Point of Sale (PoS) Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware and PoS Terminal Software), By Type (Fixed PoS, Mobile PoS, and Others), By Deployment (On-premise and Cloud-based), By Operating System (Windows/Linux, Android, and iOS), By End-user (Restaurants, Retail, Entertainment, and Others), and Regional Forecasts, 2023-2030

The global Point of Sale (PoS) market size was valued at USD 25.28 billion in 2022 and is projected to grow from USD 29.02 billion in 2023 to USD 81.15 billion by 2030, exhibiting a CAGR of 15.8% during the forecast period.

A PoS system is a technology utilized during the PoS process to handle customer transactions. It includes hardware, such as PoS terminals, barcode scanners, receipt printers, and software systems that manage transactions, data, and business processes. These systems are deployed to streamline transactions and provide real-time data to aid businesses to make informed decisions.

Rising demand for process automation and cloud-based terminals for inventory and stock management in retail and logistics drives market growth. Several key players in the market are adopting cloud-based solutions to automate business processes across enterprises. For instance,

• In May 2022, NCR Corporation released a cloud-based solution called NCR Aloha Cloud for restaurants and diners. It offers a uniform experience on both fixed terminals and handhelds through a User Interface (UI) for the staff. In addition, restaurants can use Aloha Cloud PoS to manage and operate third-party delivery marketplaces.

COVID-19 IMPACT

Major Decline in Consumer Spending During Pandemic Hampered the Market Growth

Digital payment companies show a decline in revenue due to lack of consumer spending in retail, restaurants, and many other sectors. For instance, in 2020, MasterCard and Visa, digital transaction and cards companies, witnessed a decline in revenue by 25% and 20% in total market cap, respectively. This is primarily attributed to decrease in digital payment solutions due to the negative impact on hospitality, air travel, and retail. In India, companies, such as Razorpay, have shown a decline in online digital transactions by 40%, owing to banning travel and closure of manufacturing facilities and hospitality.

Further, the market is expected to witness potential post-pandemic growth, owing to consumer adoption of digital payment methods. The leading players in the market are focusing on developing cloud-based and AI-integrated solutions to meet growing consumer demand. For instance,

• In April 2022, the retail Point of Sale solution provider, PoS Nation Inc., purchased Bottle PoS, a cloud-based liquor PoS software company, to enhance its cloud-based technology for liquor retailers worldwide.

Such an increase in the adoption and development of cloud-based solutions by the leading players is expected to create ample opportunity for the global market growth.

LATEST TRENDS

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Rising Adoption of Cloud-based PoS and AI Integration in PoS Systems Aids the Market Growth

The rising adoption of cloud-based and Artificial Intelligence (AI)-driven Point of Sale solutions among enterprises and small merchants aids market growth. AI-based services in systems are gaining popularity and increasing across developed countries, including the U.S., the U.K., France, Italy, and others.

Several leading players in the market are developing cloud and AI-based PoS systems and software to remain competitive. For instance,

• In January 2023, Markt POS launched its cloud-based PoS software, which features all-in-one capabilities to cater to small & medium sized specialty and grocery markets. The software utilized AI and combined the essential aspects, such as loyalty features, payments, analytics, and e-commerce, to provide a seamless PoS platform.

DRIVING FACTORS

Rising Interest Among Consumers Towards Cashless Transactions for Better Money Management Fuels the Market Growth

Increasing digitization, connectivity, and data are key factors that fuel digital transformation. Industries adopt digitalization to produce new products and services to enhance customer satisfaction. PoS solutions allow customers to make different types of digital and contactless payments. The adoption of electronic payment methods has increased the demand for these systems. It includes flexibility, safety, accurate money management, and reduces human errors in billing. Additionally, there is a significant rise in cashless transactions globally, owing to increasing use of smartphones. For instance,

• According to the analysis by Capgemini Financial Services 2021, consumers are frequently using payment wallets and other cashless methods, which increased by 23% from the survey conducted in 2020.

Thus, customers' primary focus on adopting cashless payment methods is estimated to drive the Point of Sale market growth rapidly during the forecast period.

RESTRAINING FACTORS

Data Security Concerns Might Impede the Market Growth

Point of Sale is advantageous to many retailers and businesses. Despite the benefits, there are certain difficulties that users may encounter and they need to be aware of the potential risks associated with device malfunctions, phishing attempts, as well as weaknesses in software and networks. For instance, according to Verizon, financial gain was the motive behind 98% of PoS data breaches in the hospitality industry in 2021. These breaches resulted in data loss and financial loss, which hampers the market growth.

Moreover, even in a well-protected network, devices must be secured. Thus, data breaches, owing to lack of security may hinder market growth.

SEGMENTATION

By Component Analysis

Hardware Segment to be Prime Part due to Increasing Number of Installations

The market is divided into hardware and PoS terminal software based on component. The hardware segment is expected to hold maximum market share, owing to the growing installation of point of sale systems hardware in restaurants, retail, banking, and gas stations.

In addition, the software segment is expected to show prominent growth with the highest CAGR during the forecast period. Key players operating in the market are engaged in developing custom PoS software to support maximum terminals and enhance their functionalities.

By Type Analysis

Retail Businesses to Increase Adoption of Fixed PoS Systems

Based on type, the market is divided into fixed PoS, mobile PoS, and others (computer screens, barcode scanners, receipt printers, cash drawers, card machines, and other devices). The largest market share is anticipated to be held by the fixed PoS segment due to its enhanced features and functionality. This system is reminiscent of conventional payment technology and has long been acknowledged as a dependable and widely accepted means of processing payments via cash, credit, and debit cards.

In addition, the mobile PoS segment is anticipated to grow at the highest CAGR during the forecast period, as customers are inclining toward digital payment methods with the effective use of internet service. Additionally, mobile-based solution offers more flexibility to businesses, such as marketplaces, food trucks, and tradeshows, by transforming payment methods to allow credit.

By Deployment Analysis

Surging Adoption of Cloud-based PoS System to Boost the Market Growth

Based on deployment, the market is bifurcated into on-premise and cloud-based.

The largest market share is predicted to be held by the cloud-based segment, propelling the rising demand for cloud-based systems. The segment’s expansion is being boosted by several additional benefits, including on-demand services and flexibility. In addition, it also benefits the retailers to run their businesses anywhere via any mobile device. The cloud-based PoS system is estimated to grow significantly in the coming years. Several leading players in the market are developing cloud and AI-based PoS systems and software to remain competitive. For instance,

• In January 2022, NCR Corporation and Google Cloud collaborated to introduce new platform and cloud capabilities, enabling retailers to utilize NCR’s retail PoS software on the Google Cloud platform. This alliance empowered retailers and advanced cloud infrastructure and software analytics.

By Operating System Analysis

User-friendly Interface to Enhance the Implementation of Windows in PoS Systems

Based on Operating System (OS), the market is distributed between Windows/Linux, Android, and iOS. Windows OS dominates the global market, with the highest market share. Additionally, its user-friendly interface, integration capabilities, and compatibility with a wide range of software applications enhance the Point of Sale market share.

Android-based PoS systems are projected to grow at the fastest CAGR during the forecast period. They offer flexibility and portability in terms of deployable devices, making them ideal for businesses with mobile or temporary locations. These systems are often less expensive than traditional desktop-based systems, making them an attractive option for small businesses.

By End-user Analysis

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Greater Adoption of Point of Sale Solutions to Surge Demand for Retail Business

The market is fragmented into retail, restaurants, entertainment, and others (gas stations, transportation) based on end-user.

The retail segment is expected to hold the largest market share, owing to the growing adoption of Point of Sale systems in retail shops as it is time and cost-efficient and provides real-time data about sales performance. Secondly, it facilitates a speedy payment process resulting in quicker purchase transactions in retail stores. It provides a reliable payment platform that reduces human errors by minimizing human intervention for billing.

The restaurants segment is estimated to show the highest CAGR during the forecast period. The growth is accredited to adopting advanced PoS systems to regulate employee management.

REGIONAL INSIGHTS

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Geographically, the market share is fragmented into five major regions, including North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further categorized into countries.

Asia Pacific is expected to account for the largest market share in the global market during the forecast period, owing to several device manufacturers and the rising number of shipments from these regions. Furthermore, the Asia Pacific market is driven by the increasing acceptance of digital payment methods by retailers, restaurants, and other end-users.

China leads the Asia Pacific market due to the presence of local device manufacturers and the rising adoption of digital wallets among consumers in China. Further, India is projected to grow with the highest CAGR due to rising adoption of these machines in banks and retails. For instance,

• In March 2022, Russian banks, such as Sberbank, Tinkoff, and Alfa Bank, started deploying banking cards using UnionPay, a Chinese operator, after MasterCard and VISA suspended their actions in Russia under sanctions imposed by the U.S. government. This resulted in the deployment of more than 600,000 PoS terminals accepting UnionPay as their software.


• In August 2021, BharatPe collaborated with Axis Bank in India to procure BharatPe's PoS business, BharatSwipe.

The market in Europe is driven by the increasing adoption of cloud solutions among small & medium-scale enterprises. Such an increase in the development of cloud-based PoS solutions by the leading players to meet growing retail and restaurant industries' demand has propelled the market growth.

Similarly, the rising demand for PoS in North America is driven by the increasing adoption of cloud-based PoS software among merchants in the U.S. and developing these platforms across North American countries.

In South America, the rising adoption of these terminals among small & medium businesses across retail, entertainment, and restaurant sectors has propelled the market growth. Rising investment for digital transformation by small & medium enterprises across South American countries, such as Brazil and Argentina, is surging the demand for software. Further, Banks in South America provide these terminals and digital payment software solutions to their customers to provide improved customer experience and values to the retailers.

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The Middle East & Africa (MEA) countries are adopting digital technologies tremendously. The rising adoption of digital payments and increasing digital technology investment by enterprises drive the market growth in the Middle East. Also, the Middle Eastern banks are providing these solutions to their retail and individual customers. Saudi Arabia, the UAE, and South African banks have begun to provide core digital payment options to consumers and retail users by adopting several strategies, such as partnerships and collaborations, with PoS solution providers.

KEY INDUSTRY PLAYERS

Key Players are Focused on Strengthening their Market Position with Continuous Developments

The global market is consolidated by leading players such as Block, Inc., Toast, Inc., and NCR Corporation. These key players are expanding their operations by adopting strategies such as mergers, acquisitions, product launches, collaborations, and partnerships. For instance, in February 2021, Fujitsu Components America launched a new PoS printer that generates linerless labels and receipts. It is an all-in-one PoS printer, FP-2000CL that tackles multiple printing tasks and enhances efficiency. This product can be used at quick-service restaurants, casual restaurants, and grocery store counters.

List of Key Companies Profiled:

• NCR Corporation (U.S.)


• Toast, Inc. (U.S.)


• Oracle Corporation (U.S.)


• HP Development Company, L.P. (U.S.)


• Ingenico Group (Worldline) (France)


• PAX Global Technology Limited (China)


• Lightspeed (U.S.)


• Block, Inc. (U.S.)


• Nomia LLC (Russia)    


• Fujitsu Frontech Limited (Japan)

KEY INDUSTRY DEVELOPMENTS:

• June 2022: Predict Spring, a modern omnichannel PoS provider, raised USD 16 million in Series B funding. The funding was led by SalesForce Ventures, Novel TMT Ventures, and Felicis, while the company aimed to accelerate its research & development process and market strategies.


• April 2022: Toast Inc. launched a solution for Quick-Service Restaurants. This solution will help restaurants to enhance their business functions across all activities, including PoS, digital ordering, operations, and team management. Furthermore, this will help restaurants speed up processes, increase revenue, and deliver unique guest experiences.


• April 2022: PAX Global Technology Limited released the M8, an Android Pay tablet that came equipped with a completely integrated SmartPoS payment processing system. This device is specifically designed for hospitality operators and high-end retailers, wherein Android apps for online orders, in-store checkout, and VAT refunds can run parallel with payment acceptance.


• March 2022: Cashfree Payments, an API banking and payments solutions provider, launched a PoS solution named 'softPOS.' It is used by businesses such as retail shops, stores, grocery stores, food delivery applications, automobile industry, and NBFCs. In the automotive and non-banking finance sector, this PoS solution is used for door-to-door payment collections.


• September 2021: SpotOn retail and restaurant PoS system provider raised USD 300 million in Series E funding. The company acquired Appetize's digital and mobile commerce platform with this funding. SpotOn's acquisition has strengthened the company's core product payments and management software portfolio required for small and medium-sized businesses.

REPORT COVERAGE

An Infographic Representation of Point of Sale (POS) Market

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The report offers qualitative and quantitative insights into the market and a detailed analysis of the size & growth rate for all possible segments in the market. It also provides an elaborative analysis of market dynamics, emerging trends, and the competitive landscape. The report also offers key insights, such as the implementation of automation in specific market segments, recent industry developments such as partnerships, mergers, funding, acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro economic indicators, and major industry trends. This detailed analysis provides a comprehensive view of the market and its potential for growth and development.

REPORT SCOPE & SEGMENTATION