Cloud POS Market Size

Cloud POS Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Cloud Point of Sales (POS) market is growing rapidly. The market size in 2022 is estimated to reach $ 4,743,850,000, which is expected to increase to $ 14,763,908,000 by 2022. This growth is a strong compound annual growth rate (CAGR) of 15.25% from 2022 to 2030. This growth reflects the strong demand for cloud-based solutions in the retail and hospitality industries. The growing popularity of digital payment solutions and the need for real-time data analysis and inventory management are driving the growth of the market. Artificial intelligence and machine learning have been incorporated into POS systems, which will further improve the efficiency of the operation and customer experience, driving market growth. The market leader, such as Square, Shopify and Toast, is investing heavily in the launch of new products and the establishment of strategic cooperation with other companies to enhance the service capabilities. The recent cooperation between Square and e-commerce platforms, for example, reflects the trend of seamless omni-channel retailing. , the company is able to capture the growing demand for cloud-based POS solutions.

Regional Market Size

Regional Deep Dive

The Cloud POS Market is experiencing significant growth across various regions, owing to the increasing adoption of cloud technology, the need for real-time data analytics, and the shift toward contactless payment solutions. North America is characterized by high penetration of advanced technology and a strong presence of key players. Europe is characterized by a diverse regulatory framework that encourages innovation. The Asia-Pacific region is characterized by rapid digital transformation, with the growing number of small and medium enterprises (SME) adopting cloud-based solutions. The Middle East and Africa are characterized by the growing investment in digital infrastructure, while Latin America is characterized by the increasing use of e-commerce and mobile payment solutions.

North America

• Contactless payment has increased the use of cloud POS systems, and companies such as Square and Toast are in the vanguard of this development, offering new solutions tailored to restaurants and shops.
• A recent change in the regulations, the implementation of the Payment Card Industry Data Security Standard (PCI DSS), has made security a priority for payment gateways, which in turn has increased the security features of the cloud POS systems.
• Artificial intelligence and machine learning are now being integrated into cloud POS systems. These systems are already used by companies such as Shopify to offer a personalised service to customers and improve inventory management.

Europe

• The European Union’s General Data Protection Regulation (GDPR) has had a considerable effect on the Cloud POS market. The data privacy and security of the cloud POS system have become a matter of great concern, and this has led to a high degree of trust on the part of the consumers.
• The development of mobile payment systems, such as the emergence of digital wallets and QR-code payments, is changing the retail landscape. Adyen and SumUp are at the forefront of this transformation.
• In view of the growing omni-channel retailing, the demand for integrated cloud POS systems is on the increase, allowing the integration of the online and the offline sales channels, and enhancing customer engagement and operational efficiency.

Asia-Pacific

• The growth of e-commerce in China and India has accelerated the adoption of cloud POS. Local players like Paytm and Zomato have developed cloud POS for SMEs.
• In India, the government’s digital India campaign has prompted a switch to cloud-based POS terminals, which will further boost the market.
• The emergence of consumers with a strong mobile orientation is leading to the development of Cloud POS solutions that focus on mobility. The companies Shopify and Lightspeed are already responding to this need.

MEA

• The digitalization of the region is being encouraged by the governments, and is being supported by Vision 2030 in Saudi Arabia.
• E-business and mobile payments are increasingly popular in countries like the UAE and South Africa. This has increased demand for cloud POS solutions that can handle these payment methods.
• The development of cloud POS has led to the emergence of a new generation of fintech companies. These fintech companies have established relationships with the world's largest cloud POS operators, thereby increasing the capabilities of cloud POS systems and expanding their reach in the region.

Latin America

• The growing importance of e-commerce, especially during the Covid-19 pandemic, has accelerated the use of cloud POS systems.
• Regulatory changes, such as Brazil's open banking initiative, are encouraging the development of new cloud-based POS solutions that cater to underserved markets.
• The rising number of mobile devices in the region is driving the demand for cloud-based mobile POS solutions.

Did You Know?

“In North America, by 2023, approximately seventy per cent of small shops have some sort of Cloud-based POS system, which shows a considerable shift towards digital payment solutions.” — Statista, 2023

Segmental Market Size

The Cloud POS segment is experiencing strong growth, driven by the growing demand for flexible and scalable payment solutions across various industries. This segment plays a crucial role in modernizing the retail and hospitality industries by improving customer experiences and reducing operating costs. Contactless payments are also increasingly popular, and the need for real-time data analysis to inform business decisions is on the rise. Furthermore, the government’s push for digital payment solutions is a further impetus.

The cloud POS system has now been widely used, and companies like Square and Toast have already taken a large share of the market. These companies are especially active in North America, where the trend towards digitalization is the most obvious. The main use of cloud POS is in the management of small retail businesses, restaurants, and e-commerce platforms. Its functions are to manage sales, inventory, and customer relationships. In the face of the ongoing digital transformation and the growing trend towards green initiatives, the cloud POS system has been able to take advantage of a market that has been growing steadily. At the same time, the development of mobile payment and the integration of data analysis tools have also been able to take advantage of this trend.

Future Outlook

The Cloud Point of Sales (POS) market is expected to grow at a rapid pace from 2022 to 2030, from $4.74 billion to $11.46 billion, at a robust CAGR of 15.25%. This growth is largely driven by the increasing cloud-based solutions adoption across various industries, especially in retail and hospitality, where businesses are seeking to improve their operational efficiency and customer experience. The cloud POS systems will account for more than 60% of the total POS market by 2030, as the number of cloud POS users increases.

The use of cloud POS systems with artificial intelligence and machine learning is expected to drive the market further. These technologies will enable retailers to analyze data and make better decisions. Also, the growing trend of omni-channel retailing will necessitate the adoption of cloud POS systems that can be easily integrated with e-commerce and mobile payment systems. Also, the growing focus on cyber security will further boost the market.