Restaurant Point of Sale Terminal Market Size, Share, Growth & Industry Analysis, By Type (Traditional/In-Store POS systems, Kiosk POS systems, Mobile POS systems, Cloud-based POS systems, Others), By Component (Hardware, Software), By Deployment (Cloud, On-Premise), By End User, and Regional Analysis, 2024-2031

Restaurant Point of Sale Terminal Market Size

The global Restaurant Point of Sale Terminal Market size was valued at USD 21.45 billion in 2023 and is projected to grow from USD 22.92 billion in 2024 to USD 38.34 billion by 2031, exhibiting a CAGR of 7.63% during the forecast period. Increased integration of mobile payment solutions and the rising demand for self-service kiosks are propelling the growth of the market.

In the scope of work, the report includes services offered by companies such as Ingenico, VeriFone, Inc., Revel Systems, AIREUS, Epos Now, LimeTray, Lightspeed Commerce Inc., Squirrel Systems, PAX Technology, NCR Voyix Corporation, and others.

Eco-friendly POS terminals represent a significant opportunity for the development of the restaurant point of sale terminal market, attributed to the growing emphasis on sustainability and environmental responsibility. These terminals are designed with materials and components that reduce environmental impact, such as recyclable plastics, energy-efficient processors, and the minimal use of hazardous substances.

• For instance, in February 2024, ParTech introduced the PAR Wave, an eco-friendly all-in-one POS Touch Panel for the hospitality industry, aimed at reducing packaging waste by 50% and significantly lowering carbon emissions from shipping.

Additionally, numerous eco-friendly POS systems are built to last longer, reducing the frequency of replacement and the associated electronic waste. Restaurants are increasingly recognizing the importance of adopting green technologies to minimize their carbon footprint to appeal to a more environmentally-conscious customer base. This notable shift toward sustainability is further supported by government regulations and incentives that promote the adoption of eco-friendly practices.

The development and promotion of these environmentally responsible POS solutions present a significant opportunity for market expansion, as restaurants seek to align their operations with the broader global sustainability movement. Companies that invest in eco-friendly POS terminals could gain a competitive edge by meeting the growing demands of an eco-conscious market while contributing to a more sustainable future.

A restaurant point of sale (POS) terminal is a hardware and software system used to manage and facilitate transactions in a restaurant setting. It serves as the central hub where orders are entered, payments are processed, and various restaurant operations are managed. POS terminals come in various types, including fixed terminals, which are typically installed at a counter, and mobile terminal, which are used by servers to take orders and process payments directly at the table. The key components of a POS terminal include the touchscreen monitor, receipt printer, cash drawer, card reader, and software that handle inventory, sales, and customer data management.

In terms of deployment, POS systems can be cloud-based, allowing for remote access and real-time updates, or on-premises, where the system is hosted locally within the restaurant. End users of POS terminals in the restaurant industry include quick-service restaurants (QSRs), fast-casual dining establishments, full-service restaurants, and cafes. Each type of restaurant has unique needs, and the flexibility of POS systems allows them to be tailored to different operational requirements. This flexibility ensures operational efficiency and improves the overall customer experience.

Analyst’s Review

In the competitive global restaurant point of sale terminal market, key players are strategically focusing on innovation, customer-centric solutions, and expanding their market presence to sustain growth. Companies are increasingly investing in the development of advanced POS systems that integrate seamlessly with various restaurant operations, including inventory management, customer relationship management, and online ordering platforms. The growing emphasis on cloud-based solutions and mobile POS systems is reflecting the industry's shift toward more flexible and scalable technologies.

• For instance, in August 2023, Snack POS partnered with PAX, a global leader in payment terminals, to introduce EMV-enabled terminals to the restaurant industry. This initiative aims to enhance payment security and streamline transactions for businesses and customers.

Additionally, sustainability is becoming a crucial aspect of their strategies, with a rising demand for eco-friendly and energy-efficient POS terminals. To gain a competition edge, companies are expanding their reach into emerging markets, where the restaurant industry is rapidly growing. Partnerships and collaborations are being leveraged to enhance product offerings and provide more comprehensive solutions.

The current growth trajectory of the market is promising; however, companies must continue to innovate and adapt to the evolving needs of the restaurant industry. This is particularly crucial in areas such as data security, user experience, and integration with emerging technologies, including AI and IoT. The imperative for key players is to remain agile and customer-focused, ensuring that their POS solutions meet the increasingly complex demands of modern restaurant operations.

Restaurant Point of Sale Terminal Market Growth Factors

The growing preference for digital transactions is a key factor boosting the growth of the restaurant point of sale terminal market. This growth is further supported by the increasing adoption of cashless payments and the convenience they offer to both consumers and businesses. As consumers increasingly adopt digital wallets, credit and debit cards, and mobile payment platforms, restaurants are adapting by upgrading their POS systems to accommodate a wide range of digital payment options. This shift is particularly evident following the COVID-19 pandemic, which fostered the adoption of contactless payments to reduce physical contact and enhance hygiene.

Additionally, digital transactions provide restaurants with valuable data insights, enabling them to track customer behavior, optimize loyalty programs, and personalize marketing efforts. The convenience of digital payments extends to operational efficiency, as it simplifies the payment process, reduces errors associated with cash handling, and increases service times. As the global payment landscape continues to evolve, the preference for digital transactions is expected to grow, leading to increased demand for advanced and secure POS systems that support a seamless, multi-channel payment experience.

Cybersecurity risks and data privacy concerns present a significant challenge to the development of the market, as these systems handle sensitive customer information, including payment details and personal data. The increasing reliance on digital payment systems and cloud-based POS solutions has made restaurants increasingly vulnerable to cyber threats, including data breaches, hacking, and malware attacks. A single security lapse can lead to significant financial losses, damage to reputation, and loss of customer trust.

Moreover, regulatory requirements related to data protection, such as the General Data Protection Regulation and the Payment Card Industry Data Security Standard impose strict obligations on businesses to safeguard customer information. The primary challenge is to ensure that POS systems are equipped with robust security measures, such as encryption, tokenization, and multi-factor authentication, to protect against these risks.

To mitigate this challenge, it is imperative that restaurants regularly update their POS systems with the latest security patches, conduct thorough security audits, and train staff on best practices for data protection. By adopting a proactive approach to cybersecurity, restaurants are reducing the risk of data breaches and maintaining customer confidence.

Restaurant Point of Sale Terminal Market Trends

The growing shift toward all-in-one POS systems presents a significant trend influencing the restaurant industry. This trend is further fueled the pressing need for streamlined operations, better data management, and enhanced customer experiences. All-in-one POS systems integrate multiple functionalities, such as order processing, inventory management, customer relationship management (CRM), and analytics, into a single, unified platform.

This integration allows restaurant operators to manage all aspects of their business from one interface, thereby reducing the complexity of using multiple systems and improving operational efficiency. The convenience of an all-in-one solution is particularly appealing to small and medium-sized restaurants, which often lack the resources to invest in separate systems for each function.

• For instance, in April 2023, Ingenico launched AXIUM Payment Experience (APEX), a groundbreaking app designed to simplify the creation of custom payment solutions, thereby reducing the complexities for businesses seeking tailored payment experiences.

Additionally, these systems often come with cloud capabilities, enabling real-time data access and remote management, which is crucial for multi-location restaurant chains. The trend toward all-in-one POS systems is further supported by the growing demand for data-driven decision-making, as these systems provide comprehensive insights into sales, customer preferences, and inventory levels. As restaurants increasingly strive to optimize their operations and enhance customer satisfaction, the adoption of all-in-one POS systems is expected to rise.

Segmentation Analysis

The global market is segmented based on type, component, deployment, end user, and geography.

By Type

Based on type, the restaurant point of sale terminal market has been categorized into traditional/in-store POS systems, kiosk POS systems, mobile POS systems, cloud-based POS systems, and others. The mobile POS systems segment captured the largest market share of 27.89% in 2023, largely attributed to the increasing demand for flexibility, convenience, and efficiency in restaurant operations.

Mobile POS systems, which typically consist of portable devices such as tablets or smartphones equipped with POS software, allow restaurant staff to take orders, process payments, and manage other tasks directly at the table or in different areas of the restaurant. This mobility reduces the need for customers to wait in line at a fixed terminal, enhancing the overall dining experience and increasing table turnover rates. The growing popularity of contactless payments has further contributed to the widespread adoption of mobile POS systems, as they support various digital payment methods such as mobile wallets and QR code scanning.

Furthermore, mobile POS systems are particularly favored by quick-service restaurants, pop-up eateries, and food trucks, where space is limited and mobility is crucial. The affordability and ease of implementation of mobile POS systems, combined with their ability to integrate with other restaurant management tools, have made them an attractive option for businesses of all sizes, solidifying their dominant position in the market.

By Component

Based on component, the market has been classified into hardware and software. The software segment is poised to record a staggering CAGR of 9.73% through the forecast period, primarily due to the increasing demand for advanced, feature-rich POS software that enhances operational efficiency and customer experience.

As restaurants continue to digitize their operations, there is a growing need for POS software that offers comprehensive functionalities, such as inventory management, customer relationship management (CRM), analytics, and reporting. The rise of cloud-based POS solutions has further fueled this growth, as these systems allow for real-time data access, remote management, and seamless integration with other digital tools.

Additionally, the growing trend toward personalized customer experiences is boosting the adoption of POS software capable of analyzing customer data and providing insights for targeted marketing and loyalty programs. The software segment is further benefiting from the increasing focus on data security and compliance, as restaurants seek robust solutions that meet regulatory requirements and protect sensitive customer information.

By End User

Based on end user, the market has been divided into quick-service restaurants (QSRS), full-service restaurants, and others. The full-service restaurants segment led the restaurant point of sale terminal market in 2023, reaching a valuation of USD 10.89 billion, mainly propelled by their continued investment in advanced point of sale (POS) systems that enhance operational efficiency, customer experience, and revenue generation. Full-service restaurants, which offer a more comprehensive dining experience with table service, diverse menus, and personalized customer interactions, require robust POS systems to manage their complex operations.

The adoption of all-in-one POS solutions that integrate order processing, inventory management, reservations, and customer relationship management (CRM) has contributed significantly to the expansion of the segment. These systems allow full-service restaurants to streamline their operations, reduce wait times, and provide a seamless dining experience, which is crucial for retaining customers and fostering repeat business.

Moreover, the growing shift toward digital payments and mobile POS systems has enabled full-service restaurants to offer flexible payment options and enhance the overall dining experience. The rising trend of personalized dining experiences, supported by data analytics and customer insights from POS systems, has significantly enhanced customer satisfaction and increased spending per visit.

Restaurant Point of Sale Terminal Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Asia-Pacific restaurant point of sale terminal market accounted for a notable share of 37.89% and was valued at USD 8.13 billion in 2023. This dominance is reinforced by the rapid expansion of the restaurant industry across emerging economies such as China, India, and Southeast Asian countries.

The growing middle-class population in these regions, along with rapid urbanization and rising disposable incomes, has led to a surge in demand for dining out, thereby boosting the need for efficient POS systems to manage restaurant operations. Additionally, the adoption of digital payment methods is on the rise in Asia-Pacific, leading to increased demand for advanced POS terminals that support contactless and mobile payments.

• For instance, in February 2024, the Reserve Bank of India reported that India recorded 368.82 million daily digital transactions during FY 2022–2023. By December 2023, the total number of digital transactions had surpassed 116.6 billion for FY23-24, reaching a value of USD 1.41 billion in digital payments.

Governments in the region are promoting the adoption of digital technologies in the hospitality sector, which has contributed significantly to domestic market growth. The presence of several key players in the POS industry, along with a strong focus on innovation and customization to meet the unique needs of diverse markets, has further strengthened Asia-Pacific's leading position.

Europe is poised to grow at a significant CAGR of 7.83% in the forthcoming years within the restaurant point of sale terminal market. The region's well-established restaurant industry, combined with a strong emphasis on customer experience and operational efficiency, has led to increased adoption of advanced POS systems.

European restaurants are increasingly investing in all-in-one POS solutions that integrate order management, inventory control, and customer relationship management (CRM) to enhance their operations and remain competitive in a mature market. Moreover, the growing trend toward digital payments and contactless transactions across Europe has led to the pressing need for modern POS terminals capable of handling various payment methods such as mobile payments and digital wallets.

• In 2023, the European Association for Secure Transactions (EAST) reported a 6% increase in POS terminals across Europe, totaling 17,145,644 deployments. This reflects the region's growing adoption of secure transaction technologies.

The European Union's strict data privacy regulations, such as the General Data Protection Regulation (GDPR), have fueled the demand for secure POS systems that ensure compliance and protect customer information. Additionally, the rise of cloud-based POS solutions, which offer greater flexibility and real-time data access, is fueling regional market growth.

Competitive Landscape

The global restaurant point of sale terminal market report will provide valuable insights with a specialized emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to expand their product portfolio and increase their market shares across different regions. Companies are implementing impactful strategic initiatives, such as expansion of services, investments in research and development (R&D), establishment of new service delivery centers, and optimization of their service delivery processes, which are such asly to create new opportunities for market growth.

List of Key Companies in Restaurant Point of Sale Terminal Market

• Ingenico
• VeriFone, Inc.
• Revel Systems
• AIREUS
• Epos Now
• LimeTray
• Lightspeed Commerce Inc.
• Squirrel Systems
• PAX Technology
• NCR Voyix Corporation

Key Industry Developments

• July 2024 (Acquisition): Volaris Group, part of Constellation Software Inc., announced its acquisition of Squirrel Systems. Squirrel Systems, a well-established provider of point-of-sale solutions for the hospitality industry marks a strategic enhancement to their technology portfolio.
• May 2024 (Partnership): Verifone and Logos Payment Solutions unveiled a strategic partnership to enhance unattended payment systems. Their collaboration integrates Verifone’s latest UX700 Android terminal with Logos’ automation software, aimed at delivering an advanced self-service payment experience to the market.

The global restaurant point of sale terminal market is segmented as:

By Type

• Traditional/In-Store POS systems
• Kiosk POS systems
• Mobile POS systems
• Cloud-based POS systems
• Others

By Component

• Hardware
• Software

By Deployment

• Cloud
• On-Premise

By End User

• Quick-Service Restaurants (QSRs)
• Full-Service Restaurants
• Others

By Region

• North America
• U.S.
• Canada
• Mexico
• Europe
• France
• U.K.
• Spain
• Germany
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Rest of Asia Pacific
• Middle East & Africa
• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America