Technavio’s latest hardware and semiconductor industry report covers the present scenario and growth prospects of the global EMV POS terminals market for the period 2016-2020. To calculate the market size, the report considers the sales of EMV (Europay, Mastercard, and Visa) POS terminals (both fixed line and wireless) across all sectors.

In this report, Technavio’s research experts incomputing devices and payment solutions announce their key market highlights for the global EMV POS terminals market. Their findings include:

Retail and hospitality sectors expected to witness strong demand

The global EMV POS terminal market is growing at a healthy CAGR of 11.5% through 2019 and is largely being driven by the retail and hospitality sectors. Increased penetration of EMV POS terminals and the need for secure transactions by the merchants in these sectors will fuel the market growth during the forecast period. In addition to increased security, POS terminals in these sectors have other benefits including quick bill processing, increased customer satisfaction, and reduced customer-waiting time.

In countries like China and India, there is potential for massive growth with the increasing usage of EMV POS terminals. The hospitality sector in these countries is dominated by small and unorganized business units, providing a golden opportunity for more organized units to penetrate and secure a large portion of the market.

The EMV liability shift rule will significantly drive the market in the US

Europe, Latin America, Canada, and APAC have already adopted EMV technology at a significant rate. These regions have all transitioned from the traditional magnetic stripe cards to EMV chip card technology nearly a decade ago. However, the US being the largest consumer of payment cards just started the transition in October, 2015.

“Criminals tend to focus on easier targets, which is currently the US because of its low EMV adoption. As a result, the US is moving towards EMV standards with the implementation of the EMV liability shift,” said Technavio hardware and semiconductor research analyst Navin Rajendra.

The EMV liability shift rule will significantly drive the US market, increasing the penetration of EMV POS terminals in the US to 82% by 2020. This figure would surpass Asia’s current penetration total of 70-75% and they were the first region to adopt EMV standards in 2006. Due to the implementation of the EMV liability shift rule in the US, the EMV POS terminals market in the Americas is expected to grow at a CAGR of 17% during the forecast period.

Increased e-commerce usage and smart devices pose threat to EMV POS market

Mobile devices such as tablets and smartphones offer an enhanced, alternative payment solution to customers which eliminate the need for any EMV POS terminal. Smart device providers are targeting sale traders, pop-up retailers, and mobile business owners to expand the market and sales of mPOS. mPOS providers are also working on security requirements to enhance mobile payments for users which is a concern for POS terminal manufacturers, especially as the number of smartphone continues to grow.

Online stores and retailers have registered strong organic growth in the past five years. E-retailers such as Amazon and Big Basket do not require terminals such as POS for billing and gathering customer data, hindering the usage of POS terminals. The market for e-retailing is still in its initial growth stage but is expected to grow primarily in developing regions, affecting the usage and integration of EMV POS terminals in retailing. The contribution of e-commerce sales in the global retail market is expected to grow rapidly, doubling its market share during the forecast period.

Top vendors covered in this report:

  • ATOS Worldline
  • CyberNet
  • Equinox
  • First Data
  • Ingenico Group
  • Keycorp
  • NCR
  • Pax Technology
  • Spire Group
  • SZZT
  • Verifone

Browse Related Reports:

  • Global Connected Devices Market 2016-2020
  • Global Mobile Computer Market 2016-2020
  • Global POS Printer Market 2016-2020

Purchase these three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact enquiry@technavio.com with your requirements and a link to our subscription platform.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.