U.S. Point of Sale (PoS) Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware and PoS Terminal Software), By Type (Fixed PoS and Mobile PoS), 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 U.S. Point of Sale (PoS) market size was valued at USD 4.97 billion in 2022. The market is projected to grow from USD 5.61 billion in 2023 to USD 13.49 billion by 2030, exhibiting a CAGR of 13.3% during the forecast period.

The U.S. market is majorly driven by growing adoption of cloud-based PoS software among retail and restaurant businesses. Further, the presence of a significant number of key players in the country plays a vital role to fuel market growth. The scope of the report consists of various hardware and PoS terminal software solutions offered by key players such as Toast, Inc., Square Inc., Block, Inc., NCR Corporation, 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.

COVID-19 IMPACT

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

During the pandemic, major countries' governments were focused on sustaining economic growth. Consumer’s spending declined significantly during the pandemic due to imposed restrictions. According to the U.S. Bureau of Labor Statistics, in 2020, during the COVID-19 pandemic, consumer spending among the U.S. individuals declined by 9.8% compared to 2019. These have directly impacted the global manufacturing facilities of Point of Sale terminals.

Thus, these factors caused a slight decline in the U.S. Point of Sale market growth. However, the market gained traction as people started using e-commerce applications for shopping necessities.

LATEST TRENDS

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Advanced Data Analytics and Expansion of Payment Models to Drive the Market Growth

Payment processing companies, such as Stripe and PayPal, are offering support for new payment technologies such as contactless payments, mobile wallets, and crypto currency. These companies are enhancing their data analytics to improve consumer experience and improve inventory data. Retailers such as Whole Foods and Starbucks are accepting Google Pay, which allows consumers to pay using their mobile devices. Bitcoin ATMs are also gaining traction in retail locations.

Numerous key players in this market are integrating Tap-to-Pay and crypto currency payment methods. Such PoS terminals and PoS software are expected to further drive this market.

DRIVING FACTORS

Growth of E-commerce and Omnichannel Retailing to Fuel the Market Growth

PoS systems that can integrate with online sales channels and support order fulfillment, and inventory management are becoming more popular, due to increasing e-commerce. The increasing consumer demand is being fueled by retailers, which are offering smooth shopping experiences through various channels such as online and mobile, among others. For instance, many retailers, including Target, Walmart, and BestBuy have implemented Buy Online, Pick-up In Store (BOPIS) services, which enhance the customer experience by streamlining shopping experience through omnichannel direction and avoiding the time required in a queue.

Thus, vendors’ primary focus on providing seamless omnichannel PoS systems is estimated to drive the U.S. market during the forecast period.

RESTRAINING FACTORS

Rapidly Changing Technology and Resistance to Change Might Impede the Market Growth

The market in the U.S. is highly competitive, with a large number of established players and new entrants constantly vying for market share. This can make it challenging for smaller businesses to gain some foothold in the industry. Additionally, factors such as cost, complexity, lack of technical expertise, and customer preferences hamper the implementation of PoS solutions, leading to resistance to change, resulting in hampered market growth.

SEGMENTATION

By Component Analysis

Latest Technologies Supporting Older Hardware to Boost Sales

The market is bifurcated into hardware and software based on component. It is anticipated that the hardware segment would have the largest market share, as there is a rising trend of installing PoS hardware systems in various industries such as restaurants, retail, banking, and gas stations.

By Type Analysis

Small and Medium Enterprises to Increase Adoption of Mobile PoS Systems

Based on type, the market is divided into fixed and mobile PoS, and others. It is expected that the fixed point of sale terminals would hold the larger market share, as it provides a broader range of features and functionality. Additionally, the mobile PoS segment is also anticipated to grow significantly at a highest CAGR during the forecast period, owing to higher adoption and demand among small businesses and independent merchants for its financial flexibility and wide availability.

By Deployment Analysis

Surging Cloud Adoption in PoS Systems to Fuel Market Growth

The market is divided into two categories based on deployment, on-premise and cloud-based. It is projected that the cloud-based segment would hold the majority of the market share, driven by rising implementation of cloud systems. This growth of cloud-based PoS systems is facilitated by several supplementary advantages such as flexible services and on-demand accessibility.

By Operating System Analysis

Preexisting Computing Systems to Boost the Demand for Windows PoS Terminals

The market is fragmented according to Operating System (OS) into Windows/Linux, Android, and iOS. Windows OS is expected to capture the largest market share and dominate the global market, owing to vast availability and wide adoption in the region. Furthermore, Android OS is expected to project the highest CAGR during the forecast period due to hassle-free device setup and user-friendly interface, resulting in increased adoption of mobile PoS terminals.

By End-user Analysis

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Increasing Adoption in Retail Business to Surge Demand for PoS Terminals

Based on end-user, the market is categorized into retail, restaurants, entertainment, and others (gas stations and transportation). The largest market share is expected to be held by the retail segment due to the adoption of PoS systems at an increasing rate due to their time and cost efficiency and provision of real-time data on sales performance.

KEY INDUSTRY PLAYERS

Major Market Players are Focused on Strengthening their Market Positions with Constant Improvements

The U.S. market is consolidated by leading players such as Square 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.

List of Key Companies Profiled:

• NCR Corporation (U.S.)
• Toast Inc. (U.S.)
• Square Inc. (U.S.)
• Clover Network Inc. (U.S.)
• Shopify Inc. (U.S.)
• Lightspeed PoS Inc. (U.S.)
• Block Inc. (U.S.)
• Revel Systems Inc. (U.S.)
• Shopkeep Inc. (U.S.)
• Heartland Payment Systems Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023: VMWare partnered with Stratodesk, an existing retail ISV partner, to deploy a new VMWare Retail PoS system. The system enhanced the lifespan of existing PoS systems and provided concrete returns on investments by reducing security risks, maximizing store uptime, and enhancing the customer experience.
• November 2022: phos, which is a Bulgarian PoS provider, partnered with Elavon to launch contactless software-only PoS solution in the U.S. and Canada. This partnership enabled current partners of Evalon to broaden their acceptance capacity and incorporate a range of contactless payment solutions.
• June 2022: PNC Financial Group acquired Linga, which provides cloud-based PoS systems designed for restaurants and retailers based in Florida. This acquisition resulted in business expansion due to the addition of a more comprehensive suite of PoS solutions provided by PNC Group.
• April 2022: Strike unveiled its partnership with NCR, Blackhawk Network, and Shopify to integrate Bitcoin payments into PoS systems of general stores across the U.S. This implementation avoided the processing fees of legacy banks while enabling privacy for consumers and saving private merchants on fees.
• January 2022: Adyen, a global provider of payments platform launched its Android-based PoS terminals in the U.S. along with the U.K and Europe. The device featured a seamless unified architecture, eliminating the requirement of multiple devices for barcode scanners, application management features, and cash registers, resulting in hassle less consumer experience.

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