Self-service Technology Market Analysis Report By Product, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global self-service technology market size was accounted for USD 28.3 billion in 2019. Further, is estimated to expand at 6.7% CAGR over the forecast period, 2020 to 2027. Technological advancements in the recent past such as wireless communication and remote management are attributing to the growth of the market. Further, biometric integration in financial systems to ensure safer transactions is bolstering the industry's growth. Self-service technologies help customers in accessing services without the need for the involvement of service providers.

Rising demand for automated services, self-service machines, remote management, and wireless communication is supplementing the market growth. Additionally, the rising consumption of products purchased from a retail store is attributing to the market growth. Increasing consumer inclination towards retail purchasing in emerging countries is offering a huge opportunity for the market players.

Self-service machines offer several benefits such as easy check-in and checkout, improved customer services, and congestion reduction across airports, shopping malls, and other public places. Considering the increasing popularity of these services, manufacturers are emphasizing expanding their operations to rural areas from urban areas. For example, An Indian rural banking operator, Karnataka Gramin Bank opened mobile ATMs in a remote village in partnership with Canara Bank of India, in 2019.

However, regulations regarding power consumption and energy consumption are estimated to negatively affect market growth. Governments restricted the installation of vending machines in many places such as colleges and schools. Owing to this, manufacturers are offering vending machines that consume lesser power and help in the conservation of energy.

Further, rapid digitalization and increasing adoption of mobile devices is strengthening market growth. From supermarkets to convenience stores, service providers are increasingly deploying self-service machines to enhance the consumer experience. In addition, the growing need to reduce the headcount and operating expenditure is prompting industries such as BFSI, healthcare, retail, and hospitality to adopt these technologies.

Product Insights

Depending on the product, in 2019, the ATM segment accounted for the largest share with 51.6% in the self-service technology market. Despite the increasing popularity of digital transactions, the need for cash remained of significant importance in both developed and emerging countries. To enhance the consumers' experience and garner a larger customer base, banks are increasingly deploying cash recycling machines and ATMs.

On the other hand, the vending machines division is projected to be the fastest-growing from 2020 to 2027. Increasing deployment of such machines in the corporate sector is a major factor in driving market growth. Factors such as reducing operational cost, enhancing the consumer experience, and saving time are attributing to the increasing deployment of vending machines. With the increasing corporate sector, emerging countries are estimated to witness the significant adoption of vending machines.

Application Insights

Based on the application, the retail category held the highest share of 33.4% by revenue in the market in 2019. Increasing focus on improving the quality of services for the consumer is driving the market growth. Vending machines and kiosks are the most used technologies. Over the past few years, there has been significant growth in the number of customers visiting retail stores. With the rise in customers, the need for efficient services and a hassle-free shopping experience has become important for service providers.

On the other hand, quick-service restaurants are estimated to witness the highest growth with an 8.4% CAGR from 2020 to 2027. Increasing focus on reducing employees’ count and rise in the number of orders are attributing to the growth of this segment. Moreover, the rising focus on offering efficient service among restaurants is leading to the higher growth of this segment.

Regional Growth

In 2019, Asia Pacific accounted for over 33% share in the self-service technology market. The rising number of vending machines, self-service kiosks, and ATMs is driving the market regional growth. Emerging countries such as China and India are offering lucrative opportunities for the growth of the market. Over the past few years, these emerging countries have witnessed significant growth in financial inclusion and urbanization, which, in turn, has driven the demand for the self-service market.

On the other hand, North America accounted for the second-highest share in the market in 2019, owing to the increasing demand from the United States. The country has witnessed rapid growth in the hospitality, transportation, and financial services sectors. With the emergence of innovative business models, the growth of IT-enabled self-service is gaining traction in the region.

Impact of COVID-19

The COVID-19 pandemic has a mixed impact on the self-service market. With reduced sales of various products, businesses restrained themselves from making the investment in the procurement of new technologies, thereby, adversely affecting the market growth.

The outbreak of COVID-19 has a radical effect on consumer behavior. Considering the changes in consumer behavior, businesses are changing their operational model. With the increasing focus on social distancing and contact-less purchasing, the adoption of self-service technologies has gained momentum across industry verticals. In addition, self-service technologies are helping industries to counter the effect of labor shortages caused by the pandemic.

Self-service Technology Market Share Insights

Leading players operating in the market are Kiosk Information System, FUJITSU, Crane Co., and NCR Corporation. Due to the presence of several vendors, the market is fragmented and competitive in nature. However, the ATM market is concentrated in nature owing to the presence of established companies such as Hitachi-Omron Terminal Solutions, NCR Corporation, Hyosung TNS, and GRGBanking among others. These players have an extensive customer base across the globe.

Key players are also focusing on the up-gradation of their existing services to enhance security. Additionally, these players are engaged in partnerships with retailers, technology providers, and banks to transform their businesses. For example, NCR Corporation partnered with Raymer Oil in order to provide the latter with self-checkout technology.

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 the purpose of this study, Million Insights has segmented the global self-service technology market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)
    • ATM
    • Kiosks
    • Vending Machines

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Retail
    • QSR
    • Banking
    • Travel & Tourism
    • Healthcare
    • Others (Hospitality, Education, Government, etc.)

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