China is currently the leading global POS market capturing half of it, followed by Latin America and Europe. Going forward, India will become the fastest-growing market (+38 per cent CAGR) driven by the digital transformation of retail and rising consumer preference for online transactions, according to Counterpoint Research.
"The rapid urbanisation, globalisation of employment and rising travel will foster the development of the POS market in hospitality segments," said research analyst Soumen Mandal.
Retail, hospitality and healthcare industries are the top applications for the POS market.
Covid-19 did have a negative impact on the global POS market as most of the retail shops were closed due to lockdowns in 2020.
"Chinese players are dominating the global POS market with 8 of the top 10 vendors hailing from China. However, all major regions are focussing on creating local POS supply chains," said Neil Shah, Vice President, Research.
At the same time, "we expect Chinese brands to increase their international presence to avoid losing market share due to the home market becoming mature," he added.
Rising consumer awareness on cashless transactions, favourable government policies, and technological advancements are invigorating the POS terminals market with newer form factors and capabilities.
"The rising use of POS terminals in the transportation, government, education, banking and ride-hailing sectors is expected to open new application areas," Mandal said.
Data security concerns, high maintenance costs and checkout-free offline retail model will be major challenges for the POS market, the report noted.