PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1719328
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1719328
The U.S. point-of-sale (POS) software market, valued at USD 4.7 billion in 2024, is projected to grow at a compound annual growth rate (CAGR) of 9.7%, reaching USD 9.8 billion by 2032. This growth is driven by the increasing adoption of contactless payment solutions, mobile POS systems, and integrated analytics that help businesses improve operational efficiency and enhance customer experience. The market is expanding rapidly due to advancements in payment technologies, regulatory requirements, and businesses' need to streamline transactions, inventory, and sales data.
Furthermore, the rise of e-commerce and omnichannel retailing, coupled with the growing demand for flexible, cloud-based solutions, is reshaping the POS landscape. Retailers, hospitality businesses, and healthcare providers are increasingly adopting cloud and mobile POS systems for real-time sales tracking and seamless cross-platform customer interactions.
Key Insights
The fixed POS software segment accounted for the largest share in 2024, driven by its stable functionality in retail and food operations, providing full inventory tracking and customer management features essential for daily transactions.
The mobile POS category is the fastest-growing segment, with a 10.5% CAGR, fueled by the surge in contactless payments, the popularity of digital wallets, and the growing demand for flexibility in payments, particularly among small businesses and temporary retailers.
Cloud-based POS solutions dominated the market in 2024, representing 65% of the market share. Their cost-effectiveness, ease of deployment, and flexibility make them particularly attractive to small and medium enterprises (SMEs) as well as large enterprises seeking real-time data access and remote management capabilities.
The large enterprise segment held a 60% market share in 2024, driven by the scale and complexity of operations in sectors like retail, hospitality, and restaurants, which require advanced, integrated POS systems to manage high transaction volumes.
The small and medium enterprise (SME) segment is expected to grow at the highest CAGR of 12%, as SMEs increasingly move from basic cash registers to more advanced POS systems, spurred by digitalization, cloud solutions, and government support.
Windows-based POS systems continued to dominate in 2024 due to their stability and legacy use in retail and hospitality, though Android-based systems are expected to grow at the highest CAGR of 13%, offering greater flexibility and compatibility with mobile devices.
The increasing popularity of omnichannel retailing, where customers demand seamless experiences across physical, online, and mobile platforms, is a major driver of the POS software market, encouraging businesses to adopt systems that integrate across multiple channels.
The U.S. Northeast region remained the largest market, while the South region saw the fastest growth, driven by the expansion of e-commerce, the hospitality sector, and tech adoption in retail businesses.