Self-checkout Systems Market Size, Share & Trends Analysis Report By Component (Systems, Services), By Type (Cash Based, Cashless Based), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global self-checkout systems market size was valued at USD 3.44 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.3% from 2022 to 2030. During the COVID-19 pandemic, the need to maintain social distancing, reduce wait time in queues, and offer products beyond retail store premises triggered the overall market growth. The market is primarily driven by the increasing retail space cost and growing consumer queue time to order or checkout. Furthermore, the shortage of skilled laborers in developing nations, rising labor costs, and inclination toward personalized shopping experience are some of the other factors boosting the market growth.

Self-checkout systems are automated systems deployed across retail, grocery stores, and hospitality industries to help the customer in checkout and self-order without the help of any employees. The earlier self-checkout systems included separate, off-the-shelve components and occupied a large storage area. On the contrary, the current self-checkout systems are re-engineered and manufactured as per demand to suit the store structure and improve functionalities, costs, form factors, and reliability. The growing trend of secure and self-payment technologies has resulted in kiosk vendors providing cashless systems and is expected to fuel the market growth over the next couple of years.

Automation is rapidly becoming the key transformational force across many industries worldwide. The increased penetration of automation across industries/sectors such as retail and hospitality is likely to drive the adoption of self-checkout systems across store operations and warehouses. Features such as self-scan and pay and self-ordering, while avoiding large queues, contribute to their increased popularity in the market. In addition, to cope with the declining workforce, the adoption of robotic and automation products has risen notably in the retail sector in recent years.

Technology developments and increasing IoT penetration in the retail space continue to contribute to the growth of the market at a steady pace. Shop owners are increasingly investing in technology to reduce in-store issues related to inventory mapping, product information identification, payment, and customer experience. For instance, motion sensors and lasers help retailers detect if a product is shoplifted or a product has not been scanned at a self-checkout counter. Moreover, the deployment of self-checkout systems would help customers understand several product features and promotional offers provided in the store and check out quickly without any intervention from employees. Therefore, self-checkout systems also serve as an additional touchpoint allowing store owners to improve customer engagement and enhance their shopping experiences.

Even though the market is anticipated to witness steady growth owing to the aforementioned benefits, lack of awareness and rising instances/incidences of skimming, fraud, and shoplifting are expected to pose a challenge to the market growth. Reluctance to use self-checkout services among the elderly population is another factor that may impact the industry growth. Senior citizens with mobility issues and conditions such as dementia, and hearing, sight, and memory loss require more outstanding care. Additionally, limited technology know-how in underdeveloped economies often leads to the avoidance of self-checkout systems across retail outlets.

The COVID-19 pandemic had a significant impact on the global market. The spread of COVID-19 urged governments across the globe to undertake several precautionary methods. Many retailers implemented business models at a higher rate, from zero-touch practices to remote working. These practices created avenues as well as challenges for the market growth. Furthermore, the limited availability of the workforce in retail shops promoted a self-servicing shopping experience, wherein consumers selected the required products without the intervention of an employee to guide them on the product details. However, procuring raw materials and components across countries was a challenge among the vendors owing to the shutdown of operations. As most of the suppliers were concentrated in China and other Asia Pacific countries, the supply of components was halted due to the halting of travel and transportation during the lockdown phase.

Component Insights

The systems segment held the largest revenue share of over 60.0% in 2021. The large share is attributed to the growing adoption of advanced technologies such as artificial intelligence, voice interface, and computer vision in self-checkout systems. Retailers strongly prefer advanced hardware systems rather than traditional checkout systems. The latest hybrid self-checkout systems provide advanced security-based features, high-capacity coin dispensing systems and intuitive customer interface, multi-item scanning, and cashless transactions. Moreover, increasing consumer inclination toward both cash and cashless transactions is modifying the retailers to install new systems with advanced capabilities.

The services segment is anticipated to emerge as the fastest-growing segment over the forecast period. The factors such as demand for effective systems to offer flexibility in the store’s front end, faster processing, and easy integration of systems and services in the traditional checkout systems and self-checkout are influencing the retailers to adopt motivating, consulting, and maintenance services. The need for tailored systems regarding the store layouts and progressing retail in-store transformation also contributes to the growth in consulting and managed services. Additionally, customization or modification in software and a need for professional consulting services to implement upgraded or updated software in the systems fuel the segment growth.  

Type Insights

The cash-based systems emerged as the largest segment with a revenue share of over 50.0% in 2021. Growing choices for paper-based transactions among the small, medium, and large size retailers are driving the market. Consumers with a limited number of items in baggage prefer to checkout at self-service terminals at stores. Furthermore, these customers prefer to make payments through cash or card. The cash-based systems offer higher flexibility to the consumers for both cash and cashless transactions, which leads to the growth of the segment. Additionally, the U.S. government promoting cash-based transactions in retail outlets is further influencing the market growth.

The cashless-based systems are gaining high traction due to the growing preference for digital payments and electronic transactions among consumers. The segment is expected to expand at the fastest CAGR of 14.5% during the forecast period. Although cash or paper-based payment transaction is dominating, an inclination toward electronic payments is rising among the middle age group consumers and millennials. Moreover, the availability of digital payment solutions and the growing trend of mobile commerce are the other factors driving the cashless self-checkout systems segment.

Application Insights

The supermarkets and hypermarkets segment accounted for the largest revenue share of over 55.0% in 2021. The growth is attributed to the growing demand for self-checkout systems across supermarkets and hypermarkets stores. The significant rise in the number of shoppers across supermarkets and the need to maximize employee efficiency in the stores while enhancing customer satisfaction are key factors contributing to the adoption of self-checkout systems. Furthermore, the increasing employee costs and the need to utilize floor space efficiently are enabling them to adopt self-checkout. 

Convenience stores are increasingly embracing advanced and updated self-service technologies to provide frictionless customer service 24/7. The availability of the varied type of products assorted in different departments drives a high volume of customers across department stores. Hence, the department stores are highly invested in in-store transformation to provide greater customer satisfaction and improve the consumer experience. Furthermore, the availability of larger floor space and a need to provide efficient checkouts to the consumers are surging the adoption of self-checkout systems. However, due to the declining profits among the department stores, the demand for self-checkout systems is expected to grow at a steady rate.

Regional Insights

North America dominated the market with a share of over 40.0% in 2021. The presence of a large number of grocery and supermarket chains, coupled with growing retail in-store transformation, is contributing to the regional market growth. The rising adoption of self-checkout systems by the hypermarkets and supermarkets in Canada and the U.S. contributed to the regional segment growth. The demand for a higher pay scale among employees is the primary reason for the unfilled job gap in the U.S. Owing to the rising demand for employees at an optimized pay scale, the demand for self-checkout systems is growing across physical store formats.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The growth in the retail and hospitality industry, coupled with the growing automation and digitization trend, is expected to boost the regional market growth. Retail stores in the region are expanding through hyperlocal offerings and increasingly integrating omnichannel strategies to provide consumers with a seamless shopping experience. In addition, a rise in household expenses, shrinking household size, rapid urbanization, increasing disposable income, and advanced technology adoption are the other factors that contributed to the regional market growth. For instance, in June 2021, Toshiba Corporation based in Japan partnered with Worldline, a French multinational payment, and transactional services provider, which helped the former company bring its Pro-X Hybrid Kiosk to market for a more flexible approach to point-of-sale terminals. The kiosk acted as both a traditional register and a self-checkout station. The launch of the solution, through this partnership, was aimed at capturing a larger market share.

Key Companies & Market Share Insights

The market is concentrated and competitive with the presence of established vendors. These vendors are engaged as strategic partners to the large and small retail vendors to digitize and transform their retail front ends. Furthermore, with a strong network of direct and indirect sales channel presence, these companies have maintained their market share throughout. Additionally, with a strong sales channel, these companies have partnered with large retail store chains. For instance, in February 2021, Pyramid Computer GmbH entered into a partnership agreement with Scheidt & Bachmann GmbH. This Germany-based enterprise offers solutions for retail stores across fuel and parking sites. As per the agreement, the latter company would integrate its SIQMA Smoove, a checkout solution, into the former company’s hardware. The two companies intend to promote self-checkout solutions at fuel retail stores.

Moreover, these key companies are adopting strategic partnerships, contract extensions, and R&D investments activities to maintain market competitiveness. For instance, in June 2021, Toshiba Corporation entered into a partnership with Worldline, a France-based payment solution provider, which brings Toshiba’s Pro-X Hybrid Kiosk to market in this partnership. The kiosks are aimed at helping retailers offer a better flexible outlook to the point of sale (POS) in their stores, making the check-out experience more sophisticated for the customers. The kiosk will act as both a traditional register and a self-checkout station. Some prominent players in the global self-checkout systems market include:

• Diebold Nixdorf, Incorporated

• ECR Software Corporation

• FUJITSU

• Gilbarco Inc.

• ITAB Group

• NCR Corporation

• Pan-Oston

• PCMS Group Ltd.

• StrongPoint

• Toshiba Global Commerce Solutions 

Self-checkout Systems Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global self-checkout systems market report on the basis of component, type, application, and region:

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

  • Systems

  • Services

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

  • Cash Based Systems

  • Cashless Based Systems

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

  • Supermarkets & Hypermarkets

  • Department Stores

  • Convenience Stores

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • France

    • Germany

    • Poland

    • Rest of Europe

  • Asia Pacific

    • China

    • Japan

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa (MEA)