A point of
sale terminal is an electronic device used to process payments at the retail
locations. It involves maintaining and tracking the customer orders, processing
debit and credit card payments. It is a computerized replacement for a cash
register. With the rising popularity of e-commerce, the recent years have
witnessed an exponential increase in the number of online shoppers. The growing
need to maintain competition, to penetrate unfamiliar markets, meeting the
increasing demand from customers, and responding to changing customer needs
have compelled vendors to focus on having an online sales sector for their
business. Few vendors are also focusing on completely replacing their physical
stores with digital sales channels. This preference for e-commerce has led to
the rapid increase in e-commerce transactions, which will, in turn, have a
positive impact on the growth of the point of sales systems market.
Further, POS
terminals also allow the cardholder to have real time online access to funds
and information in a bank account through debit or cash cards. The POS systems
also help in the management of the inventory by recording the markdowns.
Instead of going through the mountain of receipts at the end of the day, the
point of sale system calculates the markdowns automatically as sales occur.
Likewise, POS systems also make the promotion of the product easy. Promotions,
discounts, and coupons can be tracked and the effect of these promotions
recorded daily. Tracking the effect of promotions of products is almost
impossible without point of sales inventory management systems.
Apart from
the inventory management, these terminals also provide a wide range of
applications including printing bills, payments, carrying out loyalty programs,
thus leading to their increased adoption across various end-use verticals.
Market Size & Forecast
The POS terminal market is expected to reach around USD 120 million by
the end of 2024 registering a CAGR of 19.8% between 2017 and 2024. The major drivers responsible for
the growth of the market are the rising adoption of the hardware such as
smartphones and tablets coupled with the rise in e-commerce transactions and
the adoption of the secured technology. Geographically, North America is
the leading contributor to the global
point of sales market due to the widespread establishments of retail giants
and restaurants, followed by Europe and Asia Pacific. The Europe Point of Sale
market is expanding due to the widespread use of VISA, MasterCard and Euro Pay
payment gateways. The Asia Pacific Point of Sales (POS) terminal industry is
forecast to exhibit the growth at a growing CAGR of 13%. Growing preference for
connectivity and portability and rising demand across application areas are key
driving forces in regional segment.
Market Segmentation
Our in
depth analysis of the Global Point of Sale market includes the following
segments
By
Component
·
Hardware
·
Software
By
Application
·
Retail
·
Hospitality
·
Healthcare
·
Warehouse
·
Entertainment
·
Others
By
Technology:
·
Biometric
·
Traditional
Global
Point of Sales Terminal is further classified on the basis of region as
follows:
By Region:
·
North
America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity
Analysis
·
Latin
America (Brazil, Mexico, Rest of Latin America) Market size, Y-O-Y growth &
Opportunity Analysis
·
Western
and Eastern Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium,
Netherlands & Luxembourg, Rest of Western Europe) Market size, Y-O-Y growth
& Opportunity Analysis
·
Asia-Pacific
(China, India, Japan, Singapore, Australia, New Zealand, Rest of Asia) Market
size, Y-O-Y growth & Opportunity Analysis
Growth Drivers and Challenges
The growth
of the global POS market is primarily driven by the increased number of
e-commerce transactions. The rising adoption of mobile devices such as
smartphones, increasingly being used for the e-commerce transactions has pushed
the market to the global level. Moreover, the introduction of cloud computing
has fueled the growth of the POS terminal market, and therefore, POS systems
can become the Software as a Service (SaaS) and are directly accessible through
internet with the help of the browser. Further, the increased adoption in
hospitability, retail e-commerce and the healthcare industries have also
contributed towards the growth of the market. Moreover, the technological
advances in payment modes such as mobile wallets have also led to the growth of
the market. The need for reducing the fraud has enabled the retailers to adopt
the highly secured technology such as EMV (Europay, Mastercard and Visa), thus
propelling the growth of the global point of sale market. Technological
advances coupled with hardware such as smartphones and tablets, has resulted in
the industry transitioning from payment-only terminals to solutions that allow
merchants to operate their business such as order management software for
restaurants and practice management software for medical providers.
The
increased competition in the market has enabled the manufacturers to develop
innovative and differentiated strategy to provide solutions to the industry
verticals. However, the increased adoption rate of the technology has also
posed threat to the security concern. Moreover, the POS systems deal with the
critical information and are often exposed to the data threats and security
concerns. The POS system needs external network for their efficient
functioning, but the networks lies on the end of the retailer. The small
business connects to the POS systems through cellular data while the larger
ones connect through the internal network. Thus, operating through internal
networks makes them prone to the security threats. Therefore, there remain
technical and operational challenges that act as the restraints to the market
growth. Moreover, the growth of the mobile POS terminals has also led to the
growth of the global POS terminal market. The mobile POS terminals will provide
the cost effective solutions enabling smaller businesses to setup POS terminals
and perform tasks without having to invest in electric register or support
software. Implementing POS terminals will also lead to the improved customer
experience as the increased benefits will enable the retailers to update their
checkout systems, thus leading to better operational efficiency and enhanced
customer experience. The hardware segment is likely to continue its dominance
in Point of Sales market in the future with a projected share of 84.5%.
Software segment is likely to witness growth in the hospitality and the retail
sector.
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Ajay
Daniel
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