The kiosk market is expected to register a CAGR of 12.78% over the forecast period of 2019-2024. Kiosk systems are increasingly being employed across many industries to streamline processes and provide better operational flexibility. Major players across various industries are increasingly investing in kiosks, as technological advancements and the integration of more advanced software is allowing for a more interactive and intuitive experience for consumers, which is set to boost the adoption of kiosks across the globe.
- Kiosks streamline the customer interaction process and create a real-time interaction between kiosks and users. The enhancement of customer experience is a key factor in boosting the growth of the market. Moreover, kiosks are playing a major role in increasing sales across a wide range of industries. As a result, most businesses are expected to incorporate kiosk marketing as a key strategy to increase their profits.
- Kiosks are an excellent platform for improving the consumer experience. It appeals to tech-savvy and digitally inclined consumers that help in improving the efficiency of operations for the services industry. These factors are critical drivers for the increased adoption of kiosks at facilities where routine transactions and responding to the usual consumer questions can be tackled more effectively with the help of self-sustainable machine interfaces. Organizations have able to reduce costs enormously by replacing the workforce with kiosks.
- However, increasing security concerns could hinder the growth of the market. Instances like the recent ransomware attack, WannaCry, has made consumers wary of vulnerabilities in the existing infrastructure. This coupled with the high initial investment required, and maintenance costs of kiosks could challenge the growth of the market.
Scope of the Report
A kiosk is a physical unit that provides a service and displays information. Kiosks may be either unmanned or manned (either digital or non-digital). Kiosks are majorly installed at locations with the high movement of peoples. For instance, in a shopping mall, unmanned kiosks are installed near the entrance to guide people with the promotional offer information and also provide them directions. Kiosks that offer customers a variety of self-service features are gaining full acceptance at hotel check-ins, retail sales check-outs, etc.
Key Market Trends
Vending Kiosks to Hold a Significant Market Share
- While traditional vending machines represent a mature industry with sluggish growth rate, the high-tech kiosks are expected to have a prosperous forecast period. Owing to the flexibility and space constraints, vending kiosks provide competition to the existing small and medium scale convenience stores and stands selling food and beverage.
- Food and drinks contribute to the major share of the vending machines, followed by DVD rentals, which require the presence of manual labor in the kiosk to interact with the consumer. The growth of the DVD rentals has slowed down significantly, due to the emergence of online streaming services. The increase in product offerings in vending machines and a rise in the number of beverage manufacturers selling their products through exclusive smart vending machines are crucial for the growth of intelligent vending machine market.
- Large beverage manufacturers such as Coca-Cola and PepsiCo use their smart vending machine to sell their exclusive product lines. Rising consumption of cold beverages trend is expected to aid market growth.
- Japan, the most densely populated country with 127 million people is the leading market in the vending machine worldwide, it has a 5.52 million vending machine installed. Lack of crime rate, the rising cost of labor, cash-based society and fascination towards automation has boosted the market of the vending machine in Japan.
- Moreover, Japan is home to major beverage companies, including Suntory, Itoen, Kirin, Itoen, Calpis, and many more. Beverage companies need places to sell their beverages. Vending machines are a convenient and easy way for them to do that. This is the reason why the beverages have the highest number of vending MACHINE installed.
Asia-Pacific to Have Fastest Growth Rate
- In the Asia Pacific region, the primary application of kiosk is in banking and financial industries, food and beverages store and convenience store.
- Owing to technological advancement and new business model, countries such as China, India, Japan, Australia, Singapore are adapting to self-service technology. Moreover, an increase in services such as ATMs, self ticketing, food and beverages vending machine as well as growing retail industries and changing lifestyle of the people are aiding growth for the market in this region.
- Moreover, growing tourism in Asian countries is also driving the demand for a kiosk in the Asia Pacific region. For instance, according to travel China guide, China accounts for more than 141.2 million tourists trips for the year 2017, with revenue of CNY 5.97 trillion from the tourism sector.
- Due to this, many retailers and other service providers in places with a high concentration of tourists are increasingly employing kiosk systems, which eliminate the communication barrier and provide easy services for the tourists. Tourists visiting the country are also preferring these systems as they offer familiar operations and are easy to use.
The kiosk market is highly fragmented due to the players included across the value chain of the kiosk market include hardware vendors and software and solution vendors. In order to minimize overhead expense and improve economies of scale, the solution providers have begun manufacturing hardware. Moreover, the market is highly competitive and technology driven. The market also includes a large number of small players accounting for little market share individually. Some of the key players in the market include Samsung Electronics, NCR Corporation, Nexcom International Co.Ltd, KIOSK Information Systems, SZZT Electronics Co.Ltd, Shenzhen Hunghui IT Co.Ltd, IER SAS, and Slabb Inc., among others.
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