The global market for retail point-of-sale (POS) terminals is projected to shoot up to $33.4bn in the next five years as mobile payments are overtaking the sector.
The use of mobile POS devices will jump four times by 2024 helping the global market to an almost threefold increase from $13.3m in 2015, a new report by Grand View Research shows.
The high return on investment and ease of usability are making mobile POS devices increasingly attractive.
The growing demand for wireless Internet connectivity, reduced costs and expanded network coverage is also a key driver for the adoption of more portable POS terminals in the retail sector, the report says.
Mobile will be fastest-growing segment in the POS terminal market with an expected 17% CAGR in the period 2016 to 2024.
However, fixed POS terminals are expected to remain the largest segment in the market as retailers are worried about the security of mobile payments.
Software-as-a-Service (SaaS) solutions will dominate the POS market in the future as a result of the disruptive force of cloud computing and mobile. Many companies had to develop POS software fit for all web-based, traditional and mobile platforms.
Asia-Pacific where mobile payments adoption and e-commerce sales are among the highest in the world will be the region that will drive POS market demand in the next few years.
Last year, Asia-Pacific held more than a quarter of the global retail POS market.
Latin America, another emerging market hub, is expected to grow at over 11.5% CAGR by 2024.
On the other hand, the North American sector market was leading in 2015 on the back of new payment methods, such as Europay, MasterCard and Visa (EMV). A number of local players introduced or upgraded EMV-based systems.
The retail POS terminal market in North America is seen expanding to $8bn in the next five years, according to the report.
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