Retail M2M and IoT Applications – 5th Edition

Retail M2M and IoT Applications is the fifth consecutive report from Berg Insight that gives first-hand insights into the adoption of wireless connectivity in the vending, parking, ticketing, ATM, digital signage and POS terminal markets.

This strategic research report from Berg Insight provides you with 220 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

Highlights from the fifth edition of the report:
Insights from 30 new executive interviews with market leading companies.
Overview of the payment, vending, digital signage, parking, transport ticketing and ATM industries.
Summary of industry trends and developments in each vertical market segment.
Updated in-depth profiles of 111 key players in the retail industry.
Reviews of vendor market shares and competitive dynamics.
Perspectives on the impact of emerging mobile payment services.
Extensive global and regional market forecasts lasting until 2020.

This report answers the following questions:

What is the potential market size for wireless M2M communication in the retail industry?
Which are the key applications that offer sizable business opportunities?
Which trends and developments are shaping each verticalmarket segment?
Which are the leading providers of vending telemetry solutions?
How is the market for wireless ATM connectivity solutions developing?
Which are the leading providers of connected parking meters?
How many connected digital signs are there worldwide?
What is the attach rate for cellular connectivity in POS terminals by region?
How is the market for public transport fare collection systems evolving?

Executive summary

The retail industry is an important vertical for cellular M2M connectivity with 33.7 million cellular connections today and a total market size of nearly 151 million POS terminals, ATMs, vending machines, parking meters, digital signs and fare collection devices worldwide. Berg Insight forecasts that the number of cellular M2M connections in the retail industry will grow at a compound annual growth rate (CAGR) of 10.0 percent to reach 49.2 million connections worldwide in 2020. Shipments of cellular M2M devices will at the same time increase at a CAGR of 5.6 percent from 11.6 million units in 2014 to 14.4 million units in 2020. Cellular M2M technology enables devices such as POS terminals and ATMs to be used at new locations where fixed line connectivity is unavailable or impractical. The technology has a more transformational effect on markets such as vending and parking, where machine operators need to reorganize their operations in order to benefit from the availability of real-time information.

The installed base of connected vending machines in North America reached 1.0 million units at the end of 2016, whereas the corresponding figure for EU28+2 was 0.25 million units. The market is still in an early stage as penetration rates for North America and Europe are at 20.0 percent and 6.6 percent respectively. However, vending is also one of the fastest growing segments for connectivity solutions in the retail industry, driven by demand for cashless payment and vending telemetry solutions. The North American market is projected to grow at a CAGR of 17.8 percent between 2016 and 2020, reaching 1.9 million connected vending machines at the end of the period. Similarly, the European market is forecasted to grow at a CAGR of 26.0 percent to reach 0.62 million connections by 2020.

The parking industry has been one of the earliest adopters of M2M communication technology and today approximately 62 percent of the world’s 524,000 multi-space meters are connected, primarily to cellular networks. This penetration rate will continue to increase steadily throughout the foreseeable future, as nearly all new multi-space meter deployments have connectivity as a requirement. Connectivity has in contrast to this only recently become an optional feature in single-space meters and today only 10 percent of the single-space meters in the world are connected. However, connected single-space meters have recently had a breakthrough in the North American market, where mixed deployments that comprise both single-space and multi-space meters are becoming common. The share of single-space meters that incorporate connectivity is as a result now increasing rapidly and expected to reach 25 percent by 2020.

Cellular connectivity has become a very popular option for POS terminals and was incorporated in more than one third of the devices shipped in 2016. The wireless technology has an important role in facilitating the global adoption of electronic payments, as it enables the rollout of POS terminals to many new market segments as well as regions where the fixed line telecommunications infrastructure is less developed. Berg Insight forecasts that the installed base of cellular POS terminals will grow at a CAGR of 9.3 percent between 2016 and 2020 to reach 42.9 million units worldwide in 2020, driven especially by growth in emerging markets.

Digital signage solutions have found their way into nearly every possible vertical market and a wide variety of application areas. The untapped market potential is nevertheless still vast and growth is showing no signs of slowing down. Berg Insight forecasts that global shipments of display screens for digital signage will grow from 10.5 million units in 2016 at a compound annual growth rate (CAGR) of 17.3 percent to reach 19.9 million units by 2020. Cellular connectivity is very useful for applications such as temporary signs and in locations where access to fixed line communications is not available or costly to obtain. However, cellular is expected to remain a niche connectivity technology due to the higher costs associated with the technology, especially in bandwidth-intensive applications.

Cellular connectivity is incorporated in more than 0.1 million fare collection devices worldwide today, such as on-board ticket vending machines, stationary vending machines and handheld ticket sales terminals. Berg Insight anticipates that the market potential for cellular connectivity in public transport will expand as account-based fare collection systems gain ground and increase the need for real-time communication. However, the number of fare collection devices that incorporate cellular connectivity is likely to remain relatively modest, as many fare collection devices can share a communication line with other equipment.

About the Authors

Johan Fagerberg is co-founder and an experienced analyst with a Master’s degree in Electrical Engineering from Chalmers University of Technology. He has during the past 21 years published numerous articles and reports about IoT/ M2M topics. His areas of expertise include location-based services, commercial vehicle telematics, car telematics and retail M2M applications.

Rickard Andersson is a Senior Analyst with a Master’s degree in Industrial Engineering and Management from Chalmers University of Technology. He joined Berg Insight in 2010 and his areas of expertise include fleet management, telematics and retail IoT applications.

Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Berg Insight also offers detailed market forecast databases and advisory services. Our vision is to be the most valuable source of intelligence for our customers.

Executive summary
1 POS terminals and ATMs
1.1 The card payments industry
1.2 Payment infrastructure
1.2.1 Overview of the POS terminal market
1.2.2 POS terminal form factors
1.2.3 Overview of the ATM market
1.2.4 ATM form factors
1.3 Evolution of electronic payments
1.3.1 EMV migration
1.3.2 Adoption of wireless M2M communication
1.3.3 Rollout of NFC-ready terminals
1.4 POS terminal vendors
1.4.1 BBPOS
1.4.2 Brookfield Equinox
1.4.3 CCV
1.4.4 CyberNet
1.4.5 ID Tech
1.4.6 Ingenico
1.4.7 Newland Payment Technology
1.4.8 PAX Technology
1.4.9 REA Card
1.4.10 Spire Payments
1.4.11 SZZT Electronics
1.4.12 VeriFone
1.4.13 Worldline
1.5 ATM manufacturers and connectivity solution providers
1.5.1 Contour Networks
1.5.2 Diebold Nixdorf
1.5.3 Digi International
1.5.4 DPL Group
1.5.5 NCR
1.5.6 OptConnect
1.5.7 Triton
2 Vending machines
2.1 Overview of the vending machine industry
2.2 Vending industry players
2.2.1 Vending technology providers
2.2.2 Vending machine manufacturers
2.2.3 Product suppliers
2.2.4 Vending operators
2.3 Payment systems
2.3.1 Coin mechanisms and bill validators
2.3.2 Cashless payments
2.3.3 Mobile phone payments and NFC
2.4 Vending telemetry and software
2.4.1 Remote monitoring of vending machines
2.4.2 Vending management systems
2.5 Connected vending machines
2.5.1 Europe
2.5.2 North America
2.5.3 Rest of World
2.6 Vending telemetry and cashless payment solution providers
2.6.1 BiTX (Your Voice)
2.6.2 Cantaloupe Systems
2.6.3 Connected Molecules
2.6.4 Deutsche Telekom
2.6.5 Distrilog
2.6.6 Ingenico Group
2.6.7 Materna
2.6.8 Mecsel
2.6.9 Nayax
2.6.10 On Track Innovations
2.6.11 Prosa
2.6.12 Smarcom
2.6.13 Televend (INTIS)
2.6.14 USA Technologies
2.6.15 Vendon
2.6.16 Vendwatch Telematics
2.6.17 Vianet Group
2.7 Vending machine manufacturers
2.7.1 Automated Merchandising Systems
2.7.2 Azkoyen Group
2.7.3 Bianchi Vending Group
2.7.4 Crane
2.7.5 Deutsche Wurlitzer
2.7.6 FAS International
2.7.7 Fastcorp Vending
2.7.8 Fuji Electric
2.7.9 Jofemar
2.7.10 N&W Global Vending
2.7.11 Rheavendors Group
2.7.12 Royal Vendors (Coinco)
2.7.13 SandenVendo
2.7.14 Seaga
2.7.15 Sielaff
2.7.16 Westomatic
2.7.17 Wittern Group
2.8 Vending operators
2.8.1 Aramark
2.8.2 Canteen
2.8.3 Coca-Cola Amatil
2.8.4 Pelican Rouge Group
2.8.5 Selecta
2.8.6 Sodexo
3 Parking meters
3.1 The parking industry
3.1.1 Parking industry players
3.1.2 Single-space and multi-space meters in Europe and North America
3.1.3 Pay-by-phone parking
3.2 Connected parking meters
3.2.1 Mobile data communication solutions for parking meters
3.2.2 Connected multi-space parking meters
3.2.3 Connected single-space parking meters
3.3 Parking solution vendor profiles
3.3.1 Cale Group
3.3.2 Came Parkare Group
3.3.3 CivicSmart
3.3.4 Hectronic
3.3.5 IEM
3.3.6 IPS Group
3.3.7 MacKay Meters
3.3.8 METRIC
3.3.9 Parkeon
3.3.10 POM
3.3.11 T2 Systems
3.4 Private parking operators
4 Public transport ticketing
4.1 Modal split of passenger transport
4.2 Bus and rail fleets
4.3 Fare collection systems
4.3.1 Fare payment
4.3.2 Fare collection devices
4.3.3 Installed base
4.3.4 Mobile data communication solutions
4.4 Fare collection system vendors
4.4.1 Bytemark
4.4.2 Cubic Transportation Systems
4.4.3 FARA
4.4.4 Indra
4.4.5 INIT
4.4.6 IVU
4.4.7 Masabi
4.4.8 METRIC
4.4.9 Scheidt & Bachmann
4.4.10 Thales
4.4.11 Vix Technology
4.4.12 Xerox
5 Digital signage
5.1 Overview of the digital signage industry
5.2 The digital signage value chain
5.2.1 Display screen vendors
5.2.2 Media player vendors
5.2.3 Content management system providers
5.2.4 Installers, system integrators and network operators
5.3 Application areas
5.3.1 Retail
5.3.2 Office and enterprise
5.3.3 Healthcare
5.3.4 Transportation
5.3.5 Education
5.3.6 Foodservice
5.3.7 Outdoor signage
5.4 Evolution of the digital signage industry
5.4.1 From non-connected to connected digital signs
5.4.2 Media player form factors
5.4.3 Display technologies
5.5 Media player vendors
5.5.1 Advantech
5.5.2 AOPEN
5.5.3 Arrow Electronics
5.5.4 BrightSign
5.5.5 Hewlett-Packard
5.5.6 IAdea
5.5.7 iBASE
5.5.8 Rikomagic
5.5.9 Shuttle
5.6 Display screen vendors
5.6.1 DynaScan
5.6.2 Elo Touch Solutions
5.6.3 Leyard and Planar
5.6.4 LG Electronics
5.6.5 NEC Display Solutions
5.6.6 Panasonic
5.6.7 Samsung Electronics
5.6.8 Sharp
5.7 Content management system providers
5.7.1 BroadSign
5.7.2 Cineplex Digital Media
5.7.3 Four Winds Interactive
5.7.4 Grassfish
5.7.5 Industry Weapon
5.7.6 Rise Vision
5.7.7 RMG
5.7.8 Scala (STRATACACHE)
5.7.9 Signagelive
5.7.11 Wondersign
6 Forecasts and conclusions
6.1 Wireless M2M in the retail industry
6.1.1 Cellular M2M device shipments
6.1.2 Cellular M2M network connections
6.2 Market trends and drivers
6.2.1 Uptake of wireless M2M in POS terminals is steady while NFC surges
6.2.2 ATMs in offsite locations benefit from cellular connectivity
6.2.3 Vending operators benefit from cashless payments and telemetry
6.2.4 The parking meter industry leads in the adoption of wireless M2M
6.2.5 Public transport ticketing will move to systems with real-time authorization
6.2.6 Digital signage is becoming an important platform for digital marketing
6.3 Market forecasts
6.3.1 POS terminals
6.3.2 ATMs
6.3.3 Vending machines
6.3.4 Parking meters
6.3.5 Public transport ticketing
6.3.6 Digital Signage
List of Figures
Figure 1.1: Installed base of POS terminals and ATMs (World 2011–2015)
Figure 1.2: POS terminal density by country (World 2015)
Figure 1.3: Stationary and mobile POS terminals
Figure 1.4: mPOS devices
Figure 1.5: ATM density by country (World 2015)
Figure 1.6: Free-standing and through-the-wall ATMs
Figure 1.7: EMV implementation status (World 2015)
Figure 1.8: POS terminals with cellular connectivity by region (World 2015)
Figure 1.9: NFC-ready POS terminals by region (World 2015)
Figure 1.10: POS terminal shipments by manufacturer (World 2015)
Figure 1.11: PAX Technology POS terminals
Figure 2.1: Vending machine density by region (World 2015)
Figure 2.2: Examples of vending machines
Figure 2.3: Installed base of vending machines by country (EU 28+2 2015)
Figure 2.4: Examples of product suppliers and brands
Figure 2.5: Examples of coin mechanisms and bill validators
Figure 2.6: Examples of cashless payment devices for open and closed systems
Figure 2.7: ePort G9 from USA Technologies supporting NFC-based mobile payments
Figure 2.8: Installed base of connected vending machines by vendor (World 2015)
Figure 2.9: Connected vending machine vendor market shares (Europe 2015)
Figure 2.10: Connected vending machine vendor market shares (North America 2015)
Figure 2.11: The MyWallet Kiosk payment terminal
Figure 2.12: Nayax’s AMIT 3.0 telemetry device
Figure 2.13: Vendon’s vBox 2 vending telemetry device
Figure 2.14: Product portfolios of vending machine manufacturers (2016)
Figure 3.1: Examples of connected single-space and multi-space meters
Figure 3.2: Share of connected multi-space parking meters by vendor (World 2016)
Figure 3.3: Share of connected single-space parking meters by vendor (World 2016)
Figure 3.4: Parking meter offerings by vendor
Figure 3.5: Selected European and North American parking operators
Figure 4.1: Modal split of passenger transport on land (EU and NA 2014)
Figure 4.2: Bus and rail fleets in public transport (EU and NA 2014)
Figure 4.3: Evolution of fare payments
Figure 4.4: Fare collection device segments
Figure 4.5: Installed base of contactless fare collection devices (EU and NA 2016)
Figure 4.6: METRIC fare collection devices
Figure 4.7: Scheidt & Bachmann fare collection devices
Figure 5.1: Digital signage value chain
Figure 5.2: Examples of display form factors
Figure 5.3: Examples of DOOH network operators
Figure 5.4: Examples of digital signs in retail stores
Figure 5.5: Examples of digital signs in an office building
Figure 5.6: An example of a digital sign in healthcare
Figure 5.7: Information displays for transportation
Figure 5.8: Interactive whiteboard in a classroom
Figure 5.9: Digital menu boards
Figure 5.10: Infotainment program for coffee & bagel shop customers
Figure 5.11: Digital billboard
Figure 5.12: Local and remote management of digital signage networks
Figure 5.13: Media player form factors
Figure 5.14: Chromebox Commercial and Chromebase Commercial by AOPEN
Figure 5.15: BrightSign’s lines of digital signage media players
Figure 5.16: Rikomagic’s MK22 Plus, MK902II, MK36S and V5
Figure 6.1: Cellular M2M connections in the retail industry (World 2016)
Figure 6.2: Cellular M2M retail device shipments by region (World 2014–2020)
Figure 6.3: Cellular M2M retail device connections by region (World 2014–2020)
Figure 6.4: Deployment of NFC and cellular technologies (World 2014–2020)
Figure 6.5: Cellular POS terminal shipments by region (World 2014–2020)
Figure 6.6: Cellular POS terminal installed base by region (World 2014–2020)
Figure 6.7: NFC POS terminal shipments by region (World 2014–2020)
Figure 6.8: NFC POS terminal installed base by region (World 2014–2020)
Figure 6.9: mPOS terminal shipments by region (World 2014–2020)
Figure 6.10: mPOS terminal installed base by region (World 2014–2020)
Figure 6.11: Installed base of wirelessly connected ATMs (EU and NA 2014–2020)
Figure 6.12: Installed base of connected vending machines (World 2015–2020)
Figure 6.13: Connected vending machine market forecast (North America 2015–2020)
Figure 6.14: Connected vending machine market forecast (Europe 2015–2020)
Figure 6.15: Connected vending machine market forecast (Rest of World 2015–2020)
Figure 6.16: Multi-space parking meter market forecast (World 2014–2020)
Figure 6.17: Single-space parking meter market forecast (World 2014–2020)
Figure 6.18: Installed base of contactless fare collection devices (EU and NA 2014–20)
Figure 6.19: Digital signage display market forecast (World 2014–2020)
Figure 6.20: Digital signage connectivity technologies (World 2014–2020)

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