Point-of-Sale Terminal Market by Product (Fixed and Mobile), Component (Hardware, Software, and Services), Deployment (Cloud and On-premise), End-user (Restaurants, Retail, Hospitality, Healthcare, Warehouse, Entertainment, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Point-of-Sale Terminal Overview

Point-of-Sale systems are widely used in various industries to facilitate transactions between customers and businesses. A POS system is a computerized setup that allows businesses to process sales and manage inventory & record transaction data efficiently. Such systems include hardware like cash registers and barcode scanners and receipt printers along with software that aids in tracking sales and managing customer data and generating reports. Due to the demand for efficient and secure payment processing solutions the POS industry has experienced tremendous expansion in recent years. POS systems have been used by companies of all kinds from tiny retail stores to major corporations to improve their operational efficiency and offer consumers better service. These systems have become an integral part of the retail & restaurant and hospitality sectors among others. Streamlining transactions and managing inventor POS systems enable businesses to optimize their processes, leading to improved customer experiences and increased productivity. As technology continues to evolve, the POS market is expected to witness further advancements. Integration with mobile devices and contactless payment methods is becoming increasingly prevalent providing customers with convenient and secure ways to make purchases. POS systems play a vital role in modern business operations simplifying transactions and enhancing overall efficiency. With the ever-growing demand for seamless and secure payment processing solutions, the POS market is expected to continue expanding and innovating to meet the evolving needs of businesses and consumers alike.

Global Point-of-Sale Terminal Market Analysis

The global point-of-sale terminal market size was $25.9 billion in 2022 and is predicted to grow with a CAGR of 15.7%, by generating a revenue of $111.3 billion by 2032.

COVID-19 Impact on Global Point-of-Sale Terminal Market

The market for point-of-sale terminal was significantly impacted by the COVID-19 pandemic. During the pandemic, many physical retail stores had to close or limit their operations which led to a surge in demand for online shopping and contactless payments. Consumers shift in behaviour accelerated the adoption of digital POS solutions. Small businesses especially those relying on traditional in-store transactions faced challenges due to reduced foot traffic and social distancing measures, this prompted them to explore POS systems that could facilitate online sales and deliveries. On the other hand, larger retailers with existing POS systems had to adapt quickly to accommodate contactless payments and implement safety measures to protect their customers and staff. The demand for such versatile POS solutions rose sharply. In response to the changing landscape POS vendors developed innovative solutions that incorporated touchless technologies, mobile apps, and cloud-based platforms. These advancements allowed businesses to streamline their operations and offer more convenient purchasing options to customers.

As the world gradually recovered from the pandemic, the POS market continued to evolve. Businesses recognized the importance of omnichannel experiences and the need to integrate both online and in-store sales seamlessly. The Covid-19 pandemic significantly impacted the point-of-sale industry. It accelerated the adoption of digital and touchless solutions which transformed the way businesses operate and how customers make purchases. The markets response to the pandemic led to the development of more versatile and customer-centric POS systems catering to the evolving needs of businesses and consumers alike.

Growing Demand for Efficient and Secure Point-of-Sale (POS) Terminals to Drive the Market Growth

The global point-of-sale terminal market is expanding at a rapid pace owing to the rising demand for point-of-sale terminal solutions in various industries. The point-of-sale terminal offers efficient transaction processing, allowing customers to make secure payments conveniently. It enhances the shopping experience by reducing waiting times and providing swift checkouts. Additionally, it improves inventory management, enabling businesses to keep track of their stock levels in real-time. The POS terminal helps in accurate record-keeping, enabling businesses to analyse sales data for better decision-making. It fosters customer satisfaction as it supports various payment methods and loyalty programs, creating a seamless and personalized shopping experience. Furthermore, it enhances the security of transactions by encrypting sensitive data, safeguarding both businesses and customers from potential threats.

Limitations and Challenges of Traditional Point-of-Sale (POS) Terminals to Restrain the Market Growth

Some point-of-sale terminals may lack certain advanced features that can be found in more comprehensive systems. Occasionally, these terminals can face connectivity problems, leading to transaction delays or failures. The initial investment and ongoing maintenance costs of point-of-sale terminals may pose a financial burden for small businesses. Employees might require training to operate the system efficiently, leading to additional time and expenses. Point-of-sale terminals rely on electricity, making them vulnerable to power outages or technical glitches. There is a potential for data breaches or hacking attempts, exposing sensitive customer information. Upgrading the software or hardware of the terminal might be necessary over time, and ensuring compatibility with other systems can be challenging. Traditional point-of-sale terminals are fixed in one location, limiting the mobility of sales transactions.

Advancements in Point-of-Sale Terminal to Drive Excellent Opportunities for Future

Enhancing AI integration to deliver more accurate and personalised customer recommendations is one of the point-of-sale terminal's future upgrade opportunities. Various other advancements in this technology can boost the growth of the market. Some of these advancements include implementing advanced security measures to ensure plagiarism-free transactions and safeguard sensitive information, improving the user interface for a more human-like interaction, incorporating natural language processing for smoother communication, utilizing cutting-edge technology to minimize processing time and improving transaction speed.

Global Point-of-Sale Terminal Market, by Product, 2022

The fixed sub-segment accounted for the highest market share in 2022. The dominance of fixed products in the point-of-sale terminal industry can be attributed to their reliability and consistent performance. These products are designed to handle specific tasks, such as processing transactions and managing inventory, with efficiency and accuracy. Fixed terminals are well-established and widely adopted and have undergone rigorous testing to ensure their seamless integration into various business environments. Their hardware and software are designed to satisfy the requirements of sectors and offer unique solutions that are suitable for the requirements of various enterprises. Fixed terminals have strong security safeguards to safeguard private client information and reduce the possibility of fraud. Fixed goods are frequently less expensive than mobile alternatives, making them an appealing choice for enterprises seeking a secure and long-term investment. Customers benefit from their fixed nature since it promotes a sense of trust and familiarity, which improves the whole purchasing experience. The prevalence of fixed point-of-sale terminals can be attributed to their reliability and tailored solutions & cost-effectiveness making them a popular choice among businesses for their transaction processing needs.

Global Point-of-Sale Terminal Market, by Component, 2022

The hardware sub-segment accounted for the highest market share in 2022. The dominance of hardware in point-of-sale terminals is due to several factors. Firstly, it is the physical foundation of the terminal, encompassing the essential components necessary for processing transactions efficiently. The hardware includes the processor, memory, and connectivity features that ensure smooth and swift operation. Secondly, hardware is crucial for maintaining security and safeguarding sensitive customer information during transactions. The inclusion of encryption capabilities and secure communication protocols helps prevent data breaches and fraud, ensuring the trust of both customers and merchants. Hardware directly impacts the user experience as it determines the speed and responsiveness of the terminal. In summary, the dominance of hardware in point-of-sale terminals is driven by its critical role in enabling secure, efficient, and reliable transaction processing, ultimately enhancing the user experience and supporting businesses in their daily operations.

Global Point-of-Sale Terminal Market, by Deployment, 2022

The cloud sub-segment accounted for the highest market share in 2022. Cloud has become the dominant deployment in point-of-sale terminals due to its numerous advantages. Such a system allows businesses to store data and run applications on remote servers, reducing the need for costly on-site hardware and maintenance. Additionally, cloud-based solutions offer enhanced scalability, enabling businesses to easily adjust resources based on demand. This flexibility allows for smoother operations during peak times or expansions. Furthermore cloud-based point of sale systems facilitates real-time data access & ensuring up-to-date information across multiple locations, thereby improving overall efficiency. Moreover, such deployments often come with enhanced security features and regular updates which minimize the risk of data breaches. In conclusion, the cloud's convenience, cost-effectiveness, scalability, and security contribute to its dominance in the point-of-sale terminal industry.

Global Point-of-Sale Terminal Market, by End-use, 2022

The retail sub-segment accounted for the highest market share in 2022. Retail dominates as an end user of point of sale (POS) terminals due to several key factors. Firstly, retail businesses benefit from the seamless transaction process offered by point-of-sale terminals, enabling efficient and convenient checkouts for customers. Secondly, these systems help track inventory, manage sales data, and generate reports, streamlining operations. Thirdly, the user-friendly interfaces of POS terminals make them accessible to retail employees with minimal training. Additionally, retail establishments often deal with a high volume of daily transactions, and POS terminals handle this workload effectively.

Global Point-of-Sale Terminal Market Share, by Region, 2022

The Asia Pacific point-of-sale terminal market generated the highest market share in 2022. The region's significant population and thriving economies create a large and diverse market for businesses to serve. Additionally, the region has witnessed rapid growth in the retail and hospitality sectors which lead to increased demand for efficient payment solutions. The cultural inclination towards embracing new technologies plays a crucial role. In the Asia Pacific region, people are generally receptive to innovative solutions that enhance convenience and streamline transactions.  The mobile-first approach in many countries within the region has accelerated the adoption of digital payment methods. The ease of use and flexibility of point-of-sale terminals complement the prevailing mobile payment trends and making them a preferred choice for businesses seeking to cater to digitally savvy customers. Another factor contributing to the dominance of point-of-sale terminals in the Asia Pacific is the increasing focus on financial inclusion. Governments and financial institutions have been actively promoting digital payment ecosystems to bring more people into the formal financial system.  Lastly the presence of tech-savvy startups and established fintech players has fuelled the development of cutting-edge payment solutions. Overall, the convergence of a conducive market environment, cultural openness to technology, mobile-first adoption, financial inclusion initiatives, and dynamic fintech landscape has established the Asia Pacific region as a frontrunner in the use of point-of-sale terminals.

Competitive Scenario in the Global Point-of-Sale Terminal Market

Investment and agreement are common strategies followed by major market players. Some of the leading point-of-sale terminal market players are Acrelec, AURES Group, HM Electronics, Hewlett Packard Development LP, NCR Corp., Oracle, Presto Group, Qu, Inc, Quail Digital, and Revel Systems.