Report : NFC POS Terminal Market Forecast to 2027 - COVID-19 Impact and Global Analysis By Product Type (Mobile and Fixed) and Application (Entertainment, Healthcare, Hospitality, Retail, and Others), and Geography
According to the new research report, titled “NFC POS Terminal Market Forecast to 2027 – COVID-19 Impact and Global Analysis – Product Type (Mobile and Fixed) and Application (Entertainment, Healthcare, Hospitality, Retail, and Others)” published by The Insight Partners, the market is expected to reach US$ 11,503.09 million by 2027, registering a CAGR of 16.8% from 2020 to 2027.
NFC POS Terminal Market in APAC to Grow at Highest CAGR during 2020–2027
The main contributors to the NFC POS terminal market in APAC are Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. The region has more progressive economic outlook than other regions in the world. With fast-growing countries, such as China and India, and developed countries, such as Japan, it has tremendous growth potential. It is anticipated that the region would grow at ~5–6% per year and account for two-thirds of global growth. Rapid innovations, economic digitalization, adequate government funding, increased understanding of education, and rise in middle-class incomes are among the attributable factors that have ensured a smooth transition from the developing stage to the developed phase of APAC economies, leading to a rise in demand for oil & gas, electricity, consumer electronics, and other commodities.
Sales are booming at an unprecedented pace in the Asian economies. Many businesses are looking forward to make a substantial investment in the Indian retail space due to growing demand for consumer products, such as home appliances and consumer electronics. For instance, Walmart Investments Cooperative U. A. invested US$ 37.68 million (INR 2.75 billion) in Wal-Mart India Pvt Ltd. In addition, the retail industry in the country has seen an increase in investments, approx. US$ 180.18 million, in 2018. Furthermore, Max Hypermarket India has partnered with Auchan Group, a French retail giant, to set up hypermarket franchise stores in India. In different states in India, both retailing companies have planned to open 12–15 new stores annually.
In addition, because of the presence of manufacturers of consumer electronics in China, South Korea, and Taiwan, the retail industry scenario is shifting. The high demand and deployment of advanced payment gateway solutions, such as NFC POS systems, is supported by the booming retail industry. Such an optimistic outlook for the retail sector in Asian countries is expected to fuel the growth of retail stores, thereby driving the market.
It is becoming apparent with the COVID-19 pandemic spreading across the US that a few can escape its scope, presenting significant challenges to all industries. The closedown of all retail outlets by the government authorities coupled with the social distancing norms laid down by them is negatively affecting the investments by retail outlets on any kind of technological advancements. For instance, the sales of online grocery segment across the US recorded an increase by 210.1% in 2020 due to the pandemic. This rising online sales of consumables are decreasing the dependency of the region’s population on brick and mortar stores, which is restraining the growth of the NFC POS terminal market.
Key Findings of Study:
Contactless payment means that individuals can make payments on a point of sale (PoS) system without the need to swipe or insert their wallet. By simply waving their phone at a PoS terminal, one may make payments. Often referred to as NFC technology, it enables people to make purchases without having to swipe or insert a card. All a person needs to do is to tap or wave their cards at an NFC compliant PoS terminal. The technology makes it possible for devices to interact within a 4-cm radius. Using certificates, tags or even stickers, these transactions can be completed. This is influencing the adoption of contactless payment across both developed and developing countries, such as the US, the UK, Germany, France, China, and Australia. For instance, more than 51% of the Americans presently use contactless payment which consists of tap-to-go credit cards and mobile wallets, such as Apple Pay and Samsung Pay. Similarly, the UK (64%) and South Korea (96%) have higher adoption of contactless payment. This is influencing the adoption of NFC POS systems across retail outlets to offer variety of payment options to the customers. Thus, the above-mentioned factors are expected to influence the growth of the market over the years.