Smart POS (Smart Point of Sales) machine, also known as micro POS machine, is a new concept of product compared to traditional POS machine. In addition to the scanning of one-dimensional codes and card swiping included in the traditional POS machine, its main functions also include scanning QR code payment, card coupon distribution, self-service ordering, group purchase verification, online booking, membership management, and combining with the back-end CRM system for refined management of customer orders, big data analysis and so on. Its main mission is to make electronic payments, with a mission to replace users' wallets. Because of its powerful functions, it is considered to be a major "artifact" in the retail industry such as major shopping malls and department stores!
There are three main types of smart POS machines: fixed, wireless and mobile. Among them, fixed smart POS machines are currently the most widely used, accounting for more than half of the market. In 2020, its share of the global smart POS machine market reached 50.82%. Secondly, mobile smart POS machines are in second place with a market share of 28.89%, while wireless ones have a relatively low usage rate.
From the perspective of different application fields, smart POS machines are mainly used in retail, hospitality services, health care, transportation, sports and leisure, and other industries that are inconvenient to classify. Among these sectors, the retail sector has the highest share, ranking first with a market share of 31.37% in 2020. Secondly, hospitality services such as hotels and restaurants ranked second with a proportion of 28.29%.
Analysis of the current situation and prospect forecast of the global smart POS machine industry
Research data shows that in 2015, the total market value of the global smart POS machine industry was 560.88 million US dollars, and the industry developed very rapidly from 2015 to 2019. In 2018 and 2019, the total market value of the industry was US$1,435.12 million and US$2,761.69 million, respectively, with a high annual growth rate. In 2020, due to the impact of the epidemic, although the global market value reached US$3,256.66 million, showing a year-on-year upward trend, the growth rate slowed down significantly. According to this data basis and development law, we have carried out a series of functional operations, used scientific models to derive the data for the next 6 years, and made the following predictions: before the outbreak of the epidemic, it is estimated that by 2026, the global market value of smart POS machines will be 43,458.76 million US dollars, with a compound annual growth rate of 37.19% from 2021 to 2016; However, after the outbreak of the epidemic, considering its impact on the industry, the industry market is expected to be worth USD 28,886.93 million by 2026, with a CAGR forecast of 44.87% between 2021 and 2026.
The data shows that China is the largest revenue market in the global smart POS industry. In 2015, the market value of China's smart POS machine industry was 248.24 million US dollars, with a global market share of 44.26%, and by 2020, the market value reached 1,680.77 million US dollars, accounting for more than half of the global share - 51.61%, which shows that the development trend of the industry in China is good and the prospects are considerable. In 2020, North America ranked second with a share of 22.86%.
The top three companies in the global smart POS industry are Landi Crop, Newland Payment, and Verifone. Among them, Landi Crop and Newland Payment, which are ranked first and second, are both from China, and Verifone is located in the United States.
The impact of the pandemic on the global smart POS industry
The outbreak has broken out around the world and is still spreading in most countries, and the situation is serious. Due to the outbreak of the pandemic, the market and consumer behavior have changed dramatically in a short period of time. Most countries have advised people to stay at home and avoid entering and leaving public places, and some countries have even introduced policies to restrict residents from going out, which has a greater impact on the entire downstream consumer market. Due to the pandemic, industries such as the FMCG industry, tourism, and hotel accommodation have all been hit hard, and the application of smart POS machines is in these areas. For manufacturers in the industry, due to the epidemic, new product releases, market promotion, and strategic layout have been affected. Therefore, in the short term, the downturn in the consumer market will affect the demand for smart POS machines and limit the development of the industry.
However, there are also relevant studies that show that the current potential demand for downstream market is strong around the world, so as the epidemic improves and economic activities gradually resume, market demand will rebound.
The popularization of smart phones has brought opportunities for the development of the industry, and the status of traditional POS machines has become the biggest challenge for the development of the smart POS market
The development of the global mobile Internet uses mobile payment as a gateway, and various offline value-added services need intelligent POS machines to carry them. According to relevant research data, the number of global smartphone users has reached 3.5 billion in 2020, and it is expected that the number of global smartphone users will exceed 4 billion by 2023. The popularity of smartphones has led to the rapid development of mobile internet across the globe, and mobile payments will also follow this trend, thereby increasing the demand for smart POS machines across the globe.
However, as traditional POS machines still occupy an important position, the promotion and market penetration of smart POS machines requires more time and energy. On the one hand, for traditional POS machine suppliers, years of experience in R&D, production, sales and service in the industry are an obstacle in itself that takes a certain amount of time to solve. For example, in the specific manufacturing process, chip supply, technical support, testing and certification, etc., it is difficult for latecomers to achieve it overnight. On the other hand, whether it is bank card acquiring or QR code acquiring, the barriers of the acceptance market are insurmountable. Paying for permits and legal qualifications discourages many new entrants. In addition, payment institutions and banks have stricter requirements for terminal security, and traditional POS machine manufacturers have strong financial authentication capabilities and experience in financial security risk control, and the cooperative relationship with payment institutions and banks is relatively stable. Channel advantages will still give traditional POS machine suppliers a strong competitive advantage. This poses a threat to the growth of the smart POS market.