Point-Of-Sale (POS) Terminals Market Size (2023 – 2030)

The Global Point-Of-Sale (POS) Terminals Market was estimated to be worth USD 93.2 Billion in 2022 and is anticipated to reach a value of USD 169.09 Billion by 2030, growing at a fast CAGR of 7.73 % during the outlook period 2023-2030.

An electronic device called a point-of-sale (POS) terminal is used to process card payments at establishments like clinics, drugstores, vacation spots, dining establishments, inns, hotels, and retail stores. The market has grown in demand because of the rise in demand for reasonable wireless communication technologies. POS systems make it easier to pay for goods and services by using wireless devices. The use of wireless technology simplifies a variety of procedures, from restaurants to cab services. POS terminals are used for remittance and other operational duties, including accounting, sales tracking, and inventory management, by businesses in the retail and hospitality industries. For instance, POS technology is essential to the operations, inventory, and tracking of sales, operations, products, and inventory for restaurants, bars, and other food service providers. The market concept includes hardware and displays to facilitate online transactions, such as cash registers, barcode scanners, and computers. In addition, the industry is growing due to the rising use of mobile-based POS terminals, advancements in payment technology, the use of Europay, Mastercard, and Visa (EMV) cards, and the expanding market in the retail and e-commerce sectors.

Global Point-Of-Sale (POS) Terminals Market Drivers:

The development of the modern drive-through is driving growth in the Point-Of-Sale (POS) Terminals Market

Security and privacy issues related to data breaches have captured the attention of the market. The development of the modern drive-through is what is fueling the market for POS terminals. For a seamless delivery and order procedure, some businesses adopted POS systems to connect their drive-thru queue, kitchen, and back-office operations. Fast-casual restaurants like Chipotle, Starbucks, and Panera, for instance, have added drive-thru features to some of their drive-thru sites. Mobile POS terminals are becoming more and more popular, opening up new market expansion opportunities.

Improved return on investment (ROI) is driving demand in the Point-Of-Sale (POS) Terminals Market

Positive market effects resulted from these systems' ability to provide improved return on investment (ROI). Tablet use has also increased due to the growing demand for personnel and customer management, inventory tracking, and the fusion of in-store and online sales. Additionally, the need is increased by the contactless payment trend's growth and the widespread use of near-field communication (NFC) technology in several business sectors. To increase profitability, remittance businesses are developing new industrial applications. Retailers' ability to control their business operations and store inventory thanks to the market leads to an expansion of the sector.

Global Point-Of-Sale (POS) Terminals Market Challenges:

The potential for identity threats as a result of POS breaches is a significant effect. These victims suffer financial losses, ruined credit, and fraudulent transactions. In light of this, it is envisaged that compensatory measures to manage the data flow will enhance POS security. VeriShield, for instance, from VeriFone, is a temporary power source for data transmission among various POS system components. Due to social lockdown and travel restrictions during the COVID-19 pandemic, the industry's expansion was hampered. Due to the losses sustained by several end-use verticals, there was a decrease in the demand for new fixed POS terminals.

Global Point-Of-Sale (POS) Terminals Market Opportunities:

An improved customer experience is the outcome of advantages provided by contemporary drive-thrus, such as increased convenience. The market is hence anticipated to benefit from these lucrative growth possibilities. The market's expansion is, however, hampered by privacy concerns and security issues relating to the misuse of information and data leakage on the cards. Additionally, the audience's lack of awareness hinders the market's expansion. The market presents a difficult security challenge because of its function and exposed network location. These systems must be handled from rural regions since they provide vital information.

COVID-19 Impact on Global Point-Of-Sale (POS) Terminals Market:

Due to a reduction in consumer spending across a variety of industries, including restaurants and retail, digital payment providers have seen a decline in revenue. For instance, the total market capitalization of digital transaction and card companies MasterCard and Visa fell by 25% and 20%, respectively, in 2020. Due to the detrimental effects on hospitality, air travel, and retail, this is mostly attributable to a decline in digital payment methods. Companies like Razorpay have reported a 40% drop in online digital transactions in India as a result of the prohibition on travel and the closing of manufacturing and hospitality facilities.

Additionally, the industry is anticipated to rise after the pandemic because of consumer acceptance of digital payment options. The market's top companies are concentrating on creating cloud-based to accommodate rising consumer demand, and the market's top players are concentrating on creating cloud-based and Al-integrated solutions. For example,

Global Point-Of-Sale (POS) Terminals Market Recent Developments:

Apollo Global Management, Inc. purchased Ingenico, a supplier of POS terminals and payment systems, in October 2022.

GK Software SE and Rizing, LLC, a provider of SAP consulting services, entered a partnership in May 2022 to create cutting-edge retail solutions that would be integrated into SAP omnichannel point-of-sale (POS) by GK and SAP S/4HANA.

VeriFone and DNA Payments collaborated to bring the Android Trinity Series POS Terminal to the United Kingdom in February 2022.

POINT-OF-SALE (POS) TERMINALS MARKET REPORT COVERAGE:

Global Point-Of-Sale (POS) Terminals Market Segmentation: By Product

• Fixed

• Kiosks

• Others

• Mobile

• Tablet

• Others

With a market share of more than 61.75% of the total sales in 2022, the fixed product segment topped the sector. Kiosks and other items make up the fixed POS section. Due to high installation and procurement costs, which at the time of writing were supporting the segment's growth, large-scale vendors opted for fixed POS terminals. Additionally, end users that are aware of cloud data storage install fixed POS terminals to store data with the on-premises server. These systems contain functions including bill printing, customer relationship management (CRM), inventory control, and device support for payments.

Between 2023 and 2030, the fastest CAGR is anticipated for the mobile POS market. The increasing popularity of in-store mobile payments among consumers around the world is credited with this rise. Payments may be processed anywhere in the store thanks to mobile POS machines. Since mPOS makes payments easier at peak times and prevents lost sales due to delays, it has become widely used by end users, like restaurants, to increase customer satisfaction. For instance, Quick-Service Restaurants (QSRs) in China have begun utilizing devices like tablets and digital kiosks to show menus and take orders. As a result, the industry is anticipated to be driven by the restaurants' improved operational effectiveness and customer experience.

Global Point-Of-Sale (POS) Terminals Market Segmentation: By Component

• Hardware

• Software

• Services 

In 2022, the hardware market controlled the entire world and accounted for more than 63.30% of the total revenue. The segment is anticipated to grow further between 2023 and 2030 at a constant CAGR. Interfaces or devices to record transaction details are considered hardware components. Examples include EFT-POS machines, network devices, barcode scanners, cash drawers, receipt printers, tablets, and monitors. The majority of the system's hardware components are found in the stationary POS terminal, which also makes using the system to manage daily activity easier.

Additionally, over the projected period, the software category is anticipated to record the greatest CAGR. The ease of sales analysis, versatile capabilities, and data support functionality are all responsible for this rise. For many uses, there is specialized software available. Retail POS software, for instance, provides features like accounting, transaction alerts, inventory management, etc. These systems' seamless software integration of screen terminals and barcode scanners offers data backup and restoration capabilities, enabling the segment's expansion.

Global Point-Of-Sale (POS) Terminals Market Segmentation: By Deployment Type

• Cloud

• On-premise

The global market has been divided into cloud and on-premises segments based on deployment. The fastest growth rate, 10.9%, is anticipated for the cloud segment between 2023 and 2030. This expansion is linked to rising SaaS technology usage and software integration. Customers who use the SaaS model pay a minimal monthly amount on a subscription basis rather than upfront costs for all the software, hardware, and support services. This enables restaurants and other end users to pay less upfront.

Manual installation is a part of on-premises deployment at the client's location. Hardware and software installation, electrical work, and cabling permissions are all included in the installation. Due to the many advantages cloud POS has over on-premises deployment, many businesses have begun implementing it. For instance, 3.6 Xenial Ordering, a development for Xenial Cloud POS, was introduced by Xenial, Inc. in January 2022. For this built version of Xenial Ordering UI and API, this cloud POS offers seamless process workflow, user experience, and infrastructure updates and improvements.

Global Point-Of-Sale (POS) Terminals Market Segmentation: By End-Use

• Restaurants

• Retail

• Hospitality

• Healthcare

• Warehouse

• Entertainment

• Others

With more than 30.40% of the total sales, the retail category had the greatest revenue share. To minimize long waiting lines and transaction delays, many retailers are switching to the straightforward mode of transactions. As a result, retailers are now combining the POS system with data from the Customer Relationship Management (CRM), marketing, and merchandising departments to provide a unique, interactive, and personalized shopping experience for customers. Supermarkets/hypermarkets, convenience stores, food stores, specialty shops, and petrol stations are other divisions of the retail sector.

Over the projected period, the category for supermarkets and hypermarkets is anticipated to increase at the greatest CAGR. Over the projected period, it is anticipated that the exposure of mobile wallet technology would boost the adoption of retail-based products. Over the forecast period, the healthcare segment is anticipated to have a higher CAGR. The extensive product application breadth in patient information management, simplifying speedy payment processes, and tracking employee statistics is credited with this expansion. The requirement to manage COVID-19 patient records, vaccination programs, and payment processes is projected to drive market expansion.

Global Point-Of-Sale (POS) Terminals Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

Over the projected period, the CAGR for Asia Pacific is expected to be the fastest. The region's need for POS terminals is increasing as a result of government attempts to promote a cashless society. Rich potential for mPOS exists in nations like China, Japan, and India thanks to the region's growing adoption of digital payment systems. The need for fixed POS terminals from major businesses, however, to safeguard their corporate information and guarantee the processing of enormous volumes of consumer data, is promoting segment growth. Due to the COVID-19 pandemic's effects on the most lucrative industries in the area, such as hotels, entertainment, and restaurants, there was a decline in the demand for POS terminals.

Japan implemented control measures to lessen the impact on its enterprises, while China, one of the production centers for POS terminal hardware components, recovered earlier than other nations. Other Asian nations are taking steps to resurrect their economies, which is anticipated to boost product demand in the years to come. Additionally, the market is projected to have profitable development because of a sizable unbanked population and low penetration in other developing nations, such as Vietnam and Thailand. North America is anticipated to expand at a consistent GAGR during the forecast period, accounting for the second-largest revenue share in 2022.

The demand for products in the region has been fueled by several complex payment methods, including contactless payments and NFC. The U.S. also has a large number of well-known retail chains, including Walmart, Costco Wholesale Corp., Target, Kroger Co., and Home Depot, which depend on POS terminals to handle daily invoicing, payment, personnel duty, and inventory management. Additionally, the US government is promoting the use of contactless payment methods in the wake of COVID-19 to stop the virus's spread. The pandemic-related slump in the retail and other service sectors, however, hindered the overall expansion of the regional market.

Global Point-Of-Sale (POS) Terminals Market Key Players:

1. Cisco Systems, Inc

2. Emerge Mobile (Pty) Ltd.

3. Equinox Payments, LLC

4. Hewlett-Packard Development Company L.P.

5. Ingenico S.A.

6. Veri Payment Technologies (Pty) Ltd

7. Micros Systems, Inc.

8. Miura Systems Ltd.

9. NCE Corporation

10. NCR Corporation