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The POS terminals market size is forecast to increase by USD 54.9 billion at a CAGR of 8.98% between 2023 and 2028. The market is witnessing significant growth due to the increasing demand for convenience in consumer transactions. Modern drive-thrus are adopting advanced POS systems to enhance customer experience, leading to a rise in demand. However, privacy and security concerns remain key challenges. With the increasing use, there is a growing risk of misuse of information and data leakage. Lack of awareness among businesses and consumers about network security and identity threats further exacerbates these issues. Continuous development of new products and technologies is addressing some of these concerns, but high operational and maintenance costs remain a significant barrier to widespread adoption. As the market evolves, addressing these challenges while maintaining the benefits of convenience and advanced functionality will be crucial for the growth of the POS terminal market in drive-thrus.
The market is witnessing significant growth due to the increasing adoption in various downstream applications such as retail, hospitality, healthcare, and banking. The consumption area for POS terminals is expanding beyond traditional electronic appliances to include wireless devices like mobile POS terminals. Fixed POS terminals continue to dominate the market, but mobile-based POS terminals are gaining popularity due to their flexibility and convenience. Growth strategies for market participants include expanding their product offerings to include mobile-based POS terminals, contactless payment technologies, and inventory tracking. Brand new entrants are focusing on providing innovative solutions for specific industries like rental cabs and remittance services.
Furthermore, the market is also driven by the increasing trend of online transactions and the need for efficient inventory management, sales tracking, and accounting in various sectors. POS terminals are being used in various industries such as retail, hospitality, healthcare, and banking for applications like payment processing, sales tracking, inventory management, and accounting. Mobile-based POS terminals and contactless payment technologies are gaining popularity due to their convenience and flexibility. The market is expected to grow significantly in the coming years as businesses continue to digitize their operations.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The entertainment segment is estimated to witness significant growth during the forecast period. The market encompasses various industries, including Restaurants, Hotels, Gas stations, Retail stores, and others. In the Entertainment segment, POS systems are utilized extensively. These wireless devices facilitate ticket sales, merchandise purchases, and food and beverage transactions in establishments such as movie theaters, amusement parks, casinos, and sports venues. The adoption of POS terminals in this sector brings about several advantages, including enhanced transaction processing efficiency and accuracy, effective sales tracking, and inventory management. Moreover, advanced POS terminals in the Entertainment segment incorporate features like touch screens, barcode scanners, and mobile payment options, thereby improving customer experience and minimizing wait times.
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The Entertainment segment was valued at USD 27.70 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The growing prevalence of organized retail sectors, including supermarkets and hypermarkets, in countries such as China and India is driving the usage of Point of Sale (POS) systems in the Asia Pacific (APAC) region. The increasing adoption of contactless payment methods in countries like China, Australia, India, and Indonesia is further boosting the demand for POS terminals. Collaborations and partnerships among these companies and other industry players are enhancing cashless payment solutions in APAC, thereby fueling the expansion of the market in the region. This market growth is attributed to the integration of advanced features such as wireless devices, sales tracking, accounting, remittance, and accounting in POS systems.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth in end-user demand for POS terminals is the key driver of the market. The market is witnessing significant growth due to the increasing demand for advanced payment management solutions in large-scale industries, including retail, healthcare, hospitality, and logistics. The prevalence of a substantial number of card payments among consumers is driving the adoption of POS terminals by retailers and other end-users. In developing countries like China and India, small-scale retailers are increasingly embracing POS terminals for secure and convenient transactions. Moreover, the high demand for wireless and mobile POS terminals among Small and Medium Enterprises (SMEs) is contributing to market expansion. In the mobile POS segment, wireless devices such as smartphones and tablets function as electronic terminal, offering flexibility and convenience to businesses.
Furthermore, the growth strategies of brand-new entrants and established players in this market are focused on product innovation, strategic collaborations, and geographical expansion to cater to the evolving needs of diverse application areas.
The continuous development of new products is the upcoming trend in the market. The market is witnessing significant growth due to the increasing adoption of electronic appliances for card payments in various downstream applications such as retail, hospitality, healthcare, and others. Fixed POS terminals continue to dominate the market, but mobile POS terminals are gaining popularity due to their flexibility and convenience. New entrants in the market are focusing on growth strategies like product innovation, strategic collaborations, and geographical expansion to capture a larger share. Hospitals and pharmacies are emerging as new consumption areas for POS terminals as they seek to streamline their payment processes and improve patient experience. Compliance with stringent security standards such as PCI-DSS and EMV is crucial for POS terminal providers to ensure data security and customer trust.
Furthermore, advanced encryption, tokenization, and authentication mechanisms are being integrated into new POS terminals to meet these requirements. Modular POS systems are becoming increasingly popular due to their customizable and scalable features. These systems enable businesses to select and integrate features and peripherals according to their specific requirements, making them ideal for different industries, business sizes, and operational models.
The high operational and maintenance costs of POS terminals is a key challenge affecting the market growth. The market has witnessed notable growth in various downstream applications, including retail and food service industries. Despite the initial investment required for POS terminals, which includes setup costs, transaction fees, and monthly subscriptions, their adoption is increasing due to the convenience and efficiency they offer. Fixed POS Terminals are commonly used in larger establishments, while Mobile POS Terminals cater to smaller businesses and on-the-go transactions. In the healthcare sector, POS Terminals are increasingly being utilized in hospitals and pharmacies for card payments and inventory management. Brand new entrants in the market are employing growth strategies such as product innovation, strategic partnerships, and competitive pricing to gain a foothold.
Furthermore, electronic appliance manufacturers and technology providers are investing heavily in the development of advanced POS Terminals, offering features like contactless payments, QR code scanning, and real-time reporting. The choice between server-based and cloud-based POS Terminals depends on the specific needs and budget of the business. Despite the benefits, there are challenges associated with POS Terminal usage, such as potential hardware failure and software glitches.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BBPOS Co. â The company offers point of sale terminals such as Chipper Mini 2, Chipper OTA, and Chipper 2X. Also, it offers end-to-end mobile POS products and solutions.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing adoption of card payments in various downstream applications such as hospitals, pharmacies, restaurants, hotels, gas stations, retail stores, bars, and food service providers. Fixed POS terminals and mobile POS terminals are the two main types of POS systems in use. Growth strategies for brand new entrants include offering advanced features such as sales tracking, inventory management, accounting, and online transactions. Modern POS systems incorporate wireless devices, contactless payment, and mobile-based POS terminals, enabling convenience and enhancing customer experience. However, privacy issues, security concerns, and data breaches are major challenges in the market.
Furthermore, payment technologies like chip and pin, contactless, and remittance companies are addressing these concerns by implementing network security, identity threats, and data leakage prevention measures. POS systems are increasingly being integrated with electronic appliances like computers, cash registers, barcode scanners, and digital menu boards. The market is also witnessing the adoption of artificial intelligence (AI) and wireless communication technologies in POS systems for inventory tracking, back-office operations, and customer management. The convenience offered by POS systems in modern drive-thrus, such as Chipotle, and the integration of POS systems with e-commerce platforms are further driving market growth. However, distance restrictions and lack of awareness among small businesses remain key challenges.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.98% |
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Market growth 2024-2028 |
USD 54.9 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.02 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 46% |
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Key countries |
China, US, Germany, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BBPOS International Ltd., Bitel Corp., Castles Technology Co. Ltd., Cegid SA, CitiXsys Holdings Inc., Diebold Nixdorf Inc., Elavon Inc., Fiserv Inc., Ingenico Group SA, NCR Corp., Newland Europe BV, Oracle Corp., PAX Global Technology Ltd., PayPal Holdings Inc., Revel Systems Inc., Squirrel Systems U.S. Inc., TouchBistro Inc., VeriFone Inc., and WInpos Group AB |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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