Study: Customer experience drives demand for this technology

Consumer demand for more control over their shopping environment is driving growth in one particular technology category.



According to a new study from market research firm Technavio, “Global Self-service Kiosk Market 2016-2020,” the market size of the global self-service kiosk market is predicted to reach close to $18 billion in revenue by 2020. This represents a compound annual growth rate (CAGR) of 5% between 2016, when the market is expected to be roughly $14 billion, and 2020.



The retail segment is the largest single contributor to the self-service kiosk market, with a share of more than 46%, in 2015. Self-service kiosks in the retail segment include those deployed by supermarkets, shopping centers, general merchandise stores, drug stores, convenience stores, gasoline stations, and automobile dealerships.



A typical retail self-checkout system consists of an ATM, barcode scanner, weighing scale, and check stand. After selecting the required items, consumers then scan them at the kiosk and place the products in their bags. Subsequently, customers insert their cash or credit or debit cards into the machine to pay for the goods.



According to Technavio, retailers across the globe are increasing their investments in adopting technologically advanced kiosks to enhance customer experience. The rising adoption of self-service kiosks in the retail sector is mainly attributed to the growing number of customers who seek high-quality service. They also help reduce overhead costs by replacing support staff and providing immediate access to information on a 24/7 basis.



Kiosks are also used to collect customer data, which enables retailers to customize their service offerings. Largely used by supermarkets and hypermarkets, self-service kiosks are becoming part of other retail formats like department stores, specialty retailers, and small convenience stores.



The demand for self-checkout systems in the retail sector is growing fast and is expected to foster significant growth during the forecast period.