January 4, 2021

Kiosk (Self-service/Interactive Kiosk) Market (Covid-19) Outbreak: Trends Together With Growth Forecast To 2027

Kiosk (Self-service/ Interactive Kiosk) Market to Gain Traction with Self-Service Trends

Currently, the kiosk (self-service/ interactive kiosk) market has a great potential to empower customers and enable them to do things on their own. Self-service kiosks have made breakthrough progress, and this can be seen in their expansive, time-saving, and cost-effective solutions that strike the right chord with consumers.

Self-service kiosks are showcasing myriad product dispensing capabilities. In addition, there has been the evolution of self-service kiosks for cryptocurrency mining. These sophisticated kiosks utilize a multi-algorithm mining platform that helps mine and cull out the most profitable coins that will give customers maximum return on investment.

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While self-service kiosks in banking are automating banking solutions such as mortgage approvals, some digital kiosks are also being used as an advertising platform by small-scale and large-scale businesses. These allow business stakeholders to interact with customers in a very cost-efficient manner. Such a rapid and paradigm shift in kiosk technology will continue to drive the kiosk (self-service/ interactive kiosk) market in a significant manner.

6 out of 10 Self-service/Interactive Kiosks are Sold to the Retail Industry

Self-service/interactive kiosks are in the limelight now with the advent of robotics, AI, and analytics. User-friendly and interactive experiences through kiosks have fueled the growth of this market amid many competitors within this arena. With the increasing use of kiosks across versatile industrial applications, the market for kiosks (self-service/ interactive kiosks) is anticipated to grow to a valuation of ~US$ 2.4 billion by 2027.

Kiosks (self-service/interactive kiosks) have been ubiquitous across various channels, especially in retail outlets such as shopping malls and product showrooms. Digitization has teamed up with retail to provide a novel, convenient, and cash-less experience to shoppers.

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According to TMR analysts, the retail segment of the kiosk (self-service/ interactive kiosk) market holds ~60% volume share of the market, due to increased competition as well as growth of retail as a consumer industry.

Kiosks are becoming speedier, dynamic, and more efficient and versatile. This can be evidenced in the massive innovations that have been promulgated in the kiosk (self-service/ interactive kiosk) market.

  • Dressing room/ trial room kiosks are allowing customers to access custom-built software that is powered by an IOS device. Through this, they can view product portfolios, ask for other sizes and styles, check for gift options, and access a host of other options without having to leave the fitting/ trial room. Store managers can receive notifications and give the customer the desired feedback that he/she wants.
  • Hands-free kiosks use an emerging 'machine vision technology', wherein, the customer can use pointing gestures for his on-screen selections. The kiosk assimilates the customer demographics and responds accordingly.
  • Robotic kiosks use advanced analytics and AI to enable express check-outs. The kiosk recognizes the customer as per his/her age and gender, and gives out customized information. It also prompts receipt and bar code scanning.

These newer kiosk functionalities are re-shaping the way we think and approach retail. With the shopping experience becoming more convenient for the shopper and kiosk deployer, the kiosk (self-service/ interactive kiosk) market will continue to gather momentum.

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Digital Signage and Airport Kiosk Technology are Opening New Avenues of Growth

Airport Kiosks and e-gates are not only adding intrinsic value to the customer experience, but are also leveraging customer spending. The kiosk (self-service/ interactive kiosk) market will witness the fastest growth in the transportation segment over the forecast period.

In order to avoid long queues and delays at airports, airport managements are increasingly turning to self-service, automated kiosks for bagging, document scanning, flight re-booking, and check-ins. Smart kiosks at airports are using digital biometrics ID management to automate the entire travel experience, right from check-in to boarding. This driving factor is expected to have a high impact on the market’s growth during the forecast period.

Interactive digital signage kiosks are a critical technological intervention for displaying pertinent information and keeping customers engaged across different industry verticals. Sophisticated AI tools on digital signage kiosks are rapidly changing the kiosk (self-service/ interactive kiosk) market, allowing installers to get maximum gains on their investments, and giving users a diversified shopping experience. The elimination of printed signage is not only a cost-effective strategy but also reduces the wastage of paper. Since the software used in digital signage involves rapid updation, the entire process becomes cheaper and more efficient. Such a digitally-immersive experience will bolster the demand for digital signage kiosks and give an impetus to the growth of the kiosk (self-serving/ interactive kiosk) market.

Competitive Landscape Poised for Growth

The competitive landscape is showing a highly fragmented market, with a large number of industry players vying to gain a stronghold. Major companies such as ZIVELO, Diebold Nixdorf, NCR Corporation, Evoke Creative Limited, and Zytronic PLC collectively held a market share of ~35% in the year 2018. Their expansion in developing economies, along with robust hardware and software solutions have enabled them to expand and make a significant contribution to the global kiosk (self-service/ interactive kiosk) landscape.

Both Diebold Nixdorf and NCR Corporation are enhancing their services and solutions by offering advanced technologies such as cloud-based platforms and high-quality interactive kiosks. Diebold Nixdorf, in particular, is strengthening its position through acquisitions and collaborations. For instance, in Oct 2018, Diebold entered into a profitable collaboration with Mastercard to accelerate the growth of banking, payments, and retail options through digitized, managed services. This will be done through self-service solutions and the installation of kiosks.

NCR Corporation is one of the leading players in the kiosk (self-service/ interactive kiosk) market. It offers diverse and specialized solutions in retail, hospitality, telecommunications, and finance. In July 2019, NCR Corporation acquired D3 Technology Inc., a mobile banking specialist. This acquisition will allow NCR Corporation to expand its digital footprints in the banking sector as well.

Emerging companies such as Meridian Kiosks LLC, REDYREF, Kontron AG and JCM Hlobal held a market share of ~17% in the year 2018. These companies are jointly focusing on providing technological solutions to their customers in the kiosk (self-serving/ interactive) kiosk market. Meridian offers self-service solutions in kiosks, customized kiosks, and kiosk security solutions. In Nov 2018, Meridian partnered with Samsung SDS America. Samsung SDS provides advanced solutions in the arena of secure mobility and advanced analytics. The joint forces of both companies will use their common expertise to produce out-of-the-box digital signage solutions that will propel their growth in the market.

Kontron AG has a highly diversified product portfolio, wherein, it offers hardware, middleware, and other services to its customers. The company offers OEM solution and indoor/outdoor kiosks highlighting check-in services, banking, digital signage, and entertainment solutions. In Aug 2019, Kontron signed a deal with Fujitsu Technology Solutions to acquire its mainboard business. It is a well-timed, strategic step taken by Kontron to expand Fujitsu’s products and integrate them into its own inherent IoT technology. This will allow it to not only expand in the kiosk (self-serving/ interactive kiosk) market, but also offer a high-quality and refined product portfolio to its customers.

The Analysts Speak

A comprehensive view of the kiosk (self-serving/ interactive kiosk) market has led our analysts to conclude that, the market is growing at an impressive rate, with North America and Europe emerging as the leading regions for the global demand for kiosk (self-serving/ interactive kiosk) uses and applications. The rising demand for kiosks (self-serving/ interactive kiosks) and their versatile usage in diverse facilities such as retail, transportation, banking, and healthcare are spurring their demand. The impact of digitization on the kiosk (self-serving/ interactive kiosk) market will remain high, globally, fuelling the demand for kiosks due to enhanced user experience and increased cost savings. The incorporation of digital signage is spurring the demand for kiosks (self-serving/ interactive kiosks). Strong financial collaborations, strategic partnerships, and technological innovations of key market players will also give impetus to the kiosk (self-serving/ interactive kiosk) industry.

Technological breakthroughs such as self-serving kiosks for cryptocurrency mining, AI-powered kiosks, and kiosks that use cloud storage could provide insights to key industry stakeholders as an efficient data management and time-saving strategy, thereby increasing the profit margins of market players. Companies with research & development capabilities and technological prowess will gather momentum and profitability in the kiosk (self-serving/ interactive kiosk) market. Leading players who are leveraging technology will continue to grow exponentially and have a vast market revenue share. However, the exponentially increasing costs of installation and concerns surrounding cyber security of sensitive data could restrain the growth of the kiosk (self-serving/ interactive kiosk) market.

Kiosk (Self-service/ Interactive Kiosk) Market in Brief

  • The kiosk (self-service/ interactive kiosk) market is expected to register a CAGR of ~10% between 2019 and 2027. The market is projected to be driven by increasing competition between kiosk (self-service/interactive kiosk) market players in various industries such as retail, finance, and transportation, to provide improved client experiences.
  • The kiosk (self-service/ interactive kiosk) market is expected to reach ~US$ 2.4 Bn by 2027 from ~US$ 1.1 Bn in 2019. The need to reduce employee costs and technological advancements in self-service interactive kiosks are expected to drive their demand during the forecast period.
  • The retail segment is anticipated to capture the largest share among all the other industries being considered for analyzing the kiosk (self-service/ interactive kiosk) market.
  • North America remains the dominant leader in the global kiosk (self-service/ interactive kiosk) market, with revenues in 2019 estimated at ~US$ 535 Mn. The presence of a large number of retail players is the main reason attributed to the dominance of this region in the global kiosk (self-service/ interactive kiosk).
  • In terms of component, the hardware segment is projected to dominate the kiosk (self-service/ interactive kiosk) market, with a share of ~58% in 2019, and it is expected to continue this dominance during the forecast period, due to the introduction of technologically-advanced hardware components by kiosk manufacturers.

Kiosk (Self-service/ Interactive Kiosk) Market Definition

  • The kiosk (self-service/ interactive kiosk) market report provides analysis of the global kiosk (self-service/ interactive kiosk) market for the period of 2017–2027, wherein, 2018 is the base year and 2019 to 2027 is the forecast period. Data for 2017 has been included as historical information.
  • In this report, we analyze the growth drivers that are enhancing the value of the kiosk (self-service/ interactive kiosk) market and various opportunities prevailing in the market.
  • Industries are focusing on improving client experiences and also aiming at cost reduction using kiosks, which reduces the need for more employees, and hence results in cost reduction to a great extent.

Asia Pacific Kiosk (Self-service/ Interactive Kiosk) Market– Snapshot

  • Asia Pacific is one of the fastest growing regions, as it holds more than half of the world’s population, and is also the world’s largest retail market.
  • The retail industry is continuously driven by improved standards of living in countries such as India and China, apart from constant growth in the population and on-going social developments.
  • Customer requirements and needs are changing at a rapid pace. In order to keep up with the growing demand, market players are competing to provide better facilities to their clients, by introducing new technologies and improved in-store experiences.
  • These factors are expected to fuel the demand for kiosks (self-service/ interactive kiosks) to a great extent in the near future.

Key Growth Drivers of the Kiosk (Self-service/ Interactive Kiosk) Market

  • Focus on enhancing customer experience- Kiosks involve advanced programming, which has streamlined the entire customer interaction process, and has led to real-time interaction between the user and the kiosk. Retail and financial industries are transforming their operations to be able to better help their clients, which is driving the demand for kiosks (self-service/ interactive kiosk) at a rapid pace.
  • Growing demand for kiosks (self-service/ interactive kiosk) at airports– In order to avoid delays and long queues at airports, both, passengers and airlines are increasingly looking for various self-service kiosks for as check-in, self-boarding, document scanning, bag recovery, and flight rebooking at airports. It is expected that, the presence of such self-service solutions would result in favorable responses from passengers in the near future, which, in turn, is likely to drive the demand for kiosks (self-service/ interactive kiosk) during the forecast period.
  • Growth of organized retail sector in developing countries- Developing countries such as India and China are witnessing improvements in standards of living. The disposable income with citizens has resulted in urbanization, particularly in countries such as India, Bangladesh, Indonesia, and Thailand. These developing countries are in the limelight in the retail world, and global retailers are focusing on entering these kiosk (self-service/ interactive kiosk) markets. This factor is expected to result in the increased demand for kiosks in these developing countries.

Key Restraints in the Kiosk (Self-service/ Interactive Kiosk) Market

  • Cost of installation: The installation and authorization of kiosks involves high expenditure. Moreover, this expenditure continues to rise with the maintenance of hardware and software components. A majority of kiosks in operation today are touchscreen-based. Thus, a high possibility of the screen getting damaged exists, entailing regular replacement, resulting in increased costs.
  • Increased risk of physical theft in retail stores: Physical theft is one of the most important concerns in any retail business. Employees are unable to keep track of every customer on self-checkouts, and it is easy for customers to steal. The general trend is replacing the bar codes of high-priced items with lower-priced items. This is considered a serious threat for any business installing kiosks to boost sales growth. This restraint is expected to have high a impact in the coming years.

Kiosk (Self-service/ Interactive Kiosk) Market– Competitive Landscape

  • In April 2019, Redyref introduced its Prodigy kiosk to serve a range of uses, including a virtual receptionist, self-ordering, and self-pay systems.
  • In January 2018, Kiosk Information Systems introduced the Apollo KT-3250, a 32-inch order entry model for quick-service restaurants. The product offers secure payment options and a 32-inch PCAP AIO interface.
  • In April 2018, Diebold Nixdorf, Inc. was awarded the prestigious Red Dot Product Design Award for its new interactive retail kiosk solution - the K-two. The K-two retail kiosk is distinguished by a user-friendly and flexible design that can be easily adapted to changing business needs and consumer demand.

Kiosk (Self-service/ Interactive Kiosk) Market - Company Profile Snapshot

Diebold Nixdorf, Inc.: Founded in 1859, Diebold Nixdorf is one of the prominent companies that provides kiosks for all industries across the globe. The company operates through three business segments: Software, Services, and Systems. The company’s products and service portfolio includes integrated technology solutions, self-service kiosks, and ATM terminals. The company’s operations are scattered across North America, Asia Pacific, Europe, the Middle East, Africa, and Latin America.

NCR Corporation: Founded in 1884, NCR Corporation is headquartered in Atlanta, Georgia, U.S. The company's key offerings include automated teller machines (ATMs), point of sale (POS) terminals and devices, self-service kiosks, omni-channel platform software, and other software applications. The company provides kiosk solutions to the retail, hospitality, telecommunication, and financial sectors.

Meridian Kiosks: Founded in 1999, Meridian Kiosks is headquartered in Aberdeen, North Carolina, U.S. The company offers innovative and self-service solutions, indoor–outdoor kiosks, customized kiosks, and kiosk security solutions across the globe. The company's key offerings include interactive digital kiosks, bill payment kiosks, locker kiosks, and EV charging stations. Meridian Kiosks serves the retail, healthcare, hospitality, government, and entertainment sectors.

Other major players operating in the global kiosk (self-service/ interactive kiosk) market profiled in the report include

  • Acrelec
  • Fabcon, Inc.
  • Flytech Technology
  • Fujitsu Ltd.
  • Kiosk Information Systems
  • Kontron AG
  • Olea Kiosk Inc.
  • among others.

Companies are shifting toward the introduction of technologically-advanced processes to serve their clients in order to gain a competitive advantage in the kiosk (self-service/interactive kiosk) market.

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