The global self-checkout terminals market is exected to hit nearly 580,000 units in 2017, driven by the increasing competition in the retail market. Retailers are seeking a competitive edge through an improved customer experience, cost reduction and employee satisfaction.

Additionally, consumers' need for faster checkout process, privacy and greater control while shopping is encouraging rapid implementation of the terminals in retail stores. Technological advancements and growing acceptance of the self-service concept across various countries will further catalyze robust growth in the market for SCO terminals. Present industry challenge lies in expanding beyond the borders of developed Western countries to relatively unexplored markets such as Asia-Pacific, Latin America and parts of Europe, which offer huge, untapped growth potential.

SCO terminals as a form of self-service, have been in existence for over a decade now, yet gained the necessary traction only in recent years. In today's fast paced lifestyle where time is at a premium, customers are looking for options that provide them speed and greater independence in controlling their transactions. There is an increasing preference for self-service systems to manage day-to-day transactions, as these systems are perceived to offer quicker services as compared to traditional assisted systems. The retail industry also mirrors this trend, with customer focus on enhanced shopping experience in the most efficient and quickest possible manner. Retailers are addressing these requirements by deploying SCO terminals that enable shoppers to scan, bag and pay for products without any assistance from staff. Such terminals not only benefit customers by enhancing their overall shopping experience, but also prove to be advantageous to retailers by facilitating reduction in labor costs, on account of lesser number of attendants required at checkout counters. Additionally, the re-allocation of extra staff to other in-aisle functions is enabling them to provide better service to customers. Retailers are banking on higher customer loyalty and repeat purchases by ensuring overall enhancement in shopping experience and service.

In the retail environment, hypermarkets, supermarkets, department and convenience stores are the largest users of SCO terminals. Long waiting periods at checkout counters lead to frustrating and dampened shopping experience for most customers. With little time to spare for shopping, present day tight-scheduled customers look for queue-free and quick checkout options that allow them to grab and go in the shortest possible time. Innovative retailers able to sense and meet the need as well as stay ahead of competition, provide both options of either using the SCO terminals or the cashier operated checkout method. While several grocery and retail chains in the US and Europe have experimented with the new technology and successfully implemented the systems in their stores, a few others remain skeptical about issues such as efficiency, error margins and security. The inherent belief that the absence of cashiers at checkout counters could lead to easy theft, shoplifting and fraud continues to discourage large-scale implementation of the terminals. These inhibitions are however being addressed through the use of security cameras and integration of weighted sensors, infrared measuring devices and laser scanning equipment into the system.

Apart from the retail industry, the market for SCO terminals is witnessing increased demand from other end-use markets such as gas stations, airports ticketing and entertainment among a few. However, this trend is primarily prevalent only in developed countries such as North America and Western Europe. The concept is not yet entrenched in emerging economies of Asia, Latin America and Eastern Europe. Hurdles including low consumer awareness, varied cultural differences, high investment costs and cheap availability of labor have so far resulted in poor penetration rates and slow consumer acceptance. The market for the terminals is witnessing sluggish growth in regions such as Brazil due to the availability of cheap labor and the deep-rooted notion that SCO terminals would lead to higher unemployment. Further, in some other Asian countries like Japan, where direct face-to-face customer service is given utmost importance, SCOs are perceived as an impersonal device, amounting to reduced service levels.

According to Global Industry Analysts, the US dominates the global scenario as the single largest market for SCO terminals. Widespread acceptance of the self-service concept and high labor costs drive the market for SCO terminals in the country. The Asia-Pacific market presently accounts for a minor share of the global market, but is expected to display immense potential for rapid growth and development in the future. Burgeoning markets such as Australia, India, China, Indonesia and others will provide the required impetus for swift expansion, with the market slated to grow at an impressive CAGR of over 55% through 2017.

A spate of mergers and acquisitions in the SCO industry has resulted in a highly concentrated market with a handful of large players controlling worldwide installations and shipments. The rest of the market is highly fragmented with several medium and small players competing for stronger positioning and bargaining power. Key participants profiled in the report include Fujitsu Frontech North America, Inc., IBM Corporation, NCR Corporation, Pan-Oston Company and Wincor Nixdorf International GmbH.

The research report titled Self-Checkout Terminals: A Global Strategic Business Report provides a comprehensive review of industry overview, issues & trends, merits and demerits, best practices, kiosks market, product overview, recent industry activity, product introductions and profiles of market players worldwide. Market Analytics and overview is provided in volume (units) terms for major geographic markets such as US, Canada, Japan, Europe, Asia-Pacific and Rest of World. Global Industry Analysts

Full Report Details: http://www.companiesandmarkets.com/r.ashx?id=8SFN316T1729075