Cloud POS Market Statistics: 2028
The global cloud POS market size was valued at $2.24 billion in 2020, and is projected to reach $13.24 billion by 2028, registering a CAGR of 24.5 % from 2020 to 2028. Cloud-based POS solutions are built on the cloud's quick scale up and down concept; services may be added or deleted by the business at any moment based on their needs and the demands of their clients. Businesses just pay for the services they use, which saves money on future-proofing requirements and fail-safe systems that are needed by the traditional on-premises POS. Furthermore, the solutions provider will cover the maintenance and upkeep of cloud-based POS solutions, so business owners will not have to worry about the operation of these POS systems at all times.
As the solutions providers and vendors handle maintenance, performance, and up-keep of cloud-based POS systems; this enables businesses to have a small IT team at their end saving on training and payroll costs of maintaining a full-size IT department as needed by the on-premises based POS solutions.
In 2020, the global Cloud POS market share was dominated by the solution, and is expected to maintain its dominance in the upcoming years, Cloud computing providers offer web-based financial services for POS systems, where data is adequately supported on remote vendor servers. Within the market, services is estimated to emerge as fastest growing segment, Increased solidarity among end users regarding the adoption cloud technology across all major domains is expected to be a key driver in the cloud POS market. The benefits associated with the adoption of cloud POS, such as improved flexibility, environmental flexibility, and continuous functionality help end users to embrace cloud POS throughout their vertical industry
With the worldwide pandemic on the rise and local shopping malls and marketplaces shuttered to help stop the spread of the coronavirus, people had to rely on e-commerce websites for everything from daily necessities and medications to clothing and comfort. This rapid reliance on global e-commerce websites and online marketplaces has also aided the growth of cloud-based POS among these e-commerce businesses as they rolled out options for contactless payment technologies through cards and smartphones in areas where people were more likely to opt for cash on delivery payments.
Moreover, essential stores such as pharmacies and grocery supply stores that remained open during the pandemic had to minimize physical contact with their customers, and cloud POS systems were utilized in many such stores.
The report focuses on the growth prospects, restraints, and Cloud POS market analysis. The study provides Porter’s five forces analysis of the Cloud POS industry to understand impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the Cloud POS market trends.
Services segment is projected as one of the most lucrative segments.
The Cloud POS market is mainly segmented on the basis of component, services, application and organization size. Based on component, the market is segmented into solution and services. Based on service, the market is segmented into implementation and integration, training and consulting and support and maintenance. Based on application, the market is segmented into retail and consumer goods, transport and logistics, media and entertainment, travel and hospitality and healthcare. On the basis of organization size, the market is segmented into SME and large enterprise. The Cloud POS market is primarily studied across various regions such as North America, Europe, Asia-Pacific and LAMEA.
APAC is projected as one of the most significant region.
COVID Impact Analysis
In many nations, the negative consequences of the COVID-19 outbreak spread to key economic sectors, with manufacturing, auto, retail, aviation, and hospitality suffering the weight of these restrictions. As a result, fast-growing digital payments, which are intimately related to the aforementioned sectors, have been impacted. Shuttered stores, travel prohibitions, and lower discretionary consumer spending (on dining out, movies, and entertainment, for example) all impeded digital payments and impacted the worldwide cloud POS industry.
Key players of the industry tried different techniques to counter the effects of coronavirus on these industries by introducing various schemes to promote local shops and help the sale of more POS systems during the period. For instance, Canadian services provider Shopify, partnered with Google to provide their customer’s products to feature in Google search that can help increase the target audience and profit margins.
Top impacting factors
Improving workplace productivity, efficiency, and dynamic decision-making ability of organizations and businesses is one of the primary factor driving the market growth. Furthermore, Cloud POS solutions help organizations save operational and functional costs, which is further propelling the market growth during the cloud PoS market forecast period. However, data security and privacy concerns related to the use of cloud POS are mainly restraining the market growth. Furthermore, growing acceptance of cloud-based systems in small and medium level enterprises and developments in the retail sector is creating a lucrative opportunity for the Cloud POS market growth.
Cloud POS solutions help organizations save operational and functional costs:
Cloud-based POS solutions are built on the cloud's quick scale up and down concept; services may be added or deleted by the business at any moment based on their needs and the demands of their clients. Businesses just pay for the services they use, which saves money on future-proofing requirements and fail-safe systems that traditional on-premises POS need. Furthermore, the solutions provider will cover the maintenance and upkeep of cloud-based POS solutions, so business owners will not have to worry about the operation of these POS systems at all times.
Developments in the retail industry
With the worldwide pandemic on the rise and local shopping malls and marketplaces closed or on the verge of closing to help stop the spread of the coronavirus, people had to rely on e-commerce websites for everything from daily necessities and medications to clothing and comfort. This rapid reliance on global e-commerce websites and online marketplaces has also aided the growth of cloud-based POS among these e-commerce businesses as they rolled out options for contactless payment technologies through cards and smartphones in areas where people were more likely to opt for cash on delivery payments. This is estimated to create wider scope for cloud POS market opportunity.
Moreover, essential stores like pharmacies and grocery supply stores that remained open during the pandemic had to minimize physical contact with their customers, and cloud POS systems were utilized in many such stores.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the cloud POS market along with current trends and future estimations to elucidate imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the cloud POS market for the period 2021-2028 is provided to determine the market potential.
Key Market Segments
- Implementation and Integration
- Training and Consulting
- Support and maintenance
By Organization Size
- Large Enterprise
- Retail and Consumer Goods
- Travel and Hospitality
- Media and Entertainment
- Transport and Logistics
- North America
- Rest of Europe
- South Korea
- Southeast Asia
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Market Players
- B2B Soft
- Intuit Inc.
- Oracle Corporation
- PAR Technology Corp.
- Shopify Inc.
- ShopKeep by Lightspeed
- Square, Inc.
- UTC RETAIL
Cloud POS Market Report Highlights
By Organization Size
Key Market Players
Oracle Corporation, B2B Soft, Cegid, PAR Technology Corp., Intuit Inc., ShopKeep by Lightspeed, UTC RETAIL, Inc, Square, Inc., Lightspeed, Shopify Inc.
According to CXOs of the major companies, the Cloud POS market is experiencing a rapid growth, as retailers need a reliable Point of Sale (POS) system to generate more sales, maintain track of inventory, and give excellent customer service. Non-tech aware merchants, on the other hand, may find it difficult to determine which type of POS systems to invest in. Web-based and cloud-based POS systems have grown in popularity in recent years proving to be a viable option for small and medium-sized businesses. Cloud-based POS can be deployed as a Software as a Service (SaaS) that can be accessed via a web browser straight from the internet remotely.
Cloud POS systems provide employees and managers the option to monitor and control their business sales numbers in real-time. Moreover, cloud-based POS solutions can be accessed from anywhere, whereas traditional on-premises POS systems need them to either connect to a local network or use connected systems at a certain fixed location. Cloud POS systems provide flexibility and opportunities for the management and decision-makers to dynamically adjust prices according to demands from the consumers and other market competitions. Furthermore, cloud-based POS systems offer evolved payment systems like contactless payments and NFC payment systems
Cloud POS solutions boost sales efficiency and help analyze customer data in real time; this opens further opportunities for businesses to offer products and services according to the need of the customer demands. The Cloud POS market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions & services, reliability, efficiency of products, and support services. The market is concentrated with major players consuming 45-50% of the share. The degree of concentration is expected to remain the same during the forecast period. Furthermore, smaller businesses may not have access to such resources and may need to employ third party solutions to help them with their data analytical needs as in house solutions are expensive. Furthermore, third-party solutions offer a wealth of expertise from a variety of sectors, as well as related businesses/projects, which can immediately contribute positively toward the goals and needs of the company.