Self-checkout Systems Market Analysis Report By Components, By Type, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global self-checkout systems market size was accounted for USD 2.8 billion, in 2019. It is estimated to grow at a CAGR of 13.3% during the forecast period, 2020 to 2027. The growing inflow of consumers in the retail industry coupled with extended checkout time are the major factors proliferating the market growth. In addition, rising costs of labor, lack of skills, and growing trend of personalized shopping are other key factors expected to drive the demand for self-checkout systems. Moreover, rising automation across the retail industry owing to improve the performance and efficiency is projected to contribute to the market growth over the forecast period.

Rising penetration of the e-commerce industry, a growing number of virtual retail stores, and a reduced life cycle of products are the factors responsible for the growing adoption of such systems across the retail industry. These systems help in enhancing the consumer shopping experience by curtailing the waiting time. Moreover, these systems minimize human errors and intervention. These factors are projected to propel the market growth over the forecast period, 2020-2027.

The majority of the retail stores offer a variety of products which sometimes reduces the floor space making the store congested. Therefore, consumers feel suffocated and inconvenient while moving in such stores and waiting for checking out. Thus, to enhance the consumer shopping experience, these store managers are implementing self-checkout systems to reduce this clutter and inconvenience. Moreover, the growing preference for self-service among large consumer groups owing to its convenience is anticipated to further contribute to the market growth.

The concept of personalized shopping is gaining high popularity among consumers as it offers a high-end consumer experience. Therefore, the majority of the retailers are employing self-checkout systems to enhance the shopping experience of their consumers, provide high convenience, and boost consumer engagement. For example, Fujitsu launched self-checkout systems named U-Scan and Impulse with features like charitable donation, customer personalization, and themes to create brand awareness, engage a large number of consumers, and create space for advertisement inside the retail shops.

Technologies such as Radio Frequency Identification Device and Near Field Communication are playing a major role in the development of highly efficient self-checkout systems. Such technology-enabled systems provide a high-end shopping experience to the consumers by automating the purchasing process. Moreover, AI integrated systems enable shoppers to pay for the purchased products by scanning QR codes through their mobile phones. This also helps retailers to boost their sales and control their expenses. All these factors are projected to proliferate the popularity of self-checkout systems in the forthcoming years.

Components Insights

In 2019, the systems component segment held the largest share across the global self-checkout system market. This is attributed to emerging advancements in technology that are employed in self-checkout systems. Therefore, the majority of the retailers prefer such automized systems over conventional systems. Hybrid systems provide advanced features such as multi-product scanning, instinctive user interface, cashless transactions, and coin dispensing systems with increased capacity. In addition, the rising popularity of cashless transactions is projected to influence retailers to opt for advanced systems, which is further driving market growth.

The service component segment is projected to grow at the fastest CAGR from 2020 to 2027. The growing need for highly efficient systems with faster processing speed and high flexibility in the front end of the store is influencing retailers to adopt services such as maintenance, consulting, and implementation. Moreover, the growing requirement for tailored checkout systems suitable for particular store layouts is projected to impact the growth of managed and consulting services. In addition, rising demand for customized software and professional services to update the software systems is anticipated to further propel the market growth.

Type Insights

In 2019, the cash-based systems segment held the largest share across the global self-checkout systems market. The majority of the small-scale and large-scale retailers opt for paper-based or cash-based transactions which are projected to drive the segment’s growth. For example, the reports by the World Economic Forum and the World Bank Group suggested that paper-based or cash-based transactions, in June 2016, were valued at USD 19 trillion. In addition, the government in the U.S is promoting paper-based transactions across the retail outlets in the country. This is projected to propel the growth of the segment over the forecast period.

The cashless-based system segment is projected to attain the fastest growth from 2020 to 2027 owing to the rising prevalence of digital payment applications among the millennial population, especially among youngsters. Moreover, the growing popularity of mobile transactions is further projected to proliferate the growth of the segment over the forecast period.

Application Insights

The segment of hypermarkets & supermarkets held the largest share of 56.0% in 2019 and is projected to maintain its leading position from 2020 to 2027. Rising inconvenience by long waiting queues and delays caused for checking out are the factors projected to boost the adoption of self-checkout systems across the supermarkets & hypermarkets segment. Moreover, high costs of labor and inappropriate utilization of available space are some of the key factors propelling the deployment of such systems in hypermarkets & supermarkets.

The segment of convenience stores is projected to grow at the fastest CAGR of 14.6% from 2020 to 2027. Employment of upgraded technologies for enhancing the shopping experience of consumers and for providing high-end services is projected to propel the adoption of self-checkout systems by convenience stores across the globe. Moreover, the rising adoption of scan and go systems by the majority of convenience stores is further projected to drive the segment’s growth. For example, O Kay stores in Nov 2018, introduced a mobile application named ‘Scan.Pay.Go’ to provide convenience and easy payment options to their consumers.

Regional Insights

North America accounted for the largest share of about 46% across the global market in 2019 and is projected to attain notable growth from 2020 to 2027. Supermarkets & Hypermarkets in countries like Canada and U.S. are adopting self-checkout systems to provide convenience to their consumers and to enhance their shopping experience. This is projected to drive the growth of the regional market. For instance, Albertsons Companies, Inc. in June 2019, partnered with a company named Toshiba Global Commerce Solutions for enhancing the consumer shopping experience by employing flexible checkout systems. In 2019, Europe held the second-most position in terms of market share owing to the rising adoption and popularity of self-checkout systems among small-scale and large-scale retailers.

Asia Pacific is projected to attain the fastest CAGR of over 15% from 2020 to 2027. The growing adoption of AI-based self-checkout systems and rising inclination towards digital payment platforms are propelling market growth. Moreover, the incorporation of emerging technologies to enhance the consumer experience by curtailing the waiting time is projected to further fuel the regional demand. Furthermore, the lack of labor facilities in Japan and rising automation across the retail industry are the factors anticipated to boost the adoption of self-checkout systems in the country. For example, Lawson Inc., one of the largest chains of convenience stores in Japan employed self-checkout systems in all its retail stores to cater to the labor crisis.

Self-checkout Systems Market Share Insights

Leading players operating in this industry include Toshiba Global Commerce Solutions; NCR Corporation; Diebold Nixdorf, FUJITSU; Incorporated; ECR Software Corporation, and ITAB Group. These players are focusing on improving their operations and productivity. For example, FUJITSU, in Jan 2019 employed an AI-based self-checkout system for eliminating frauds and scans in their retail stores.

In addition, these players are focusing on partnering with retail stores to enhance their functionality and to improve the shopping experience of consumers. Moreover, they are focusing on strategic initiatives such as strategic partnership, development of advanced systems, and contract extensions to retain their market position.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume 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 the purpose of this study, Million Insights has segmented the global self-checkout systems market report on the basis of components, type, application, and region:

• Components Outlook (Revenue, USD Million, 2016 - 2027)
    • Systems
    • Services

• Type Outlook (Revenue, USD Million, 2016 - 2027)
    • Cash-based systems
    • Cashless based systems

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Supermarkets & Hypermarkets
    • Department Stores
    • Convenience Stores
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • France
        • Germany
    • the Asia Pacific
        • China
        • Japan
    • Rest of the World
        • Brazil
        • Mexico