corporation, Target, The Kroger Co, and The Home Depot, which need POS terminals to manage billing, payment, employee duty, and inventory daily. Also, 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 companies are engaging in several inorganic growth strategies including partnerships, mergers & acquisitions, and geographical expansion, to stay afloat in the competitive market scenario. For instance, in September 2021, Elo Touch Solutions, Inc. partnered with CERTIFY Health to offer a patient self-service solution. This partnership integrated Elo’s All-in-One touchscreen computers along with a cloud-based interface, healthcare providers, and institutions by CERTIFY Care’s which can optimize patient registering workflows.

Along with growing the company's size and reach, market players also concentrating on research and development to manufacture products with the latest technologies to compete in the market. For instance, in September 2021, Presto introduced Presto Flex, which is Presto’s next-generation platform. This platform is a highly flexible, multi-purpose tablet custom-designed for the hospitality industry. It can be installed for various restaurant drive-thru and dine-in applications, including pay-at-table, staff handheld, drive-thru, and kiosk line buster. The platform also integrated Presto's contactless QR Code payment solution and ordering to provide restaurants with complete front-of-house versatility. Some prominent players in the point-of-sale terminals market include:

• Acrelec

• AURES Group

• Elo Touch Solutions

• HM Electronics, Inc.

• Hewlett-Packard Development Company, L.P.

• NCR Corporation

• Oracle Corporation

• Presto

• Qu Inc.

• Quail Digital

• Revel Systems

• Toast, Inc.

• Toshiba Corporation

• TouchBistro Inc.

• Xenial, Inc.

Point-of-Sale Terminals Market Report Scope

Segments Covered in the Report 

The report forecasts revenue growth at global, regional, and at country level and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the point-of-sale terminals market report on the basis of product, component, deployment, end use, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Fixed

    • Kiosks

    • Others

  • Mobile   

    • Tablet

    • Others

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

  • Services   

• Deployment Outlook (Revenue, USD Million, 2018 - 2030)

  • Cloud

  • On-premise 

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

• Restaurants

  • FSR

    • Fine Dine

    • Casual Dine

  • QSR

    • Drive-Thru

    • Others

  • Institutional

  • Fast Casual

    • Drive-Thru

    • Others

  • Others

• Retail

  • Supermarkets/Hypermarkets

  • Convenience Stores

  • Grocery Stores

  • Specialty Stores

  • Gas Stations

  • Others

• Hospitality

  • Spas

  • Hotels

  • Resorts

• Healthcare

  • Pharmacies

  • Others

• Warehouse

• Entertainment

  • Cruise Lines/Ships

  • Cinemas

  • Casinos

  • Golf Clubs

  • Stadiums

  • Amusement Parks

• Others

• Region Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • U.K.

  • Germany

  • France

  • Rest of Europe

• Asia Pacific

  • China

  • India

  • Japan

  • Rest of Asia Pacific

• Latin America

  • Brazil

  • Mexico

  • Rest of Latin America

• Middle East & Africa (MEA)