The global retail terminal (POS) market is expected to grow at a CAGR of 8.6% to reach a valuation of USD 847.4 billion by the end of 2030. Rapid changes support the market's broad growth prospects. From customers and retail businesses to online sales transactions. Point-of-sale terminals enable retailers to better track orders, sales and transactions, reducing the stress of performing administrative tasks with legacy systems and manual pen-and-paper solutions.
Retailers are rapidly moving to modern POS systems as customers demand faster and more efficient payment methods, especially for bulk purchases. Advanced systems enable retailers to process large volumes of customer payments in less time. According to data released by the US Department of Commerce, US consumers will spend $870.78 billion on online shopping in 2021, an increase of 14.2% over the previous year.
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Some recent strategies adopted by major players:
- At the end of December 2021, Shopify's marketing and sales increased by $299.5 billion, which led to an increase in marketing and sales expenses to support business growth.
- Shopify invests in development tools to facilitate development with its ecosystem partners and to help Shopify expand the capabilities and flexibility of the platform. Shopify claims that by expanding the range of solutions it offers, it enables new and improved ways for merchants to market, sell and deliver products to customers, in addition to expanding the functionality of its current suite of solutions.
- In June 2022, Verifone and Affirm announced a partnership to make Affirm's open, flexible payment options widely available across Verifone's swipe and e-commerce payment systems. The customer or cashier will decide whether to use Affirm at the POS while shopping.
- Lightspeed acquires NuORDER, a revolutionary digital network connecting buyers and sellers. The acquisition strengthens Lightspeed's position as a global distribution network for major brands, advances Lightspeed's supplier network to simplify product ordering for retailers, and provides suppliers with critical information on how their goods are shipped. They instantly connect suppliers and customers to see and service more areas.
Factors Supporting the Growth of the Retail Point of Sale (POS) Terminal Market:
Increasing demand for better, centralized store management
Inventory management has a significant impact on company expenses and directly affects customer satisfaction and brand equity. POS systems are essential for effective inventory control. POS devices have interactive tools that protect retailers from poor inventory management and poor product delivery, such as timely inventory updates, low inventory alerts, and other reporting tools. A retailer's biggest expense is inventory. US retailers keep $1.35 worth of merchandise for every $1 spent. Companies invest 20% to 60% in inventory. Therefore, retail POS terminals play an important role in store management.
Increasingly shifting to a cashless economy:
Compared to 2019, there will be a 23% increase in cashless stores in the US, 39% in Canada and 50% in the UK in 2020, according to fintech startup Square. China is moving rapidly towards a cashless economy. China's digital yuan attempt accounted for $8.3 billion of the country's payments market by the end of 2021 and $13.68 billion between 2019 and 2021. The Indian government's flagship initiative for a cashless society is the "Digital India" initiative. The government has adopted measures such as demonetisation and direct profit transfer schemes to accelerate the transition to a digital economy.
Factors hindering market growth
Technical challenges and security issues when using POS terminals
Today's cyber security poses serious risks to businesses in all industries, including retail. More and more data is stored and transferred between cloud computing systems. From a digital security perspective, POS systems are one of the most vulnerable points in a business network.
According to a report from cybersecurity solutions provider Colortokens:
- On average, point-of-sale downtime costs retailers $4,700 per minute.
- 89% of breaches are caused by intrusions at the point of sale
- 9 out of 10 data breaches in hotels and restaurants affect the POS
The numerous POS-related data breaches and security breaches that have occurred in recent years have shown that POS systems are vulnerable to attackers. Attackers steal confidential and private data, including credit or debit card information, through point-of-sale software.
Market trends for retail terminals
The rising trend of omnichannel Shopping apps and standalone stores
Increasing competition in the e-commerce space and consumer demand for on-demand services are encouraging retailers to build efficient omni-channel supply chains. Retailers can use a powerful omnichannel POS system to track and manage their products and payments while improving the customer's shopping experience. Retailers can use omni-channel shopping solutions to connect their brand websites, brick-and-mortar stores and third-party marketplaces with their inventory and sales, providing customers with a comprehensive, seamless shopping experience.
By 2021, many supermarkets will open stores that offer customers checkout-free options, accelerating the adoption of autonomous store technology. Expect this trend to continue in 2022 as stores begin to recognize the beneficial impact of such solutions on sales and resource utilization. For example, in June 2022 the German supermarket chain operator REWE Group, in cooperation with the Israeli computer Trigo Vision, which provides innovative payment solutions for the retail industry, will open a second independent grocery store in Germany. In addition, Dirbato Co., Ltd. invested in a start-up, Standard AI, which is expected to revolutionize the retail industry. On November 11, 2021, Dirbato partnered with major retailers such as Circle K and Compass Group to launch a series of AI retail stores in the United States. The company plans to work with retail partners to open more stores around the world in 2022.
The impact of Covid-19 on the global retail market for POS terminals
POS terminals are used in a variety of retail businesses, including clothing, electronics, pet supplies, home improvement, sporting goods, packaged goods, restaurants, and jewelry stores. The COVID-19 pandemic has adversely affected global manufacturing and business activity in industries such as finance, hospitality and tourism, consumer durables and electronics. Lockdowns and social distancing measures have hit brick-and-mortar businesses more than online retailers, leading to sharp declines in revenue for sectors including retail, hospitality and hospitality. The study shows that the global retail and hospitality industries lost about $3.39 billion and $2.15 billion, respectively.
The ONS reported that overall retail sales fell by 1.9% in 2020 compared to 2019, the biggest annual fall on record. Apparel and fuel sales fell to -21.5% and -22.2% respectively in 2020, still below pre-pandemic levels.
Analysis by product
The portable POS terminal segment is expected to register the highest CAGR of 9.5% during the forecast period. The major factors driving the demand for portable POS terminals include increased use of wireless payment terminals by merchants, growing popularity of MasterCard, EuroPay and Visa (EMV) cards, dramatic increase in e-commerce and cashless transactions globally, and the proliferation of wireless technologies in mobile phones and smartphones. Applications in portable devices are increasingly widespread. Furthermore, the portable POS terminal market is expected to reach USD 520 billion by 2030; the fixed POS terminal segment has an opportunity cost of USD 115.6 billion over the forecast period.
Analysis by ingredients
The software segment will hold the highest market share of 72.5% in 2021 and is expected to register a CAGR of 8.7% during the forecast period. This growth can be attributed to the ease of sales analysis, diverse functionality and data-enabled capabilities offered by POS terminals in the retail environment. The marketplace has specialized software available for a number of functions including inventory management, accounting and transaction alerts. The ease of software integration of these systems with devices such as display terminals and barcode readers, which provide data backup and recovery capabilities, may also facilitate market expansion.
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Analysis by industry
The retail segment dominates in terms of revenue market share in 2021. Many stores are switching to easier/simple transactions to avoid long queues and transaction delays. Retailers combine POS systems with sales, inventory, marketing and CRM data to deliver a personalized, interactive and differentiated customer experience.
The global retail industry is expected to register a CAGR of 9.4% during the forecast period. As grocery retailers face tough competition, many supermarket chains are using technology to simplify their jobs. POS systems facilitate the management of food stores and speed up checkout. Merchant software helps increase efficiency and meet customer needs more effectively.
Analysis by region
Asia Pacific holds the highest market share of nearly 51.5% in 2021 and is expected to register the highest CAGR of 9.6% during the forecast period. The growing demand for POS terminals in the region is a result of government initiatives to promote a cashless society. The increasing use of digital payment methods in countries such as Japan, China and India has created several growth opportunities for mobile POS players. However, growth in the segment is driven by larger companies' demand for stationary POS terminals to secure their company information and ensure efficient handling of large amounts of customer data.
List of key companies:
- The Shopify Company
- paypal zettl
- the speed of light
- Aptos (Goldman Sachs Merchant Banking Division)
- Shijide gruppe
- NCR Corporation
- Diebold Nixdorf
- fujitsu co., ltd.
- information company
- NEC Corporation
- Qashier Pte Ltd
- Samsung Electronics Co., Ltd.
- Toshiba Corporation
- Hui Ruifeng Company
- other featured players
major industry players
The global retail POS terminal market is highly competitive: by 2021, the top four players together account for almost 47.5% of the market share, a large portion of which has been acquired by smaller players. Key players in the retail POS terminal market include Verifone, Ingenico, BBPOS and PAX, among others. To increase their market presence, key market players are adopting strategies such as simplifying omni-channel commerce for merchants, providing consistent brand experience, offering cloud-based services, ensuring digital connectivity, and offering best-in-class deals in the global hardware market. Knowledge and experience with local payments.
Greater industrial development
- august 2021:Shopify released new POS Pro software for Android devices and integrated retail hardware for payments to merchants in Germany and New Zealand.
- maj 2022:PayPal's POS brand for small businesses, Zettle, has launched a software point-of-sale (softPOS) solution for merchants in the Netherlands, UK and Sweden. SoftPOS enables merchants to accept contactless payments using existing hardware, allowing them to meet consumers' changing payment habits without incurring additional hardware costs.
- 2022 Mayo: Lightspeed Retail, Lightspeed Commerce Inc.'s innovative new retail platform, combines state-of-the-art POS, payments and e-commerce into a single, powerful solution. Lightspeed Retail is the ideal business platform to help business owners improve their strategies while managing the challenges of an ever-changing retail industry. It does this by harnessing the power of headless transactions, powerful integrations and a completely revamped user interface. With integrated multi-channel sales and sophisticated multi-store inventory management, the new Lightspeed Retail unleashes the power of headless commerce to reach where customers love to shop in North America, Australia, New Zealand, Singapore, Hong Kong, the UK and South Africa.
Retail Terminal Market Segmentation Overview
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- Fixed POS machine
- Portable POS terminal
- Mobile POS (mPOS)
- self-service kiosk
according to ingredients
- Cloud-based POS system
- Local POS system
- the hospitality
- restaurants and cafes
- quick response
- grocery store
- Asia-Pacific region
- Australia and New Zealand
- Rest of Asia and the Pacific
- Middle East and Africa (MEA)
- United Arab Emirates
- saudi arabian
- South Africa
- the rest of me
- South America
- The rest of South America