NA and EMEA POS Market by Application (Fixed POS and Mobile POS), Deployment Mode (Cloud and On-Premises), End User (Restaurants, Retail, Hospitality, Healthcare, Media & Entertainment, and Others), Organization Size (Small & Medium Enterprises and Large Enterprises), and Region (North America, Europe, Middle East, and Africa): Opportunity Analysis and Industry Forecast, 2022-2031

NA and EMEA POS Market Analysis

The NA and EMEA POS Market Size was $6,553.1 million in 2021 and is anticipated to expand at a CAGR of 12.7%, generating revenue of $21,140.1 million by 2031.

NA and EMEA POS Market Synopsis

Point of sale software solutions have been adopted by various sectors owing to its ability to offer advanced and custom analytical functions. This software aids the organizations with the help of significant software capabilities, such as support companies in streamlining day-to-day operations while permitting them to focus on their primary business tasks. Rise in demand for personalized check out system or point of sale software across a wide range of corporate applications is anticipated to drive the advancements of software solutions that work on the POS systems.

The increase in popularity of point of sale software across the retail and restaurant sector is major factor that is driving the NA and EMEA point of sale software market share growth. Rapid digitization and the increase in popularity of cashless transactions especially in the retail and restaurant sectors across North America, Europe, and the Middle East & Africa are estimated to drive the POS software popularity. Retail businesses have grown rapidly in the U.S. and the states namely California, Texas, and Florida have accounted for the majority of the retail trade businesses in this country.

Security risks and high cost of the software are the major factors that are anticipated to affect the growth of the NA and EMEA POS software industry in the near future. A significant amount of investment is needed while purchasing or renting hardware, whereas this is not often the case with software. However, the initial cost required for the procurement of the software is high and along with that additional fees are incurred for repairs and routine maintenance. In addition, some POS software services may charge up to 3% for each transaction, which may be excessive, particularly for a small business. These factors are anticipated to hamper the NA and EMEA POS software market share.

NA and EMEA POS Market Overview

Point of sale (POS) software plays a major role in processing customer transactions, providing regular updates on inventory levels, and accepting payments. The point-of-sale software can be on-premises or cloud-based. Some of the leading vendors for restaurant POS software include Toast, Bindo, Lightspeed, and Aloha. Latest innovations in POS software in terms of mobile technology, improved security measures, digital reward programs, and others are expected to have an impact on the point-of-sale software market during the forecast period. The retail POS software gained huge popularity owing to several features that it offers to retail establishments such as supply chain management, warehouse management, store budgeting, marketing automation, performance management, and supporting native mobile applications.

COVID-19 Impact on NA and EMEA POS Market

The COVID-19 pandemic negatively impacted the economy as governments worldwide imposed lockdowns and restrictions. During the pandemic, major countries governments were focused on sustaining economic growth. Owing to supply chain interruptions brought on by COVID-19, several industries were negatively impacted, which sparked a severe economic crisis.

However, the COVID-19 virus caused a significant increase in the adoption of point of sale software via physical or financial money transfers. The COVID-19 outbreak has completely changed the business landscape, requiring end users to acquire the most recent point-of-sale technology. The point of sale software solution has been upgraded and adopted by numerous retail and e-commerce platforms to allow online orders and payments. The integrated analytics of point-of-sale software can help understand & satisfy new consumer expectations, adapt to market change, and get ready for lockdowns or other similar events in the future.

To meet consumer demand during the pandemic by providing contactless product delivery at the doorstep, the retail business, hospitality sector, restaurants, and other sectors switched to online sales channels. Retailers and restaurants can now appreciate both online & in-store sale information and payment options to POS software suppliers who took advantage of the opportunity to improve their systems.

An Increase in the Popularity of Point-Of-Sale Software (Pos) Across the Retail and Restaurant Sector Is a Major Growth Driving Factor

Rapid digitization and the increase in popularity of cashless transactions especially in the retail and restaurant sectors across North America, Europe, and the Middle East & Africa are expected to drive the POS software popularity. Retail businesses are growing rapidly in the U.S. and the states namely California, Texas, and Florida have accounted for the majority of the retail trade businesses in this country.

Similarly, in Europe, the smaller Eastern European countries namely Slovenia and Lithuania have witnessed the highest growth rate in the retail sector along with huge markets namely France, Italy, and Spain. The world is entering a digital age and POS software has become vital for maintaining business records in the retail and restaurant sector. POS software finds a range of applications in the retail sector as it helps in generating an invoice for products & services, managing the customers, inventory, tracking purchases, analyzing sales trends, and managing the rewards for customers. In majority of the retail businesses, around 95% of the transactions take place via POS software, which include customer purchases, return history, tracking sales records, handling of payments, and information on stock inventory. The key features of point-of-sale software include lesser inventory overhead, quick report generation, speed up of busy checkout lines, generating more traffic online/offline for the store, and reduce time on back-office inventory functions.

To know more about the NA and EMEA POS market drivers, get in touch with our analysts here.

Expensive Software Upgrades and Security Risks Associated with Point-Of-Sale Software to Hamper the Market Growth

Although the point of sale software offers several benefits, the expensive software upgrades linked with the POS software are expected to hamper the NA and EMEA POS software market growth. For instance, for POS software upgrades, license renewals, operational licenses, and other upgrades, the vendors have to pay extra. This factor is expected to restrain the market growth. In addition, the growth of the POS software market is projected to be hampered due to hardware issues. For instance, in case of any hardware failure, the vendors must contact the POS providers to troubleshoot the issues.

Thus, rectifying the issues in POS hardware can be time-consuming and costly, as a specialized service technician is needed to fix the issue. In addition, there are security risks involved in POS software. For instance, when customers use credit or debit cards to make purchases, the chance of exposing personal information is high and POS providers must take precaution as digital payments may carry security risks. In some cases, POS software vendors charge extra fees or monthly subscription fees for data security. These factors are expected to hamper the point of sale software market demand in the upcoming years.

Technological advancements in the POS market is anticipated to generate excellent growth opportunities in the near future

The POS software has become an essential business tool that has replaced the traditional cash register and it is constantly evolving with the tech-driven solutions. Technological advancements such as untethered POS systems, seamless omnichannel experience, multiple payment methods, personalized shopping experience, POS data analytics, and cloud-based software are expected to generate excellent growth opportunities in the North America and EMEA POS software market. For instance, traditionally in the retail sector, the transactions used to take place at one location basically at the checkout counter. However, modern POS systems are untethered as they are mostly handheld devices and mobile POS due to which the transactions can take place from any location. Modern POS systems offer omnichannel experiences to retailers that create seamless customer experience with click-and-collect strategies as the customers can place order online and can pick-up products from the store. Even small businesses can accommodate the complex buying behaviors of customers to compete with larger companies.

To know more about the NA and EMEA POS market opportunities, get in touch with our analysts here.

 NA and EMEA POS Market, by Application

On the basis of application, the market is divided into Fixed POS and Mobile POS.

 NA and EMEA POS Market Share, by Application, 2021

Source: Research Dive Analysis

Fixed POS segment is projected to generate the maximum revenue, and mobile POS is anticipated to be the fastest growing during the forecast period. The fixed POS segment dominated the market share in the North America & EMEA point of sale software market and registered a large share of the revenue in 2021. The surge can be ascribed to most restaurants and retail shops' preference for a fixed POS system over a mobile POS system as fixed POS solutions offer more functionality and capabilities. Owing to benefits such as powerful management solutions with company functionality, staff time clocks, inventory management, a cash drawer, loyalty programs, and gift card administration, businesses are more likely to use a fixed POS system

 NA and EMEA POS Market, by Deployment Mode

On the basis of deployment mode, the market is classified into cloud and on-premises. Among these, the cloud segment accounted for the highest revenue share in 2021.

 NA and EMEA POS Market Size, by Deployment Mode, 2021

Source: Research Dive Analysis

The cloud segment is anticipated to have the maximum revenue and fastest market growth during the forecast period. The cloud segment is expected to contribute to the market growth in the near future. One of the major reasons organizations favor cloud deployment is the ability to operate the software remotely with better productivity and flexibility. Small and medium-sized organizations that require rapid software upgrades to support expanding business requirements can benefit from the cloud-based deployment.

 NA and EMEA POS Market, by End User

On the basis of end user, the market is divided into restaurants, retail, healthcare, media & entertainment, hospitality, and others. Between the two, the retail segment is anticipated to grow at the fastest CAGR during the forecast period.

 NA and EMEA POS Market Growth, by End User, 2021

Source: Research Dive Analysis

The hospitality sector can be characterized as a business that offers lodging, dining, food, and other associated services for the convenience and entertainment of tourists and guests.

Understanding point-of-sale software and systems is essential for people in the hospitality business to achieve long-term success. Business executives need to understand how its function in contemporary hotels, restaurants, & other comparable venues as along with its potential and it is so essential. In addition to their primary functions, such as accepting client cash and card payments, point-of-sale systems can be used for a variety of other tasks. The software assists firms to produce accurate and helpful reports, which include performance reports and employee reports. In the hospitality and restaurant industry, the use of point-of-sale systems is essential for success, however different restaurants use the software in different ways. To get the most from the POS system, it is recommended to always stay up to date with the emerging trends and upcoming technologies.

Since the emergence of cloud-based POS systems, the importance of POS systems has increased significantly. It is no longer adequate to compare a POS system to a retail cash register. These systems, which offer intelligent service options, have the power to fundamentally change the hospitality sector. For instance, Oracle ranks top in North America and is the world's second-largest provider of POS software. It also dominates the world in the hospitality market as most of its POS software installations are in North America. According to a study, Europe is the second-largest market, to use POS software in hospitality industry.

 NA and EMEA POS Market, by Organization Size

On the basis of organization size, the market is classified into small & medium enterprises and large enterprises. Among these, the large enterprises segment accounted for the highest market share in 2021.

 NA and EMEA POS Market Forecast, by Organization Size, 2021

Source: Research Dive Analysis

The large enterprises segment is anticipated to hold the maximum share of the North America & EMEA point of sale software market revenue, while small and medium enterprises are expected to be the fastest growing. The small & medium enterprises segment is predicted to have a dominating market share in the North America & EMEA point of sale software market and is expected grow dominantly over the coming years. Owing to their cost and scalability, SMEs are quickly adopting cloud-based mobile POS software solutions.

Furthermore, small and medium-sized firms commonly develop at the town or state level, and they choose cost-effective methods based on recommendations from other business owners. As a result, the contribution of SMEs to the POS software market has been crucial in assisting vendors in expanding their presence in the local market.

NA and EMEA POS Market, Regional Insights

The NA and EMEA POS market has been analyzed across North America, and Europe, Middle East, & Africa

NA and EMEA POS Market Size & Forecast, by Region, 2021-2031 ($Million)

Source: Research Dive Analysis

Market for NA and EMEA POS in Asia-Pacific to be the Most Dominant

The increase in the idea of promoting electronic payments as a result of expanding digitalization, as well as the necessity to give hassle-free service to end users in real time, are the major drivers boosting the growth of the POS software market in North America and EMEA. The incorporation of modern technologies such as biometrics in POS, as well as the development of mobile POS, is predicted to drive the POS software industry growth. POS software vendors are extremely focused on providing innovative solutions and services to their customers, which is considerably boosting the POS software market. Fast and reliable transactions, Europay, MasterCard, and Visa (EMV) payments, standard payment processing rates, offline connectivity, secure payments, and prompt customer assistance are all advantages of POS for cashless payments. All these factors are estimated to drive the market growth and demand in North America during the forecast period.

Competitive Scenario in the NA and EMEA POS Market

Investments, product launches, and agreements are common strategies followed by the major market players.

Source: Research Dive Analysis

Some of the leading NA and EMEA POS market players are NCR Corporation, GK Software SE, Aptos, LLC, Oracle Corporation, Diebold Nixdorf, Incorporated, Toshiba Corporation, Fujitsu, Enactor Limited, Enactor Limited, and Sitoo.