Market Trends of Estonia POS Terminal Industry
This section covers the major market trends shaping the Estonia POS Terminal Market according to our research experts:
Retail Segment to Hold Significant Market Share
- Estonia's retail sector began to develop after regaining independence in 1991. Several retailers dominate the market today. Estonia has one of Europe's highest stock levels per capita shopping centres per capita. Despite the high retail floor space supply, the market is strong, and there are expected vacancy levels.
- The development of modern shopping centres is concentrated in the capital, Tallinn. However, similar centres are found in most major secondary cities, such as Tartu, Narva, Parnu, Rakvere, Jofvi, and Viljandi. Such developments, coupled with the digital economy, are boosting the demand for PoS terminals in the Estonian market.
- The country is also witnessing a significant rise in fashion and clothing retail stores compared to other segments. According to a survey by Retail-Index, the country in 2021 had 14 fashion retail chains and nine food and consumer electronics retail chains.
- According to the Organization for Economic Co-operation and Development, the country registered an 11.8% year-on-year growth in the retail sector in 2021. The steady growth in the retail sector has a direct positive influence on the deployment of POS Terminals across the country.
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Healthcare Segment to Exhibit the Significant Growth Rate
- About three decades after reobtaining independence, Estonia underwent radical economic reforms and widespread privatization. Successful monetary reform and the union with NATO and the EU led to further economic viability.
- Over the years, the country has witnessed a significant increase in healthcare expenditure as a share of GDP. For instance, according to the Organization for Economic Co-operation and Development, the country's healthcare expenditure crossed 8% in 2020 while it remained at 6-7% until 2019.
- Moreover, the rising GDP of the country is also expected to increase healthcare spending, which in turn is driving the demand for the implementation of POS terminals in the studied segment. According to IMF, the country is expected to have a GDP of USD 53.75 billion by 2027.
- Earlier, the Global Innovation Index ranked Estonia as an emerging European leader in terms of creativity, knowledge, and technology. Such instances are only expanding the country's healthcare domain, directly resulting in more sales of PoS terminals across the nation.
