Self-Checkout System Market Size, Share COVID-19 Impact Analysis, By Type (Fixed and Mobile-based), By Component (Solution and Services), By Sales Channel (Direct and Indirect), By End-users (Retail, Hospitality, and Others), and Regional Forecasts, 2023-2030

The global self-checkout system market size was valued at USD 4.23 billion in 2022 and is projected to grow from USD 4.88 billion in 2023 to USD 13.98 billion by 2030, exhibiting a CAGR of 16.2% during the forecast period.

The report's scope comprises various solutions and services offered by key players such as NCR Corporation, Toshiba Global Commerce Solutions, Hisense Systems Europe, Diebold Nixdorf Incorporated., and Qingdao CCL Technology Co., Ltd. Self-checkout machines allow customers to complete their transactions from a retailer without needing a traditional staffed checkout. Fujitsu Limited provides self-checkout machines, including FUJITSU Impulse self-service, U-Scan Genesis, U-Scan 6.0, and others. Similarly, NCR Corporation provides the FastLane Self-Service Checkout R6C model of the innovative SCO system. These systems offer retailers advanced scalability, flexibility, usability, and reliability. It facilitates faster payment processing and reduces wait time. Companies worldwide are deploying these checkout technologies to monitor and promote effective performance in the workplace.

Increasing demand for automation and cloud-based self-checkouts (SCOs) in the retail sector for cost and time efficiency drives the market. Major businesses in the market are implementing these advanced solutions across retail stores. For instance,

• In March 2022, NCR Corporation provided cloud-based SCO to Bed Bath & Beyond, enabling an in-store self-checkout experience for the company. Bed Bath & Beyond is a chain of domestic merchandise retail stores. NCR self-checkout solutions aided Bed Bath & Beyond Company operating nationwide by integrating cloud-based SCO into its checkout approach.

COVID-19 IMPACT

Closure of Retail Stores and Lockdowns Hampered Market Growth

The COVID-19 pandemic has negatively impacted the market owing to the government’s mandatory restrictions and the closure of malls, shops, retail stores, and hypermarkets. The hardware supply chain was disturbed owing to lockdowns in several countries and difficulties in import-export activities for some time. These had a significant impact on the global manufacturing facilities of SCO systems.

In addition, digital payment companies show a decline in revenue owing to a lack of consumer spending in retail stores, convenience and hypermarkets, and many other sectors. For instance, in May 2020, UPI transactions processed around 2.53 billion in India declined by 4.16% and 7.32% in April and March 2020, respectively.

LATEST TRENDS

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Rising Use of Artificial Intelligence (AI) based SCO Systems to Propel Market Growth

The increasing implementation of cloud-based and artificial intelligence (AI)-driven self-checkout solutions among retail, hospitality, and other merchants drives market growth. The rising popularity of AI-based services in systems is increasing demand in developed nations.

To remain competitive, several leading players in the market are incorporating cloud and AI-based self-checkout solutions. For instance,

• In June 2022, Couche-Tard convenience stores operator deployed an AI-based self-checkout system from the SCO system manufacturer Mashgin based in Canada. Couche-Tard deployed computer vision and AI-powered self-checkout machines to its over 7,000 convenience stores across Canada, the U.S., and Europe.

DRIVING FACTORS

Increased Penetration of Automation across Retail and Hospitality Industries to Drive the Market

Connectivity, digitization, and data are vital factors that propel digital transformation. To enhance customer satisfaction, businesses implement digitalization to produce new services and products. Self-checkout solutions assist customers with shopping and facilitate digital and contactless payments without needing retail staff. The implementation of cashless payment methods drives demand for checkout systems. These checkout systems are deployed to reduce wait time and provide an innovative shopping experience to customers. Furthermore, growing smartphone usage globally drives growth in cashless payments. Also, key players in the global market are collaborating to deploy SCO systems in retail stores. For instance,

• In January 2022: Qingdao CCL Technology Co., Ltd. partnered with Tusson Ltd. to install self-checkout machines in 10 stores in Minsk, Russia.

Thus, cashless payment methods and rising automation are driving the market during the projected period.

RESTRAINING FACTORS

Data Security Concerns are Expected to Impede Market Growth

SCO benefits many firms and businesses. However, there are some challenges for which enterprises must be prepared, such as data leakage, device faults, phishing attacks, software, and network defects. For instance,

•          There is a high possibility of cyber risks where data can be hacked in unsafe and unsecured networks. Data hackers can easily penetrate the data locations and access vital data and records such as customer business accounts' financial credentials. This can result in substantial financial loss and damage the reputation.

In addition, devices must be well-protected in a secured network. Thus, cyber threats and data breaches due to lack of security may impede global self-checkout system market growth.

SEGMENTATION

By Type Analysis

Fixed Segment Has Largest Share Owing to Rising Demand Among Convenience Stores

Based on type, the market includes fixed and mobile-based self-checkout solutions.

The fixed segment is anticipated to hold the largest market share as it offers more features and functionality. The rising adoption of fixed checkout systems among convenience store owners has propelled market growth.

Additionally, the mobile-based segment is expected to grow with a moderate CAGR during the projected period as consumers are rapidly adopting digital technologies. Also, rising mobile-based payment adoption among retailers and customers has propelled this segmental growth.

By Component Analysis

Increasing Demand for Automation by Retailers Propelled Self-scanning Solutions Globally

The market study includes solutions and services based on component.

The solutions segment is expected to hold maximum market share, owing to the growing installation of self-checkout machines across the retail and hospitality sectors.

In addition, the services segment is expected to show prominent growth during the forecast period, with the highest CAGR during the projected period. Key players operating in the global market are engaged in developing customized SCO services to enhance and utilize the full functionality of these systems.

By Sales Channel Analysis

Direct Sales Channel to Witness High Growth Owing to Rising Adoption by Large Retail Chains such as Walmart and D-mart

The market scope includes direct and indirect based on the sales channel.

The direct segment is expected to hold the largest market share, owing to bulk purchases made by retail and hospitality businesses. SCO systems are traded in bulk by manufacturers across regions featuring low cost and import & export duties.

However, the indirect segment is estimated to show reliable growth with the highest CAGR in the forecast period. The key players may invest more in third-party affiliates than their personnel to improvise and promote sales.

By End-user Analysis 

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Rising Adoption of Self-checkout System by Convenience Stores, Retail Malls, and Hospitality Industry to Propel Growth

The market scope includes retail, hospitality, and others (mass merchandisers) based on end-user.

The retail segment is anticipated to hold the largest market share due to the increasing implementation of self-checkout machines in retail shops, supermarkets, malls, and convenience stores to save time and reduce additional labor costs. In retail stores and malls, customers can scan the products' bar codes and pay effortlessly without standing in long queues.

• In November 2021, ShopMe, in collaboration with De Pindakaaswinkel, launched a self-checkout system at Westfield Mall in the Netherlands. ShopMe’ss has a self-checkout app that lets shoppers make bill payments online at Westfield Mall in the Netherlands.

The hospitality segment is projected to grow at the highest CAGR during the forecast period. This growth is owing to the rising adoption of these checkout systems among the food chains restaurants such as McDonald's, Domino's, and others.

REGIONAL INSIGHTS

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

North America is anticipated to account for the largest market share during the projected period, owing to growing demand and several deployments of self-checkout systems by retail stores. Furthermore, the North American market is compelled by the growing adoption of automation and digital payment methods by retailers, restaurants, and other end-users.

The U.S. leads the North American market owing to the increasing adoption of mobile payments among customers in the U.S. Furthermore, Canada is predicted to grow with the highest CAGR, owing to retailers’ and restaurants' adoption of these machines.

The European market is driven by the rising adoption of mobile-based self-scanning systems among retailers and restaurants. The adoption of such advanced technology-based self-checkout systems is seen across the U.K., France, and the Netherlands.

Similarly, the Asia Pacific region is anticipated to grow with the highest CAGR owing to the key players' rising development of this self-scanning system. For instance,

• In July 2021, Kyocera Group, a Japanese electronics component manufacturer, launched an AI-powered innovative self-checkout system. This smart system instantly recognizes goods that reduce physical contact and efforts of long checkout lanes.

Furthermore, labor shortages and the rising adoption of self-scanning systems among retailers and restaurants across the Asia Pacific region have propelled market growth.

South American countries, such as Argentina and Brazil, are widely adopting digital technologies for automating their business processes. For instance,

• In September 2022, Grupo Éxito, a South American retail company has, deployed self-checkout solutions provided by Toshiba’s retail division, Toshiba Global Commerce Solutions, across its stores in Colombia. Further, retail and convenience stores in South American countries are adopting the self-checkout system to avoid checkout lanes and reduce the billing staff.

The Middle East & African governments are digitalizing their operations and promoting the adoption of digital technologies. Also, several banks are promoting digital payments, and retailers and malls are accepting digital payment options. For instance,

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• In 2021, a French retail giant, Carrefour, opened a cashier-free mall in Emirates, Dubai. The mall has no scanners or checkout lanes. Customers shop using the store's smartphone app.

KEY INDUSTRY PLAYERS

Market Leaders Launch New Products to Strengthen Market Positioning

The market is fragmented with top players such as NCR Corporation, Diebold Nixdorf Incorporated, Toshiba Global Commerce Solutions, Qingdao CCL Technology Co., Ltd., and Hisense Systems Europe. Prominent companies are escalating their operations by implementing corporate strategies such as acquisitions, mergers, product launches, partnerships, and collaborations. For instance,

• In June 2021, Toshiba Global Commerce Solutions partnered with Calimax to deliver frictionless, fast, and convenient self-checkout experiences with its self-checkout system 7 solutions. Calimax shoppers offer Toshiba’s self-checkout solution at stores across San Diego, California, U.S.

List of Key Companies Profiled:

• Toshiba Global Commerce Solutions (U.S.)


• NCR Corporation (U.S.)


• Diebold Nixdorf, Incorporated (U.S.)


• Qingdao Histone Intelligent Commercial System Co. Ltd. (Shiji Group) (China)


• Qingdao CCL Technology Co., Ltd. (China)


• Qingdao Wintec System Co., Ltd. (China)


• Fujitsu Limited (Japan)


• Erply (U.S.)


• ITAB Group (Sweden)


• Pan-Oston (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2022 - Toshiba is developing dedicated solutions for the consumers of Chile's Supermarkets El Trébol chain.


• March 2022: BP, an oil and gas company, implemented Mashgin's Artificial Intelligence (AI) self-checkout system at four locations. Mashgin is a software company that manufactures AI checkout systems. This collaboration enabled customers to have a seamless and innovative shopping experience.


• October 2021: NCR Corporation expanded its partnership with Royal Farm, a Baltimore-based convenience store retailer to provide self-checkout solutions in more than 250 stores.


• September 2021: Conad Nord Ovest, a large-scale retailer, collaborated with Diebold Nixdorf Incorporated to deploy SCO systems and solutions in its stores. In 2021, the company installed more than 160 checkout systems in Conad supermarkets and hypermarkets in Italy.


• January 2021: Diebold Nixdorf, Incorporated launched DN Series EASY, self-service checkout solutions to address retailers' demand. This solution improves the store's efficiency, enhances the consumers' shopping experience, and reduces additional costs.

REPORT COVERAGE

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The global self-checkout system 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 elaborates on 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