Retail Point-of-Sale Terminals Market Size

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The Retail Point-of-Sale Terminals Market size was valued at USD 31.1 Billion in 2023 and is expected to grow to USD 59.62 Billion by 2032 and grow at a CAGR of 7.5% over the forecast period of 2024-2032.

The retail POS terminals market has seen substantial growth due to the fast adoption of new technologies and changing consumer preferences. As more and more businesses switch from basic cash registers to advanced POS systems, the market is seeing a move towards integrated solutions with combined hardware and software to improve functionality. These terminals currently have functions like processing mobile payments, managing inventory, maintaining customer relationships, and analyzing data, giving retailers a complete set of tools to enhance operational effectiveness and interact with customers. The increase in e-commerce and omnichannel retailing has increased demand, as merchants aim to streamline their sales processes across different platforms. Moreover, the pandemic has sped up the implementation of contactless payment choices, resulting in a rise in the usage of POS terminals that are compatible with NFC and mobile wallet payments. The increasing focus on improving customer interactions and the popularity of POS systems among small and medium-sized businesses are driving the market's growth. With increasing competition, POS terminals makers are concentrating on innovation and creating customized solutions to address retailers' various requirements, guaranteeing a strong growth path for the market in the future.

The retail payments landscape is rapidly evolving, driven by the increasing adoption of digital wallets, Buy Now, Pay Later (BNPL) services, and advanced point-of-sale (POS) systems. Digital wallets are projected to exceed a staggering global transaction value of over USD 16 trillion by 2028, reflecting a significant shift in consumer spending habits and preferences for convenient, secure payment methods. In the Euro area, non-cash payment transactions surged by 10.1% in the first half of 2023, with contactless card payments alone increasing by 24.3%. This trend highlights consumers' growing preference for fast and efficient payment solutions. Furthermore, BNPL services are reshaping consumer credit, especially among younger demographics who appreciate the flexibility these offerings provide, particularly during economic uncertainty. The integration of innovative POS technologies, including cloud-based systems and mobile POS solutions, is enhancing the retail checkout experience by enabling seamless, real-time transactions anywhere in the store. As retailers embrace these advancements, they not only improve operational efficiency but also elevate customer satisfaction by providing personalized experiences. Enhanced loyalty programs, driven by real-time data, further reinforce customer retention and engagement, making innovative payment solutions essential to retail success. Overall, the ongoing transformation in the retail POS terminals market underscores the necessity for retailers to adapt to emerging trends in payment technologies, ensuring they meet the evolving expectations of today's consumers.

Retail Point-of-Sale Terminals Market Dynamics

Drivers

• Increase in NFC and contactless payment methods leading to expansion of retail POS terminals.

The POS terminals market in retail is growing due to the rise in NFC and contactless payment usage. In Europe, there was a 24.3% increase in contactless card payments in 2023, highlighting consumers' favor for quick and safe transactions. The European Central Bank announced a 15.6% rise in card payments, as contactless options gain popularity among consumers looking for ease and speed. Governments are also backing this movement by taking steps to improve payment systems and encourage the use of digital transactions. For example, the UK government's dedication to updating payment systems has motivated retailers to enhance their POS terminals for contactless technologies, guaranteeing smooth customer interactions. Moreover, the increasing demand for mobile wallets has also boosted the prominence of NFC-enabled devices, enabling customers to easily make payments straight from their mobile phones. by investing in advanced POS solutions that incorporate contactless payment options, retailers are meeting consumer demand and improving operational efficiency. The move towards contactless payments is predicted to influence the future of retail transactions, with NFC technology playing a vital role in driving growth in the POS terminals market.

Restraints

• Obstacles in infrastructure are impeding the expansion of the retail POS terminals market.

The retail POS terminals market encounters major obstacles because of the unreliable and outdated infrastructure, hindering the uptake of contemporary payment technologies. A lot of areas continue to use old payment systems that are not able to handle advanced POS features, causing inefficiencies and dissatisfaction among customers. A recent report from the Office for National Statistics (ONS) in the UK stated that around 20% of retail businesses faced challenges in updating their payment systems because of infrastructure constraints. In the same way, the European Central Bank reported that approximately 55% of businesses in the European Union had transitioned to completely digital payment platforms by 2022. This gap shows that numerous retailers do not have the necessary tools to provide smooth and effective payment options, which hinders their ability to compete in a constantly changing market. Government efforts focused on enhancing payment infrastructure are vital in tackling these issues. As an illustration, the UK government has put more than £2 billion into the digital infrastructure industry as part of its "Digital Strategy" to encourage businesses, such as retail, to embrace technology. Lack of significant infrastructure investments could prevent the retail POS terminals market from growing due to the untapped potential benefits of advanced POS terminals such as improved transaction speed, security, and customer satisfaction.

Retail Point-of-Sale Terminals Market - Segment Analysis

by Product

In 2023, the Fixed POS terminals segment maintained a significant market share of 63.67% in the retail point-of-sale (POS) terminals market, strengthening its position as the top choice due to the common use of traditional checkout systems in retail settings. Fixed POS terminals, valued for their durability and dependability, are crucial in industries like supermarkets, restaurants, and retail stores, enabling efficient processing of large numbers of transactions. Prominent corporations such as NCR Corporation and Verifone have introduced innovative stationary POS systems with capabilities like cloud connection, integrated payment processing, and improved security measures to address changing customer needs. An example is NCR's newest product, the NCR Silver, which merges hardware with advanced software functions, enabling retailers to effectively oversee sales, inventory, and customer information. Additionally, Square, known for its mobile solutions, unveiled a new series of stationary terminals designed for small to medium-sized businesses, improving accessibility and user-friendliness. The advancements in the Fixed POS sector enhance both operational efficiency and customer experience, allowing retailers to keep up with omnichannel retailing while maintaining strong in-store transaction capabilities. With technology advancements, Fixed POS terminals are expected to maintain a strong presence in the market despite facing growing competition from mobile options.

by Component

The retail POS terminals market was led by the hardware segment in 2023, which accounted for 55.44% of total revenue, mainly due to the rising need for effective transaction solutions in different retail settings. Major companies such as Ingenico, NCR Corporation, and Verifone are at the forefront, introducing new hardware solutions to improve transaction speed and security. An example is the Lane/3000 series by Ingenico, which integrates cutting-edge payment technology with a simple interface, enabling retailers to smoothly conduct transactions. The newest product from NCR, the NCR Secure Pay, comes with advanced security capabilities to safeguard businesses and customers from the growing threat of fraud in the digital world. Additionally, the worldwide trend towards intelligent retail systems has led countries such as the US and Japan to make significant investments in enhancing their POS infrastructure, which in turn boosts the hardware segment growth. The Japanese government's push for cashless transactions has boosted the need for updated POS systems, leading local manufacturers to enhance and broaden their product range. This increase in hardware focus indicates a shift towards better operational efficiency and necessary adjustment to evolving consumer payment preferences in retail.

Retail Point-of-Sale Terminals Market Regional Outlook

In the retail point-of-sale (POS) terminals market in 2023, North America had a significant revenue share of 41.56% due to its strong retail infrastructure and widespread use of advanced payment technologies by consumers. Square and Clover, companies recognized for their creative point-of-sale solutions, have shown great progress in this area with the introduction of easy-to-use terminals tailored for small and medium-sized businesses. Square's newest product, the Square Register, combines both hardware and software to allow for smooth payment processing, inventory tracking, and customer interaction, ultimately improving the retail experience as a whole. In the meantime, Clover launched the Clover Mini, a small and adaptable point-of-sale terminal created to meet various business requirements and provide advanced analytics capabilities. The U.S. government's efforts to encourage cashless transactions are increasing the need for modern POS systems, making it easier to transition from handling cash to using digital payments. Moreover, the swift growth of online shopping has pushed retailers to incorporate omnichannel tactics, underlining the need for advanced POS systems that can effectively handle in-person and internet transactions. The combination of technology, regulations, and consumer habits highlights North America's strong presence in the retail POS terminal market, establishing it as a pioneer in new ideas and acceptance.

In 2023, the Asia-Pacific region saw a notable rise as the quickest developing market for retail point-of-sale (POS) terminals, driven by fast urbanization and an increase in the amount of retail businesses, ranging from big department stores to little convenience shops. This growth has led to a strong demand for advanced POS systems to efficiently oversee activities and meet the varying requirements of customers. Development in the retail sector in the area has seen a notable increase, fueled by shifting consumer behaviors, higher incomes, and a boost in consumer expenditures. Therefore, retailers are making significant investments in enhancing their POS systems to improve operational efficiency and customer experiences. Additionally, Europe has seized a significant portion of the worldwide retail POS terminal market due to a strong retail industry and strict regulations requiring safe transactions. The region's dedication to improving transaction security is evident in the extensive use of advanced POS technologies like contactless payment methods and EMV compliance. Moreover, there is an increasing investment in POS systems in different retail industries, demonstrating a significant focus on enhancing customer satisfaction and operational productivity. This ever-changing setting emphasizes the crucial importance of sophisticated POS systems in addressing the changing needs of the retail market.

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Key Players

Some the key players in the retail point-of-sale (POS) terminals market along with their products and services:

• Acrelec (self-service kiosks and digital signage)

• AURES Group (multifunctional POS systems and peripherals)

• HM Electronics (wireless communication solutions for POS systems)

• Hewlett Packard Development LP (POS hardware and software solutions)

• NCR Corp. (integrated retail solutions and omnichannel POS systems)

• Oracle (cloud-based POS and enterprise resource planning solutions)

• Presto Group (self-service ordering systems for restaurants)

• Quail Digital (mobile and fixed POS solutions)

• Revel Systems (cloud-based POS and business management software)

• Toast, Inc. (restaurant management platform with integrated POS)

• Toshiba Corp. (POS terminals and retail technology solutions)

• TouchBistro (iPad-based restaurant POS system)

• Xenial, Inc. (cloud POS solutions for the restaurant industry)

• Diebold Nixdorf (automated teller machines and retail POS solutions)

• Epicor Software Corporation (ERP solutions with integrated POS)

• Ingenico Group (payment solutions and terminals)

• NEC Corporation (POS hardware and software solutions)

• Panasonic Corporation (POS systems and peripherals)

• PAX Technology (payment terminals)

• Samsung Electronic Co. Ltd (smart POS systems)

• Square, Inc. (mobile payment solutions)

• VeriFone Systems (secure payment terminals and solutions)

• Others

Recent Development

• In India, Zoho Corporation introduced Zakya, a new brand, providing a contemporary retail POS solution in February 2024. Zakya's POS solution, which is based on the cloud, is simple to set up and user-friendly, enabling small and medium-sized retailers to get up and running and begin billing within one hour.

• In January 2023.A new point of sale (POS) solution for retailers was introduced by VMware, Inc. in January 2023. In partnership with Stratodesk, the VMware Retail POS modernization solution was created to prolong the lifespan of existing POS systems, resulting in increased ROI, decreased security vulnerabilities, enhanced store performance, and better customer satisfaction.