October 30, 2011
The global market for self-checkout has continued to thrive despite a difficult retail environment, according to new research conducted by by London-based strategic research and consulting firm RBR.
Self-checkout was introduced two decades ago and can no longer be called a niche product, now that it is the mainstream in some parts of the world, primarily North America and Western Europe.
The number of self-checkout units shipped worldwide increased by 17 percent to 26,600 in 2010, while the total base of installations grew by 20 percent exceeding 130,000 by the end of the year.
Moreover, RBR forecasts that by 2016 the installed base of self-checkout terminals will be 325,000, and annual shipments will exceed 60,000. Terminals will comprise a mix of self-service automation including not only full scan, weigh and bag units but also self-pay terminals and mobile self-scanning systems.
NCR remains world's largest supplier of self-checkout
The RBR report reveals that NCR is still the world's largest supplier of self-checkout machines, accounting for two thirds of units shipped in 2010. (See chart above for other major players.)
Germany's Wincor Nixdorf is the second largest supplier, closely followed by IBM. Japan's Fujitsu is the largest Asian supplier, but interestingly still ships fewer self-checkout units than NCR even in its home market of Japan.
Western Europe largest market for shipments, North America for installations
Western Europe received the greatest number of self-checkout shipments, accounting for nearly half of global shipments in 2010. Total shipments to the region increased by 9 percent to 12,700, thanks in large part to strong growth in the U.K. and continued deployment in France.
North America is the second largest region for self-checkout shipments, but due to its head start in deploying such terminals still has the largest installed base. North America and Western Europe together account for more than 90 percent of the world's self-checkout installations.
Self-checkout expands into new segments
RBR forecasts that global self-checkout shipments will grow by 16 percent by the end of the year and 20 percent in 2012, as new markets and new retailers join the trend toward increased self-service at POS. Moreover, the more established markets, such as the U.S. and the U.K., will see increased refresh activity as old terminals need replacing and as economies slowly improve.
The developing markets of Latin America, Central and Eastern Europe, and the Middle East and Asia, which together represented less than 1 percent of shipments in 2010, have better potential in the longer term, according to the study. In Latin America, Mexico has the greatest potential for self-checkout in the short term, while Poland and the Czech Republic will kick start deployment of self-checkout in Central and Eastern Europe.
Read more about self-checkout.