Restaurant Point of Sale (POS) Terminal Market Analysis By Product (Fixed, Mobile), By Component (Hardware, Software), By Deployment (Cloud, On Premise), By Application, By End-user, And Segment Forecasts, 2018 - 2025

Industry Insights

The global restaurant point of sale (POS) terminal market size was estimated at USD 10.17 Billion in 2016. The industry has witnessed substantial growth led by the high demand for POS terminals owing to its multi-functionality benefits to the restaurant owner. The POS is the flexible system which helps user to carry out their business operation in a profitable manner. The POS system has various features such as billing, customer relationship management, stock & inventory management, menu management, reporting and analysis and others which help restaurant operator or manager to make an effective decision for their business.

U.S. restaurant POS terminal market by end-user, 2014 - 2025 (USD million)

The POS terminals are more efficient than the traditional cash register or manual system in restaurant applications. It drastically helps in reducing the time required billing, gathering sales figures and other repetitive paperwork. such as tax reporting, inventory control, payroll and others. The POS system required for the restaurant operation have much different requirement as compared to retail industry. In restaurants, these systems are required to improve efficiency by cutting down the time order generation, on time per transaction and reducing errors during the peak time. This has streamlined the workflow within various type of restaurants and is anticipated to upsurge radically over the forecast period.

Rising innovations in the industry with a higher focus on providing a customized solution to the restaurant owners specific to their business operation is anticipated to regulate the growth factor. For instance, Revel system partnered with Intuit to develops QuickBooks, it is an online restaurant point of sales system which helps restaurants spontaneously sync its sales, inventory, payment, payroll and CRM information.

Product Insights

The demand for mobile POS system is expected to grow at the highest CAGR of 13.4% from 2017 to 2025. The rapidly growing popularity of wireless technology and decreasing cost of the mobile devices such as tablets and smartphones has resulted in growing adoption of mobile POS terminal among the restaurant owners. Moreover, these systems provide a high return on investment by enhancing order accuracy, rationalization order processing, improving sales and profitability by increasing food service throughout the operation.

The fixed POS terminal accounted for the majority shareholder in 2016. The growing demand for self-service kiosk system in the quick service restaurants to eliminate long checkout lines and to serve more number of customers is anticipated to drive the market over the forecast period.

Component & Deployment Insights

The POS software market is expected to grow at a CAGR of 13.5% over the forecast period, accounting for over 12% of the overall market. The need for updating the POS software for the restaurants to meet the growing consumer expectation regarding payment, mobility security and customer engagement is expected to boost the restaurant point of sale software market over the forecast period.

Asia Pacific restaurant POS terminal market, by product 2016 (%)

The cloud deployment segment was valued at USD 2.18 billion in 2016 and is expected to grow at a considerate CAGR of over 11.7% from 2017 to 2025. The growing adoption cloud-based deployment solutions among the restaurant operator owing to its features such as all-in-one solution, easier integration, and facility to access real-time data through any web enabled device is anticipated to boost the cloud applications over on-premise deployment.

Application & End-user Insights:

Back-end or back office application segment is expected to grow at a CAGR of 11.1 % over the forecast period. Increasing use of POS monitoring systems to carry out enhanced back-end restaurant operation such as cancellation discounts, inventory management, payroll, accounts management and others is expected to accelerate the demand for back office restaurant applications.

The market has been segmented by end-use into Quick Service Restaurant (QSR), Full Service Restaurant (FSR), and institutions. FSR is further bifurcated to fine and casual dine. The Quick Service Restaurant (QSR) accounted for over 31% of the overall market and is expected to witness a strong growth. The QSR have to provide high volume products in short duration and at a low price as compared to its competitors within the food service industry. The POS terminals help QSR operator to meet the changing demand from the customer and remain competitive by providing faster customer service by reducing order turnaround time.

Regional & Competitive Insights

Asia Pacific restaurant POS terminal market was valued at USD 3.14 billion in 2016. The growing food service industry in countries such as India and China owing to the favorable demographic condition and increased disposal income is in turn expected to proliferate the demand for POS terminals across the industry. Various restaurantsin these countries have started using the system such as digital kiosk and tablets to display menu and place orders to increase operational efficiency and customer experience.

The global restaurant POS terminal industry is highly competitive, the key industry competitors include Ingenico Group, Verifone Systems Inc., PAX Technology Limited, NCR Corporation, Revel Systems and others The POS terminal vendors are using strategies such as acquisition, partnership, and research & development strategies to broaden their product portfolio. For instance, in April 2016 Revel entered into a partnership with Verifone to enhance and simplify payment management and EMV acceptance for merchants.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the 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 restaurant POS terminal market on the basis of product, component, deployment, application, end-user and region:

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

  • Fixed POS terminal

    • Self-serve kiosks

    • Cash counters terminal

    • Vending machine

  • Mobile POS terminal

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

  • Hardware

    • Touch Screen/ Desktop

    • Swipe card machine

    • Others

  • Software

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

  • Cloud

  • On Premise

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

  • Front End

  • Back End

• End-User Outlook (Revenue, USD Million, 2014 - 2025)

  • FSR (Full Service Restaurant)

    • Fine Dine

    • Casual Dine

  • QSR (Quick Service Restaurant)

  • Institutional

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • UK

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa