Market Penetration of POS Systems in the Restaurants Industry in the US

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Market Penetration of POS Systems in the Restaurants Industry in the US

Key Takeaways

  • In the United States, Point-Of-Sale systems have 97% market penetration into the restaurant market as of 2019.
  • The market size of restaurant POS systems in the United States was $4.56 Billion USD in 2020.
  • The largest segment by market share is on-premises deployment with a 70% market share.

Introduction

In 2020, the United States restaurant POS market was valued at $4.56 billion USD with a CAGR of 6.4% between 2021 and 2028 with a 97% market penetration. Hardware and on-premises systems dominate the market with 67% and 70% segmented market shares, respectively. Additional insights into the market including a market breakdown, market drivers, and key players have been provided below.

Market Penetration

  • In 2019, only 3% of restaurants in the United States did not use a form of technology for POS capabilities indicating a market penetration of 97%.
  • According to a 2019 survey, penetration in terms of vendors is as follows:
    • Restaurants that use one technology vendor: 26%
    • Restaurants that use two technology vendors: 23%
    • Restaurants that use three technology vendors: 22%
    • Restaurants that use four or more technology vendors: 26%
  • The same survey also reported the most important capabilities for POS systems which are as follows:
    • POS: 84%
    • Credit Card Processors: 78%
    • Accounting Software: 52%
    • Reporting and Analytics Software: 50%
    • Payroll Software: 50%
    • Inventory Management: 45%
    • Kitchen Display Systems: 37%
    • Labor Software: 36%
    • Invoice/Procurement Management: 35%

United States Restaurant POS Market

  • The Global Restaurant POS market was valued at $15.46 Billion USD in 2020 with a CAGR of 6.4% between 2021 and 2028.
  • North America is the second-largest region by market share behind APAC with the United States leading the segment.
  • In 2020, the United States accounted for 29.5% of the total market amounting to $4.56 Billion USD (15.46 billion*0.295).
  • In the United States, 84% of restaurants stated that the POS system is the most important technology used in their business.

Market Segmentation 2020

  • Components:
    • Hardware Market Share: 67%
    • Software Market Share: 33% with a CAGR of 5%
  • Deployment:
    • Cloud Market Share: 30% with a CAGR of 6%
    • On-Premises Market Share: 70%
  • Application:
    • Back-End Market Share: 38% with a CAGR of 6%
    • Front-End Market Share: 62%

Key Players

Market Drivers

  • Emerging trends in the mobile and self-service kiosk segments are expected to drive growth in the market as companies shift to more affordable options.
  • The Covid-19 pandemic decreased sales temporarily due to revenue loss from stay-at-home orders, however, this increased the need for online ordering systems and may have impacted the shift to mobile technologies in the POS market.

Research Strategy

For this research on the United States restaurant POS market, we leveraged the most reputable sources of information that were available in the public domain, including Grandview Research, Market Watch, Globenewswire, and others.
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