The global point-of-sale terminals market was valued at USD 85.10 billion in 2021 and is projected to surpass around USD 181.50 billion by 2030 with a CAGR of 8.5% from 2022 to 2030.
Growing demand for mobile POS terminals from several end-use industries, rising preference for affordable wireless technologies, and rise of modern drive-thru are expected to be some of the major factors driving the point-of-sale (POS) terminal market during the forecast period. Moreover, change in customer payment preferences and buying behavior also bode well with the market growth.
The POS system has become a vital and multifaceted tool for many businesses due to its several valuable features across different end-use industries such as retail, hospitality, restaurant, healthcare, and other industries. Companies in the hospitality and retail sectors use POS terminals for payments and additional operational applications, such as inventory management, sales tracking, and accounting, among others. For instance, bars, restaurants, and foodservice providers depend highly on POS technology to track products, sales, inventory, and operations. These factors are driving the POS terminal market across several end-use industries.
Mobile applications have created a new medium for revenue growth as it helps reduce the payment turnaround time, eliminate queues, increase security, free floor space, and provide paper-free receipting services. Due to the low deployment costs, the flexibility of having a tablet-based POS or smartphone POS has encouraged SMBs to invest in mobile POS (mPOS) terminals. As a result, the demand for mPOS and contactless payment terminals is expected to soar high in the coming years.
The pandemic negatively impacted the tourism sector worldwide. Along with discontinuity in tourist activities in 2020, sectors such as hospitality, restaurants, and entertainment, a huge market for POS vendors, also suffered considerable losses. In the first quarter of 2020, due to the shutting down of manufacturing facilities worldwide, several players in the market recorded a substantial revenue drop in the H1 and H2 of the same year. Nevertheless, the market regained its foothold across industries in late 2020 and early 2021. In the wake of the pandemic, the declining trend of cash payments provided avenues for contactless payments, thereby augmenting market growth.
Report Scope of the Point of Sale Terminals Market
|Market Size in 2021||USD 85.10 billion|
|Revenue Forecast by 2030||USD 181.50 billion|
|Growth Rate from 2022 to 2030||CAGR of 8.5%|
|Forecast Period||2022 to 2030|
The fixed product segment leading the market accounted for more than 50.1% of the global revenue share in 2021. The fixed POS segment is further bifurcated into kiosks and others. Large-scale vendors prefer fixed POS terminals mainly due to installation costs and high procurement, which have currently supported the market growth. Moreover, end-users cautious of cloud data storage are likely to install fixed POS terminals for storing data with the on-premises server. The POS system has many applications, such as inventory management, supporting payments devices, customer relationship management (CRM), and printing bills.
The mobile POS segment is expected to expand at the fastest CAGR of over 10.0% from 2022 to 2030. This growth is attributed to the rising adoption of in-store mobile payments among customers across the globe. Mobile POS terminals help carry out payments from any part of the store. Many end-users, such as restaurants, have started adopting mPOS as it helps ease payments during busy hours and avoids loss of sales due to delays, thereby improving customer satisfaction.
Based on deployment, the point-of-sale terminal market is segmented into cloud and on premise. The cloud segment is expected to witness a significant CAGR of over 10.0% from 2022 to 2030. This growth is attributed to the increasing adoption of SaaS technology and software integration. In the SaaS model, rather than paying for all the software, hardware, and support services in advance, customers pay a minimum monthly fee on a subscription basis. This helps restaurants and other end-users to reduce their up-front expenses. On-premise deployment incorporates manual installation at the client’s premise.
The hardware segment appeared as the largest segment in 2021, accounting for a market share of more than 60.0%. The segment is expected to expand at a CAGR of nearly 6.0% from 2022 to 2030. Hardware components include devices or interfaces to register transaction details, such as monitors, tablets, receipt printers, cash drawers, barcode scanners, network devices, and EFT-POS machines.
Further, the software segment is estimated to register the highest CAGR of over 10.0% during the forecast period. This growth can be attributed to data support functionality, multifunctional features, and sales analysis ease. There is specialized software for different applications.
The retail segment emerged as the largest segment in 2021, accounting for around 28.0% of the overall market. Several retailers are moving towards the simple mode of transactions to avoid long waiting queues and delays in transactions. The supermarkets/hypermarkets segment is expected to expand at the highest CAGR of over 8.5% during the forecasting period.
The exposure of mobile wallet technology is forecasted to increase the penetration of retail-based products during the forecast period. The healthcare segment is estimated to exhibit a greater CAGR of above 9.5% during the forecasting period. This growth is accredited to a broad product application scope in managing patient information, facilitating quick payment processes, and tracking employee statistics.
The Asia Pacific is projected to come out as the fastest-growing regional market during the forecast period. Government initiatives to support a cashless economy is increasing the demand for POS terminals in this region. A rise in digital payment technologies in the region has opened many opportunities for mPOS in countries such as Japan, China, and India. Nevertheless, the demand for fixed POS terminals from large enterprises to protect their business details and ensure the processing of high amounts of data of their customers is supporting the segment growth.
North America emerged as the second-largest regional market in 2021 and is expected to witness at a steady growth rate of over 5.0% during the forecast period. Several demanding payment technologies, such as contactless payments and NFC has been driving the product demand in the region.
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This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
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