Self-Checkout Systems Market by Offering (Hardware, Software, Services), by Model Type (Cash Based, Cashless), by Mounting Type (Standalone, Wall Mounted & Countertop), by Vertical (Entertainment, Healthcare, Hospitality, Retail, Travel), by Retail Store (Hypermarkets, Supermarkets & Departmental Stores, Convenience Stores), by Geography (U.S., Canada, U.K., Germany, France, Russia, Japan, China, Australia, Brazil, Mexico, Saudi Arabia, South Africa) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Self-Checkout Systems Market Overview

The global self-checkout systems market was valued at $2,522.1 million in 2017 and is forecasted to witness a CAGR of 10.7% during 2018–2023. Advancements in technology and the growing trend of modern store formats are the two key factors driving the growth of the market.

 

APAC SELF-CHECKOUT SYSTEMS MARKET, BY MOUNTING TYPE, $M (2013–2023)

On the basis of offering, the self-checkout systems market has been categorized into hardware, software, and services. Among these, hardware held the largest share, of over 38%, in the market in 2017. This can be attributed to the presence of a large number of manufacturers and suppliers in the market offering hardware components. Besides, with advancements in technology, hardware needs of a system keep changing, unlike software and services, which do not frequently require upgradation in the system.

Based on mounting type, the self-checkout systems market has been categorized into standalone, and wall-mounted and countertop systems. Between the two, standalone systems generated larger revenue, amounting to $1,519.0 million, in the market in 2017. During the forecast period, the market for wall-mounted and countertop systems is expected to witness higher growth, at a CAGR of 12.7%. This is due to the fact that wall-mounted or countertop systems are increasingly being adopted by small stores, as they take up comparatively less space.

On the basis of vertical, the self-checkout systems market has been classified into entertainment, healthcare, hospitality, retail, and travel. Among these, the retail industry accounted for the largest share in the market in 2017. Customers in retail stores often have to wait in long queues for billing even if they have shopped less, as compared to others in the queue. It is not only time-consuming but also adds to customers’ woes. Hence, the demand for self-checkout systems in retail stores is quite high and is expected to remain so in the coming years as well.

Based on retail store, the market has been categorized into hypermarkets, supermarkets and departmental stores, convenience stores, and others, where “others” include grocery stores, pharmacies, and other small-sized stores. Among these, hypermarkets contributed the largest revenue in the self-checkout systems market in 2017. However, during the forecast period, the demand for these systems is expected to grow in the supermarkets and departmental stores, and in smaller stores, such as convenience stores. This can be attributed to the growing need for introducing quicker checkout options for shoppers.

Globally, North America held the largest share in the self-checkout systems market in 2017, on account of the presence of a large number of hypermarkets and large-sized stores in the region and the early introduction and adoption of advanced technologies.

Self-Checkout Systems Market Dynamics

Trends

Contactless payment method is increasingly being adopted in the self-checkout systems market. It is supported by the near-field communication technology and allows smartphone-enabled payment options. The method enables shoppers to use their mobile device to scan items they shop in the store at a service point-of-sale (POS) terminal before checking out. It allows customers to make transactions without actually being in contact with the machine, which, in turns, lessens the time consumed in the overall purchase. Besides enabling easier and faster checkout, it reduces the risk of POS terminal damage. Mobile-enabled self-checkout method is increasingly being adopted in the U.K., Germany, and other countries of Europe.

Drivers

Self-checkout systems are easy to use and require less time, as the queues are usually short as compared to the ones at traditional checkouts. Majority of the people, especially the younger generation, are adopting new technologies, as these systems are more convenient and involve no or less interaction with humans, unlike traditional purchase systems.

Self-checkout systems not only provide more personalized services to customers but also help reduce the operational cost of stores. In addition, the utilization of such systems increases the overall throughput of the stores. Also, labor costs account for a large portion of operational expenses associated with the functioning of a retail store. The deployment of these systems aids in eliminating the heavy expenditure on labor. By automating the work of cashiers and clerks with the use of these systems, stores can save a considerable labor cost. Hence, these factors are driving the growth of the self-checkout systems market.

Self-Checkout Systems Market Competitive Landscape

Companies such as NCR Corporation, Fujitsu Limited, Toshiba TEC Corporation, PCMS Group Ltd., Diebold Nixdorf Incorporated, and International Business Machines Corporation (IBM) are the key players in the self-checkout systems market. Some of the other prominent companies in the market are Olea Kiosks, Pan-Ostan, and ITAB Scanflow.

NCR Corporation continues to maintain its position as the largest revenue generator in the self-checkout systems market. The company generates more than thrice the revenue generated by Fujitsu Limited, which is its closest competitor.

To stay ahead of the competition, players operating in the self-checkout systems market are implementing growth strategies like mergers and acquisitions, partnerships, and product launches. For instance, in February 2017, NCR Corporation launched NCR ENCOR, a store management solution designed to deliver a comprehensive POS front office and back office functionality. It helps enhance customers’ shopping experience by providing information on product availability and product price and enabling convenient checkout.