Self-checkout Systems Market Size, Share & Trends Analysis Report By Components (Systems, Services), By Type (Cash Based, Cashless), By Application, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global self-checkout systems market size was valued at USD 2.8 billion in 2019 and is expected to register a CAGR of 13.3% from 2020 to 2027. The increase in the influx of retail consumers and a consequent rise in their waiting time during the checkout process is a significant factor driving the adoption of self-checkout systems. Furthermore, increasing labor costs, shortage of skilled laborers in developed nations, and preference for personalized shopping experience are some of the other factors driving the market growth. Additionally, the ongoing retail transformation to reduce costs and a need to increase productivity also contributes to the adoption of these systems in the retail industry.

Growth in e-commerce channels, competition from virtual shops, and the shorter product life cycle is forcing the retailers to develop new strategies and adopt new technologies to increase their revenue and decrease costs. As a result of the increased challenges, retailers are adopting self-checkout systems and thereby enable them to redeploy their staff to dedicate more of their time in supporting other retail operations and serve consumers more effectively. For instance, the NCR Corporations’ FastLane SelfServ Checkout system provides shoppers with ease to scan, bag, and pay themselves at the checkout counters and, thus reduces additional staff intervention. It also improves its retail operations and enhances the shopping experience.

Additionally, an increase in competition from curated commerce channels has enabled retailers to flood their outlets with a variety of similar product brands and niche products. However, the increasing availability of various products reduces the floor spaces and increases congestion for the shoppers to move out during checkout. As a result of growing constraints to free up retail floor space and the need to provide a hassle-free checkout experience, retailers are adopting wall or countertop self-checkout systems. For instance, NCR Corporation’s SelfServ 90 is a sleek and compact system that offers retailers the flexibility to free up space by mounting it on a countertop or a pedestal or wall, thereby supporting shoppers with a concept for grab and go solution.

Currently, retail consumers are more demanding and want their shopping experience to be convenient, secure, and in control. As a result, the preference for self-service solutions among end users is growing. Furthermore, with the rise in demand for privacy and personalized shopping, retailers are increasingly adopting self-service checkout or self-checkout systems with an effort to engage shoppers with the brands more effectively by themselves. For instance, Fujitsu’s U-Scan and Impulse self-checkout systems include features, such as themes, customer personalization, and charitable donation applications to help retailers to maximize their merchandise, promote brand presence, and increase advertisement space in their retail stores.

The advancement in Near Field Communication (NFC) technologies and the integration of Radio Frequency Identification Device (RFID) with mobile technology capabilities are further contributing to the development of the self-checkout systems market. The technology enables the shoppers to pick, scan, and pay for the products directly from the aisle using an identification device and thus, reduces the shopping time and increases convenience among the end users. Furthermore, with the diffusion in mobile and social technologies, mobile self-checkout solutions, or “mobile scan and go” solutions, are becoming an increasing trend among the consumers and retailers. The solution provides consumers to scan, bag, and pay their products using their smartphones and in turn, enables retailers to optimize their costs and the number of sales.

Components Insights

The systems segment accounted for the highest market share in 2019. The technological innovation in self-checkout systems is a significant factor contributing to the hardware adoption among retailers over the traditional checkout systems. The modern hybrid self-checkout systems offer advanced security-based features, intuitive customer interface, and high capacity coin dispensing systems, cashless transactions, and multi-item scanning. Moreover, growing consumer preference for both cash and cashless transactions is influencing the retailers to adopt new systems with advanced capabilities.

The service segment is expected to witness the fastest growth over the forecast period. The need for effective systems to provide faster processing, flexibility in the store’s front end, and easy integration of systems and services in the traditional self-checkout as well as checkout systems is motivating the retailers to opt for consulting, implementation, and maintenance services. Ongoing retail in-store transformation and the need for tailored systems with reference to the store layouts also contributes to the growth in consulting and managed services. Additionally, modification or customization in software and a need for professional consulting services to implement updated or upgrade software in the systems also contributes to the segmental growth.

Type Insights

The cash-based self-checkout systems accounted for the largest market share in 2019. Increasing preferences for paper-based transactions among large, small, and medium-size retailers is the predominant factor driving the growth. For instance, as per the World Bank Group and World Economic Forum study, in June 2016, paper-based transactions accounted for USD 19 trillion among all retail outlet size across the globe. Additionally, efforts from the U.S. government to promote cash-based transactions in retail outlets are further contributing to the segment growth. For instance, in February 2019, the Philadelphia government passed legislation to prohibit cashless stores. And the likewise suits of law are increasingly implemented among the other states in the U.S. such as San Francisco and New York.

The cashless based self-checkout system is expected to emerge as the fastest-growing segment over the forecast period. The primary factor attributing to the segmental growth is the increasing popularity of electronic payments. Despite the dominance of cash or paper-based payment transaction, a shift in electronic payments is increasing among the millennials and middle age group consumers. Moreover, rising trends of mobile commerce and the availability of digital payment solutions are the other factors anticipated to drive the adoption of cashless self-checkout systems.

Application Insights

The hypermarkets and supermarkets segment dominated the market in 2019 with a market share of approximately 56% and are expected to continue its dominance throughout the forecast period. The increase in the number of affluent consumers among the supermarkets and hypermarkets and a need for shorter waiting times to process checkouts is the significant factor contributing to the development of the segment. Furthermore, increasing labor costs, need to replace large-sized tills, and appropriate utilization of floor space has compelled supermarkets and hypermarkets owners to deploy self-checkout systems.

The popularity of self-checkout systems among convenience stores is increasing day by day and, thus, is expected to expand at the highest CAGR of 14.6% over the forecast period. The convenience stores are embracing advanced technologies, upgraded self-service technologies with an effort to provide faster service to the consumers. Moreover, the adoption of alternative self-checkout systems such as mobile scan and go solutions is also a growing trend among the convenience stores. For instance, in November 2018, OKay convenience stores, a subsidiary of Belgium based family-owned retail chain Colruyt Group, launched “Scan.Pay.Go” mobile app to provide consumers with easy to scan and pay for their purchases in the stores.

Regional Insights

In 2019, North America dominated the regional segment with a market share of approximately 46%. The region is poised to grow at a considerable pace over the forecast period. The increasing adoption of self-checkout systems by the supermarkets and hypermarkets in the U.S. and Canada attributes to the regional segment growth. For instance, in June 2019, Albertsons Companies, Inc., a U.S. based drug and food retail chain, extended its partnership with Toshiba Global Commerce Solutions to improve in-store consumer checkout experience by deploying the later company’s self-checkout systems. Europe accounted for the second-largest regional segment in 2019. The larger retailers, such as grocery chains and discount stores, are increasingly expanding self-checkout lanes. For instance, in May 2018, the Kaufland Dienstleistungs GmbH & Co. KG, a German-based grocery hypermarket chain, announced its plans to deploy NCR Corporation’s self-checkout systems across its stores. The hypermarket retail chain had already implemented the NCR Corporation’s self-checkout systems in its 160 stores and further continue its plans to embrace self-checkout systems in its other stores.

Asia Pacific is expected to expand at the highest CAGR of more than 15% over the forecast period. The increasing trend toward cashless payment systems and gradual adoption of technologies such as Artificial Intelligence (AI) in self-service checkout systems is driving the market. Unlike the other traditional self-checkout systems that enable consumers to scan individual products, the advanced systems with new AI-based features scan all the products instantly and direct consumers for payments. Thus, the introduction of advanced systems reduces waiting time and increases customer satisfaction. In April 2019, the new AI-based self-checkout systems was tested in the Seikatsu Saika convenience store in Tokyo. Moreover, the need to improve store operations and continued labor crisis in Japan are influencing retailers to adopt self-checkout terminals. For instance, in April 2019, Lawson Inc., a convenience store chain in Japan, announced the availability in all its stores to deal with the labor shortage issues.

Key Companies & Market Share Insights

Some of the prominent market participants include NCR Corporation; Toshiba Global Commerce Solutions; Diebold Nixdorf, Incorporated; FUJITSU; ITAB Group, and ECR Software Corporation. These market players have a strong focus on improving and enhancing the functionality, which provide retail users with additional features to improve their productivity. For instance, in January 2019, FUJITSU announced the introduction of a new solution that uses AI in self-checkout systems to reduce fraud in supermarkets and hypermarkets. Furthermore, to co-create and test the technology, FUJITSU had partnered with a European hypermarket retailer and aimed to provide retail users with a frictionless and cashier-less store.

Moreover, the leading market players are also engaged with long-term partnerships with retail store chains to help them in their retail transformation and improve the in-store experience. Additionally, the industry participants are also engaged in contract extensions, strategic partnerships, and investments in R&D activities to maintain their market competitiveness. For instance, in July 2019, Ooredoo QSC, a Qatar based international telecommunication company, extended its partnership agreement with NCR Corporation with a 10-year contract. The former company extended its contract with a need to avail NCR Corporation’s Digital Connected Services and maintain their existing deployed NCR self-service kiosks. Moreover, NCR Corporation would also help Ooredoo QSC in transforming their mobile retail stores with 150 NCR Self-Serve Kiosks.

Self-checkout Systems Market Report Scope

Segments Covered in the Report

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 self-checkout systems market report on the basis of components, type, application, and region:

• Components Outlook (Revenue, USD Million, 2016 - 2027)

  • Systems

  • Services

• Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Cash based systems

  • Cashless based systems

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Supermarkets & Hypermarkets

  • Department Stores

  • Convenience Stores

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • France

    • Germany

  • Asia Pacific

    • China

    • Japan

  • Rest of the World

    • Brazil

    • Mexico