+91-8668442535

Point Of Sale (POS) Terminals Market By Product (Fixed POS Terminals, Mobile POS Terminals), By Component (Hardware, Software), By End-Use (Restaurants, Hospitality, Healthcare, Retail, Warehouse/Distribution, Entertainment) - Growth, Share, Opportunities & Competitive Analysis, 2015 - 2022

The Point of Sale (POS) terminal market has witnessed a dramatic turn-around and development with the advancement in technology and growth of POS terminal solutions. The POS terminals are slowly and steadily migrating towards digital format, with e-mailed receipts and electronic signature capture enabling paper-free transactions. Increased adoption of credit and debit cards coupled with the escalating demand for POS terminals is driving the overall POS terminals market.

In addition, advancements in payment technologies and move toward EMV (Europay, MasterCard, Visa) chip card payment are expected to fuel market momentum in the coming years. These factors are cumulatively expected to contribute toward a compounded annual growth rate (CAGR) of 12.9% during 2015 – 2022. In recent years, the POS terminals market has been plagued by privacy and security concerns related to data breaches.

However, the migration of the global payments industry toward more secure chip card technology is expected to subdue the impact of this challenge during the forecast period. The Point-of-Sale terminals market was valued at US$ 40.20 Bn in 2014 and is expected to reach US$ 103.20 Bn by 2022, expanding at a CAGR of 12.9% from 2015 to 2022.

Target Audience

  • Industry Investors
  • POS Terminal Hardware Providers/Vendors
  • POS Terminal Software Providers
  • SMBs and Micro-merchants
  • Other End-users

Overall, the research study provides a holistic view of the global POS terminal market, growth, offering market size, and estimates for the period from 2015 to 2022, keeping in mind the above-mentioned factors.

Product Segmentation Analysis

Based on different product types available in the market, the global Point of Sale (POS) terminals market is segmented into two following categories,

  • Mobile Point of Sale (mPOS) Terminals
  • Fixed Point of Sale (POS) Terminals

With the proliferation of smartphones, tablets, and other personal mobility devices, mobile POS terminals have gained traction. The mobile POS solutions are expected to complement and not replace the traditional/fixed POS terminals, thereby augmenting the functionality of traditional POS solutions.

In 2014, fixed POS terminals outnumbered mobile POS terminals in terms of both revenue and volume, accounting for over 75 percent of the global market revenue. However, the market for mobile POS terminals has witnessed a significant upsurge owing to superior benefits offered such as mobility, lower installation cost, and better return on investment as compared to their traditional counterparts. As a result, the market for mobile and wireless POS terminals is poised to witness healthy growth, growing at a CAGR of 23.2% during the forecast period.

End-use Segmentation Analysis

On the basis of end-use, the Point of Sale (POS) terminals market is categorized into the following categories:

  • Restaurants (Quick Serve Restaurants, Bars, Food Chains, etc.)
  • Hospitality (Lodging Establishments, Hotels, Motels, etc.)
  • Healthcare
  • Retail
  • Warehousing/Distribution
  • Entertainment
  • Others (Field Services, Government, Transportation, etc.)

Retail was the predominant end-use segment in the global Point of Sale (POS) terminals market, accounting for around one-third of the global market revenue in 2014. It is expected to retain its dominant position during the forecast period 2015 - 2022. Growing preference for mobile Point of Sale (mPOS) solutions is expected to drive the replacement demand across the retail sector. Furthermore, healthcare is slated to offer healthy growth opportunities, expanding at a CAGR of 16.1% during the forecast period. The demand for Point of Sale (POS) terminals in the healthcare segment is anticipated to be driven by the growing need for streamlining payment practices across the healthcare industry.

Based on component type, the global Point of Sale (POS) terminals market is segmented into the following categories

  • Point of Sale (POS) Terminal Hardware
  • Point of Sale (POS) Terminal Software

In 2014, the hardware components included tablets (generally an iPad), a smartphone paired with a credit/debit card reader, a complex terminal including monitors, barcode scanners, cash drawers, credit, and debit card scanners, mouse, keyboard, and printer accounted for the majority of the market revenue share. Although the hardware segment is expected to remain the largest revenue contributor to the global POS terminals market, the software segment is expected to witness comparatively higher growth over the forecast period 2015 -2022. The growth can be attributed to the advancements in cloud computing, resulting in increased use of software as a service (SaaS) platform-based POS systems.

A Point-of-Sale (POS) is an automated substitute for a cash register with the ability to track and record customer orders, process debit and credit cards, connect to other systems in a network, and manage inventory across geographically dispersed locations. A Point of Sale terminal is generally connected via extremely reliable wired connections and requires fast dial-up time, low power, and reliable performance.

The first POS system was rolled out by IBM in the 1970s. Back then, POS systems had no real processing capability of their own and had to depend on the mainframe controller. While most retail establishments across the globe were using old-fashioned cash registers, the Pathmark supermarkets in New Jersey and New York and the Dillard’s department stores in California became the early adopters of POS systems. However, the first capable POS system was actually developed by a restaurateur named Gene Moshel in New York and is also credited for following POS terminals-related developments 

  • Order-entry POS software on a desktop
  • Development of the first remote printing in the kitchen in 1979
  • Development of the first color-graphical user interface (GUI) and touch screen in POS in 1986
  • Development of the first color-graphical user interface (GUI) and touch screen in POS for UNIX in 1995
  • Development of the first color-graphical user interface (GUI) and touch screen in POS for Linux in 1997
  • Development of the first color-graphical user interface (GUI) and touch screen in POS for FreeBSD in 1998

The POS terminal industry in recent years has witnessed a dramatic turn-around and development with the advancement in technology and growth of mobile POS terminal solutions. The POS terminals are slowly and steadily migrating towards a digital format, with e-mailed receipts and electronic signature capture enabling paper-free transactions. Earlier, when POS systems were positioned as only sales processing devices, there laid little opportunity to add value beyond the basic system. However, today’s advanced POS systems are capable of handling a wide range of payment options such as digital payments and are able to play a crucial role not just in boosting sales but also in pricing, marketing, inventory control, property management, customer service, security, and digital signage among others. The introduction of chip-embedded payment solutions and personal identification numbers (PIN) is expected to minimize security concerns pertaining to data theft, further expanding the POS terminal's demand.

Today, there are large numbers of software vendors developing software for POS systems. With the advent of mobile terminals and cloud computing, software-as-a-service-based POS systems capable of being accessed directly from the Internet is witnessing robust growth. The POS industry continues to grow as businesses across the globe increasingly realize the value to be gained by deploying advanced POS systems. Low upfront installation costs and availability of leasing options in most cases are expected to sustain healthy growth in the coming years. These dramatic changes in the POS industry and the capabilities of systems have had a huge impact on how POS vendors work with their customers.

On the basis of geography, the global Point of Sale (POS) terminals market is segmented into the following categories,

North America

  • The U.S.
  • Rest of North America

Europe

  • EU7
  • CIS
  • Rest of Europe

Asia Pacific

  • Japan
  • China
  • Indian Subcontinent
  • Rest of Asia Pacific
  • Rest of the World
  • Latin America
  • The Middle East and Africa.

In 2014, North America was the largest Point of Sale (POS) terminals market, accounting for over 30 percent of the global market revenue. The region has ensured the leading market position owing to the regulated demand from established retail chains and the entertainment sector. However, the Asia Pacific and the Rest of the World (RoW) are expected to exhibit comparatively superior growth during the forecast period 2015 - 2022 on account of expanding retail chains, quick-serve restaurant chains, and hospitality establishments in these regions. India, China, and Brazil are poised to offer immense growth opportunities over the forecast period 2015 – 2022.

Frequently Asked Questions

The market for Point Of Sale (POS) Terminals is expected to reach US$ 103.20 Bn in 2022.

The Point Of Sale (POS) Terminals market is expected to see significant CAGR growth over the coming years, at 12.9%.

The report is forcasted from 2015-2022.

The base year of this report is 2014.

Blue Coat Systems, Inc., Websense, Inc. (Forcepoint, LLC), McAfee, Inc, Trend Micro, Inc., ContentKeeper Technologies Pty Ltd., Barracuda Networks, Inc.are some of the major players in the global market.

Choose License Type
Trusted By
Godaddy
Published Date:  Mar 2016
Category:  Semiconductor & Electronics
Report ID:   57716
Report Format:   PDF
Pages:   150
Rating:    4.5 (60)
Delivery Time: 24 Hours to 48 Hours   
Connect With Us
+91-8668442535
24/7 Research Support