The commercial landscape for large format kiosks has been transformed by the COVID-19 pandemic, with market research specialists Futuresource Consulting predicting 13% CAGR growth in global shipments from 2021 to 2025.
These self-service digital displays, providing end users with content and information through user-friendly interfaces, are being harnessed to drive efficiencies and support social distancing measures as the world emerges from lockdown. From retailers to transportation companies and healthcare, the experiential opportunities offered by kiosks are perfectly suited to new consumer demands.
“Fallout from the pandemic has resulted in sweeping changes in consumer behaviour, shrinking profit margins for retailers and, in many instances, new legal requirements for the reopening of premises,” says Victoria Tselykh, Market Analyst at Futuresource Consulting. “These unprecedented conditions are applying upward pressure to the kiosk industry, and many verticals have been taking cues from the quick service restaurant segment. It’s an auspicious time to be operating in the large format kiosk business.”
Inroads made into the QSR vertical over the last few years have led to growing consumer acceptance of large format kiosks. According to the latest Futuresource research, rollouts have accelerated, helping to eliminate human error, speeding up serving time and delivering information in a variety of languages. These devices are a far cry from the sub-22-inch-screen devices used for self-service check-in at airports and self-checkout in supermarkets.
“Opportunities abound within retail, with a total addressable market of more than 15 million units,” says Tselykh. “That’s ten times the size of the transport industry opportunity, predominantly down to the sheer number of restaurants, supermarkets, clothing stores and more that can benefit from the tech. A high proportion of this sits within food service, though wayfinding and digital signage will continue to be the most established kiosk technologies elsewhere in retail.”
As the market unfolds, Futuresource predicts a shift to experiential shopping, as retailers develop a raft of strategies to coax consumers back to the high street. Beyond self-service, kiosks will provide innovative product browsing options and augmented reality to allow users to try items on. As this new world of phygital retail begins to blur the lines between physical and digital retail, savvy brands will take the best elements of each to enhance product performance, deliver a better customer experience and harness data to target products more effectively.
Futuresource state that Western European countries, particularly the Nordics, Germany and the UK, have been first-movers in kiosk adoption. However, as kiosk prices and the associated installation and software costs start to fall, markets in LATAM and APAC will begin to open up. Access to cheaper large panels, retrofit technology to convert existing screens to kiosks, and economies of scale will all contribute to driving the market forward.
“Watch out for advances in smart data usage, which will help to propel the market to the next level,” says Tselykh. “It will set outlets free to find optimal efficiencies in operations, while AI will begin to play a role in customer loyalty schemes and customised pop-up ads to increase revenues.”
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Futuresource Consulting is a market research and consulting company, providing its clients with expertise in Professional AV, Consumer Electronics, Education Technology, Content & Entertainment, Professional Broadcast and Automotive. Combining strong methodologies and unsurpassed data refinement with in-depth market knowledge and forecasting, Futuresource deliver the latest insights and technological developments to drive business decision-making.
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