Global Self-Service Technology Market 2022-2028

Global Self-Service Technology Market 2022-2028

Global Self Service Technology Market Size, Share, & Analysis by type of machine (ATM, kiosks, vending machines), and by end-user (retail, QSR, BFSI, healthcare, and others). The global self-service technology market was valued at around $23.5 billion in 2021, which is projected to reach around $30.5 billion in 2028, exhibiting a CAGR of 6.5% during the forecast period (2021-2028). The market is driven by the fact that self-service technology saves valuable time for staff and administration while serving a large consumer base. Hence, the ability to adapt to different requirements and serve more customers promptly is making self-service technology an integral part of businesses. However, owing to the recent COVID-19 pandemic, the market witnessed a decline of 11.2% in 2021 and generated around $20.9 billion as compared to $23.5 billion in 2021. Most countries will see renewed growth after COVID-19 as in response to the pandemic, the players are bringing new technologies to the market keeping consumers safety at top priority. As more countries emerge from lockdown, businesses and consumers will be keeping pace with the new normal, and yet many of the longer-term trends will remain broadly similar to the pre-COVID-19 scenario.The market growth is attributed to the demand for self-service environments by consumers in various end-use industries. Hence, it allows consumers to interact more freely without perceived pressure from an in-person associate. In addition to this, self-service technology enables an enriched interactive user experience with reduced operating cost, which will also influence the growth of the self-service technology industry during the forecast period. Moreover, the use of self-service technology in the hospitality industry is aiding in delivering a more convenient and personalized experience to the guests and hence is anticipated to propel the growth of the self-service technology market.

The increasing deployment of self-service systems across the globe further gives a boost to the growth of the market. For instance, in June 2021, Bharat Petroleum introduced a self-service system at one of its fuel filling stations in Pune under the `Atmanirbhar' campaign, for promoting social distancing and making fuel stops safer for its customers during the pandemic. Moreover, Ibotta Go, a self-service platform was launched in the US by a mobile rewards platform, Ibotta in June 2021. The self-service platform through which emerging CPG (Consumer Packaged Goods) brands will have access to millions of customers through straightforward, affordable cashback rewards programs. Such deployment of self-service systems significantly drives the growth of the global self-service technology market.

SEGMENTAL ANALYSIS

The global self-service technology market is segmented on the basis of the type of machine and end-user. Based on the type, the market is segmented into kiosks, ATMs, and vending machines. Kiosks dominated the market with 39.4% of the share, generating around $9.3 billion in 2021. This value is further estimated to reach around $12.6 billion, exhibiting the highest CAGR of 7.3% during the forecast period. The segmental growth is attributed to the increasing deployment of kiosks across the globe. For instance, in October 2021, Telia Cleveron announced to work on the testing of a robotic self-service Telia kiosk for customers in rural communities. The initiative aims at expanding Telias presence in smaller towns by bringing the business closer to the customers. In addition, in May 2021, Avalon Airport in Australia partnered with Elenium Automation for starting the use of touchless self-service for increasing the safety of passengers whenever flight operations resume. Passengers can control the kiosks and bag drops using head movements rather than by touching the screens.The kiosks market is expected to grow in the future due to the increasing usage of EV charging kiosks. Interactive kiosk with EV charging facility is expected to reduce the overall cost of charging an electric vehicle. Moreover, the advancement of innovative technologies and environmental awareness has led to a great interest in the EV market. Advancements are enabling more people to consider EV cars their sole mode of transport. Rising demand for EVs on the road will encourage the production of EV charging kiosks as the success of electric cars is dependent on the availability of EV charging stations. IER SAS, Meridian is one of the companies providing EV charging kiosks. Meridian announced an innovative EV charging station, fuseEV to its product portfolio in May 2017. Meridians fuseEV charging solution includes an interactive solution to display information. The fuseEV charging solution includes a 240V, 32-Amp Level 2 EVSE with a 25-foot charging cable and a sleek, interactive, or non-interactive touch screen. The touch screen allows users to engage with digital information while waiting for their car to charge.

Moreover, ATM follows kiosk in terms of revenue generation, contributing 35.4% of the share and stood at around $8.3 billion in 2021. This value is further estimated to reach around $10.3 billion in 2028. However, the segment is projected to exhibit a moderate CAGR of 5.8% during the forecast period owing to the decreasing deployment of ATMs in developed economies of North America and Europe. For instance, according to the World Bank, the total number of ATMs installed in North America and Europe in 2021 was 801,460 units and 302,834 units which decreased to 784,524 units and 287,868 units in 2021, respectively. In addition, online cash transfers and other modes of cash transactions also presents challenges to the segmental growth of the market.Based on end-user, the BFSI segment dominated the market with 53.5% of the share, generating around $12.6 billion in 2021. This value is further estimated to reach around $15.9 billion in 2028, exhibiting a CAGR of 6.1% during the forecast period. The market scope of the BFSI segment includes ATM and banking kiosks. Increasing adoption of banking kiosks tends to drive the segmental growth of the market. The increasing launch of bank kiosks and the expansion of market players to cover more geographical footprints further drive the market growth. For instance, in March 2021, DBS Bank announced the launch of its locally incorporated wholly-owned subsidiary, DBS Bank India Ltd. (DBIL). With DBIL, the company aimed at accelerating its growth plans, expanding its operations, and building greater scale in India through a “phygital” model for further serving large corporates, small & medium enterprises (SMEs), and individual customers. DBIL announced to establish over 100 customer touchpoints, a combination of branches and kiosks across 25 cities.

The retail segment follows BFSI and generated around $7.0 billion in 2021. This value is further estimated to reach around $9.4 billion in 2028, exhibiting a CAGR of 7.1% during the forecast period. Retailers are adopting self-service technologies for improving their quality of service. Self-service technology is deployed in diverse retail sectors such as supermarkets, department stores, specialty stores as well as bus stations, railway stations, and metro stations. Interactive kiosks are increasingly being deployed in malls, metro stations, and airports. Moreover, in response to the COVID-19 pandemic, the players are working on new kiosks, keeping passenger’s safety at priority. For instance, in October 2021, Vancouver International Airport (YVR) introduced a new self-cleaning and contactless system to its BorderXpress kiosks. The BorderXpress kiosks, which expedites passenger wait times at YVR, include three new features- gesture-based controls, ultraviolet (UV) cleaning light, and a glass touch screen protector. The new features will allow the passenger to control the on-screen cursor of the kiosk with hand gestures and make contactless selections 30 cm away from the screen. Further, in August 2021, Japan Airlines (JAL) announced to test new touchless technology at Tokyo Haneda Airport. Two touchless kiosks have been installed in the airport’s Terminal 1 South Wing (Departure Level - Counter 18).

REGIONAL ANALYSIS

Geographically, the study of the global self-service technology market report covers the analysis of four major regions including North America (the US and Canada), Europe (UK, Germany, Italy, Spain, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and Rest of the World.Asia-Pacific dominated the market with 34.5% of share generating around $8.1 billion in 2021. This value is further estimated to reach around $10.8 billion in 2028, exhibiting the highest CAGR of 7.0% during the forecast period. The region incorporates a significant number of vending machines, ATMs, and self-service kiosks. For instance, according to the World Bank, there were 1.4 million units of ATMs installed in 2021, which increased to around 1.6 million units in 2021. In addition, the booming retail sector of the region along with the emerging infrastructure is driving the regional growth of the market.

Moreover, in response to the COVID-19 pandemic, the players in China have come up with new ideas to maintain social distancing while serving their customers. For instance, in March 2021, face mask vending machines designed by Topow were introduced in Xuzhou to industry parks and business districts. In addition, in late January 2021, Meituan, one of the biggest online food ordering and delivery platforms in China, rolled out its ""contactless delivery"" service in 184 cities in China. Customers can pick up their orders from the designating smart lockers, avoiding face-to-face contact with the delivery man. In addition, in late January 2021, Meituan, one of the biggest online food ordering and delivery platforms in China, rolled out its ""contactless delivery"" service in 184 cities in China. Customers can pick up their orders from the designating smart lockers, avoiding face-to-face contact with the delivery man.

North America follows Asia-Pacific in terms of revenue generation and generated around $7.5 billion in 2021. This value is further projected to reach around $9.6 billion in 2028, growing at a CAGR of 6.4% during the forecast period. The US largely contributes to the global self-service technology market, as the country significantly adopts banking kiosks and self-service kiosks across various locations such as restaurants, airports, and supermarkets. For instance, in June 2021, United Airlines has announced the addition of 219 touchless check-in kiosks across the US. The new check-in option was one of the initiatives announced as part of the carrier’s CleanPlus strategy of addressing travel challenges during the pandemic.

The European self-service technology market was valued at around $5.8 billion in 2021, which is projected to reach around $7.3 billion in 2028, growing at a CAGR of 6.1% during the forecast period. Digital transformation in banking as well as restaurants coupled with the growth in the retail sector are some of the major factors driving the regional growth of the market. For instance, in July 2016, McDonald’s announced to invest $557 million for adding self-order kiosks to restaurants in Germany. Moreover, the presence of a huge consumer base coupled with the usage of baking and self-service kiosks is significantly driving the market growth.

KEY PLAYERS COVERED

The global self-service technology market comprises many market players that are significantly contributing to the market growth. Some of the players covered in the report include NCR Corp., Diebold Nixdorf, Inc., Hitachi Ltd., Hyosung TNC Corp., Crane Co., Fujitsu Ltd., and GRGBanking. The market players are considerably contributing to market growth by adopting various strategies to stay competitive in the market. Some of the recent developments in the self-service technology market include:

1.In December 2021, Fujitsu Ltd. entered into a partnership with Zippin, a US-based technology company to provide checkout-free solutions in Japan. With this partnership, both the companies will further strengthen their cooperation and expand in geographies outside Japan.

2.In June 2021, Crane Co.’s merchandising systems merged with CPI to integrate CMS portfolio with the company’s CPI line of note and coin validators, software solutions, and cash processing systems. With this, the company delivered a single point of contact and provide greater value for customers in the global convenience services industry.

3.In October 2021, Crane Co. through its Crane Payment Innovations (CPI) segment launched the COTI freestanding coffee vending machine to the North American market. This launch will provide operators with a smart engineered solution for increased reliability and an enhanced user interface and increased ROI.