The global self-service kiosk market size was valued at USD 26.45 billion in 2022 and is expected to reach USD 43.65 billion by 2028, growing at a CAGR of 8.71%. Businesses are adopting self-service kiosks to improve efficiency, enhance customer experience, and reduce operational costs. With this, self-service kiosk has gained widespread adoption in the retail sector. Thus, the high adoption of kiosks in retail and customized consumer preferences are major trends that will gain higher popularity in the market. Furthermore, a high preference for user-friendly customer service and high demand for customized products will offer tremendous growth opportunities to vendors in the global self-service kiosk market.
Self-service kiosk refers to a specific segment of the interactive technology industry that focuses on designing, manufacturing, and deploying automated, standalone devices that enable users to perform various tasks and transactions independently, without human assistance. Self-service kiosks are typically equipped with user-friendly interfaces, such as touchscreen displays, voice recognition, or gesture controls to facilitate user interactions. Further, the self-service kiosk market in North America has been growing steadily, driven by the increasing demand for automated and contactless solutions across industries. Businesses are adopting self-service kiosks to improve efficiency, enhance customer experience, and reduce operational costs.
MARKET TRENDS & OPPORTUNITIES
Rising Consumer Preference for Contactless Payment Processing
The rising consumer preference for contactless payment processing is a significant trend in the self-service kiosk market. This trend has gained momentum recently, driven by various factors influencing consumer behavior and expectations. Contactless payment methods, such as near-field communication (NFC) or mobile wallets, offer customers a faster and more convenient way to complete transactions.
Moreover, the ongoing COVID-19 pandemic has significantly impacted consumer behavior, emphasizing the importance of hygiene and reducing physical contact. Contactless payment methods provide a hygienic alternative to handling cash or touching payment terminals. Consumers appreciate the reduced risk of germ transmission associated with contactless payments, making it an attractive option when using self-service kiosks in public spaces. As more consumers adopt mobile wallets, they expect businesses and self-service kiosks to support these convenient payment methods.
User-Friendly Service for Consumers
A user-friendly service ensures a positive experience for consumers interacting with self-service kiosks. By prioritizing a user-friendly service, businesses can enhance the self-service experience, encourage adoption, and build positive consumer relationships. Continuously gathering feedback, conducting usability tests, and incorporating user insights can help identify areas for improvement and ensure a seamless and enjoyable self-service experience. Some common insights for maintaining user-friendly services include convenience, control & autonomy, intuitive interface, visual and audio feedback, error prevention & handling, and multilingual & accessibility support. Therefore, major vendors in the self-service kiosk market are mainly inclined towards modifications in their products by offering user-friendly solutions or services to consumers.
Lack of Technological Advancement in Low- And Middle-Income Countries
The penetration of self-service kiosk products remains low in low-& middle-income countries as compared to the developed nations. The low awareness about applications of kiosks in developing markets, the high cost of technological advancements or technical machinery, and the lack of awareness about self-service are major growth inhibitors for the self-service kiosk market. Furthermore, end-users in many countries, such as APAC, Middle East & Africa, perceive self-service kiosk products as luxurious. Thus, their penetration among different industries for indoor or outdoor purposes remains low in these regions.
INSIGHTS BY PRODUCT
The high demand for hardware kiosks characterizes the global self-service kiosk market. The hardware segment is expected to witness the highest growth during the forecast period as hardware self-service kiosks are equipped with physical components and peripherals that allow users to interact with the system. Apart from hardware self-service kiosks, the demand for software & systems is also anticipated to grow significantly between 2023 and 2028. The high adoption of artificial intelligence augmented and virtual reality is expected to boost the demand for self-service kiosks.
INSIGHT BY AREA
The global self-service kiosk market by area segments as area indoor and outdoor. In 2022, the indoor segment dominated the global industry. The significantly increased adoption of kiosks in various industries and emerging self-service technologies are expected to boost the market demand for indoor self-service kiosks. Indoor self-service kiosks provide customers with a seamless and convenient way to access products, services, and information. Furthermore, outdoor self-service kiosks help businesses comply with accessibility regulations and provide information in multiple languages, accommodating diverse customer needs. Placing outdoor kiosks in busy locations, such as transportation hubs, tourist attractions, and shopping centers, helps manage high foot traffic efficiently, reducing congestion and long queues.
INSIGHT BY END USER
The food & beverage end-user segment dominated the global self-service kiosk market and accounted for a revenue share of more than 28% in 2022. The rise in the adoption of quick-service restaurants and the high demand for customized products among consumers across various regions have propelled the segment's growth. Factors such as the rise in urbanization and the surge in per capita income have propelled the demand for smart infrastructure projects worldwide. All these factors have also accelerated the demand for self-service kiosks in the market.
The global self-service kiosk market is mainly driven by the high adoption of self-service in the retail and food & beverage sector and user-friendly customer service. Among the regions, North America dominated the global industry with a share of over 40% in 2022. The self-service kiosk market in North America has been growing steadily, driven by the increasing demand for automated and contactless solutions across industries. Businesses are adopting self-service kiosks to improve efficiency, enhance customer experience, and reduce operational costs. Further, strong economic growth, the establishment of new businesses, company expansions, and increased industrial activities are mainly driving the demand for self-service kiosks in the North American region.
In mature markets such as North America and Europe, the self-service kiosk market growth is mainly driven by product innovations introduced by the key players. The European market offers many opportunities for self-service kiosk exporters. Self-service kiosks are widely accepted in the region's retail and food & beverage industry. The rapidly growing number of smart cities and infrastructures drives industry growth in emerging markets. However, high maintenance costs could be a primary challenge for the market's growth during the forecast period.
The global self-service kiosk market is fragmented, with local and international players competing. Some of the leading vendors in the global self-service kiosk market include Kiosk Group, KIOSK Information Systems, Dynatouch Corporation, REDYRE, Advanced Kiosks, Meridian Kiosks, Diebold Nixdorf, Wavetec, and others. The fierce competition among these players is driven by the rapidly changing technological landscape, where customers demand continuous innovations and upgrades in self-service technologies. Vendors must refine their unique value propositions to establish a strong industry presence.
In the forecast period, many international players are expected to expand their operations worldwide, particularly targeting fast-developing countries in APAC and the Middle East & Africa, to gain a larger industry share. Vendors with an established international presence dominate the global self-service kiosk market. As the global economic conditions improve and disposable income rises, the industry is poised for growth, making it an opportune time to launch new self-service kiosk units. With the increasing adoption of technology, especially artificial intelligence, intense competition is anticipated among the leading vendors throughout the forecast period.