Self-service tech market to reach $31.75B by 2020: report
By Canadian Vending
By Canadian Vending
June 18, 2015, Portland, OR – The international self-service technology market will generate $31.75 billion by 2020, registering a CAGR of 13.98 per cent over the next five years, according to a new report by Allied Market Research.
The market report, entitled “Global Self-Service Technology Market (ATM Machines, Kiosk Machines, Vending Machines and Geography) – Size, Share, Industry Analysis Trends, Opportunities Growth Segmentation and Forecast, 2014 – 2020” suggests the deployment of different types of vending machines and technologically advanced kiosks has revolutionized the self-service industry by creating an improved automation experience.
The self-service technology market is primarily driven by the enterprises’ need to provide more convenient services to the customers, and at the same time optimizing the cost of such services, Allied Market Research said in a news release, adding that enterprises operating in sectors such as retail, health care, food and beverage, and banking will be the key demand facilitators.
Technological advancements such as wireless communication and remote management also will contribute to overall market growth. Integration of biometric security services such as fingerprint recognition, which help ensure secure financial transactions, is expected to boost the market growth, the company said.
However, stringent policies and regulations imposed by governments of different countries restrain the growth of self-service machines market. For instance, in Japan, the government has banned the use of alcohol and cigarette vending machines by people below the age of 18 years. Similar restrictions are imposed by governments in other developed regions such as United Kingdom and the United States.
The kiosks segment is expected to show the highest growth during the forecast period. Asia-Pacific and Latin America, Middle East and Africa (LAMEA) are forecasted as lucrative markets for kiosks. With the maximum number of installations, vending machines contributed nearly 57 per cent to the overall revenue of self-service technology market in 2014. This segment is expected to grow at a steady pace, accounting for more than half of the overall market revenue between 2015 and 2020.
In addition, within the vending machines market, the beverage vending machines that include coffee, tea, soda, cold drink and alcohol vending machines will generate the highest revenues for this segment from 2014 to 2020.
ATMs have emerged as multifunctional machines in recent years. The easy installation process and the limited space required for deploying these machines, would supplement the growth of this segment between 2015 and 2020.
The demand for self-service machines and automated devices, wireless communication, remote management and technology advancements, is having an impact on the self-service technology market. The ongoing trend reflects a broader adoption of self-service technology products and their installations at public places. The challenge for manufacturers is to provide these self-service machines at effective cost.
In addition to the challenges posed by different government regulations, surviving in a competitive market is a major challenge for companies operating in the self-service technology market.
The report highlights several trends:
· Retail, banking and finance, and health-care sectors will adopt more self-service outlets between 2015 and 2020.
· The vending machine segment contributed the highest share of revenue (57 per cent) to the overall revenue of self-service technology market in 2014.
· North America accounted for the highest adoption rate of self-service technologies with 44 per cent share in the international revenue.
· Asia-Pacific and LAMEA are forecast as the most lucrative markets in terms of growth, owing to developments in the retail and consumer goods sector and the adoption of advanced technologies.