The global self-service technology market size was valued at USD 28.3 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.7% from 2020 to 2027. Varied technological advancements such as remote management and wireless communication are estimated to facilitate growth. The integration of biometric security services including fingerprint recognition that ensures secured financial transactions is expected to drive the industry growth. These technologies enable customers to produce a service independent of direct service employee involvement.
Increasing demand for self-service machines and automated devices, wireless communication, technology advancements, and remote management are the major factors driving the demand for Self-service Technology (SST). Additionally, the increasing influx of consumers in retail stores and the growing consumption of goods and services purchased in stores is playing a critical role in the growing demand. The booming retail industry across the emerging economies is projected to offer numerous opportunities for growth over the next seven years.
Furthermore, widespread awareness about the benefits of these machines such as ease of check-in and check-out process, reduction in congestion, and improvement in customer experience across the retail, airport, and banking applications is estimated to impact the demand positively. Besides urban areas, the manufacturers and service providers are now aiming at rural areas to enhance further self-service technology industry growth. For instance, in 2019, Karnataka Gramin Bank, an India based rural banking service provider sponsored by Canara Bank of India deployed mobile ATMs in Ballari, Kalaburagi, and Gulbarga districts of Karnataka.
The energy management and power consumption regulations imposed on different regions may curb demand. The government of various regions restricted the usage of food and beverage vending machines in many places such as schools, colleges, thereby limiting the demand for these machines. As a result, manufacturers began introducing and promoting energy conserving vending machines which not only provide added value benefits but also contribute to society. These energy saving vending machines consume less power and help in energy conservation in comparison to previous models. For instance, the refrigerated vending machines that are certified as ENERGY STAR save approximately 1,000 kWh annually and are 40% more energy efficient.
The growing adoption of mobile devices, connected systems, and digital platforms is revolutionizing the customer shopping experiences across digital and physical reality. From convenience stores to food and beverage retail formats, all are increasingly adopting self-service technologies to provide customers with a personalized experience. These intelligent technologies offer enhanced customer support in real-time. Furthermore, the need for workforce optimization and to reduce overhead costs is influencing verticals such as banking, travel and hospitality, retail, and healthcare to adopt automated and intelligent technologies.
The COVID-19 pandemic has radically shifted consumer and business behavior. With the radical change in consumer behavior with increased distancing and stringent regulations, businesses are forced to stop their operations and, thus, limit their spending on opportunistic technologies. Despite the short term social lockdown impact, the increased demand for groceries, medical supplies, general merchandise, and home improvement among shoppers forced businesses to adopt self-assisted technologies to promote social distancing and zero-touch practice. Furthermore, limited workforce availability due to lockdown and initiation of traveling and transportation has also led to extensive adoption of self-service checkout systems.
Based on the products, the ATM segment held the largest revenue share of 51.6% in the self-service technology market in 2019. Despite the rise in new avenues of digital transactions, the need for cash among developed and developing economies is encouraging the development of ATM deployments. Furthermore, the need to reduce operational costs and increase customer satisfaction, banks are rapidly deploying cash-dispensing ATMs and self-service cash recycling machines. Moreover, the demand for small value transactions among retail consumers is a crucial factor in surging the self-service ATM deployments.
The vending machine segment is anticipated to emerge as the fastest-growing segment over the forecast period. The rising demand for vending machines in the corporate sector is driving the overall market growth. The increasing need to reduce additional costs, space, and queues are the other factor driving the market in commercial spaces. Furthermore, the growing number of commercial projects and corporate offices to provide faster services is also anticipated to contribute towards the adoption of vending machines.
The retail segment dominated the market with a revenue share of 33.4% in 2019. The need to provide quality of service and improved customer experience is encouraging retailers to adopt self-service technologies. The most preferred technologies are the kiosks and vending machines. The rising influx in shopper’s population and the need to provide hassle free experience during the checkout process is further driving application in the retail stores. Currently, the growing adoption of interactive kiosks and self-checkout systems among various retail sectors such as specialty stores, convenience stores, and supermarkets are the other factor responsible for the retail segment growth.
The Quick Service Restaurant (QSR) application segment is expected to register the fastest CAGR of 8.4% over the forecast period. A growing number of QSRs coupled with the increasing consumers orders and the need to reduce counter waiting time with a reduced number of employees is driving the need for self-service systems. Furthermore, the increasing competition among restaurants to provide efficient service while maintaining operational costs is other factor responsible for the market growth. Additionally, the need to provide increased guest satisfaction, order accuracy, and improve smarter business is driving the adoption of automated self -service systems among QSRs.
Asia Pacific dominated the market for self-service technologies with a revenue share of 33.9% in 2019. The growing adoption of self-service systems is anticipated to grow at a considerable pace over the forecast period. Factors such as the increasing deployment of ATM, self-service kiosks, and vending machines across the emerging economies in the region are driving the market. Furthermore, the increasing awareness and rising consumer spending tendencies towards this technology is expected to drive demand across the region. Rising urbanization across countries such as India, China, and Japan with exponential growth in the banking sector have led to a huge demand for such automated machines.
North America accounted for the second-largest regional segment in the market. The U.S. accounted for the largest revenue share in the region. The increased spending on self-assisted and intelligent technologies by the banks, travel and transportation, retail, and hospitality sectors is driving the market growth. The emergence of new business models is some of the key factors contributing to the rapid growth of the IT-enabled self-services in this region.
Key companies dominating the market include NCR Corporation, Kiosk Information System, and FUJITSU. The market is competitive and fragmented owing to the presence of small and large vendors providing SST systems across the globe. Amongst the product type, the ATM market is concentrated in nature, with the presence established players such as NCR Corporation, Diebold Nixdorf Incorporated, GRGBanking, Hyosung TNS, and Hitachi-Omron Terminal Solutions, Corp. The established players have a more extensive customer base and sales channels, which enable them to cater wider audience efficiently across the globe. For instance, in February 2020, Hitachi-Omron Terminal Solutions, Corp’s Thailand subsidiary, received an order for ATM deployment, monitoring, and assistance from the Government Savings Bank of Thailand in partnership with Platt Nera International Limited.
The leading players are constantly involved in providing better services by upgrading their security features in their existing systems. Additionally, established players are also engaged in forming strategic initiatives with banks, retailers, and technology providers to improve and transform their business. For instance, In October 2019, NCR Corporation entered into a partnership agreement with Raymer Oil, a North Carolina based family-owned business that operates 46 Fast Phil’s convenience stores. As per the agreement, NCR Corporation would digitally transform all the Fast Phil’s stores and provide self-checkout technology along with NCR FastLane software across U.S. Some of the prominent players in the self-service technology market include:
AZKOYEN, S.A.
HYOSUNG TNS
KIOSK Information Systems.
HESS Cash Systems GmbH
Crane Co.
Toshiba Tec Corporation.
Report Attribute |
Details |
Market size value in 2020 |
USD 29.2 billion |
Revenue forecast in 2027 |
USD 46.0 billion |
Growth Rate |
CAGR of 6.7% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico |
Key companies profiled |
AZKOYEN, S.A.; Diebold Nixdorf; Incorporated; Fujitsu; HESS Cash Systems; HYOSUNG TNS; KIOSK Information Systems; NCR Corporation; Toshiba Tec Corporation |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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-service technology market report on the basis of product, application, and region:
Product Outlook (Revenue, USD Million, 2016 - 2027)
ATM
Kiosks
Vending Machines
Application Outlook (Revenue, USD Million, 2016 - 2027)
Retail
QSR
Banking
Travel & Tourism
Healthcare
Others (Hospitality, Education, Government, etc.)
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
U.S.
Canada
Europe
U.K.
Germany
Asia Pacific
China
India
Japan
Latin America
Brazil
Mexico
MEA
b. The global self-service technology market size was estimated at USD 28.3 billion in 2019 and is expected to reach USD 29.2 billion in 2020.
b. The global self-service technology market is expected to grow at a compound annual growth rate of 6.7% from 2020 to 2027 to reach USD 46.0 billion by 2027.
b. ATM dominated the self-service technology market with a share of 51.6% in 2019. This is attributable to the increasing demand for dispensing cash, deposit cash, and bill payments any time across residential and commercial environments while reducing waiting time in banks.
b. Some key players operating in the self-service technology market include NCR Corporation; Diebold Nixdorf, Incorporated; KIOSK Information Systems; Fujitsu, Toshiba Tec Corporation amongst others.
b. Key factors that are driving the market growth include increasing labor costs, shortage of skilled laborers, and growing focus by enterprises for offering convenient services to the customers along with customizing the cost of these services.
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The global electronics devices market (including consumer electronics and industrial electronics devices) is expected to be impacted significantly by COVID-19 as China is one of the major suppliers for the raw materials (used to manufacture devices) as well as the finished products. The industry is on the brink of facing a reduction in production, disruption in supply, and price fluctuations. While this can vastly encourage local manufacturers to step up and address the growing demand, the scarcity of raw material can still pose a challenge to this industry. The sales of prominent electronic companies is expected to be affected in the near future. The report will account for Covid19 as a key market contributor.
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