"Smart Strategies, Giving Speed to your Growth Trajectory"
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,
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,
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.
Request a Free sample to learn more about this report.
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,
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,
Thus, customers' primary focus on adopting cashless payment methods is estimated to drive the Point of Sale market growth rapidly during the forecast period.
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.
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.
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.
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,
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.
To know how our report can help streamline your business, Speak to Analyst
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.
Asia Pacific Point of Sale (PoS) Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
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,
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.
To know how our report can help streamline your business, Speak to Analyst
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 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.
To gain extensive insights into the market, Request for Customization
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.
ATTRIBUTE | DETAILS |
Study Period | 2019 - 2030 |
Base Year | 2022 |
Estimated Year | 2023 |
Forecast Period | 2023 – 2030 |
Historical Period | 2019 - 2021 |
Growth Rate | CAGR of 15.8% from 2023 to 2030 |
Unit | Value (USD billion) |
Segmentation | By Component, Type, Deployment, Operating System, End-user, and Region |
By Component |
|
By Type |
|
By Deployment |
|
By Operating System |
|
By End-user |
|
By Region |
|
According to Fortune Business Insights, the global market is predicted to reach USD 81.15 billion by 2030.
In 2022, the market value stood at USD 25.28 billion.
The market is projected to grow at a CAGR of 15.8% during the forecast period (2023 – 2030).
Retail end-user dominated the market in 2022.
Increased acceptance of digital payments around the globe with the surge in digitalization aids the market growth.
Some of the top players in the market are Square, Inc., Toast, Inc., NCR Corporation, PAX Technology, Oracle Corporation, and others.
Asia Pacific dominated the market due to small and medium enterprises growing adoption of PoS system and solutions.
By end-user, the restaurants segment is expected to show the highest CAGR during the forecast period.