The global point-of-sale terminal market size was valued at USD 103.87 billion in 2023 and is anticipated to reach around USD 231.62 billion by 2033, growing at a CAGR of 8.35% from 2024 to 2033. The Point-of-Sale (POS) terminal market has experienced significant growth driven by the rapid adoption of digital payment solutions, evolving consumer preferences, and technological advancements. POS terminals are hardware systems used in retail, restaurants, healthcare, and other sectors to process transactions electronically. These systems include hardware components like monitors, barcode scanners, and card readers, as well as software solutions for managing payments, inventory, and customer data.
The growth of the point-of-sale terminal market is driven by an increasing demand for contactless payment solutions, as consumers prefer fast and secure transaction methods, particularly in a post-pandemic world. Additionally, the rise of e-commerce and omnichannel retail strategies has necessitated the integration of advanced POS systems that can handle both in-store and online transactions seamlessly. Furthermore, advancements in technology, such as cloud-based POS systems and the adoption of AI for data analytics, have enhanced operational efficiency, driving the demand for these systems across various industries.
In 2023, the Asia Pacific region emerged as the largest market for POS terminals, accounting for over 34% of total revenue. The region is also expected to register the fastest CAGR of 9.6% from 2023 to 2033, driven by government initiatives promoting a cashless economy, which is increasing demand for POS terminals.
The North American POS terminal market is expected to grow at a CAGR of 6.25% from 2024 to 2033. The demand for innovative payment technologies, such as contactless payments and Near Field Communication (NFC), is driving product adoption in the region. Furthermore, the presence of major retail chains like Walmart, Costco, Target, Kroger, and Home Depot necessitates robust POS solutions for daily billing, payment, employee management, and inventory control.
The European POS terminal market is experiencing significant growth, with a CAGR of 7.82% projected from 2023 to 2033. Increasing consumer demand for cashless and contactless transactions is a key driver of this market. The expansion of the payment terminal market in the region is attributed to enhanced digitalization, widespread adoption of e-payment platforms, and regulatory measures aimed at ensuring secure payment processing due to rising instances of financial fraud.
The POS terminal market in the Middle East and Africa is expected to witness considerable growth, with a projected CAGR of 8.52% from 2023 to 2033. Wholesalers and customers are increasingly opting for contactless payment methods to mitigate the risk of data theft as concerns over cash transaction security continue to grow.
In 2023, the fixed product segment dominated the industry, accounting for over 62% of the global revenue. This segment is further categorized into kiosks and other types. Large vendors tend to favor fixed POS terminals due to the high costs associated with procurement and installation, which have bolstered this segment's growth. Additionally, end-users aware of cloud data storage are opting for fixed POS terminals to store data on local servers. These systems are utilized for various applications, including bill printing, Customer Relationship Management (CRM), inventory management, and payment processing.
Conversely, the mobile POS segment is projected to experience the fastest compound annual growth rate (CAGR) from 2023 to 2033. This surge is driven by the increasing acceptance of in-store mobile payments among consumers worldwide. Mobile POS terminals enable transactions from any location within the store, which is particularly beneficial for sectors like restaurants. The implementation of mPOS solutions allows businesses to expedite payments during peak hours, reducing the risk of lost sales and enhancing customer satisfaction. For instance, Quick-Service Restaurants (QSRs) in China are employing digital kiosks and tablets for menu display and order placement, thereby improving operational efficiency and the overall customer experience.
The hardware segment was the leading contributor to the global market in 2023, accounting for more than 64% of the total revenue. This segment is expected to continue its growth at a steady CAGR from 2023 to 2033. Key hardware components include transaction recording devices like EFT-POS machines, network devices, barcode scanners, cash drawers, receipt printers, tablets, and monitors. Most hardware components are integrated into fixed POS terminals, facilitating daily operations.
In contrast, the software segment is anticipated to register the highest CAGR from 2023 to 2033, driven by the demand for data support functionality, multifunctional capabilities, and simplified sales analysis. Various specialized software applications cater to different needs; for instance, retail POS software encompasses features such as accounting, transaction alerts, and inventory management. The systematic integration of software with screen terminals and barcode scanners enhances backup capabilities and data restoration, further propelling segment growth.
Regarding deployment, the global market is segmented into cloud and on-premises solutions. The cloud segment is expected to achieve the fastest growth rate of 10.92% from 2023 to 2033, fueled by the increasing adoption of Software as a Service (SaaS) technology and software integration. In the SaaS model, customers pay a minimal monthly subscription fee rather than a hefty upfront cost for software, hardware, and support services, allowing restaurants and other businesses to lower their initial expenditures.
On-premises deployment involves manual installation at the client’s location, which includes cabling, hardware and software installation, and electrical work. Many companies are transitioning to cloud-based POS solutions due to their numerous advantages over on-premises systems. For example, in January 2023, Xenial, Inc. launched an updated version of its cloud POS, named 3.6 Xenial Ordering, which enhances workflow processes, user experience, and infrastructure updates for its UI and API.
The retail segment captured the largest revenue share, exceeding 31% of the total market. Retailers are increasingly adopting straightforward transaction methods to minimize long wait times and transaction delays. Consequently, there is a trend towards integrating POS systems with inventory, merchandising, marketing, and CRM data to provide a more personalized, interactive, and unique customer experience. This segment further divides into supermarkets/hypermarkets, convenience stores, grocery stores, specialty stores, and gas stations.
Among these, the supermarkets/hypermarkets segment is projected to grow at the highest CAGR during the forecast period, driven by the growing adoption of mobile wallet technology, which is expected to enhance retail product penetration. Additionally, the healthcare segment is anticipated to exhibit a significant CAGR, fueled by the broad application of POS systems in managing patient information, streamlining payment processes, and tracking employee statistics. The increasing need to organize payment methods, manage vaccination drives, and keep COVID-19 patient records is also likely to stimulate market growth.
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