Because of the manifold service offerings i.e., managing order flow & inventory, carrying out loyalty programs, printing bills, recording transactions, generating periodic reports etc., the demand for POS terminal is increasing day by day. With the increasing adoption of smartphones and tablets along with the rise in e-commerce transactions, worldwide retail POS terminals market size is likely to reach around $25 billion by 2023.
Geographically, North America is the primary contributor to the global point of sales market due to the widespread establishments of retail giants and restaurants, followed by Europe and Asia Pacific. North America’s retail POS terminal market will worth around $9.5 billion USD by 2023 whereas Asia Pacific is likely to attain more than $7 billion by 2023.
Besides, 50 percent of POS transactions will be contactless by 2022 recognizing the growing customer demand for more interactive shopping experience with more channels and choices to explore. Smaller merchants would increasingly embrace mPOS (mobile Point of Sale) because of greater efficiency, savings and engagement. According to a study conducted by Juniper Research, mobile POS devices, such as tablets and smartphones, will handle more than 20 percent of all retail transaction, amounting at least $2.3 trillion, around the world by 2021. An ABI Research forecasts that there will be 51 million mPOS devices by 2019, accounting for 46 percent of all POS systems.
The application of mobile point of sale (mPOS) technology can greatly help retailers and F&B outlets provide prompt and efficient service through reducing waiting times and offering personalized service through data driven consumer analytics. The quick service restaurant (QSR) is one of the largest segment of the food service industry. Within Southeast Asia, Thailand ranks top in the mPOS growth rate (64.6%) followed by Indonesia (46%), Malaysia (41.4%) and Singapore (36%) over 2016-22 period. (Statista data)
Drivers for Market growth
- Increased cloud based mPOS adoption among emerging countries
- Preference for speeding up the order processing and inventory management while minimizing setup cost
- Growing need for app-based all-inclusive enterprise management and reporting system
- Fulfilling customer demand for varying payment system integration with real time information exchange
Retail POS Market Size across Regions
Breakdown of Restaurant POS Market
The Asia Pacific market for restaurant POS is projected to experience a CAGR of 9.7% from 2017 to 2025. Since the growth of restaurant POS business is highly correlated with growth of restaurant industry, the following section puts some light on this issue.
Growth of Restaurant Business in Selected ASEAN Countries
Singapore has one of the most advanced consumer markets among ASEAN member countries. Singapore diners continue to be one of the top spenders in Asia Pacific, spend US$198 a month. Singaporeans are spending more on dining out because of their busier lifestyles, the increase in dining options, and word-of-mouth recommendations via social media.
Malaysia is a popular shopping hub in the Asia-Pacific region – foodservice establishments are seeing growing demand for diverse fare from a varied consumer base. There are around 180,000 food and beverage establishments in the country.
Malaysia’s foodservice sector was valued at just under U$10 billion in 2012. In between 2008 and 2012, the market has experienced a CAGR of 4.6% and is expected to continue expanding with a CAGR of 5.3% until 2017, reaching total sales of US$12.9 billion.
Market Value and Growth of Malaysian Foodservice by Subsector, US$ millions