POS Terminals Market size exceeded USD 65 billion in 2021 and is projected to expand at over 10% CAGR from 2022 to 2028. The global industry shipments are anticipated to cross 180 million units by 2028.
The market growth is attributed to the rising use of credit/debit cards for transactions. Seamless & contactless payment processes offered by these smart cards is a key factor supporting the growing adoption of POS terminals around the globe. The expanding utilization of cards will encourage companies from different sectors, such as retail, healthcare, entertainment, and hospitality, to install these terminals and subsequently support the industry progression.
The COVID-19 pandemic had a negative impact on the POS terminals market in 2020. The imposition of strict lockdown regulations by government authorities to limit the virus spread hampered supply chains. Manufacturers faced challenges such as delays in raw material procurements, temporary closure of production facilities, labor shortages, and disruptions in production processes. These factors affected the R&D activities of companies with respect to technological developments, expansion into new regions, and revenue generation. However, relaxations in several norms & border regulations rekindled general supply chain activities in the second half of FY2020, helping manufacturers deliver terminals on time and subsequently supporting the industry expansion.
|Market Size in 2021:||65 billion (USD)|
|Forecast Period:||2022 to 2028|
|Forecast Period 2022 to 2028 CAGR:||10%|
|2028 Value Projection:||160 billion (USD)|
|Historical Data for:||2018 to 2021|
|No. of Pages:||350|
|Tables, Charts & Figures:||717|
|Segments covered:||Product, Component, Technology, Operating System, Application, and Region|
|Pitfalls & Challenges:|
Investments in R&D activities to introduce new mPOS solutions will lead to the market progression
In U.S., mPOS terminals segment is predicted to observe a 15% growth rate through 2028 owing to the rising focus on mPOS technological developments. With the increasing acceptance of cashless transactions, industry players are capturing the developing market with portfolio expansion. For instance, in January 2022, Adyen introduced its Android-based mPOS solution for the U.S. and UK markets. The Android device allows merchants to accept major digital payment methods such as mobile wallets, magstripes, and chip cards. It offers an app management feature that enables merchants to upload & access external business applications for loyalty programs, inventory management, and returns.
Increasing adoption of POS terminal software by the restaurant chains will spur the growth for UK region
UK POS terminals market accounted for USD 4 billion in 2021 due to the rising expansion of casual dining brands such as Big Table Group, Honest Burgers, and McDonald’s Corporation. These companies are implementing advanced POS systems to simply their financial transactions and track the customer data for marketing purposes. In October 2021, Big Table Group expanded its Las Iguanas brand presence across the UK by opening 50 new stores. The restaurant chain, with 57 outlets in the country, offers Latin American cuisines. The initiative almost doubled its presence in the country, with a total of around 107 outlets. Such expansions are driving the POS terminal demand to help in coordinating the operational and financial activities of restaurants situated in different locations. The software will support restaurant chain owners in inventory management, payment processing, email marketing, and online food ordering.
Deployment of biometric payment solutions in existing systems will fuel the market revenue
Rising emphasis on improving the security and convenience of payment methods for individuals is stimulating the biometric segment expansion in Japan. Municipalities and other government bodies are taking steps to drive the utilization of biometric solutions on a larger scale. For instance, in March 2021, VeriTrans4G deployed its contactless & cashless biometric payment solutions as a proof of concept in the public and business facilities of Japans Shizuoka prefecture. The solution can be used in a broad set of sectors including restaurants, retail, and hotels. The solutions large-scale adoption is expected to boost the areas tourism sector. This industry will surge in the country, with government authorities encouraging the implementation of biometric payment technologies.
Familiarity of the Windows interface & operating system will foster the adoption of POS terminals
The focus on improving customer shopping experiences will accelerate the deployment of advanced POS terminals
The retail sector captured for majority of the global POS terminals market impelled by the demand for comprehensive payment solutions in the retail industry. Retailers are integrating high-end POS solutions throughout stores to enhance traditional shopping practices and remove bottlenecks in operational activities. These solutions support store owners in transactional data tracking, inventory management, remote monitoring, and online orders. In addition, the introduction of self-checkout retail stores has propelled the market value.
Usage of cashless transactions through POS terminals in several industries will augment the market demand
Europe POS terminals market held 25% of revenue share in 2021 on account of the developing retail, and healthcare sectors in countries such as the UK, Germany, and France. The advancement of these sectors has enhanced the acceptance of POS solutions. According to the European Association for Secure Transactions (EAST), POS terminals are the most widely installed terminal types in the region. As per the association, nearly 16.1 million POS terminals were deployed in Europe till the first half of 2021, an increase of around 3% from 2020. This indicates a rise in the adoption of the solution to cater to the growing demand for cashless transactions from individuals.
The focus on expanding geographical footprint forms a key strategy among market players
The key participants operating in the POS terminals market are AURES Group, Bematech SA, Castles Technology, Co. Ltd, Diebold Nixdorf, Fujian Newland Payment Technology Co., Ltd., NCR Corporation, NEC Corporation, New POS Technology Limited, Panasonic Corporation, PAR Technology Corporation, PAX Technology, Posiflex Technology, Samsung Electronics, Co., Ltd., Toshiba Corporation, and Touch Dynamic Inc. These leaders are focusing on expanding their market presence across multiple locations to cater to the rising demand for cashless & contactless payment methods.
The POS terminals market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2018 to 2028 for the following segments:
Market, By Product
Market, By Component
Market, By Technology
Market, By Operating System
Market, By Application
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Australia & New Zealand (ANZ)
- Southeast Asia
- South America
- Saudi Arabia
- South Africa