India Point-of-Sale Terminal Market Size 2024-2028

The India point-of-sale (POS) terminal market size is forecast to increase by USD 2.24 billion, at a CAGR of 12.68% between 2023 and 2028. The market is experiencing significant growth, driven by increasing end-user demand for advanced payment solutions and technological innovations. New product launches and continuous technological upgrades in mobile device, such as contactless payments, mobile POS systems and credit cards, and cloud-based solutions, are fueling market expansion. However, high operational and maintenance costs remain a challenge for small and medium-sized businesses, potentially hindering market growth. To mitigate this, companies are offering flexible pricing models and partnering with third-party service providers to reduce costs and improve efficiency. Overall, the POS terminal market is poised for continued growth, driven by evolving consumer preferences and technological advancements.

What will be the size of the Market During the Forecast Period?

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Market Dynamics

The market is witnessing significant growth due to the increasing adoption of advanced technologies in various industries. Social networks and recommendation engines are transforming the way businesses interact with customers, leading to the integration of POS terminals with these platforms. Graph databases, with their ability to handle complex relationships between data points, are gaining popularity in POS systems for data modeling and real-time analytics. Visualization tools help businesses gain insights from the vast amounts of data generated by POS systems. Data centers and cloud regions are essential for storing and managing this data, with the finance industry and logistics industry being major consumers. However, the lack of standardization in POS terminal market poses a challenge for businesses. Programming ease and the use of graph databases with property graph models, vertices, edges, labels, indexes, and stored procedures facilitate the development of complex business processes. Real-time analytics and long tasks are critical for industries such as medical information, disease surveillance, route optimization, and warehouse management. Logistics professionals rely on POS terminals for efficient management of their operations.

Key Market Driver

The growth in end-user demand for POS terminals is driving growth in the India Point-of-Sale (POS) Terminal market.  The growing demand for advanced technologies to manage payments across a wide range of end-user sectors such as retail, healthcare, hospitality, warehousing, and distribution will drive the growth fo the India point-of-sale terminal market. Many small-sized retailers in India are also adopting POS terminals to ensure secure and convenient payments. There is a high demand for wireless and mobile POS terminals among SMEs.

Moreover, in a mobile POS, wireless devices, such as mobile phones and tablets, act as the electronic POS terminal. In order to increase customer convenience, wireless POS terminals help bring the point of payment in line with their needs. Restaurant and food service businesses, retail stores, taxi and car services, and professionals who need a point of payment on the move are widely using these systems. Some companies of POS terminals are focusing on offering products with advanced features. The availability of such products is likely to fuel the growth of the market during the forecast period.

Significant Market Trends

New product launches and technological upgrades of POS terminals are primary trends in the market.  In order to increase their coverage and gain larger market shares, leading players in the market increasingly focus on a range of growth strategies including new product launches. The India point-of-sale terminal market has the presence of both international and local players. New product launches help companies strengthen their product offerings and ensure diversification that supports end-users.

Moreover, end-users are introducing new onboarding solutions that transform smartphones into merchant POS terminals. As an example, Axis Bank Ltd in July 2020 launched Sarathi, the world's earliest and most novel Digital Onboarding System that allows retailers to use POS data. The system will speed up the application process and will allow merchants to sign up in a paperless manner. Such developments and product launches are likely to drive the growth of the market during the forecast period.

Major Market Restrain

The high operational and maintenance costs of POS terminals are a major challenge in the market.  There was significant growth in the use of POS terminals by different end users, such as retail stores and restaurants. The operational cost for POS terminals is considered higher than that of a conventional setup, which involves the use of an actual cash register.  Depending on the size, sales volume, and business needs of end-user companies, operating costs for point-of-sale terminals are very different. Initial setup costs, individual transaction costs, month-to-month subscription charges, and termination expenses are some of the main cost components.

However, there are also issues related to the failure of POS terminals. If the POS terminal malfunctions or crashes, the business operations of the end user can slow down or even stop.  After a malfunction of the point of sale terminal, retailers may have to spend considerable time identifying and rectifying technical faults which would require them to take an excessive amount of their own time and resources in maintaining and supervising these repairs. The high operational and maintenance costs for POS terminals are expected to limit the growth of the market during the forecast period.

Market Segmentation By Component

The market share growth by the hardware segment will be significant during the forecast period. The hardware segment in the India point-of-sale terminal market includes all the physical components that make up the POS system, such as the terminal itself, peripherals like scanners and printers, and any other hardware that is required for the system to function. The POS terminal is generally composed of a monitor or touchscreen display, as well as card readers and scanners for managing payments, cash registers, and receipt printers.

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The hardware segments showed a gradual increase in the market share of USD 889.80 million in 2018 and continued to grow by 2022. The hardware segment in the India POS terminal market plays a key role by enabling businesses to manage their sales operations effectively and efficiently. Due to continued technological progress, it is likely that hardware components of point-of-sale terminals will be even more advanced and offer new features that further enhance their functionality and flexibility. Therefore, these factors will spur the growth of the component segment of the market during the forecast period. 

Market Segmentation By End-user

Based on end-user, the India Point-of-Sale (POS) Terminal market has been segmented into entertainment, hospitality, healthcare, retail, and others. The entertainment segment will account for the largest share of this segment. The entertainment segment in the India POS terminal market includes the use of POS terminals among businesses that offer entertainment services, such as movie theaters, amusement parks, casinos, and sports venues. In this segment, POS terminals are used to process ticket sales, merchandise purchases, and food and beverage sales.  In total, while businesses in this sector are looking at ways to manage their operations more efficiently and provide an optimal customer experience, the use of point-of-sale terminals for entertainment will continue to increase. POS terminals, which will be increasingly sophisticated in the coming years with new features that improve customers' experience of entertainment, are also likely to evolve as technological progress continues. Therefore, these factors are expected to propel the growth of the entertainment segment of the market during the forecast period.

Market Customer Landscape

The market industry report includes the adoption lifecycle of the India POS terminal 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 growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

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.

BITEL Co. Ltd. - The company offers POS terminals such as pda pos, wireless pos, countertop pos, pin pad, mobile payment, and pos.

Castles Technology Co. Ltd. - The company offers POS terminals such as android POS, mobile POS, EFT POS, and pin pad.

CitiXsys Holdings Inc. - The company offers POS terminals such as iVend POS, iVend moblie POS, and ivend passes.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Diebold Nixdorf Inc.
• ePaisa Services Pvt. Ltd.
• Fiserv Inc.
• Ingenico Group SA
• Mswipe Technologies Pvt. Ltd.
• NASPERS Ltd.
• NCR Corp.
• Newland Digital Technology Co. Ltd.
• NGX Technologies Pvt Ltd
• Oracle Corp.
• PAX Global Technology Ltd.
• PayPal Holdings Inc.
• Razorpay Software Pvt. Ltd.
• Revel Systems Inc.
• VeriFone Inc.
• Worldline SA

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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Component Outlook
  • Hardware
  • Software
  • Services

• End-user Outlook
  • Entertainment
  • Hospitality
  • Healthcare
  • Retail
  • Others

Market Analyst Overview

Leveraging database products for business growth, POS terminals have become an essential component of modern retail businesses, enabling seamless transactions and real-time analytics. Marketing these solutions requires a deep understanding of the market trends and customer needs. People in think tanks focus on analyzing places like retail stores and malls to identify prime locations for POS terminal installation. They consider things like database products that facilitate efficient data management and real-time analytics. These tools help logistics professionals optimize delivery routes and route optimization, ensuring timely shipment tracking and fraud detection. Medical information and disease surveillance are crucial applications for POS terminals in the healthcare sector. Advanced data modeling and analytics tools enable organizations to gain insights into patient trends and improve overall care. POS terminal services cater to various locations, from small retail outlets to large warehouses. Component providers offer solutions for warehouse management and big data processing, ensuring smooth operations and minimizing bottlenecks. In summary, marketing POS terminals involves targeting various organizations, focusing on the benefits of database products, real-time analytics, data management, and advanced analytics tools for people, places, things, events, and locations.

Moreover, in the evolving landscape of digital payment technologies, card payments and mobile payments are becoming increasingly prevalent. Wireless communication technologies, such as Near Field Communication and e-wallet facilities, facilitate cashless transactions, while also addressing consumer aversion to cash. Businesses are integrating digital payments through both cloud-based POS terminals and on-premises deployment, choosing solutions that offer the best return on investment. Security concerns like data breaches and fraudulent transactions necessitate data safety measures. As a result, EMV cards and secure nature of transactions are critical. Regulatory compliance and consumer data protection are essential for maintaining trust in payment modes. Software integration and cloud deployment enhance inventory management and inventory tracking, allowing for real-time sales reports and automated calculations. AI integration and generative AI are also shaping the future of personalized shopping experiences and dynamic pricing optimization. Online retail and e-commerce platforms are increasingly utilizing integrated POS terminals and cloud-based PoS systems for streamlined operations. Data security concerns remain at the forefront, alongside efforts to mitigate hardware downtime and ensure seamless customer relationship management.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028.
• Precise estimation of the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across India
• A thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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