According to a recent report by Berg Insight, the number of cellular IoT connections in the retail sector reached 147.9 million globally in 2023.
Cellular IoT technology allows devices such as POS terminals, ATMs, digital signage, and ticketing machines to be deployed in locations where fixed-line connectivity is either unavailable or impractical. The impact of this technology is particularly significant in sectors like vending and parking, where operators can benefit from real-time data, necessitating changes to operational strategies.
Berg Insight projects that the number of cellular IoT connections in the global retail industry will grow at a compound annual growth rate (CAGR) of 10% over the next five years, reaching 217.7 million connections by 2028. During the same period, shipments of cellular IoT devices for retail applications are anticipated to increase at a CAGR of 6.2%, rising from 57.9 million units in 2023 to 78.2 million units in 2028.
POS terminals are the dominant segment in this market, accounting for 93% of all cellular IoT connections in the retail industry by the end of 2023. Although the market for wirelessly connected POS terminals is relatively mature, growth is largely driven by the expanding adoption of electronic payments in emerging markets.
“The multi-space parking meter segment was an early adopter of cellular IoT connectivity and has today reached the highest connectivity penetration of 70%,” said Felix Linderum, IoT Analyst at Berg Insight.
Additionally, single-space parking meters have emerged as one of the fastest-growing segments within the market.
The vending machine sector also presents a significant opportunity for wireless connectivity. At present, only 6.5 million of the world’s 14.8 million vending machines are connected, but it is expected that eventually all vending machines will be brought online.
“Costs for equipment as well as connectivity services have come down significantly and the solutions have become more sophisticated and easier to deploy. However, the organisational change needed to get the maximum benefits from vending telemetry is probably the largest remaining barrier to widespread adoption”, added Linderum.
For digital signage, cellular connectivity is predicted to remain a niche option due to the relatively higher costs involved.
“However, a growing number of media players now come with SIM slots and cellular technologies such as 5G are likely to become more relevant to meet the demands for broadband data required from applications such as 3D, AI and analytics,” concluded Linderum.
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