Market Trends of North America POS Terminal Industry
This section covers the major market trends shaping the North America POS Terminal Market according to our research experts:
Retail Segment is Expected to Grow Significantly
- The retail industry is one of the major users of POS terminals. The segment is expected to hold a significant share globally. The retail segment is slowly picking up with the reopening of brick-and-mortar stores in different parts of the world. Tech and non-tech savvy customers are equally demanding in desiring a seamless experience at their preferred retailers.
- The increasing need for multiple POS systems among big retailers, supermarkets, and departmental stores with a robust and centralized system has propelled the retail sector's steady growth in the POS terminal market. The increased emphasis on consumer behavior has led to increased POS adoption due to its consumer mapping application.
- The rising number of retail stores across regions attracts customers due to significant discounts and other services. Further, the US Department of Commerce has projected the retail revenue to reach USD 5.35 trillion in the United States by 2025. However, customer retention becomes the primary challenge to sustaining in the market. This competition increases the requirement to reinvent their business models to avoid competition concerning price and find the balance between investing in the latest technologies and revenue.
- Moreover, in June 2022, Lightspeed Commerce Inc., a commerce platform, announced the launch of the new Lightspeed B2B platform to North American fashion, outdoor, and sports retailers, with broader vertical and feature availability in the coming future. Launching this transformative solution will bring thousands of brands and retailers together with a supplier network tool that integrates B2B orders directly into the point of sale (POS).
- Furthermore, the digital economy is expected to expand rapidly, thereby creating significant demand. Temasek and Google predict that by the year 2023, online consumer spending across the top 6 economies will witness almost a quarter of a trillion dollars. The rise of e-commerce is fueled by rising disposable incomes, increased internet usage, improved logistical networks, and alternative payment methods.
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United States anticipated to be the Fastest-growing Market
- The United States is a major North American POS terminal market segment. For several years, various POS terminals have been used in outlets in the country, thus boosting the need for replacement with updated technologies. The emergence of POS terminals would go a long way in bolstering the regional market. The increased competitiveness among the vendors and manufacturers is expected to bring about interesting growth prospects in the world of automation.
- The robust adoption of credit cards and debit cards at the point-of-sale in the region is also developing a favorable landscape for the market. According to Worldpay, the major payment methods in stores in the United States included credit cards (38%), followed by debit cards (29%), and cash (12%).
- Artificial intelligence is the technology that is affecting POS systems (AI). A POS solution powered by AI may easily go beyond basic tasks to include advanced capabilities like speech recognition and machine learning. According to ConnectPOS, by 2021, 15% of businesses in the United States will have utilized POS with AI capabilities, and 40% of firms aim to employ AI-enabled POS within the next year.
- The major companies in the region are expanding in the United States through mergers and acquisitions to target small merchants. In October 2021, SumUp, best known for its small credit card readers, acquired United States marketing start-up Fivestars for USD 317 million to expand its reach across the U.S. and take on companies such as PayPal and Square.
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