At a compound annual growth rate of 21.5%, the size of the worldwide Cloud POS market is projected to reach USD 8.82 billion in 2028.
With a growing understanding of the benefits of cloud technology adoption, end-users across the globe are focused on cloud-based applications. In the same way, end-users from multiple business verticals depend on transiting to the POS cloud, relative to the already adopted Client-Server (Conventional POS) terminal. Cloud POS is a POS terminal that removes the need for a computer and wires, as required in the conventional POS client-server terminal. Cloud POS allows traffic transfer to someone else's data center wirelessly. In comparison, there is a reduction in maintenance costs with the introduction of cloud POS terminals.
This can be due to the increasing adoption of cloud technology across the industries and the increasing need for improved operations in the business.
However, cynicism regarding cloud-based offerings is likely to hamper the market growth. Furthermore, the propagation of customized POS and swelling 5G technology and mobile POS is anticipated to be an opportunity for the cloud POS market.
Cloud POS Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 8.82 billion|
|Growth Rate||CAGR of 21.5 % during 2021-2028|
|Segment Covered||By Component, By Organization Size, By Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Square Inc, Cegid, UTC RETAIL, Shop Keep, PAR Technology, Shopify, B2B Soft, Intuit, Lightspeed, Oracle, Other Companies|
Key Segments of the Global Cloud POS market
Component Overview, 2018-2028 (USD Million)
Enterprise Size Overview, 2018-2028 (USD Million)
- Small and Medium-Sized Enterprises
- Large Enterprises
End-User Overview, 2018-2028 (USD Million)
- Retail & Consumer Goods
- Travel & Hospitality
- Media & Entertainment
- Transportation & Logistics
Regional Overview, 2018-2028 (USD Million)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Frequently Asked Questions (FAQ) :
The primary factor for the cloud POS market is projected to be a growing affinity among end-users to embrace cloud technologies in all major realms. The benefits associated with the implementation of cloud POS, such as increased accessibility, versatility, and functionality, further assist end-users to implement cloud POS in their respective vertical industries. In addition to these factors, the low running costs associated with cloud POS are one of the key factors driving demand. Decreasing cashless transactions contribute to the rise of digital payments. This has a direct impact on the growth of the POS market. As a result, the Cloud POS demand is also projected to be stimulated during the forecast period.
In terms of components, the market is bifurcated into solutions and services. The service segment is expected to grow at the highest CAGR during the forecast period. POS-related services provide payment services, administration services, portal services, and maintenance services. These services allow companies to establish good customer relationships by consistently helping them during their corporate tenure. Also, these services can support companies by optimizing the utilization of capital, facilitating the delivery of the marketing project, and streamlining marketing operations. Traditional POS schemes typically charge a software-licensing fee per registry, followed by a recurring maintenance fee of 18–20 percent for updates. SaaS, on the other hand, is more of a relationship model in which subscription premiums are charged and no initial contributions are made, as in the case of the conventional POS scheme. These subscription payments cover software, maintenance, backup, and future updates.
Enterprise Size Segment
Based on the enterprise size, the market is segmented into small & medium, and large enterprises. The large enterprise segment leads the market growth in 2019 and it is anticipated to hold its position during the forecast years. Large enterprises are spending heavily to implement successful payment systems that would link all company divisions and their activities to a single network. Besides, they have several operating centers and different distribution & customer service, divisions. On the contrary, the small & medium enterprise segment is projected to accumulate major growth in forthcoming years.
In terms of the end-user segment, the market is segmented into retail & consumer goods, travel & hospitality, media & entertainment, transportation & logistics, healthcare, and others. The media and entertainment segment expected to grow at the highest CAGR during the forecast period. This is primarily due to cloud-based POS technologies that are commonly used in media and entertainment application areas. In this sector, Cloud POS is installed in casinos, film theatres, amusement parks, museums, and sports arenas. It ensures a scalable and transparent entertainment business. It also provides improved customer support, which in turn continues to boost revenue.
The North American region dominated the overall market in 2019 and it is projected to keep its position during the forecast years 2018-2028. However, the Asia-Pacific region is anticipated to gather the highest growth over the forecast years. The market growth in this region is mostly ascribed to the rapidly rising consumer base, due to the importance of small and medium-sized businesses, combined with the decline in TCO. The growing retail sector and developing infrastructure in the area will further drive the growth of the cloud POS market in APAC.
The major players of the global Cloud POS market are Square Inc, Cegid, UTC RETAIL, Shop Keep, PAR Technology, Shopify, B2B Soft, and Intuit. Moreover, the market comprises several other prominent players in the market are Lightspeed, Oracle, and SalonTarget. The Cloud POS market consists of well-established global as well as local players. Besides, the previously recognized market players are coming up with new and advanced strategic solutions and services to stay competitive in the global market.