Point Of Sale Software Market Analysis Report By Application, By Deployment Mode, By Organization Size, By End Use, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global point of sale software market was accounted for USD 8.2 billion, in 2019. It is anticipated to register a CAGR of 10.1% over the forecast period, 2020-2027. The growing trend of cashless transactions, the need to improve the strategy of sales, track the number of sales, and keep a record of inventories across various hotels, drug stores, retail chains, and automotive shops are projected to drive the market growth. Moreover, the increasing popularity of emerging features like customer data management, employee management analytics, sales monitoring, and inventory tracking is anticipated to further propel the demand for point of sale (POS) software over the forecast period.

Changing business scenarios and rising demand for cost-efficient and robust point of sale software solutions are the factors driving the demand from 2020 to 2027. Moreover, the rising adoption of automation to improve the flow of business operations is also contributing to market growth. This software can manage numerous operations when installed on the desktop, tablet, or laptop/notepad. Moreover, rising demand for the deployment of cloud-based solutions is anticipated to further propel market growth. In addition, web-based point of sale software is widely adopted across small and medium enterprises due to its improved accessibility and affordability. This is anticipated to fuel the market growth over the forecast period.

For the development of POS solutions, vendors should consider some factors such as creating and managing structured databases of customers, different payment methods, and support for different operating systems. For example, many businesses demand flexible and affordable POS software solutions that can support different hardware systems such as mobile, PC, tablets, and laptops. Moreover, vendors develop compatible software solutions that support different operating systems including Mac OS, Windows, Android, iOS, and Linux.

Developing multi-channel software is one of the major challenges prevailing in the global market. For example, online transactions are replacing conventional cash transactions in various industries such as packaged food and retail which is driving the majority of the vendors to develop POS solutions that are compatible in easing payment, managing inventory levels, and improving operational efficiency. Moreover, developing customized software for different industries that fulfill their specific requirements is considered to be the biggest challenge for the vendors of POS software solutions.

Application Insights

Based on application, the point of sale (POS) software market is segmented into mobile and fixed software. The segment of fixed POS software held the largest market share of more than 58% across the global market, in 2019. Rising preference for fixed POS solutions owing to their compatibility, features, and functionality over mobile software is expected to boost the segment’s growth. Moreover, this software provides sturdy solutions with cash drawer, business functionality, loyalty programs, employee time clocks, and inventory management solutions.

The segment of mobile POS solutions is anticipated to attain the fastest growth from 2020 to 2027. The emergence of new technologies has enabled the development of mobile POS software that supports online payment options. Moreover, the rising acceptance of this software solution by the majority of small and medium enterprises to manage inventory levels, extract useful data for data analysis, manage stores, and enhance operational efficiency is anticipated to propel the growth of the mobile POS segment over the forecast period.

Deployment Mode Insights

In 2019, the segment of on-premise deployment accounted for the largest share across the global POS software market. This growth is attributed to the rising adoption of on-premise deployment by large businesses that carry out their operations through local server networks over distant facilities. Moreover, data breaching is one of the major threats for the majority of large enterprises. Therefore, deployment of on-premise software helps in reducing the risks of data breaching by providing high control to the proprietor.

The segment of the cloud-based deployment model is projected to attain the fastest growth over the forecast period owing to rapid technological advancements across different sectors. Moreover, the growing acceptance of cloud POS software owing to easy payment options such as monthly charges are anticipated to further propel the market growth from 2020 to 2027.

Organization Size Insights

The segment of large enterprises held the largest market share, in 2019 due to the rising adoption of customized software by large enterprises and businesses for managing certain business processes and cash flows. However, the price of this customized software is higher than the non-customized software readily available in the market. Moreover, benefits such as high customer engagement and better management of cash flows are projected to propel market growth over the forecast period.

The segment of small and medium enterprises is projected to grow at the fastest CAGR of 11.7% from 2020 to 2027. The majority of the SMEs are opting for cloud-based deployment of mPOS software due to its scalability and cost-effectiveness. Generally, vendors of POS software target local enterprises that create a demand for cloud-based software by word of mouth. This is projected to further drive the demand for POS cloud software across the small and medium enterprises segment.

End-user Insights

Based on end-user, the global point of the sale software market is divided into retail, hospitality, warehouse, restaurants, entertainment, and other segments. In 2019, the retail segment accounted for the largest revenue share of USD 2.8 billion owing to changing business scenario of the retail sector. The rising adoption of POS software that meets multichannel and e-tailing requirements is anticipated to contribute to the market growth from 2020 to 2027.

Moreover, a shifting trend towards online payment modes coupled with the rising adoption of cloud-based mPOS software solutions by the majority of small as well as large retailers is the factor projected to drive the market growth.

The segment of restaurant point of sale software is expected to attain the fastest CAGR of 10.2% from 2020 to 2027 owing to the increasing number of alliances of restaurants with food delivery service providers. Moreover, benefits such as management of cash flows, orders, payments, and data analytics are projected to drive the popularity of the restaurant POS software application segment. In addition, the growing tourism and hospitality sectors have been driving the need for better management of operation, thereby, projected to boost the demand for restaurant POS software solutions over the forecast period.

Regional Insights

In 2019, North America dominated the market and accounted for the largest revenue share of USD 2.4 billion. This is attributed to the presence of key vendors of POS software coupled with the rising adoption of integrated software systems. In the U.S., the healthcare sector is projected to grow significantly over the forecast period for managing databases of patients and integrating various payment options. As per the report by the American Hospital Association’s survey, 6148 hospitals demanded efficient and sturdy POS software solutions with key features such as accounting, reporting, insurance payment processing, and financial services for patients. In addition, the shifting trend towards online payment is projected to drive regional market growth over the forecast period.

Asia Pacific is projected to attain the fastest growth from 2020 to 2027 owing to the rising adoption and popularity of POS terminals coupled with the rising adoption of online payment applications in emerging countries like Vietnam, India, China, and Indonesia. Moreover, rising demand for compatible and robust POS software across emerging businesses with high growth prospects such as retail, entertainment, e-commerce, and food delivery services is projected to further proliferate the regional market growth over the forecast period.

Point Of Sale Software Market Share Insights

Leading vendors in this market include Revel Systems; NCR Corporation; Oracle; Clover Network, Inc.; Agilysys, Inc.; Diebold Nixdorf, Incorporated; Ingenico Group; Epicor Software Corporation; Intuit, Inc.; PAR Technology Corp.; Lightspeed; Toshiba Tec Corporation; SAP; Toast, Inc., and ShopKeep. These vendors are developing customized software solutions that are compatible with several operating systems to improve the flexibility and accessibility of operations.

The market is highly competitive due to the presence of such major vendors. They are adopting hybrid growth strategies to capture a larger market share. For example, Restaurant Manager LLC introduced ‘Duet’ which is hybrid POS software with cloud-based deployment. It is highly affordable software with a real-time reporting mechanism that offers a robust solution for hotel chains and restaurants.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Million Insights has segmented the global point of sale software market report based on application, deployment mode, organization size, end-user, and region:

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Fixed POS
    • Mobile POS

• Deployment Mode Outlook (Revenue, USD Million, 2016 - 2027)
    • Cloud
    • On-premise

• Organization Size Outlook (Revenue, USD Million, 2016 - 2027)
    • Large Enterprise
    • Small and Medium Enterprise (SME)

• End-user Outlook (Revenue, USD Million, 2016 - 2027)
    • Restaurants
    • Hospitality
    • Healthcare
    • Retail
    • Warehouse
    • Entertainment
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa (MEA)