The global Point of Sale (POS) terminals market is poised to reach USD 103.52 billion by 2023 with Asia Pacific region, lead by India and China, alone contributing more than 30 per cent accounting for USD 31 billion, according to a new research study.
The Global Market Insights’ report attributes the growth drivers of POS terminal market to the huge demand for wireless communication technology and several of its applications.
Among the POS products, the fastest growing mPOS terminals will be clocking a CAGR of 19 per cent during the forecast period driven primarily by innovations in queue busting, and other added facilities such as price comparison and mobile payments features, the report said, adding, this has helped retailers to leverage new applications and strategies for offering improved customer experience.
The wide-spread usage of mobile applications has lead to creation of new marketing channels and helped to increase the possibility of revenue growth.
Other factors which would help fuel the POS terminals market growth include, low queue time, high degree of security, paper-free receipt option, decrease in checkout space and increase in floor space.
With the availability of businesses outsource software services and options to have cloud servers for vendors, customer data can be securely saved at off-site data centers that do not require direct supervision of the respective businesses.
Retailers in the past did not encrypt data and were adopting wireless technologies, which were not secure as compared to wired options. According to the study, the major manufacturers accounting for global POS terminal market share include, Ingenico, electronics payment manufacturer PAX Technology, HP, VeriFone, Samsung, Panasonic, Toshiba, Cisco and NEC.
Key insights from the report:
- POS terminals market, which was worth over 32 million units in 2015, is forecast to grow at a CAGR of 18.3 per cent to reach 126 million units by 2023.
- The healthcare industry will increase its stake in POS terminal market for viable services due to mounting pressure to cut costs, and comply with government guidelines.
- By following all applicable norms and regulations such as patient information privacy laws, POS systems can provide different solutions such as blocking of expired items, inventory tracking, fast billing with multiple-tender options and patient data tracking facility.
- In the retail sector, POS terminals market is driven by the growing tendency to adopt advanced payment options by small retailers across the globe. Also, the low cost mobiles will play a key role to enhance mobile shopping experience for customers and the segment is projected to exceed USD 30 billion by 2023.
- While POS hardware would continue to lead the growth factor, software and efficient after-sales service would play a dominant role to improve customer base.
- The study also noted that biometric terminals, which would see a significant growth in the forecast period, would improve efficiency and reduce overhead costs such as lower frequency of support calls and resetting of passwords.