Self Checkout in Retail Market Size

Self Checkout in Retail Market Size Snapshot

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

In the retail market, the self-service POS terminal is a promising industry. The current size of the market is $ 5.51 billion, and it is expected to reach $12.5 billion by 2035. This is a high annual growth rate of 7.73% from 2025 to 2035. The driving force for the development of self-service POS terminals is mainly from three aspects: the demand for contactless payment, the convenience of customers, and the need for retailers to improve the efficiency of operations. The trend of consumers seeking convenient and quick shopping experiences has prompted retailers to adopt self-service POS terminals to meet these needs, as well as to reduce costs. The self-service POS terminal industry leader NCR and its competitors Diebold Nixdorf and Toshiba Global Commerce Solution are constantly expanding their product lines and improving their functions. The strategic cooperation with technology companies and the investment in artificial intelligence and machine learning are mainly to enhance the functions and experience of self-service POS terminals. These terminals can also be used to track customer behavior and collect big data, which will make the retail industry more individualized and thus drive market growth. The self-service POS terminal will be the mainstay of the future of shopping.

Regional Market Size

Regional Deep Dive

Self-Checkout in Retail Market is experiencing significant growth in all regions, owing to the growing demand for automation and enhanced customer experience. In North America, the market is characterized by the high adoption of self-checkout systems, especially in grocery and convenience stores, as they help reduce labor costs and improve operational efficiency. In Europe, the market is characterized by a highly fragmented landscape, with the level of adoption varying depending on the cultural attitudes towards technology and privacy. The Asia-Pacific region is rapidly becoming the leading market, driven by the rapid urbanization and rise of a tech-savvy population. The Middle East and Africa region is experiencing a steady growth in the adoption of self-checkout systems, owing to the improvement in the infrastructural facilities. Latin America, though lagging behind, is catching up, as retailers seek to modernize their operations and meet the changing customer preferences.

North America

• The big retail chains like Walmart and Kroger are also expanding their self-service systems, and integrating artificial intelligence and machine learning into the process to improve the customer experience and reduce fraud.
• The COVID-09 pandemic accelerated the use of self-service systems, as consumers preferred to be contactless, and this in turn led to an increase in investment in this technology.
• In the United States, the increasing minimum wage has forced many retailers to reduce operating costs by using self-checkout systems.

Europe

• Europeans are in the vanguard of self-service technology, with Diebold Nixdorf and NCR leading the way with their easy-to-use and secure payment options.
• The security of the data and the sense of privacy in a country affects the adoption of the self-service system. In countries like Germany, for example, consumers are more reluctant than in France or Britain.
• The drive to reduce cash transactions in the European Union is encouraging retailers to use self-service systems that also accept digital payments, thereby enhancing the overall shopping experience.

Asia-Pacific

• China and Japan are now leading the way with self-checkouts. In China, Alibaba and Lawson are rolling out advanced self-checkouts that use facial recognition technology.
• The region is rapidly urbanizing and the penetration of mobile phones is increasing, which creates a good environment for self-checkout solutions, as consumers seek convenience and speed in shopping.
• In India and Southeast Asia, government initiatives promoting digital payment and smart retail solutions are boosting the self-checkout system market.

MEA

• The self-service market in the Middle East and Africa is gradually evolving. Retailers in the UAE and South Africa have started adopting these systems to improve customer service and operational efficiency.
• The Tarsus Group and other local companies are collaborating with international technology companies to develop self-checkout systems tailored to the needs of the region’s retail environment.
• In the Gulf, the diversification of the economy is a major factor in the installation of modern retail technology, including self-service systems, as part of a wider initiative to improve the shopping experience.

Latin America

• In the United States, retailers are beginning to use self-service devices as part of their digital transformation strategies. In Brazil and Mexico, Cielo is a leader in the field of payment solutions.
• A growing middle class and the rising use of mobile phones are driving the demand for more convenient shopping, and the growing popularity of self-service is encouraging more retailers to embrace the trend.
• However, as with other automations, the slow adoption of the self-service terminal is due to the lack of availability of the requisite systems and the variability of consumers’ acceptance of the system. However, with the advancing of the investment curve, these barriers are expected to be gradually overcome.

Did You Know?

“Nearly one-third of all the groceries in the United States are now being paid for through the self-service system, and thus the consumers are making a significant shift in favor of automation.” — National Retail Federation (NRF)

Segmental Market Size

The self-checkout segment in the retail market plays a crucial role in enhancing customer experience and boosting operational efficiency. This segment is currently growing, primarily driven by the increasing demand for convenience and speed while shopping. Retailers are also adopting self-checkout to reduce labor costs and improve the efficiency of the cash register, especially in grocery and convenience stores.

Contactless shopping, accelerated by the COVID-19 pandemic, and technological progress in the form of artificial intelligence and machine learning, are the main drivers of the market. Several large retailers are now in the process of deploying their contactless shopping systems. Examples include Walmart and Kroger in the United States, and Tesco in the United Kingdom. These companies have successfully introduced self-service at a number of their outlets. Self-service terminals are particularly popular in large retail chains and food and beverage stores. The trends of a move towards sustainable development and the need to reduce waiting times are also driving growth. The development of mobile payment solutions and automated stock control systems will continue to shape the market.

Future Outlook

From 2024 to 2035, the global self-service checkout in retail market is projected to increase from USD 5.51 billion to USD 12.50 billion, at a CAGR of 7.73%. The growth is mainly driven by the rising demand for a quick and contactless shopping experience, especially in the wake of the COVID19 pandemic, which has accelerated the adoption of self-service technologies. By 2035, it is estimated that self-service checkout systems will account for about 30% of all retail transactions, up from around 15% in 2024, as retailers seek to improve customer convenience and reduce operating costs.

The development of artificial intelligence and machine learning is expected to enhance the functionality and the experience of self-service check-outs. These innovations will facilitate faster payment and improved inventory management and security, which will make self-service check-outs more attractive to retailers and consumers alike. In addition, the integration of mobile payment solutions and loyalty programs into self-service check-outs will further accelerate their uptake, as consumers increasingly seek a more convenient and individualized shopping experience. As a result, the self-service check-outs market is expected to expand further, as retailers continue to invest in these innovations.