Japan POS Terminals Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Japan POS Terminals Market Analysis

The Japan POS Terminals Market size is estimated at 136.60 Thousand units in 2024, and is expected to reach 213.18 Thousand units by 2029, growing at a CAGR of 9.31% during the forecast period (2024-2029).

The POS terminal market has grown significantly over the past few years, owing to its ability to offer an increased return on investment and ease of access. POS systems that facilitate transactions from the central component of businesses across industries, like retail, hospitality, transportation, and banking, have gained importance in companies of small and big sizes over the years.

• POS terminal systems have grown from transaction-oriented devices to systems that support and integrate into firms' CRM and other financial solutions in the present market scenario. Companies could use collected transactional data from POS terminals to provide business insight in this case.
• Vendors have supported consistent development in mobile payments, particularly smartphone-enabled QR-code payments. Similarly, progress has been made in other sectors of the ecosystem. Cashless projects are making tremendous progress, with the establishment of a government-funded biometrics infrastructure and a rise in the use of EMV-based contactless payments (or NFC Pay as it is known in Japan). Such trends are expected to act as major catalysts for the increase in the adoption of POS terminals in the country.
• Modern POS terminals reduce the cost of setup, deployment, maintenance, and power consumption over time, leading to the total cost of ownership. Various vendors offer modular POS terminals with attributes such as touchscreen displays and low power consumption, which helps in reducing the overall cost of ownership. Companies such as Sharp Electronics, NEC Corporation, and others offer fixed POS solutions with touchscreen displays and robust processors that help improve operations and reduce failures. In addition, the POS offered by Aures comes with fanless temperature control to reduce the number of moving parts in a terminal.
• The expanding digitization of the economy and the increasing application of POS platforms across sectors will drive the POS Terminals market forward. Growing awareness of the effectiveness of POS displays, an increase in retail chains, and the increasing usage of near-field communication-enabled systems are all likely to help the market's growth.
• The utilization of digital and electronic payment techniques, like debit and credit cards, e-wallets, and smart cards, such as Pasmo and Suica, is extensively growing among younger buyers and in major urban areas. They provide a convenient and effective method for consumers to conduct transactions without requiring physical currency or a credit card. Additionally, they are extremely safe and enable users to monitor their expenditures. Japan's transportation enterprises created Suica and Pasmo smart cards, which can be utilized for transportation, automated vending machines, and in-store acquisitions.
• Moreover, the government of Japan has been taking proactive initiative and striving to establish a supportive atmosphere for the growth of cashless payments in Japan by implementing a "Cashless Vision" with the aim of raising cashless transactions to 40% by 2025 and 80% by the long run. They have also introduced a reward system, which increased cashless payments adoption in 2019. The pandemic also boosted non-cash payments as consumers avoid contact during transactions.
• Similarly, in January 2022, Mastercard announced a strategic partnership with Wakayama Prefecture to leverage its global standard payment network to boost the development of the tourism sector and accelerate the cashless transaction infrastructure and digital transformation for small and medium businesses in the prefecture.
• This partnership will encourage the adoption of global standard cashless payment systems, which involve the integration of contactless payments using IC cards and smartphones. Moreover, both parties will promote effective payment procedures at businesses in the region through the utilization of technologies like virtual cards.

Japan POS Terminals Market Trends

Mobile POS Payments is Expected to Witness Significant Growth in the Market

Japan POS Terminals Industry Segmentation

Fixed POS terminals include devices such as PC-based workstations, namely PC-class Processor-based and LAN-available terminals. Also, PC on Cash Drawer Devices (PCOCD) and self-checkout (unattended terminals) are part of the scope. Mobile/Portable devices such as tablets of all sizes and handheld terminals with or without payment processing capabilities are considered.

The Japan POS Terminal Market is segmented by type (fixed point of sale systems, mobile portable point of sale terminals) and by end-user industry (retail, hospitality, healthcare). The report offers market forecasts and size in value (units) for all the above segments.