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The global self-checkout system market size was valued at USD 3.90 billion in 2021 and is projected to grow from USD 4.51 billion in 2022 to USD 12.01 billion by 2029, exhibiting a CAGR of 15.0% during the forecast period. Based on our analysis, the global market exhibited a decline of 12.4% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with self-checkout solutions experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.
The report's scope comprises various solutions and services offered by key players such as NCR Corporation, Toshiba Global Commerce Solutions, Diebold Nixdorf Incorporated., Hisense Systems Europe, 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 offers several self-checkout machines, including FUJITSU Impulse self-service, U-Scan 6.0, U-Scan Genesis, and others. Similarly, NCR Corporation offers the FastLane Self-Service Checkout R6C model of the advanced self-checkout 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.
Growing demand for automation and cloud-based Self-Checkouts (SCOs) in the retail sector for cost and time efficiency drives the market. Several key players in the market are adopting these advanced solutions across retail stores. For instance,
Closure of Retail Stores and Imposed Lockdown Hampered Market Growth
The COVID-19 pandemic has negatively impacted the market, owing to government’s mandatory restrictions and the closure of malls, shops, retail store, and hypermarkets. The global self-checkout system market share witnessed a slight decrease in the market size by 0.5% in 2020 as compared to 2019. The market showed a decline in revenue to USD 3.38 billion in 2020.
The hardware supply chain was disturbed owing to lockdown 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 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.
Leading players in the market are adopting several strategies, such as mergers, partnerships, and collaborations, for developing advanced technologies such as AI and cloud-based self-checkout solutions. For instance,
Such an increase in the adoption and development of automated and cloud-based solutions by the leading players is expected to create ample opportunity for THE global market growth.
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Rising Use of Artificial Intelligence (AI) based SCO Systems to Propel Market Growth
The rising adoption of cloud-based and AI-driven self-checkout solutions among retail, hospitality, and other merchants aids the market growth. AI-based services in systems are gaining popularity and increasing across developed countries.
To remain competitive, several leading players in the market are incorporating cloud and AI-based self-checkout solutions. For instance,
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 adopt digitalization to produce new products and services. Self-checkout solutions assist customers with shopping and facilitate digital and contactless payments without needing retail staff. The adoption of cashless payment methods has increased the demand for checkout systems. These checkout systems are deployed to reduce wait time and provide an innovative shopping experience to customers. Furthermore, there is a rapid rise in electronic payment transactions globally, owing to increasing use of smartphones. Also, key players in the market are collaborating to deploy self-checkout systems in retail stores. For instance,
Thus, cashless payment methods and rising automation are estimated to rapidly drive the global self-checkout system market growth during the forecast period.
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,
In addition, even in a secured network, devices must be well-protected. Thus, cyber threats and data breaches due to lack of security may impede market growth.
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 expected 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 the market growth.
In addition, the mobile-based segment is expected to grow with the highest CAGR during the forecast period as customers are rapidly adopting digital technologies. Also, rising mobile-based payments adoption among retailers and customers has propelled this segmental growth.
Increasing Demand for Automations by Retailers Propelled Self-scanning Solutions around the Globe
The market study includes solution and services based on component. The solution 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 over the forecast period. Key players operating in the market are engaged in developing customized self-checkout services to enhance and utilize the full functionality of these systems.
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 sales channel. The direct segment is expected to hold the largest market share, owing to bulk purchases made by the 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.
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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 expected to hold the largest market share owing to the growing adoption of self-checkout machines in retail shops, supermarkets, malls, and convenience stores to save time and reduce additional labor cost. 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 self-checkout system at Westfield Mall in the Netherlands. ShopMe has a self-checkout app that lets shoppers make bill payments online at Westfield Mall in the Netherlands.
The hospitality segment is estimated to grow the highest CAGR during the forecast period. This growth is owing to the rising adoption of these checkout systems among the food chain restaurants such as McDonald's, Domino's, and others.
North America Self-Checkout System 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.
North America is expected to account for the largest market share in the global market during the forecast period, owing to several deployments of self-checkout system by retail stores. For instance, as of July 2020, Walmart, the U.S.-based retail corporation, installed 34 customer-operated self-checkout stations at its 180,000 square-foot stores. The new self-checkout station helped to replace entire lanes of customers at retail stores.
Furthermore, the North American market is driven by increasing acceptance of automation and digital payment methods by retailers, restaurants, and other end-users.
The U.S. leads the North American market owing to the rising adoption of mobile payments among consumers in the U.S. Furthermore, Canada is projected 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 system is seen across the U.K., France, and the Netherlands.
Similarly, the Asia Pacific region is expected to grow with the highest CAGR owing to the key players' rising development of this self-scanning system. For instance,
Furthermore, labor shortages and the rising adoption of self-scanning systems among the retailers and restaurants across the Asia Pacific region have propelled the market growth.
South American countries, such as Argentina and Brazil, are widely adopting digital technologies for automating their business processes. For instance, the Amazon Grocery Go store was opened in Seattle in 2020 with a combination of technologies such as RFID sensors, artificial intelligence, and machine learning. Further, retail and convenience stores in South American countries are adopting self-checkout system to avoid checkout lanes and reduce the billing staff.
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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, in 2021, a French retail giant, Carrefour, opened a cashier-free mall in Emirates, Dubai. The mall has no scanners and checkout lanes. Customers shop using the store's smartphone app.
Key Players in the Market are Expanding their Operations by Launching Advanced Self-checkout System
The global market is consolidated with leading players such as NCR Corporation, Toshiba Global Commerce Solutions, Diebold Nixdorf Incorporated, Hisense Systems Europe, and Qingdao CCL Technology Co., Ltd. These key players are expanding their operations by adopting corporate strategies such as acquisitions, mergers, product launches, partnerships, and collaborations. For instance,
An Infographic Representation of Self-Checkout System 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. 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.
Value (USD billion)
By Type, Component, Sales Channel, End-user, and Region
By Sales Channel
The global market is predicted to reach USD 12.01 billion by 2029.
In 2021, the market value stood at USD 3.90 billion.
The market is projected to grow at a CAGR of 15.0% during the forecast period (2022-2029).
The mobile-based segment is expected to show the highest CAGR during the forecast period.
North America dominated the market due to the rising adoption of SCOs by retail stores in the U.S.
By end-user, the retail segment leads the market owing to the growing adoption of self-checkout machines in retail shops, supermarkets, and convenience stores as it is time and cost-efficient.
Data security issues associated with self-checkout machines are restraining the markets growth.
Increased acceptance of automation and digital payments around the globe with the surge in digitalization aids the market growth.
Some of the top players in the market are NCR Corporation, Toshiba Global Commerce Solutions, Diebold Nixdorf Incorporated., Hisense Systems Europe, and Qingdao CCL Technology Co. Ltd.
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