The global self-checkout systems market is expected to reach $4,642.7 million by 2023. Advancements in technology, the growing consumer inclination toward convenient checkout methods, and labor shortage issues in consumer stores are the major factors contributing to the market growth, according to P&S Intelligence.
Insights on market segments
Based on vertical, the retail category held the largest share in the self-checkout systems market in 2017 and is expected to lead the market by 2023 as well. This is attributed to the fact that retail stores across the globe are the first to have these systems to reduce the waiting time for customers. Hence, the retail sector has the maximum requirement for these systems.
On the basis of retail store type, hypermarkets held the largest share in the self-checkout systems market in 2017. However, other retail stores such as supermarkets and departmental stores as well as convenience stores are expected to witness a greater adoption of self-checkout systems during the forecast period, in order to tackle labor shortage issues and to cut down on the waiting time for shoppers. These stores will witness higher growth rates as compared to hypermarkets, with estimated CAGRs of 14.4% and 14.8%, respectively, during the forecast period.
North America held the largest share in self-checkout systems market
Globally, North America was the largest market for self-checkout systems, accounting for a 42.5% revenue share in 2017, owing to the early adoption of such technologies in the region. The presence of key players in North America aids profusely in the maintained self-checkout systems market dominance of the region.
Growing focus on contactless payment promoting market adoption
Contactless payment is increasingly being done by using the near-field communication (NFC) technology and smartphone-enabled payment options. This concept enables shoppers to use their mobile devices to scan items they shop for in-store at a service point-of-sale (POS) terminal before checking out. With the usage of these systems, customers can make transactions without actually being in contact with the machine, which reduces the time spent on the overall purchase. This would also result in a low risk of self-checkout terminal damage, besides offering ease of convenience in checkout systems. The mobile-enabled self-checkout concept is increasingly being adopted in the U.K., Germany, and numerous other countries in Europe, which is leading to the growth of the self-checkout systems market.
Increased checkout speed and reduction in operational cost driving the market
One of the key drivers impacting the self-checkout systems market growth, globally, is the reduced checkout time and operational expenses of stores achieved by using such systems. Moreover, with the rising implementation of self-checkout systems, in turn, increases the in-store productivity of the outlet. The system also supports in maintaining the overall output and efficiency of the purchasing process, while fulfilling consumers’ expectations. These systems also provide assistance in reducing the labor cost, which constitutes a large portion of the total costs incurred while running a retail store. With the deployment of self-checkout systems, the work of cashiers and clerks can be automated, which save labor cost for the company and provide convenience to customers.
Self-checkout systems market competitiveness
Players in the self-checkout systems market are focusing on introducing technological advancements related to self-checkout software and hardware functionality to make the systems easier to operate and efficient and improve customers’ convenience. For instance, in February 2018, NCR Corporation introduced the NCR WinEPTS payment solution, designed specifically for retailers and restaurants in Europe. It is an entirely cloud-based omni-commerce payment solution. This solution is compatible with many hardware platforms and operating systems. Moreover, it can handle third-party voucher payments and food vouchers.
Some of the other key players operating in the global self-checkout systems market are Fujitsu Limited, Toshiba TEC Corporation, PCMS Group Ltd., Diebold Nixdorf Incorporated, and International Business Machines Corporation (IBM).
Self-Checkout Systems Market Segmentation
By Model Type
By Mounting Type
By Retail Store