Cloud POS Market Strategies, Trends, and Forecast by 2031
The cloud POS market size is expected to grow from US$ 3.26 billion in 2023 to US$ 18.28 billion by 2031; it is estimated to grow at a CAGR of 24.1% from 2023 to 2031. Increasing adoption of mobile POS is likely to remain key cloud POS market trends.
Cloud POS Market Analysis
The Cloud POS (Point of Sale) market has experienced significant growth and transformation in recent years. Cloud-based POS systems have emerged as a popular alternative to traditional on-premises solutions, offering businesses increased flexibility, scalability, and accessibility. These systems utilize cloud computing technology to store and process transactional data, eliminating the need for physical hardware and providing real-time connectivity. One of the key advantages of cloud-based POS systems is their ability to streamline operations and enhance efficiency for businesses of all sizes. They offer features such as inventory management, sales reporting, and analytics, customer relationship management, and integration with other business applications. With a cloud POS, businesses can easily track sales, monitor inventory levels, and gain valuable insights into their operations, leading to improved decision-making and enhanced customer experiences. The POS on cloud has witnessed widespread adoption across various industries, including retail, hospitality, restaurants, and e-commerce. Small and medium-sized businesses, in particular, have embraced cloud POS solutions due to their affordability and ease of implementation. Moreover, the scalability of pos cloud-based systems allows businesses to expand their operations and add additional functionalities as needed easily. Security has been a critical focus for cloud POS providers.
Cloud POS Market Overview
The basis of cloud-based POS solutions is the concept of easy rising up and down; services can be added or removed at any moment by the company, depending on their necessities and those of their customers. Businesses can save money by paying for the services they use rather than the fail-safe mechanisms and future-proofing requirements of the conventional on-premises POS. The solutions provider will also handle the maintenance and upkeep of cloud-based POS solutions, so business owners won't have to worry about these POS systems running continuously.
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Cloud POS Market: Strategic Insights
CAGR (2023 - 2031)24.1%- Market Size 2023
US$ 3.26 billion - Market Size 2031
US$ 18.28 billion
Market Dynamics
- Increasing cashless transaction and increase in need for secure and faster payment processing solutions
- Increasing adoption of mobile POS
- Integration of advanced technologies
Key Players
- Square, Inc.
- Intuit, Inc.
- Oracle Corporation
- Shopify, Inc.
- Toast, Inc.
- Vend Limited
- AccuPOS, Inc.,
- Clover Network, Inc.
- LightSpeed POS Inc.
- Loyverse POS
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
Component - Solution and Services
Organizational Type - Large Enterprise and SMEs
End-user - Retail & Consumer Goods
- Travel & Hospitality
- Media & Entertainment
- Transport & Logistics
- Healthcare
- Others
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Cloud POS Market Drivers and Opportunities
Increase In Need For Secure And Faster Payment Processing Solutions to Favor Market Growth
The increase in the need for secure and faster payment processing solutions has been a significant driver in the growth of the cloud POS market. As businesses strive to provide seamless and efficient payment experiences to their customers, cloud-based POS systems have emerged as a preferred choice. First and foremost, cloud POS solutions offer enhanced security measures to protect sensitive payment data. With robust encryption, tokenization, and compliance with industry norms such as the Payment Card Industry Data Security Standard (PCI DSS), these systems provide a secure environment for processing transactions. By shifting the responsibility of data security to trusted cloud service providers, businesses can mitigate the risks associated with data breaches and unauthorized access. Moreover, cloud POS systems enable faster payment processing, benefiting businesses and customers. Traditional on-premises POS systems often require manual updates and maintenance, resulting in potential delays and inefficiencies.
Ability to Handle High Transaction Volumes - An Opportunity in the Cloud POS Market
Cloud-based POS systems can handle high transaction volumes. During peak periods, such as holidays or promotional events, businesses experience a surge in customer traffic and payment transactions. Cloud POS systems can easily scale their resources to accommodate increased demand, ensuring uninterrupted payment processing and avoiding bottlenecks that can lead to frustrated customers or lost sales opportunities. Furthermore, cloud POS solutions offer integration capabilities with various payment methods and channels. They can seamlessly connect with mobile wallets, contactless payment options, and online payment gateways, providing customers with a wide range of choices and enhancing convenience. This flexibility in payment acceptance helps businesses cater to evolving customer preferences and adapt to changing industry trends.
Cloud POS Market Report Segmentation Analysis
Key segments that contributed to the derivation of the cloud POS market analysis are the component, organizational type, and end users
- Based on the component, the cloud POS market is segmented into solution and services.
- Based on organizational type, the cloud POS market is segmented into large enterprises and SMEs
- Based on end users, the cloud POS market is segmented into retail & consumer goods, travel & hospitality, media & entertainment, transport & logistics, healthcare, and others.
Cloud POS Market Share Analysis by Geography
- The cloud POS market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. Asia Pacific dominated the market in 2023, with its increasing adoption and growing demand for advanced technology solutions in the retail and hospitality sectors. The region's strong economic growth, expanding e-commerce industry, and rising customer expectations have contributed to its significant market share in the cloud POS segment. Cloud-based POS solutions have gained traction in the Asia Pacific region due to their ability to provide cost-effective and scalable options for businesses of all sizes.
Cloud POS Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 3.26 billion |
| Market Size by 2031 | US$ 18.28 billion |
| Global CAGR (2023 - 2031) | 24.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered | By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
|
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Cloud POS Market News and Recent Developments
The cloud POS market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the cloud POS market:
- In September 2022, Square, Inc. (now known as Block, Inc.) introduced millions of vendors across the United States to its Tap to Pay feature on iPhone. The feature, available within the Square Point of Sale iOS app, allowed merchants of all sizes to accept contactless payments directly from their iPhones, with no additional hardware requirement and at no additional costs to the seller.
(Source: Square, Inc., Press Release)
- In June 2022, Openbravo announced the launch of its brand new Point-of-Sale (POS) for Quick Service Restaurants (QSR) and Fast Casual Restaurants. Key features of the solution include the fast and flexible creation of menus and a powerful pricing engine with options like the definition of specific prices based on restaurant areas and delivery modes.
(Source: Openbravo, Press Release)
Cloud POS Market Report Coverage and Deliverables
The "Cloud POS Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
- Cloud POS market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Cloud POS market dynamics, such as drivers, restraints, and key opportunities
- Cloud POS market trends
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Cloud POS market industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The global cloud POS market was estimated to be US$ 3.26 billion in 2023 and is expected to grow at a CAGR of 24.1% during the forecast period 2024 - 2031.
The major factors driving the cloud POS market are increasing cashless transactions and the increased need for secure and faster payment processing solutions
The increasing adoption of mobile POS is anticipated to play a significant role in the global cloud POS market in the coming years.
The key players holding majority shares in the global cloud POS market are Square, Inc., Intuit, Inc., Oracle Corporation, Shopify, Inc., Toast, Inc., and Shopify, Inc.
Asia Pacific is expected to hold the highest market share in the cloud POS market.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published and advised several client across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organization are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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