Point of Sale (POS) Terminal Market

Point of Sale (POS) Terminal Market Outlook (2024 to 2034)

Expanding at a CAGR of 7.2%, the global point of sale (POS) terminal market is projected to reach US$ 195.8 billion by the end of 2034, increasing from US$ 97.7 billion in 2024.

A point of sale (POS) terminal benefits businesses across different sectors. It helps reduce human errors during transactions by automating calculations, which decreases the likelihood of errors in pricing and increases transaction accuracy.

POS terminals have an integrated inventory tracking feature that offers real-time updates on stock levels. This functionality enables businesses to manage their inventory effectively, prevent situations of stockouts or overstocking, and streamline the reorder processes. It generates comprehensive sales reports and analytics. This allows businesses to scrutinize sales data and make data-driven decisions to fine-tune pricing, promotions, and product offerings.

Rising demand for point-of-sale terminals can be attributed to the growing interest in affordable wireless communication technology. Point-of-sale terminals employ wireless devices to facilitate payments for goods and services, streamlining various activities ranging from restaurants to cab services.

Report Attributes	Details
Point of Sale Terminal Market Size (2024E)	US$ 97.7 Billion
Projected Market Value (2034F)	US$ 195.8 Billion
Global Market Growth Rate (2024 to 2034)	7.2% CAGR
China Market Value (2034F)	US$ 21.5 Billion
Canada Market Growth Rate (2024 to 2034)	7.7% CAGR
North America Market Share (2024E)	23.9%
East Asia Market Value (2034F)	US$ 45.2 Billion
Key Companies Profiled	Oracle Corporation Toshiba Corporation Pax Technology Corp. Ingenico Group Cisco Systems Inc. Panasonic Corporation Diebold Nixdorf Incorporated Hewlett-Packard Inc.

What are the Key Point of Sale Terminal Market Trends?

“Increasing Adoption of Digital Payment Tools and 5G Implementation”

Demand for point-of-sale terminals is being driven by the digital transformation of various end-use industries such as retail, healthcare, and hospitality. The advent of 5G for high-speed internet connectivity is projected to drive the product demand.

Adoption of mobile point-of-sale terminals is forecast to rise at a significant pace during the forecast period. The introduction of innovative point of sale terminals that integrate inventory, merchandising, marketing, and customer relationship management provides manufacturers with a competitive advantage. The widespread adoption of digital payments is a key driver for the expansion of the POS terminal market.

Which Major Restraints Do Point of Sale Terminal Producers Encounter?

“High Costs Associated with Implementation and Maintenance of POS Terminals”

High costs associated with the implementation and maintenance of point of sale terminals are projected to be a significant barrier to market growth. The initial investment for these systems can be substantial, particularly for small- and medium-sized businesses. Ongoing costs for software updates, hardware maintenance, and technical support can add to the financial burden.

Another restraint is the rapid pace of technological change. With technology evolving at a fast pace, POS terminals can quickly become outdated, requiring frequent upgrades or replacements. This not only increases costs but also creates operational challenges for businesses. Regulatory compliance is a critical issue. POS terminal producers must ensure their products comply with various regulations and standards such as the payment card industry data security standard (PCI DSS). Non-compliance can result in hefty fines and damage to the company’s reputation.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, asserts through its newly published analysis that North America is projected to hold 24.3% share of the global market by 2034. Producers of point-of-sale terminals have broadened their reach to diverse global areas such as Southeast Asia, Central and South America, and Australia. This expansion enables them to efficiently cater to the growing global demand and diminish dependence on a single source of supply.

What’s making the Atmosphere Conducive for Market Growth in the United States?

“Shift toward Omnichannel Retail Capabilities and Preference for Wireless Transactions”

Attribute	United States
Market Value (2024E)	US$ 10.4 Billion
Growth Rate (2024 to 2034)	7.6% CAGR
Projected Value (2034F)	US$ 21.7 Billion

Growth of the point of sale terminal market in the United States is linked to the rapid expansion of retail chains and hypermarkets creating a demand for efficient transaction systems. The increasing consumer preference for wireless transactions due to their convenience is also contributing to point of sale terminal market growth. The proliferation of e-commerce platforms and the extensive use of mobile devices have led to the development of mobile and tablet-based POS terminal solutions. The shift towards omnichannel retail capabilities and the need for data analytics around consumer behavior are also significant growth drivers.

Demand for advanced payment technologies and the increasing use of credit and debit cards in point-of-sale payments are also stimulating market growth. Government support for electronic payments and innovation in the market through strategic partnerships and mergers and acquisitions are also key factors driving demand for point of sale terminals in the United States.

What is Contributing to Expansion of Point of Sale Terminal Market Size in China?

“Growing Demand for POS Terminals in Healthcare Sector to Protect Patient Information”

Attribute	China
Market Value (2024E)	US$ 10.7 Billion
Growth Rate (2024 to 2034)	7.2% CAGR
Projected Value (2034F)	US$ 21.5 Billion

Growth of the market in China is driven by its ability to offer an increased return on investment (ROI) and ease of access. Evolving consumer preferences, technological advancements, and government payment regulations have been changing dramatically. Integration of artificial intelligence (AI), machine learning (ML) and cloud technologies in point of sale terminals for fraud detection and prevention, integrated customer loyalty programs, and dematerialization of cards are driving market expansion in the country.

Data security concerns, high maintenance costs, and checkout-free offline retail models pose significant challenges. The healthcare sector is a prominent end user of point-of-sale terminals, and the need for safeguarding patient information is boosting the point of sale terminals market in the healthcare sector in the country. The digitalization of China’s healthcare sector is boosting the need for advanced POS terminals.

Category-wise Insights

The restaurant segment is set to account for 28% of the market share in 2024, which is forecast to increase to 30% by 2034.

Which Product Type Accounts for a Leading Point of Sale Terminal Market Share?

“Preference for Fixed POS Terminals Due to Security in Handling High-Volume Transactions”

Attribute	Fixed POS Terminal
Segment Value (2024E)	US$ 63.5 Billion
Growth Rate (2024 to 2034)	6.3% CAGR
Projected Value (2034F)	US$ 117.5 Billion

Fixed POS terminal hold a leading share of the global POS terminal market. This dominance can be attributed to its robustness, reliability, and comprehensive functionality that cater to a wide range of industries such as retail, hospitality, and healthcare. Fixed point of sale terminals are preferred for their ability to handle high-volume transactions efficiently and securely. They are equipped with advanced features such as inventory management, sales tracking, and CRM, making them indispensable for businesses.

Increasing adoption of digital payments and the growing number of vendors offering e-wallet facilities are further boosting the demand for fixed point of sale terminals. The market also faces challenges such as data security concerns and hardware downtime. Despite these challenges, technological advancements and the integration of cloud-based systems are projected to boost demand for fixed point-of-sale terminals.

How are Restaurants Benefitting from Use of POS Terminals?

“Adoption of Integrated POS Terminals Facilitating Online Ordering and Table Reservations”

Attribute	Restaurant
Segment Value (2024E)	US$ 27.4 Billion
Growth Rate (2024 to 2034)	7.9% CAGR
Projected Value (2034F)	US$ 58.7 Billion

Restaurants integrate advanced technologies into their point-of-sale terminals. This involves the use of cloud-based systems and artificial intelligence and machine learning for streamlined sales operations and enhanced customer engagement.

The adoption of integrated point-of-sale terminals is another key driver. These systems facilitate online ordering and payment as well as offer loyalty programs, accounting, and table reservations. This integration not only helps enhance the customer experience but also allows restaurant owners to manage operations smoothly during peak hours.

The rising popularity of cashless transactions has benefitted restaurants. By offering multiple payment modes and e-wallet facilities, they have been able to cater to the evolving preferences of consumers. All these factors are promoting the widespread use of point-of-sale terminals in restaurants.

Competitive Landscape

Market growth is being driven by several factors, including evolving consumer preferences, technological advancements, and global economic conditions. Key players in the point of sale terminal industry are Oracle Corporation, Toshiba Corporation, Pax Technology Corp., Ingenico Group, Cisco Systems Inc., Panasonic Corporation, Diebold Nixdorf Incorporated, and Hewlett-Packard Inc.

• In 2023, the point of sales terminal provider, POSaBIT Systems Corporation introduced a new product POSaBIT POS 2.0. This solution is user-friendly, agile, and scalable and is designed to adapt to fluctuating market conditions.
• In 2023, payabl., a company specializing in FinTech, launched a novel POS terminal solution. This innovative system allows businesses to process payments for both online and offline sales using a single terminal, thereby enhancing their omnichannel payment services for in-person transactions at retail outlets.

Key Segments of POS Terminal Market Research

• By Product :

  • Fixed POS Terminals
  • Mobile POS Terminals

• By Component :

  • POS Terminal Hardware
  • Software
  • Services
  • Mining
  • Metal Fabrication

• By Deployment :

  • On-Premise
  • Cloud-Based

• By Application :

  • Restaurants
  • Hospitality
  • Healthcare
  • Retail
  • Warehouses
  • Entertainment

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa