Retail Self-Checkout Terminals Market Size, Share & Trends Analysis Report By Self-Scanning Technique (Laser-Based, Image-Based, RFID), By Checkout System (Modular, Carousel Units, Kiosk/Mobile Self-Checkout), By Payment Method (Debit/Credit Cards, E-Wallets, Cash Slot Machine), By Application (Supermarket, Retail Store) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global retail self-checkout terminals market was valued at USD 4.45 billion in 2023. It is expected to reach USD 14.70 billion in 2032, growing at a CAGR of 14.2% over the forecast period (2024-2032). Self-checkout terminals enhance the overall customer experience by reducing wait times and streamlining the checkout process. Shoppers can quickly complete their purchases without standing in long queues, leading to increased customer satisfaction and loyalty.

The growth in the influx of supermarket consumers and the consequent increase in their waiting time during the check-out period was a major factor behind the implementation of self-check-out systems. Apart from this, surging labor costs, lack of skilled labor, and shifting preference towards customized shopping experience drive the market growth.

Self-checkout systems are an automated process system that enables shoppers to scan, pack, and pay for their purchases without human intervention. They are an alternative to the traditional cashier-staffed checkout systems. The availability of different items decelerates the floor space and increases congestion, further driving the demand for self-checkout systems.

Self-service has become a phenomenon everywhere, from entertainment venues to government entities, restaurants, hotels, gas stations, hospitals, airports, retail stores, and banks. Self-service has helped to build a new age of growth, comfort, and reliability and has become an omnipresent part of the culture, benefiting both customers and self-service providers. E-commerce growth, virtual shop consolidation, and the shorter product life cycle are pushing retailers to develop new strategies and implement new technology to surge sales and reduce costs.

Market Dynamics

The growth in the influx of supermarket consumers and the consequent increase in their waiting time during the check-out period was a major factor behind the implementation of self-check-out systems. Apart from this, surging labor costs, lack of skilled labor, and shifting preference towards customized shopping experience drive the market growth.

Self-checkout systems are automated process system that enables shoppers to scan, pack, and pay for their purchases without human intervention. They are an alternative to the traditional cashier-staffed checkout systems. The availability of different items decelerates the floor space and increases congestion, further driving the demand for self-checkout systems.

Self-service has become a phenomenon everywhere, from entertainment venues to government entities, restaurants, hotels, gas stations, hospitals, airports, retail stores, and banks. Self-service has helped to build a new age of growth, comfort, and reliability and has become an omnipresent part of the culture, benefiting both customers and self-service providers. E-commerce growth, virtual shop consolidation, and the shorter product life cycle are pushing retailers to develop new strategies and implement new technology to surge sales and reduce costs.

Retailers are implementing self-checkout systems to efficiently serve customers. Additionally, the development of Radio Frequency Identification Devices (RFID) and Near Field Communication (NFC) are further contributing to the market growth. These technologies with the integration of smartphones allow shoppers to use an authentication system to select, search, and pay for items directly from the mobile wallet, further reducing shopping time and increasing convenience.

Regional Analysis

Self-Checkout Terminals Market in North America

North America holds the largest share in the self-checkout terminals market on account of the rapid adoption of self-checkout systems in supermarkets and hypermarkets across the U.S. and Canada. For instance, Albertsons Companies Inc., a U.S.-based pharmacy and food retail chain, expanded its collaboration with Toshiba Global Commerce Solutions in June 2019 to enhance the experience of in-store customer checkout by deploying the self-checkout systems.

Shifting Consumer Preference Towards Cashless Payment Systems Drives Asia-Pacific's Market Growth

Asia-Pacific's self-checkout terminals market is projected to grow with the highest CAGR, owing to the shifting consumer preference towards cashless payment systems and the adoption of technologies, such as Artificial Intelligence (AI), in self-service checkout systems. The advanced systems with new AI-based features automatically scan all goods and direct customers for payments, unlike the other conventional self-checkout systems. In India, China, and Japan, consumers are inclined towards the use of E-wallets, further driving the market growth.

Segmental Analysis

RFID Self-Scanning Segment Holds the Largest Market Share during the Forecast Period

The RFID self-scanning segment holds the largest market share during the forecast period. The RFID counter optimizes the screening of items and shortens the time spent by customers at the counters. It helps in improving the self-checkout experience, as consumers no longer have to manually scan each product.

Surging Use of Mobile Self-Checkout Systems in FMCG Drives the Segment Growth

The mobile self-checkout dominates the market on account of the surging use of mobile self-checkout systems in FMCG (Fast Moving Consumer Goods) retail companies. In addition to this, the high smartphone penetration rate has changed customer behavior significantly from conventional to autonomous and self-based, further fueling the segment growth.

Rising Acceptance of Digital Payments among the Millennial Drive the E-Wallets Segment Growth

The card segment is projected to hold the highest market share on account of the burgeoning e-commerce industry, improved protection in digital payments, and increasing use of credit cards.  The cashless-based E-wallet, on the other hand, is projected to emerge as the fastest-growing segment. The growing popularity of electronic payments drives the segmental growth.

Rising acceptance of digital payments among the millennial accelerates the market growth. Companies such as Amazon, Apple, and Samsung have been motivated by the growing customer demand for mobile payments to launch their solutions and change the way marketers interact with customers, creating new avenues for business expansion.

Rising Popularity of Self-Checkout Systems in Retail Stores to Drive the Market Growth

The supermarket segment dominates the market on account of the increasing number of affluent consumers in the supermarket and the need for shorter waiting times to process checkouts. In addition, rising labor costs and the need for sufficient floor space usage have compelled supermarket players to deploy self-checkout systems.

On the other hand, the rising popularity of the self-checkout system in retail stores drives market growth. Retail stores use new and upgraded self-service technologies to provide customers with quicker services. In line with this, key market players are offering e-payments, mobile scanning, and pay & go solutions for a better customer experience. For instance, Paytm and Google have launched the scan and pay option, which makes it easy for customers to scan and pay for their shopping in stores.

Impact of covid-19

COVID-19 has become an incomparable global public health emergency that has choked every running sector and disrupted developed countries within no time.COVID-19 is a big test of conventional retail models, with retail already experiencing a significant transformation. The coronavirus pandemic has posed new challenges for companies all over the world, especially in the retail sector which has adversely affected the market due to widespread lockdowns. The retail self-checkout terminals market had faced a major setback in the first half of the year 2020 adhering to the strict lockdowns and temporary shutdown of supermarkets for consumers.

Further in the second half of the year with the re-opening of the supermarkets, most of the consumers have preferred and the supermarket managers have encouraged the use of self-retail checkout terminals in order to maintain social distancing and reduce the time spent in public places. Moreover, leading companies have developed solutions by integrating technology, such as machine learning for product identification, mobile scanning and electronic point of sale systems which is expected to boost global retail self-checkout terminals market in near future.

Recent Developments

• January 2024 - NCR Voyix, calling itself the "world's largest self-checkout vendor," introduced new self-checkout technology that is based on a software-as-a-service foundation that allows stores to offer barcode scanning, contactless payments, and other features. This is in response to the variety of checkout strategies that merchants must contend with. On the first day of the National Retail Federation's annual trade exhibition in New York City, the business made its announcement.
• August 2024 - Megasuper, a Costa Rican grocery chain, significantly improved the in-store shopping experience for its patrons by implementing Toshiba Global Commerce Solutions' Self Checkout System 7. The business serves 1.2 million clients with a network of 78 locations. It is one of the first stores in Costa Rica to use this cutting-edge technology for self-service. The new system will boost sales, improve operational efficiency, and offer strong security features.