The global restaurant point of sale terminals market size was valued at USD 14.4 billion in 2019. It is projected to expand at a CAGR of 6.8% during the forecast period. The market growth can be attributed to increasing demand for point-of-sale (POS) terminals from restaurant owners as it is more efficient than the traditional cash register or manual systems in the restaurants. Moreover, the POS terminal can perform multiple tasks apart from processing payment and registering the everyday sale. Some of the functions of the POS terminal are inventory management, employee management, sales analysis, and customer feedback analysis, which is further boosting the market.
The POS terminals installed in restaurants are required for recording sales figures, billing, inventory control, and payroll. The data collected on the POS terminal also help owners for sales tax reporting and keeping track of monthly and yearly sales. Hence, the POS terminal reduces manual and tedious work of going over daily sales report to prepare the tax reporting. Additionally, Customer Relationship Management (CRM) software is being implemented into the POS terminal, which provides integration benefit of automatically fetching the customer information, creating regular updates, and sales reports. The CRM-POS enabled system is handy in mapping customer information with their purchase pattern. This helps restaurant owners to customize their menu and provide competitive service as per the customer demand.
The successful functioning of a restaurant is primarily driven by the active management of three essential attributes, i.e., employee performance, customer service, and inventory. With the use of the POS terminal, the operation can be streamlined in a restaurant and can contribute towards improving the profits. The deployment of the POS terminal in restaurants can help them improve their efficiency by monitoring the order completion time, reducing billing or order error during peak hours, identifying hot-selling items, and providing quick transaction facility. The metro cities are a hub to fine dining restaurants, pubs, cafes, nightclubs, breweries, and luxury hotel restaurants where people regularly congregate at the restaurants on weekends for leisure time and delicious food experience. Hence, the restaurant owners strive to manage the back-end preparation for a smooth front-end operation during the busy hours.
The restaurant POS terminal market is facing a challenge in market growth due to concern over data security as the system is connected via the internet, and some of the POS terminal stores data on the cloud. The POS malware data breach is one of the significant concerns among restaurateurs. As in November 2019, a well-known restaurant chain of Catch Hospitality Group, named Catch NYC, Catch Roof and Catch Steak experienced malware attack which exposed confidential customer card information. However, the mobile POS device data was safe as the hackers could not track it due to point-to-point encryption technology used in the mobile POS. Additionally, reliability on the internet connection for initiating payment and other tasks also can act as a hindrance to the adoption of the POS terminals within the countries which lack robust IT infrastructure as the internet downtime can affect the billing and payment process.
Mobile POS is expected to be the fastest-growing product segment at a CAGR of 7.3% from 2020 to 2027. The mPOS adoption has increased owing to benefits such as improved service level, increased table turns, less operation cost, and suggestive selling. Growing popularity of wireless technology and decreasing cost of mobile devices, such as tablets and smartphones, have resulted in increased adoption of mPOS terminals among restaurant owners. Moreover, these systems provide a high Return on Investment (RoI) by improving order accuracy, rationalizing order processing, and increasing sales and profitability.
The fixed segment, which is further categorized into self-serve kiosks, cash counters terminal, and vending machine, accounted for the largest market share in 2019. The segment will lead the market even during the forecast years. The cash counters terminal segment generated the highest revenue in 2019 while the self-service kiosk segment is expected to register the highest CAGR from 2020 to 2027. Escalating demand for self-service kiosk systems in QSRs to avoid long checkout lines and to serve a greater number of customers is anticipated to drive the segment over the forecast period.
The software segment is expected to register the highest CAGR of 7.5% over the forecast period. Growing need for updating the POS software in restaurants to meet the growing consumer expectations regarding payment, mobility security, and customer engagement is expected to boost the segment growth. In addition, software vendors are also offering solutions that include Hotel Property Management System (PMS), which offers fully integrated technology capabilities to restaurant owners. Moreover, increasing adoption of mobile POS terminal which require only software is anticipated to boost the market.
On the other hand, the hardware segment is expected to account for the largest market share by 2027. The hardware segment is classified into swipe card machine, touchscreen/desktop, and others. Increasing usage of mPOS terminals, such as tablets, in restaurants because of their compact and flexible features, will help restaurant staff provide speedy and accurate table services. Moreover, the card swipe machine facilitates quick cashless payment using credit or debit card.
On the basis of deployment, the restaurant point of sale terminals market is categorized into on-premise and cloud. The on-premise segment generated the highest revenue in 2019 and was valued at USD 10.04 billion. On-premise is a traditional type of POS terminals, which stores data in the local server operating at a closed internet server. The on-premise deployment is still preferred as traditional method of deployment to have more control and safety over the stored data.
The cloud deployment segment is expected to witness the highest CAGR over the forecast period. Growing adoption of cloud-based deployment solutions owing to features, such as all-in-one solution, easy integration, and facility to access real-time data through any web-enabled device, is anticipated to drive the segment. Moreover, the cloud POS terminal allows restaurants to carry out multiple tasks, such as tracking financials and back-of-the-house ordering on the device. It also helps restaurants to provide loyalty programs and marketing options, along with simultaneously managing off-site.
Based on application, the market is categorized into front-end and back-end applications. The front-end application segment held a large share of the market in 2019 and is likely to maintain dominance throughout the forecast years. Increased product adoption by restaurants for carrying out front end operations, such as billing, food ordering, payment processing, tracking sales, customer interaction, order management, reporting, as well as marketing, is anticipated to boost the segment.
POS solutions help restaurants simplify business operations, analyze costs, deliver enhanced customer experience, increase profitability. The back-end application segment is expected to grow at the highest CAGR of 7.4% over the forecast period. The cruciality of back-end operation to ensure smooth processing at front-end of the restaurant is also popularizing the use of POS terminal. Increasing use of POS monitoring systems to carry out back-end restaurant operations including inventory management, payroll, account management, and others in a better manner is expected to boost the segment development.
Based on end user, the restaurant POS terminals market has been segmented into Quick Service Restaurant (QSR), Full-Service Restaurant (FSR), and institutional FSR, which is further bifurcated into fine dine and casual dining. The FSR segment led the market in 2019 accounting for over 41.00% of the global market share and is expected to maintain dominance over the forecast period. The casual dining segment accounted for the largest share of the market in 2019 and anticipated to grow at the highest CAGR from 2020 to 2027. The affordable and convenient eating option is booming the number of casual dining restaurants, which are highest adopter of POS terminal system.
The Quick Service Restaurant (QSR) segment is expected to witness the maximum growth over the forecast period. QSRs are required to provide higher volume products in a short duration and at low price as compared to their competitors in the foodservice industry. Thus, the POS terminals help QSRs in meeting the changing customer demands and remain competitive by reducing the order turnaround time and providing faster customer service.
Asia Pacific was the largest regional market in 2019 accounting for more than USD 4.00 billion. It is projected to expand further during the forecast period due to rapidly expanding and evolving foodservice industry in countries, such as India and China, as a result of favorable demographic conditions and increased disposable income levels. Various restaurants in these countries have started using systems, such as digital kiosk and tablets to display menu, place orders, increase operational efficiency, and enhance customer experience.
North America was the second-largest revenue contributor in 2019. The rapidly growing restaurant industry and presence of the highest number of vendors offering restaurant POS software are key factors driving market growth. Additionally, the rising demand for advanced restaurant POS software in the region to ease everyday challenges related to restaurant operations and management is expected to drive the market further. The U.S. contribution to the market growth is also attributed to the presence of large number of quick-service restaurants in the country.
The global market is highly competitive. Some of the key industry competitors include Ingenico Group; PAX Technology Limited; Verifone Systems Inc.; NCR Corporation; Revel Systems; Aireus Inc.; Aireus Inc.; Dinerware, Inc.; POSist, EposNow; Harbortouch Payments, LLC; LimeTray; POSsible POS; Oracle Corporation; Posera; ShopKeep; Squirrel Systems; Toshiba Corporation; TouchBistro; and Upserve, Inc. The acquisition, partnership, and new product development strategies were opted by the vendors, to expand their product portfolios. For instance, in September 2019, Qu POS, Inc launched a data-centric enterprise POS platform to help restaurants in managing omnichannel orders from one central hub. Moreover, In November 2017, NCR Corporation formed a strategic partnership with MONKEY, provider of cloud-based software platform. This integration allowed NCR Aloha POS users to impeccably manage their orders placed on MONKEY platform without the need for extensive IT association.
The companies also focus on providing product with additional features at affordable price. The Touch Bistro provides tablet-based POS solution with features, such as order tracking, cash management, inventory management, and others, for Quick Service Restaurants (QSRs). Constant innovations in the market and focus of manufacturers on providing customized solutions are anticipated to drive the market further. For instance, the Revel Systems partnered with Intuit Inc. to develop QuickBooks, an online restaurant POS terminal that enables restaurants to spontaneously sync their sales, inventory, payment, payroll, and CRM information.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Revenue in USD Million and CAGR from 2020 to 2027
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, U.K., Germany, France, China, India, Japan, Brazil, Mexico
Revenue forecast, competitive ranking, competitive landscape, growth factors and trends
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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 restaurant point of sale terminals market report on the basis of product, component, deployment, application, end user, and region:
Product Outlook (Revenue, USD Million, 2016 - 2027)
Cash Counters Terminal
Component Outlook (Revenue, USD Million, 2016 - 2027)
Swipe Card Machine
Deployment Outlook (Revenue, USD Million, 2016 - 2027)
Application Outlook (Revenue, USD Million, 2016 - 2027)
End-user Outlook (Revenue, USD Million, 2016 - 2027)
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Middle East & Africa (MEA)
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In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.