Global point-of-sale device (POS) shipments are expected to reach 270 million units by 2025 with a compound annual growth rate (CAGR) of 19%, according to Counterpoint Technology Market Research’s latest Global POS Market Tracker and Forecast.

COVID-19 did have a negative impact on the global POS market as most of the retail shops were closed due to lockdowns in 2020. The hospitality sector witnessed a steep decline in shipments due to curbs on outdoor travel across the world during the pandemic. However, healthcare, warehouse and related O2O commerce saw rising POS shipments to ensure better patient and inventory management. Further, rising consumer awareness on cashless transactions, favorable government policies, and technological advancements are invigorating the POS terminals market with newer form factors and capabilities.

Commenting on the market dynamics and competitive environment, Vice President, Research, Neil Shah noted, “Chinese players are dominating the global POS market with 8 of the top 10 vendors hailing from China. However, all major regions are focussing on creating local POS supply chains. At the same time, we expect Chinese brands to increase their international presence to avoid losing market share due to the home market becoming mature. We believe the market is quite fragmented today but will see more consolidation over the next couple of years. Pax, New POS and Ingenico continue to lead the market in terms of shipment volumes.”

* New POS, the second-largest player, is focused more on 4G and non-cellular POS terminals. Smart, portable and multilane POSs are the top product categories offered by this brand.

* Ingenico continues to be one of the leading brands across multiple Western markets. Its acquisition by Worldline group will bump up its market share and position.

* Other important players such as MoreFun and Tianyu have a strong presence in China. Verifone and Ingenico capture nearly two-thirds of POS shipments in India. Verifone is also leading in the North American POS market.

Commenting on the future landscape, Research Analyst Soumen Mandal noted, “China dominates the global POS market and its market is fast becoming mature. Going forward, India will become the fastest-growing market (+38% CAGR) driven by the digital transformation of retail and rising consumer preference for online transactions. The rapid urbanization, globalization of employment and rising travel will foster the development of the POS market in hospitality segments. However, retail will be able to hold its top position in this market based on strong performance across India and Latin America. The rising use of POS terminals in the transportation, government, education, banking and ride-hailing sectors is expected to open new application areas.”

* 4G will evolve as a dominant technology driven by the smart POS terminals growth.

* Data security concerns, high maintenance costs and checkout-free offline retail model will be major challenges for the POS market.

* However, artificial intelligence (AI) and machine learning (ML) integration in POS terminals for fraud detection and prevention, integrated customer loyalty programs and dematerialization of cards is driving this market.

* mPOS devices with large displays and near-field communication (NFC) features are the latest trends in this market.

* With more regulatory encouragement and the young generation’s aversion to carrying cash, the global POS market will see more growth in the coming years.

By: DocMemory
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