POS terminals: Key market research findings
- Increasing number of online transactions drives market growth
- Retail segment accounts for a majority of the market’s revenue
- Key vendors – Ingenico, PAX Technology, SZZT, and Verifone
Technavio’s market research analysts predict the global POS terminals market to grow at a CAGR of more than 9% between 2016 and 2020. The demand for point of sale (POS) terminals is augmented by the growing number of online transactions. E-payment systems such as net banking and mobile wallets are easy to use and allow faster transactions and are becoming increasingly popular among consumers. Currently, the APAC region dominates the global POS terminals market by accounting for more than 48% of the overall market share. The increased preference toward non-cash payment methods in the region is expected to propel growth in the POS terminals market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the POS terminals segments based on the end user.
“Recently, there has been an increase in the adoption of contactless payments. In these systems, the transaction takes place with the help of near-field communication (NFC) technology, which is present in transmitters and readers. Contactless payment systems are the fastest mode of making payments and do not require a PIN to authenticate the transaction. Samsung Pay, Android Pay, Apple Pay, Vodafone SmartPass, and Visa payWave are some of the mobile applications that can be used to make contactless payments,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
By 2020, the retail segment is expected to be the dominant shareholder in the market by accounting for more than 63% of the overall market space. The retail sector includes hypermarkets, supermarkets, drug stores, gas stations, specialty stores, and mass merchandise stores. There is an increased adoption of POS terminals in the retail sector owing to factors such as foreign investments, increasing competition, and growing global economies. Vendors are also adopting latest POS terminals such as contactless terminals to meet the growing demand for faster and easier checkout systems.
The key vendors in the global POS terminals market include Ingenico, PAX Technology, SZZT, and Verifone. The market is witnessing a shift in vendor competition from mature markets in Europe to potential markets such as the US, India, China, and Brazil. End-users in developing economies demand low-cost payment solutions with less emphasis on features, product brand, and enhancements. As a result, there is low product differentiation in the market. These regions exhibit great potential for long-time growth, owing to which there is intense competition among POS system vendors. The market is also witnessing a number of M&A transactions, where large players are acquiring small and medium-sized enterprises to augment their hold over the market.
A more detailed analysis is available in the Technavio report, Global POS Terminals Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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