Point-of-Sale Terminals Market Size, Share & Trends Analysis Report By Type (Fixed Point-of-Sale Terminals, Mobile/Portable Point-of-Sale Terminals), By Offering (Hardware , Software , Services ), By End-User (Retail, Restaurants, Healthcare, Hospitality, Entertainment, Others (Sports Stadiums, Amusement Parks, etc.)) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global point-of-sale terminals market size was worth USD 91.9 billion in 2022. The market is projected to grow at a CAGR of 9.5% from USD 102.12 billion in 2023 to USD 232.11 billion by 2031. (2022–2030). Growing R&D investments and the introduction of innovative payment solutions by manufacturers are expected to drive the demand for POS (Point of Sale) terminals. Payment companies are actively working on pioneering solutions tailored for various industrial applications, with a focus on enhancing profitability. This signifies an ongoing evolution in the payment industry, aimed at providing advanced and customized payment options to meet diverse business needs and drive economic growth.

A point-of-sale terminal (POS) is a modern electronic system that incorporates software and hardware to enable the acceptance of card purchases at stores without using cash registers. POS terminals are computer terminals used for card collection, billing, inventory control, and loyalty programs in a wide range of vertical end uses, including hotels, healthcare, catering, shopping, warehousing/distribution, and entertainment.

The expense of building POS terminals is calculated by the nature of the organization and the supply conditions. Customers will not be forced to pay a charge to access the POS terminal facility, and small stores or suppliers will not be required to pay a lease for the use of POS devices. Continuous technical advances have culminated in the development of technologies such as smartphone POS with bar code scanners and cloud-based POS, which increase user productivity while offering a high return on investment (ROI).

Both POS Software and hardware have improved over the past years, allowing for portability and stability in transactions. End-to-end security systems for encrypted payment applications and market adaptability are expected to accelerate investment due to the dependability and demand for point-of-sale systems. The introduction of multifunctional technology into the POS architecture will allow a number of applications to ensure safe payment, customer data processing, and employee information management.

Market Dynamics

Rising Demand of mPoS Amongst Population Projected to Drive Market

One of the key advantages of mPoS (mobile point-of-sale) solutions is that they enable merchants to facilitate sales in a number of environments. In a retail environment, dealers sell goods to customers in various areas of the store. Many businesses that often sell goods/services outside of the store, such as at a farmers' market, a food truck, or their customers' homes, can use the mPoS solution to securely accept various types of card payments.

The ease of use of mPoS enables merchants to provide a more customized experience to their clients. Since sales managers will target shoppers in aisles rather than in checkout queues, the likelihood of marketing and selling cross-sections is higher. For example, a sales associate in the aisles assisting a customer in trying other accessories that complement the customer's purchase. This significantly improves customer experience, aids in the creation of a more complete view of the market, and increases sales opportunities.

The Europay, Mastercard, and Visa (EMV) migration is also ongoing in the United States, and many retailers need dependable payment solutions that allow them to accept EMV cards. mPoS technologies allow merchants to affordably plan for EMVs. These programs are much simpler to implement, and retailers are no longer liable for charges arising from unauthorized card purchases after introducing EMV. These factors are contributing towards market growth.

Rise in Cyber-Attacks and Bank Frauds Are Primary Restraints for Market Growth

Bugs in mPoS, according to technology experts, may cause malicious traders to defraud consumers and aggressors to steal data from payment cards. Square, iZettle, SumUp, and PayPal, among others, uncovered vulnerabilities in their mPOS systems in the U.S. and Europe. Devices run by connecting to a mobile application using Bluetooth and sending data to a payment processor's server. Profiting from the valuation of magstripe trades is feasible through intercepting the trade.

A deceptive businessman can gain access to traffic, alter the amount shown to the customer on the card reader, and force the customer to approve an entirely different amount without providing any information. In the United States, just 58.5% of debit and credit card transfers use EMV technology, and only 41% of purchases are processed in this manner, which proves to be a significant threat to magstripe assaults.

Remote code execution attacks have also been used against individual mPOS software. The reader's entire operating system could be breached through this vulnerability. Other readers' behavior can be influenced if random instructions are distributed to them. Dishonest merchants, for example, may compel consumers to use a less secure payment method (such as magstripe) or claim that a payment has been deducted in order for them to make more purchases.

Surging Demand For Efficient, Accurate, and Economical Transactions

Point-of-sale solutions improve the purchasing process due to their simplicity and dependability. Members of the sales staff could be reimbursed at any time and from any place. Owing to mobile networking, the purchasing phase is now a real-time affair that can be carried out from everywhere. Unlike the manual credit card imprinter, mPOS is instantaneous. Since the orders are automated, reports can be sent to accounting systems almost immediately, and statistics and traveler interests can be saved for potential personalization.

EMV alternatives are needed for travel companies that accept credit or debit cards. Many standard POS implementations are incompatible, such as the need for PIN pads and bi-directional links. Travel companies are also using mobile POS systems to quickly and affordably accept EMV transactions while still including NFC capabilities

Regional Analysis

Asia Pacific Set to Dominate Point-of-Sale Terminals Market

During the forecast period, Asia Pacific is expected to emerge as a highly competitive market with substantial growth. Wage increases and higher living standards have resulted in retail industry booms in emerging countries, such as India and China, thereby driving up retail POS demand. Government policies in this area are set to foster a cashless economy push POS terminal demand. Low penetration and the demand for mobile POS terminals are expected to provide lucrative growth opportunities in emerging Asia Pacific economies such as the Philippines, India, Vietnam, Thailand, and Singapore over the forecasted timeframe.

Regulations Drive PoS Demand in North America

In 2022, North America was the world's second-largest income contributor. The proliferation of payment systems, such as NFCs and contactless payments, has helped the expansion of North American economies. Improved protection has boosted demand for POS terminals as a result of regulatory criteria such as the Europay, MasterCard, and Visa (EMV) legislation. Slow development has hampered the overall growth of the POS economy in retail and other service sectors.

China Showcases the Most Accelerated Market Growth Projectile

In 2022, Chinese banks released over 7 billion cards, a 14% increase from the previous year. Emerging payments such as online payment, mobile payment, and fixed-line telephone payment have stifled e-payment in conventional consumption sectors while having no impact on POS terminal e-payment.

According to POS terminal coverage, China has far smaller per capita ownership than other countries. With a large domestic user demand, modern technologies, such as smart POS terminals and MPOS terminals, are entering the industry. Terminal payment is unlikely to reverse in the short term after being affected by QR code payment, and the POS terminal finance industry tends to grow at a fast pace.

The POS terminal industry has considerable entry hurdles and a relatively high concentration of companies due to its rigorous qualification structure. PAX Global, LANDI Commercial Equipment, New POS Technology, Xinguodu, VeriFone, Justtide, and Newland are the top POS terminal brands in China.

India is a vast and diverse market. The Indian government initiatives such as Digital India, Make in India, and efforts to promote cashless transactions on POS terminal adoption in different regions. The number of PoS terminals in India inched up, and according to data from India's central bank, there has been a remarkable 36% increase since April 2021, bringing the total to 6.13 million by April 2022.

Segmental Analysis

Owing to the Rising Adoption of Smartphones and Smart Devices, the Hardware Segment is Projected to Dominate

The hardware segment captured the largest market share in 2023, driven by its ability to enable quick and accurate transaction processing. This efficiency reduces customer wait times and enhances overall operational performance. Consequently, the adoption of POS hardware has accelerated in restaurants, retail stores, banks, and gas stations globally. To ensure user identity security, POS terminals now offer advanced features such as fingerprint, palm printing, and facial recognition from various vendors. For instance, Ingenico Group's Move/2500 POS terminal incorporates security measures, including chips, PINs, and fingerprint scanning. The introduction of secure and advanced biometric POS systems has significantly contributed to the growth of the POS terminal market. Additionally, these systems provide real-time reports and analytics on sales trends, customer preferences, and other critical performance indicators. 

By Type

The fixed POS segment captured the largest market share. Fixed POS solutions are engineered for stability and reliability, with dedicated hardware and infrastructure that ensure consistent performance and minimize technical issues. These terminals feature larger display screens and can integrate additional peripherals, such as customer displays and card readers, enhancing overall functionality in the retail sector. These advantages are driving the growth of the fixed POS segment.

Conversely, the mobile POS segment is projected to experience the highest compound annual growth rate (CAGR) during the forecast period. The primary benefit of mobile POS systems is their portability, allowing businesses to process transactions anywhere, whether on the sales floor, at events, or in restaurants. This flexibility is particularly advantageous for businesses with dynamic or multiple locations. Additionally, implementing mobile POS systems is often more cost-effective compared to traditional fixed POS systems, further fueling their adoption.

By End-user

The retail segment dominated the market in the recent future, primarily due to the widespread adoption of POS systems in retail stores. These systems are time and cost-efficient, offering real-time sales performance data. Additionally, POS systems simplify the management of promotions and discounts, allowing retailers to apply discounts, track promotional effectiveness, and execute targeted marketing campaigns directly through the POS interface.

Impact of covid-19

The COVID-19 pandemic has had a significant influence on major sectors of the global economy, with lockdowns having the largest impact on engineering, vehicles, retail, aviation, and hospitality. As a consequence, the ever-expanding POS concept, which is strongly linked to the above industries, has been influenced. Shuttles and transport constraints, as well as reduced customer discretionary income, both have a negative influence on digital purchases (dining out, film and entertainment, and so on).

Despite the lockdowns, a variety of areas throughout the PoS terminal are being expanded due to increased acceptance. There are also online grocery outlets, online shops, OTT platforms, EdTech, online gamers, recharges, and other utility and bill fees.

Recent Developments

• In March 16, 2021, Boyne Resorts implemented Agilysys point-of-sale and cloud for contactless food & beverage orders.
• In March 05, 2021, The Indian National Payments Corporation of India (NPCI) announced the introduction of 'RuPay SoftPoS' for millions of Indian merchants in partnership with SBI Payments. This revolutionary approach converts NFC-enabled smartphones into POS terminals for retailers
• In March 2022, Bank AlJazira joined forces with JCB International Co., Ltd. to introduce JCB card acceptance capabilities through its network of POS and ATM devices deployed throughout the Kingdom of Saudi Arabia (KSA).