Cloud POS Market Analysis

Cloud POS Market Analysis

The UK cloud POS software market is poised to witness growth rate of around 18% through 2028 led by the rise in installation of modern digital solutions that enable hassle-free and paperless transactions. The hospitality sector is focusing on replacing legacy systems with advanced cloud POS solutions to ensure customer convenience. Companies in the hospitality sector are focusing on maximizing profitability while streamlining daily operations.

In 2021, the U.S. cloud POS market size from large enterprises valued at nearly USD 600 million and is estimated to observe 14% gains up to 2028. Introduction of new innovative solutions by companies are propelling the regional business expansion. The industry participants such as Mastercard International Incorporated, NCR Corporation, and Oracle Corporation, are investing in R&D activities to increase their portfolio and target a wide set of customers.

In January 2021, Mastercard International Incorporated partnered with NMI & Global Payments Inc. to introduce its live Cloud Tap on Phone with Computer Engineering Group. The software is designed for business of any size and will be hosted on Azure cloud platform. This will support the large enterprises in reducing their maintenance & development costs, while offering robust security features. The advancement in cloud POS solutions will attract more companies to integrate the cloud computing technology with the existing network.

The restaurant sector is emphasizing on the concept of cloud-based kitchens to capture a large customer base. Through this, they are expanding their market penetration across the region at a low startup cost. The growing implementation of the virtual kitchen concept will augment the requirement of cloud POS system for order and revenue management. It assists the restaurants in increasing their customer base, profitability, and gross margins. The rising focus on the development of cloud kitchen restaurants in the UAE will further enhance the industry expansion.

Asia Pacific cloud POS market accounted for above 20% of the revenue share in 2021. The stay-at-home regulations imposed during the pandemic further boosted the utilization of e-commerce platforms and digital payment technologies. For instance, as per the Flipkart December 2021 report, the company witnessed a 47% year-on-year customer growth from the Tier 3+ cities in this past calendar year. This indicates the shift in consumer purchase habits in fashion, electronic, books, groceries, and medicine categories. To effectively cater to the increasing demand, several stakeholders in the ecosystem, such as merchants, vendors, and service providers, are focusing on integrating the cloud POS solutions into their system.