Self-Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Self-Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The self-service market was valued at USD 28.01 billion in 2020 and is expected to reach USD 68.01 billion by the end of 2026, registering a CAGR of 16.43% over the forecast period (2021 - 2026).

Key Highlights

• Many industries in the emerging economies are struggling to attract customers and hold the existing consumers for the product or service. The retail market is one of the major industries facing the challenge of consumer requirements. Users in these economies prefer stores that not only provide an easy and hassle-free shopping experience but also offer better quality. Thus, various industries are investing in self-check kiosks and POS systems, which enable a faster shopping experience with easy access to information about the availability of the products.
• The vending machine system is also another major segment in the self-service market. These are widely used in retail stores or big scale enterprises wherein the system is used for dispensing food or beverages or any other product suitable to the system. Vending machines are expected to witness a wider implementation, owing to language barriers in various countries, such as Singapore, Malaysia, among others with a high tourism rate.
• Concerns relating to the security of the systems and high costs associated with the installation and maintenance of the systems are challenging the growth of this market. The increasing cyber-attacks around the world and vulnerabilities in the existing network are resulting in concerns among the users. Many users are now skeptical about utilizing these systems due to security concerns and the risk of data compromise.
• However, with the onset of the COVID-19 pandemic, the demand for vending machines is likely to decline, as several retail chains halted their business temporarily, and a larger demographic of the customer base is shifting to online channels. For instance, as per company reports, Arcadia Group – which owns brands including Topshop, Dorothy Perkins, and Miss Selfridge, could permanently close some of its shops as the coronavirus pandemic hinders the business operations of high street retailers.

Key Market TrendsAutomated Teller Machine (ATM) to Drive the Self-Service Market

• The growing inclination toward the adoption of ATMs in the banking sectors and other industries is one of the primary factors driving the growth of this market.
• With the increasing population and growing adoption of banking services among the public, the demand for ATMs is growing at a rapid pace. Huge investments in this sector to provide reliable ATMs and kiosk systems are helping the growth of this market.
• According to data by the RBI, India had 104,011 on-site ATMs in 2018, with rapid urbanization and a move toward digitalization post-recession, the number grew up to 112,458 ATMs in 2019.
• Moreover, the ease of doing all sort of banking activities like cheque deposit, balance inquiry, money transfer, money withdrawal, and much more, helps people to rely on ATMs with 24*7 service rather than going to banks in specified hours. It also helped the bank to ease out their workload of catering to so many people and made the process smooth at their end too.

Asia-Pacific to be the Fastest Growing Region

• The Asia-Pacific region is anticipated to develop at a substantial pace through the forecast period, owing to the growing adoption of self-service technologies by large organizations and SMEs to spread their presence and increase their service contributions. Moreover, the growing consumer spending power in countries, such as India, China, and Japan, is also boosting the growth of the market.
• According to IATA, India is one of the fastest-growing domestic air passenger markets at a rate of 23.3%. The increasing number of domestic passengers has led to the introduction of self-check-in kiosks by airlines, such as Vistara and Air India. As the number of passengers grows every year, the demand for these kiosks is also expected to increase.
• Moreover, the retail industry in India is prospering, with optimistic sales in the recent past. According to IBEF, the retail market in India is projected to grow from USD 672 billion in 2017 to USD 1.1 trillion in 2020. Also, increasing participation from foreign and private players is boosting India's retail infrastructure and thus is positively impacting the studied market.
• Further, the onset of COVID-19 pandemic, is anticipated to increase the demand for kiosks in food chains. For instance, Westlife Development, which owns and operates McDonald's restaurants in West and South India, is opening its restaurants, with enhanced safety norms in view of the pandemic, by installing self-ordering Kiosk machines for the customers.

Competitive Landscape

The self-service market is highly fragmented due to the increase in demand for self-service in kiosks, vending machines, and ATMs. The rising demand from the consumer is making the market attractive for companies. Stiff competition among the players to cater to the need of the people with minimal cost is magnifying the market. Some of the key players in the market are KIOSK Information Systems Inc., NCR Corporation, HESS Cash Systems GmbH & Co., Crane Co., Fujitsu Ltd, among others.

• May 2019 - With the collaboration of NCR Corporation, Oman Arab Bank has become the first bank in Oman to deploy NFC contactless card-reading technology. The technology is capable of making ATM transactions more secure and 15% faster than card-enabled transactions
• February 2019 - Zenig and KIOSK demonstrated self-service healthcare innovations at HIMSS 2019. Zenig provides easy-to-use, effective patient-centered healthcare solutions. Their self-service kiosk is simple to implement and enables patients to self-check-in, verify demographic information, sign contracts, and collect payments. Partnering with KIOSK will allow Zenig to seamlessly pair their innovative software platform with KIOSK robust hardware offerings.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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