Global POS Terminal Market was valued at $46.3 Billion in 2015 and is estimated to grow at a CAGR of over 11% from 2016 to 2024.
Escalating demand for EMV POS terminal on account of growing international regulations pertaining to guidance to the financial institutions to make payment cards EMV compliant is expected to be major factor driving growth in the global POS terminal market. Additionally, majority of the developing economies are increasingly migrating or upgrading their payment cards and POS terminals to be EMV compliant, which is also anticipated to fuel product demand significantly over the coming years.
Expanding application areas of POS terminals including retail, hospitality, commercial, institutional, education, and entertainment may elevate product adoption considerably over the next few years. Ease of use coupled with extensive use in payment techniques and current transaction owing to its improved techniques is another factor driving the POS terminal market growth over the forecast period.
Global POS Terminal Market, By Product, 2014 – 2024 (USD Billion)
High installation cost of these terminals may hamper market growth over the coming years. The process of transition from conventional to novel POS hardware is time-consuming and capital intensive resulting in decreasing product adoption. However, mounting adoption of debit and credit cards is instigating retailers to adopt the POS solutions in order to outperform their competition by luring customers with easy, time saving and paperless transactions.
The universal wireless connectivity, including Bluetooth, paired with the convenience of peripheral devices, scanners, card readers, mobile printers, and multiple platform support, is expected to augment the POS terminals demand significantly over the next eight years. The industry is gradually migrating towards the digital format with e-mail receipts and electronic signature capture, enabling paper-free transactions and consequently, offering numerous growth opportunities over the forecast period.
The global POS terminal market is highly fragmented with a number of well established and emerging players actively operating in this market. The prevalence of cut-throat competition has significantly instigated companies to strengthen their position in the market by seeking aggressive growth strategies including partnerships, mergers and acquisitions.
“Optimal Price Point (OPP) for POS Terminals Products”
Estimated Average solution cost – $ xx globally. However, with growing solution implementation and expanding application areas, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
“Escalating need to streamline payment practices”
Increasing awareness regarding the benefits associated with POS terminals has bolstered tremendous growth opportunities as retailers seek to modernize their legacy checkout systems in an attempt to ensure enhanced operational efficiency and improved customer service. In addition, the widespread adoption of portable smart devices including tablets and smartphones has further resulted in increased POS terminal demand.
“Leading market companies account for nominal market share”
Notable industry participants including IBM, NCR Corporation and HP account for not more than 30% of the overall market share in the global POS terminal market. This is suggestive of an extremely fragmented vendor landscape in the industry with companies actively seeking to strengthen their position in the market by adopting aggressive marketing strategies such as innovative solutions and enhanced distribution capabilities.
The industry has become more lucrative with the advent of mobile POS terminal (mPOS) that provides cost-effective solutions allowing smaller businesses to structure POS terminals and accomplish tasks without having to invest in support software or electric register.
This technology fosters better mobility to sales and service industries and thus resulting in enhanced customer experience. Additionally, the low-cost availability of mPOS terminals has made these solutions a practical payment acceptance solution for business owners worldwide.