by Brianna Crandall — June 26, 2015—According to a new report by Allied Market Research, the deployment of different types of vending machines and technologically advanced kiosks has revolutionized the self-service industry by rendering an improved automation experience. The global self-service technology market is expected to garner $31.75 billion by 2020, registering a compound annual growth rate (CAGR) of 13.98% during the forecast period 2015-2020.
Drivers
The self-service technology market is primarily driven by enterprises’ need to provide more convenient services to customers, and at the same time optimize the cost of such services. Enterprises operating in sectors such as retail, healthcare, food and beverage, and banking are the key demand facilitators.
Technological advancements such as wireless communication and remote management are also expected facilitate overall market growth. In addition, the integration of biometric security services such as fingerprint recognition, which ensure secured financial transactions, would boost the market growth.
Restraints
However, stringent policies and regulations imposed by governments of different countries restrain the growth of self-service machines market. For instance, in Japan, the government has banned the use of alcohol and cigarette vending machines by youngsters below the age of 18 years. Similar restrictions are imposed by governments in other developed regions such as the United Kingdom and the United States.
Segments
The kiosks segment is predicted to exhibit the highest growth during the forecast period. Asia-Pacific and the LAMEA region are forecasted as lucrative markets for kiosks. With the maximum number of installations, vending machines contributed nearly 57% to the overall revenue of self-service technology market in 2014. This segment is expected to grow at a steady pace, accounting for more than 50% of the overall market revenue, throughout the forecast period (2015-2020).
Further, within the vending machines market, the beverage-vending machines that include coffee, tea, soda, cold drink and alcohol vending machines are expected to generate the highest revenues for this segment throughout the analysis period (2014-2020).
The report notes that automated teller machines (ATMs) have emerged as multifunctional machines in recent years. The easy installation process and the limited space required for deploying these machines is predicted to supplement the growth of this segment during the forecast period.
According to the report, North America accounted for the highest rate of adoption of self-service technologies, with a 44% share in the overall global revenue.
The demand for self-service machines and automated devices, wireless communication, remote management and technology advancements largely impact the self-service technology market. The ongoing trend reflects a broader adoption of self-service technology products and their installations at public places.
Key players
According to the report, the challenge for manufacturers is to provide these self-service machines at an effective cost. In addition to the challenges posed by different government regulations, surviving in a competitive market is a major challenge for companies operating in the self-service technology market.
The key players in the competitive global self-service technology industry are engaged in the process of developing new solutions and are mainly focusing on providing better services while upgrading the security features of the existing self-service products.
Prominent companies profiled in the report include Kiosk Information Systems Inc., NCR Corporation, HESS Cash Systems GmbH & Co., Fujitsu, Glory Ltd., Azkoyen Group, Crane Co. (USA), Mass International Europe B.V. (Netherlands), Vend-Rite and IBM Corporation.
Global Self-Service Technology Market (ATM Machines, Kiosk Machines, Vending Machines and Geography)—Size, Share, Industry Analysis Trends, Opportunities Growth Segmentation and Forecast, 2014-2020 is available for purchase from the AMR Web site.
