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Point of Sale (PoS) Market Size, Share & COVID-19 Impact Analysis, By Type (Fixed PoS and Mobile PoS), By Component (Hardware, Software, and Services), By Deployment (On-Premise and Cloud-based), By End-user (Restaurants, Retail, Entertainment, and Others), and Regional Forecasts, 2022-2029

Region : Global | Format: PDF | Report ID: FBI106336

 

KEY MARKET INSIGHTS

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The global Point of Sale (PoS) market size was valued at USD 22.08 billion in 2021. The market is projected to grow from USD 25.24 billion in 2022 to USD 70.75 billion by 2029, exhibiting a CAGR of 15.9% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with PoS solutions experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 1.1% in 2020 as compared to 2019.


The scope of the report consists of various hardware, software, and solutions offered by the key players such as Toast, Inc., Oracle Corporation, Block, Inc., PAX Technology, and Lightspeed Inc. Among these, Toast, Inc. offers several PoS hardware and software solutions such as Toast Flex, Toast Tap, Toast TakeOut, and Kitchen Display System. Similarly, PAX Technology offers several PoS terminals such as PAX Aries8, E700Mini, PAX E700, A920 Pro, A77, A800, A50, and more.


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



  • In May 2022, NCR Corporation launched a cloud-based solution, NCR Aloha Cloud, for its restaurants. Aloha Cloud provides a User Interface (UI) and delivers the same experience across handhelds and fixed terminals for the restaurant staff. Furthermore, restaurants can operate and manage third-party delivery marketplaces directly from the Aloha Cloud PoS.


COVID-19 IMPACT


Lack of Adoption of these Terminal Solutions and a Slight Decline in Consumer Spending Hampered the Market Growth


The COVID-19 pandemic has negatively impacted the market owing to several countries' government restrictions, mandatory shutdowns, and the closure of retail shops. The global Point of Sale (PoS) market share showed a slight decline in the market size by 1.1% in 2020 compared to 2019. In terms of revenue, the market witnessed a decrease in revenue to USD 19.39 billion in 2020.


The COVID-19 pandemic has negatively impacted the global economy as governments worldwide have imposed lockdowns and restrictions. During the pandemic, major countries' governments are focused on sustaining economic growth. Consumers' spending declined significantly during the pandemic. According to the U.S. Bureau of Labor Statistics, in 2020, during the COVID-19 pandemic, consumer spending among U.S. individuals declined by 9.8% compared to 2019. The PoS hardware supply chain was disrupted due to lockdown measures and the closure of import-export activities for some time. These have directly impacted the global manufacturing facilities of Point of Sale terminals.


Further, 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, a digital transaction and cards company, declined revenue by 25% and 20% in total market cap, respectively. This is primarily attributed to a 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.


Indian digital payment companies import 90% of these hardware terminals from China. During the pandemic, import activities were disrupted as Chinese manufacturers closed the production and supply of their hardware and components.


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,



  • April 2022: POS Nation Inc., a retail PoS solutions provider, acquired cloud-based liquor PoS software company Bottle PoS. With this acquisition, the company expanded its cloud-based technology for liquor retailers around the globe.


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 Point of Sale Market Growth


The rising adoption of cloud-based and AI-driven Point of Sale solutions among enterprises and small merchants aids the market growth. Artificial intelligence (AI)-based services in systems are gaining popularity and increasing across developed countries, including the U.K., the U.S., 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 2020, Hewlett-Packard Development Company, L.P. launched two cloud services, such as H.P. Catalog Engage and H.P. Console Engage, for small and medium businesses across the hospitality and retail industries. These two cloud-based services were designed in its systems for the local retail stores, restaurants, travel, lodging, and other small businesses.


DRIVING FACTORS


Rising Interest Among Consumers Toward 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. These 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 the increasing use of smartphones. For instance,



  • According to the analysis by Capgemini Financial Services 2020, the global volume of cashless transactions grew 14.1% from 2018 to 2019 to reach 708.50 billion.


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


RESTRAINING FACTORS


Data Security Concerns Might Impede the Market Growth


PoS is advantageous to many retailers and businesses. However, there are some challenges for which end-users must be prepared for risks such as device faults, phishing attacks, and software & network weakness. For instance,



  • Cyber Risks – There is a high possibility that data can be hacked in unsecured networks. Hackers can easily penetrate the infrastructure and access crucial data and records such as credit card details of customers' business accounts. Leakage of such data can result in substantial financial loss of the business and damage the reputation.


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 Type Analysis


Retail Businesses to Increase Adoption of Fixed PoS Systems


Based on type, the market is divided into fixed PoS and mobile PoS. The fixed PoS segment is expected to hold the largest market share as it offers more features and functionality. The fixed PoS system resembles the traditional form of payments technology, and it has been the most recognized, accepted, and reliable way to process payments by 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, the mobile-based solution offers more flexibility to businesses, such as marketplaces, food trucks, and tradeshows, by transforming payment methods to allow credit.


By Component Analysis


Heavy Deployment of PoS System to Increase Sale among End-users such as Retail, Banking, and Others


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


In addition, the services 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 services to enhance and utilize the full functionality of these terminals.


By Deployment Analysis


Cloud-based POS System to Witness High Growth


Based on deployment, the market is bifurcated into on-premise and cloud-based. The cloud-based segment is expected to account for the largest market share. The increasing demand for cloud-based systems is accelerating the segment's growth, providing numerous additional benefits such as 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 partnered with Google Cloud to bring additional platform and cloud features. This collaboration allows users to run NCR's retail PoS software on the Google Cloud Platform. This partnership gives retailers control of modern cloud infrastructure pooled with valuable insights into their software.


By End-user Analysis


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Greater Adoption of Point of Sale (PoS) 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 PoS 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


Asia Pacific Point of Sale (PoS) Market Size, 2021 (USD Billion)

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Geographically, the market share is fragmented into five major regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and South America. 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 retailers and banks' rising adoption of these machines. For instance,



  • In September 2021, Axis Bank in India was the largest bank to acquire PoS devices for retail and merchant customers. The banks have deployed more than 0.2 million PoS swiping machines in 2021. The bank's strategy to provide Point of Sale machines has increased its customer base.

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


The market in Europe is driven by the increasing adoption of cloud solutions among small and 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 and 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 the 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,



  • May 2022: Square, Inc. launched a new hardware and software restaurant solution, Square for Restaurants mobile PoS. This updated system runs on two handheld devices: Restaurant Mobile PoS kit and Square Terminal. Furthermore, this system supports all-in-one order management and tableside service, increasing the efficiency of operations.

  • February 2021: Fujitsu Components America launched a new Point of Sale printer that generates receipts and linerless labels. 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:



KEY INDUSTRY DEVELOPMENTS:



  • April 2022: Toast Inc. launched a solution for Quick-Service Restaurants. This solution will help restaurants function their business across all activities, including Point of Sale (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 launched its Android PayTablet, M8, with a fully-integrated Smart PoS 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.

  • September 2021: SpotOn retail and restaurant Point of Sale 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.

  • January 2022: NCR Corporation partnered with Google Cloud to bring additional platform and cloud features. This collaboration allows users to run NCR's retail PoS software on the Google Cloud Platform. This partnership gives retailers control of modern cloud infrastructure pooled with valuable insights into their software.

  • March 2022: Cashfree Payments 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.


REPORT COVERAGE


An Infographic Representation of Point of Sale (POS) Market

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The global point of sale market 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. Key insights offered in the report are the adoption of automation by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.


REPORT SCOPE & SEGMENTATION


























































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD billion)



Segmentation



By Type, Component, Deployment, End-user, and Region



By Type




  • Fixed PoS

  • Mobile PoS



By Component




  • Hardware

  • Software

  • Services



By Deployment




  • On-premise

  • Cloud-based



By End-user




  • Restaurants

  • Retail

  • Entertainment

  • Others (Gas Stations, Transportation)



By Region




  • North America

    • U.S. (By End-user)

    • Canada (By End-user)

    • Mexico (By End-user)



  • South America

    • Brazil (By End-user)

    • Argentina (By End-user)

    • Rest of South America



  • Europe

    • U.K. (By End-user)

    • Germany (By End-user)

    • France (By End-user)

    • Italy (By End-user)

    • Spain (By End-user)

    • Russia (By End-user)

    • Benelux (By End-user)

    • Nordics (By End-user)

    • Rest of Europe



  • Middle East & Africa

    • Turkey (By End-user)

    • Israel (By End-user)

    • GCC (By End-user)

    • South Africa (By End-user)

    • North Africa (By End-user)

    • Rest of Middle East & Africa





  • Asia Pacific


    • China (By End-user)

    • Japan (By End-user)

    • India (By End-user)

    • South Korea (By End-user)

    • ASEAN (By End-user)

    • Oceania (By End-user)

    • Rest of Asia Pacific




Frequently Asked Questions

The global market is predicted to reach USD 70.75 billion by 2029.

In 2021, the market value stood at USD 22.08 billion.

The market is projected to grow at a CAGR of 15.9% during the forecast period (2022-2029).

Mobile PoS is expected to show the highest CAGR during the forecast period.

Asia Pacific dominated the market due to small and medium enterprises growing adoption of PoS system and solutions.

By end-user, the retail sector leads the market owing to the rising adoption by retailers for inventory management, recording daily transactions, and increasing profit.

Data security issues associated with PoS systems are restraining the markets growth.

Increased acceptance of digital payments around the globe with the surge in the 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.

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