SELF-CHECKOUT SYSTEM MARKET ANALYSIS

The global self-checkout system market US$ 5,124.37 Mn in terms of value by the end of 2022, exhibiting a CAGR of 9.37% during the forecast period (2023-2030). Self-checkout also referred to as a self-service checkout machine provides a mechanism for customers to process their own purchases from a retailer. They are deployed as an alternative to conventional cashier-staffed checkout. The self-checkout system offers various advantages such as reduced labor costs, reduced waste items compared to cash registers, and more efficient pre-orders and bulky purchases, and it offers convenience for foot retail and restaurants as they allow customers to customize their orders. There are different types of technologies included in self-checkout systems namely barcode, Digimarc barcode, Radio-Frequency Identification, etc.

Self-checkout System Market: Regional Insights

The regional market for self-checkout systems is being driven by the presence of numerous grocery and supermarket chains and the growing transformation of retail inside stores.

The expansion of the regional segment was aided by the growing use of self-checkout systems by supermarkets and hypermarkets in the United States and Canada. The primary cause of the unfilled job gap in the United States is employee demand for a more competitive pay scale. As a result, demand for self-checkout systems is growing across all physical store formats.

In order to provide customers with a seamless shopping experience, retail establishments in the region are expanding through hyper local offerings and increasingly incorporating Omni channel strategies. Other factors that contribute to regional growth include an increase in household expenses, a decrease in household size, rapid urbanization, an increase in disposable income, and the adoption of advanced technology.

For instance, in June 2021, the Japan-based Toshiba Corporation teamed up with World line, a French multinational payment and transactional services provider, to help the former company launch its Pro-X Hybrid Kiosk, which provides a point-of-sale terminal with greater adaptability. The kiosk is both a self-checkout station and a traditional register. Through this partnership, the solution was launched with the intention of increasing market share.

Figure 1: Global Self-checkout System Market Share (%), in terms of Value, By Region, 2022

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Self-checkout System Market Drivers:

Increase in checkout speed

Many end-use sectors such as restaurants and retail are focused on faster checkout speeds, in order to provide effective service to a large volume of customers. Faster, simpler, and more efficient checkouts result in a superior user experience. For a retailer, it translates into less checkout abandonment and more conversions. Furthermore, a faster checkout system is designed to return customers that reduce fields, in order to ensure a faster checkout process. Self-checkout systems offer an efficient and faster checkout service with a standardized experience on different devices. It also enables customers to keep purchasing without migrating away from shopping platforms. Thus, these factors are expected to drive the growth of the global self-checkout system market during the forecast period.

Reduction in operational cost

Another advantage of implementing a self-checkout system is reduced operational costs. For retailers and restaurant owners, keeping the operational cost to a minimum is crucial without compromising the quality of service. Since there is no cashier at every register, self-checkout systems reduce labor costs. In fact, one employee can monitor around 6-10 self-service checkout systems easily. This, in turn, allows stores and restaurants to handle traffic spikes and service more customers during their busy schedules. In the long-term, it reduces overall operational cost, making the business more profitable and efficient. Therefore, these factors are expected to propel the global self-checkout system market growth over the forecast period.

Self-checkout System Market Opportunities:

Rising demand from convenient as well as specialty and retail stores

There has been a massive demand for self-checkout systems, particularly in specialty, retail, and convenience stores. These stores process a vast volume of customers and it can increase during festivals and busy hours. Therefore, a faster and more efficient platform is required to provide more improved service. Furthermore, these systems can offer cashless transactions, which eventually accelerates the speed of purchasing.

Emerging concept of unmanned stores

Many countries have started adopting the innovative concept of unmanned stores, especially in China. These stores typically rely on artificial intelligence and smartphone-related technologies to replace conventional features in a store. Such stores have been opened in the U.S. and China on an experimental basis, to test their proficiency. For instance, in May 2019, Amazon announced to open its first unmanned store Amazon Go in New York U.S. These stores are rapidly adopting self-checkout systems since they serve the purpose of ‘no manual intervention’.( Amazon is a vast Internet-based enterprise that sells books, music, movies, housewares, electronics, toys, and many other goods, either directly or as the middleman between other retailers and Amazon’s millions of customers).

Self-checkout System Market Trends:

Rising trend of ‘mobile scan and go’ solutions

The rising penetration of smartphones and high-speed internet has increased the adoption of mobile self-checkout solutions also referred to as ‘mobile scan and go’ solutions. These solutions are increasingly becoming popular among consumers and retailers. Furthermore, it allows onsumers to scan, bag, and pay for their products using a smartphone. This, in turn, allows retailers to optimize their costs and the number of sales.

Growing adoption of AI-based Self-checkout systems

Artificial intelligence (AI)-based self-checkout systems are gaining popularity among retailers. These systems allow customers to scan individual products and direct them for payments. As a matter of fact, these systems can potentially reduce frauds that take place in supermarkets. For instance, in January 2019, Fujitsu introduced a new self-checkout solution that leverages artificial intelligence to curb fraud at supermarket self-checkouts.( Fujitsu is a world leading Public Sector IT Service provider. They help public sector organizations harness the power of technology to improve citizens' lives. There Digital Government Solutions ensure autonomy, secure sharing & data protection.)

Global Self-checkout System Market- Impact of Coronavirus (COVID-19) Pandemic

According to Coherent Market Insights’ analysis, the impact of coronavirus (COVID-19) pandemic on the self-checkout system market is moderately high. The supply, production cycles, employees are highly impacted due to nationwide lockdowns. Furthermore, the closure of restaurants and physical stores around the globe due to imposed lockdown will also impact the industry growth. However, changes in consumer shopping habits in response to the COVID-19 pandemic will encourage industries to deploy touchless or robust self-checkout options in stores. According to the data published by Shekel Brainweigh Ltd., a provider of weighing technologies in April 2020, in the U.S., two-thirds of consumers are using self-checkout, touchless self-checkout or frictionless micro-markets to pay for groceries, while less than one-third of respondents are ordering groceries online. Therefore, these factors are expected to propel the global self-checkout system market growth over the forecast period.

Self-checkout System Market Restraints:

Increased loss of inventory

One of the major disadvantages of a self-checkout system is the loss of inventory. Many retailers have noted the loss of stock typically occurred due to self-checkout systems. According to the ECR Emigration Clearance Required Community Shrinkage and On-shelf Availability Group (OSA), a typical retailer can experience an increase in stock loss of the sales that go through Self-checkout machines. According to the same source, a typical store with 25% of its sales value processed through a fixed self-checkout system can witness additional stock losses of 0.25% of sales value. As a result, many retailers are hesitant about the adoption of these systems. Therefore, these factors are expected to hamper the global self checkout system market growth over the forecast period.

Reluctance to use self-checkout system

Many consumers are reluctant to use self-checkout systems, typically due to a lack of awareness. Other people are refusing to use self-checkout systems with the misconception that hinders the jobs of cashiers. Furthermore, some consumers have reported that they are not happy with the experience and thus have refused to use it. Therefore, these factors are expected to restrain the growth of the global self checkout system market during the forecast period.

 Figure 2: Global Self-checkout System Market Share (%), in terms of Value, By Offering, 2022

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Self-checkout System Market Segmentation:

Self checkout system market is segmented into by Offering (Hardware, Software, and Services), by Mounting Type (Standalone, Wall Mounted, and Countertop), by End User (Supermarkets, Hypermarkets and Department Stores, Convenience Stores, and Others), by model type (Cash model, Cashless Model).

Self-checkout System Market: Key development

In July 2021,An AI-powered self-checkout system was introduced by Kyocera Group, a Japanese manufacturer of electronic components. Products are instantly recognized by this intelligent system, reducing the need for long checkout lines and the associated effort.

In January 2022, In 10 stores in Minsk, Russia, Qingdao CCL Technology Co., Ltd. and Tusson Ltd. installed self-checkout machines.

In September 2021, Diebold Nixdorf Incorporated and Conad Nord Ovest worked together to implement SCO systems and solutions in the store. More than 160 checkout systems were installed by the company in conad supermarkets and hypermarkets in Italy by 2021.

Self-checkout System Market: Key Companies Insights

The self checkout system market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence in the regional as well as global markets.

Some of the key players in the global self checkout are Diebold Nixdorf, Inc., DXC Technology, ECR Software Corporation, Fujitsu, ITAB Group, NCR Corporation, Pan-Oston Corporation, ShelfX Inc., Slabb Inc., and Toshiba Global Commerce Solutions.

*Definition: Self-checkout also referred to as a self-service checkout machine provides a mechanism for customers to process their own purchases from a retailer. They are deployed as an alternative to conventional cashier-staffed checkout. The self-checkout system offers various advantages such as reduced labor costs, reduced waste items compared to cash registers, and more efficient pre-orders and bulky purchases, and it offers convenience for foot retail and restaurants as they allow customers to customize their orders.