Self-checkout System Market - Growth, Trends, and Forecasts (2022 - 2027)

The Self-Checkout Systems Market is expected to register a CAGR of 10.2% over the forecast period (2022-2027). The market is expected to witness an upward trend owing to the increasing adoption among retail stores and financial institutions. Further, the growing technological advancements in the self-checkout system are anticipated to provide acceleration to the market over the forecast period.

Key Highlights

• The self-checkout systems are increasingly becoming popular in various end-user industries over the past few years. Retail automation and the increasing need for optimizing customer experience drive the need to adopt various technological trends, thereby affecting the retail sector. Customers demand seamless shopping experiences, along with AI product recommendations, which are propelling the adoption of self-service kiosks in the market. Self-service kiosks play a major role in stimulating self-checkout at retail stores.
• Moreover, self-service kiosks have become a vital part of various organizations, businesses, and locations, due to the growing need for self-service in some applications for better customer satisfaction, self-control, and privacy, which is expected to augment the demand for self-checkout systems.
• The technological advancements, growing demand for increased speed of checkout, the gradual shift from traditional payment system to the cashless environment, address of the labor shortage issues across the emerging countries, and the growing demand for modern store formats are some of the major factors influencing the growth of the self-checkout systems market. However, reluctance/lack of awareness to use self-checkout systems is expected to hinder the growth of the market.
• Additionally, the growth of the digital payments sector globally will support the expansion of the market. Customers are using online payments, digital wallets, and smart cards due to the increased convenience and payment security. For instance, according to India Brand Equity Foundation, digital payments in the country will increase around three-fold to USD 100.61 trillion by 2025. The expanding e-Payments market is eliminating the need for sales personnel at counters to enable financial transactions. There is an increasing demand for self-checkout systems that enable seamless financial transactions resulting in fast checkouts.
• The COVID-19 pandemic hampered the market's growth in 2020, attributed to the temporary closure of retail stores, entertainment venues, hotels, and transportation terminals following the lockdowns imposed. However, the urge to curb the infection during the pandemic is expected to benefit the market in the long term. These systems address the need to reduce the risk of infection both in stores and in queues outside stores as they allow stores to reduce the number of people waiting in line using a simple virtual queuing system and control the number of people within the store.

Key Market Trends

Retail Segment is Expected to Occupy a Significant Share of the Market

• Self-checkout systems are becoming increasingly popular in retail stores across the world. In addition to the checkout process, these models are also used for digital promotions, cross-selling, and displaying attractive loop videos that provide detailed information about the product features, prices, and offers in retail stores.
• Further, the growing demand for less installation space required forced retailers to adopt countertop self-checkout systems in their retail stores. In addition, stores with space constraints (mostly retail) are more inclined towards deploying these systems as they usually occupy lesser space than that stand-alone systems.
• Moreover, the adoption of various models of the self-checkout system has witnessed an upward trend in every size of retail store. For instance, according to the data from EHI Retail Institute, the number of stores with self-checkout systems in Germany in 2019 was 874, which increased to 1,319 stores with self-checkout systems in 2021.
• Further, several players in the market are increasing their investments in R&D activities to provide advanced software solutions that are being integrated into these checkout models to enhance retail stores' performance and features. Such expeditious developments are expected to boost market growth during the forecast period.
• Furthermore, the growing need for a self-checkout system in retail stores augmented the market's growth, resulting in widespread adoption among retail stores worldwide. For instance, in September 2022, Grupo Exito, one of Latin America's largest grocery retailers, announced the deployment of Toshiba Global Commerce Solutions' self-checkout solution at its Exito and Carulla branded stores, according to a press release. There will be 300 system installations in the company's Columbia stores.

North America Expected to Dominate the Market

• The North America region offers massive growth potential to the vendors in the market studied, attributed to the increasing demand for these systems in a large number of retail stores such as hypermarkets, supermarkets, department stores, and convenience stores, among others.
• Further, the increasing minimum wage levels across The United States and Canada (for example, the minimum wage surpassed USD 15 nationwide in The United States) are forcing employers to relieve their cashiers and deploy these systems. For instance, recently, McDonald's deployed self-service ordering kiosks at all their U.S. locations. Similarly, casual-dining brands like Chili's and fast-casual brands like Panera had already embraced this trend.
• Retailers in the region have recognized the need to incentivize digital payments and, thus, are offering more tangible benefits in the mind of the consumer, such as loyalty benefits. The technology has been better integrated with several apps and mobile commerce sites to create a more seamless experience.​
• Self-checkout kiosks are among some of the standard automation solutions deployed in supermarkets. Grocery chain Kroger uses sensors, and predictive analytics means to forecast when more cashiers will be needed.
• For instance, the use of interactive kiosks at the checkout counter in several stores, such as Wal-Mart and other big retail stores, may also drive the market in the United States and North America. These initiatives, coupled with significant regional market investments, are expected to drive the adoption and growth of self-checkout systems across various end-user verticals in North America.

Competitive Landscape

The Self-checkout System Market is moderately competitive and is currently dominated by a few players with technological expertise. The market is expected to be moderately consolidated in nature, with the major players holding a prominent share in the market. The market players are focusing on expanding their customer base across foreign countries by leveraging on adopting growth strategies, such as facility expansions, partnerships, and product launches, to increase their market share and their profitability.

• March 2022 - BP announced the deployment of Mashgin's artificial intelligence (AI) self-checkout technology at four ampm convenience stores as it explores options for a wider rollout. The technology will go live in Fairfield, Elk Grove, Pleasanton, and Millbrae in Northern California between April and June 2022. Mashgin's checkout system is a touchless self-checkout powered by AI and uses computer vision to scan items for purchase instantly.
• October 2021 - NCR Corporation announced that Royal Farms, a privately owned convenience store, has expanded its partnership to equip its stores with the company's self check out solutions. This self-checkout implementation complements Royal Farms' existing NCR solutions, including enterprise POS software. The addition of self-checkout technology improves staff efficiency and the customer's shopping experience.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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