In 2007, the global market for self-checkout solutions reached $358.3 million. VDC anticipates that revenue shipments for self-checkout solutions will grow at a compound annual growth rate (CAGR) of 17.8%, surpassing $812 million by 2012.

The global market for self-checkout solutions continued to be dominated by grocery store/supermarkets and department stores/mass merchants. Combined, these two segments accounted for 76% of the entire market. Both of these core markets are anticipated to experience growth of approximately 20% annually over the next five years – continuing to account for the majority of self-checkout revenues. Despite the recent success associated with these solutions, retailers across all vertical markets are still trying to find the appropriate balance between manned POS solutions and self-service POS solutions (i.e., selfcheckout solutions, self-service kiosks).

Self-checkout solution revenue distribution continues to be dominated by multi-station solutions. In 2007, multi-stations accounted for more than 90% of the global self-checkout market revenues. Multi-lane will continue to account for the vast majority of the market due to improving consumer and enterprise comfort levels, the more attractive ROI potential associated with them, and increasing installation sizes. Completed beta and pilot tests have made enterprises come to the realization that deploying one selfcheckout solution will offer very limited benefit to their retail locations. In order to achieve the operational efficiencies and return on investment enterprises are seeking, suppliers continue to advise that at least 30% of checkout aisles be retrofitted to be self-service alternatives.

Accounting for 52% of the total market in 2007, self-checkout suppliers continued to rely heavily on direct distribution channels (i.e., direct to end user). Enterprise end users continue to use direct channels due to the channel’s ability to offer the necessary level of service and integration, and create customized solutions that are more aligned with end-user preferences and requirements. Self-checkout solution revenue distribution continued to be dominated by the Americas, which represented 48% of the total global market. The Americas’ position is directly related to the overall size of the region, its prominent self-service markets, society’s continued acceptance and reliance on the technology, and improving enterprise end-user comfort levels. Investment within the region continues to be strong as enterprises are adopting the technology in attempts to increase throughput, reduce labor costs, enhance the customer experience, improve operational procedures, and differentiate themselves from their competition. Revenue shipments within the region are expected to grow at 17% annually (CAGR), reaching $375 million by 2012.Accounting for more than 35% of the total global market, EMEA continues to be an attractive region for suppliers due to the increasing populations of ‘tech-savvy’ consumers, the improving economic conditions of Eastern Europe, and the continued success of ‘hypermarkets.’ Self-checkout suppliers remain very optimistic regarding the growth potential associated with Eastern Europe as favoring economic conditions allow enterprises to continue to establish themselves, switching from unorganized to organized structures and practices. Over the next five years, EMEA is expected to outpace the Americas region, experiencing a growth rate in excess of 18% (CAGR), resulting in a $293 million market by 2012

Asia-Pacific continues to be the most attractive region in terms of future growth for the self-checkout solution market. In 2007, the Asia-Pacific region accounted for 17% of the total global market and is predicted to experience year-over-year growth of approximately 19% over the next five years. Self-checkout suppliers continue to cite Asia-Pacific as having the most mature enterprise end users and consumers regarding technology comfort levels and ease of adoption. As global retailers continue to expand into the region, investment into retail automation (i.e., self-checkout solutions) will increase as retailers leverage these technologies as platforms off which they can centralize policies, enhance operational efficiencies and improve the customer experience.

In general, investment in retail automation remains stable as enterprise reliance on the technology continues to increase. That being said, the market for self-checkout solutions remains poised to experience impressive growth due to improving consumer and end-user preferences, technological innovations and the solution’s ability to reduce costs across the enterprise. Enterprise investment in self-checkout solutions will continue to be driven by the technology’s ability to enhance the overall consumer experience by expediting customer throughput, addressing the information parity between consumer and enterprise (i.e., consumers becoming better educated regarding product information than sales associates), improving multi-channel synchronization, and efficiently gathering consumer-specific information.

As consumers continue to embrace and demand retail automation technologies, in particular self-service options (i.e., self-checkout, kiosks), suppliers remain highly optimistic regarding their next generation of products. In fact, self-checkout solution suppliers are continuing to highlight the activity and enthusiasm surrounding the integration of Micro/Mini kiosks (i.e., personal shopping assistants) and the announcement of their-next generation self-checkout solutions built around a ‘kiosk-like’ footprint. These new product innovations will allow enterprises to appropriately address the consumer during the shopping experience by conveying data during the point-of-decision (POD) instead of the point-of-sale (POS) and allow checkout to occur throughout the retail location at the consumer’s convenience.

The entire contents of RETAIL AUTOMATION EQUIPMENT PLANNING: 2008 MARKET INTELLIGENCE SERVICE – VOLUME 4: SELF-CHECKOUT SOLUTIONS are proprietary to VDC Research Group, Inc. (VDC), and may not be distributed in either original or reproduced form to anyone outside the client’s internal organization within five (5) years of the report date without prior written permission of VDC. VDC has devoted its best efforts to obtain for and provide to its clients as accurate data as is possible. Nevertheless, we cannot be held responsible for incorrect information provided to us by vendors, users, or others that we interview. Nor can we be held responsible for forecasts of the future evolution of an industry, which, in retrospect, proves inaccurate. Our goal is to provide the best possible analysis of an industry, utilizing data obtained through a time-proven and rigorous research methodology, for our clients to employ in developing strategies to compete in an uncertain and ever-changing business environment.

I-1 Global Shipments of Self Check-Out Solutions Segmented by Region (Millions of Dollars)  2

I-2 Global Shipments of Self Check-Out Solutions Segmented by Region (Thousands of Units) 2

I-3 Global Shipments of Self Check-Out Solutions Segmented by Vertical Market (Millions of Dollars)  3

I-4 Global Shipments of Self Check-Out Solutions Segmented by Product Type (Millions of Dollars)  3

I-5 Global Shipments of Self Check-Out Solutions Segmented by Distribution Channel (Millions of Dollars)  4

III-1 Global Shipments of Self Check-Out Solutions Segmented by Region (Millions of Dollars)  18

III-2 Global Shipments of Self Check-Out Solutions Segmented by Region (Thousands of Units) 18

III-3 Global Shipments of Self Check-Out Solutions Segmented by Region (Average Factory Selling Price - AFSP)  18

III-4 Global Shipments of Self Check-Out Solutions Segmented by Vertical Market (Millions of Dollars)  19

III-5 Global Shipments of Self Check-Out Solutions Segmented by Vertical Market (Thousands of Units) 19

III-6 Global Shipments of Self Check-Out Solutions Segmented by Vertical Market (Average Factory Selling Price - AFSP)  19

III-7 Americas Shipments of Self Check-Out Solutions Segmented by Vertical Market (Millions of Dollars)  20

III-8 Americas Shipments of Self Check-Out Solutions Segmented by Vertical Market (Thousands of Units) 20

III-9 Americas Shipments of Self Check-Out Solutions Segmented by Vertical Market (Average Factory Selling Price - AFSP)  20

III-10 EMEA Shipments of Self Check-Out Solutions Segmented by Vertical Market (Millions of Dollars)  21

III-11 EMEA Shipments of Self Check-Out Solutions Segmented by Vertical Market (Thousands of Units) 21

III-12 EMEA Shipments of Self Check-Out Solutions Segmented by Vertical Market (Average Factory Selling Price - AFSP)  21

III-13 Asia-Pacific Shipments of Self Check-Out Solutions Segmented by Vertical Market (Millions of Dollars)  22

III-14 Asia-Pacific Shipments of Self Check-Out Solutions Segmented by Vertical Market (Thousands of Units) 22

III-15 Asia-Pacific Shipments of Self Check-Out Solutions Segmented by Vertical Market (Average Factory Selling Price - AFSP)  22

III-16 Global Shipments of Self Check-Out Solutions Segmented by Product Type (Millions of Dollars)  23

III-17 Global Shipments of Self Check-Out Solutions Segmented by Product Type (Thousands of Units) 23

III-18 Global Shipments of Self Check-Out Solutions Segmented by Product Type (Average Factory Selling Price - AFSP)  23

III-19 Americas Shipments of Self Check-Out Solutions Segmented by Product Type (Millions of Dollars)  23

III-20 Americas Shipments of Self Check-Out Solutions Segmented by Product Type (Thousands of Units) 24

III-21 Americas Shipments of Self Check-Out Solutions Segmented by Product Type (Average Factory Selling Price - AFSP)  24

III-22 EMEA Shipments of Self Check-Out Solutions Segmented by Product Type (Millions of Dollars)  24

III-23 EMEA Shipments of Self Check-Out Solutions Segmented by Product Type (Thousands of Units) 24

III-24 EMEA Shipments of Self Check-Out Solutions Segmented by Product Type (Average Factory Selling Price - AFSP)  25

III-25 Asia-Pacific Shipments of Self Check-Out Solutions Segmented by Product Type (Millions of Dollars)  25

III-26 Asia-Pacific Shipments of Self Check-Out Solutions Segmented by Product Type (Thousands of Units) 25

III-27 Asia-Pacific Shipments of Self Check-Out Solutions Segmented by Product Type (Average Factory Selling Price - AFSP)  25

III-28 Global Shipments of Self Check-Out Solutions Segmented by Distribution Channel (Millions of Dollars)  26

III-29 Americas Shipments of Self Check-Out Solutions Segmented by Distribution Channel (Millions of Dollars)  26

III-30 EMEA Shipments of Self Check-Out Solutions Segmented by Distribution Channel (Millions of Dollars)  26

III-31 Asia-Pacific Shipments of Self Check-Out Solutions Segmented by Distribution Channel (Millions of Dollars)  27

IV-1 Total Retail Respondents Segmented by Vertical Market (Percent of All Respondents) 31

IV-2 Total Self-Checkout Respondents Segmented by Vertical Market (Percent of Self-Checkout Respondents)  32

IV-3 Total Retail Respondents Segmented by Current Use of Retail Automation Equipment (Percent of All Respondents) 33

IV-4 Total Self-Checkout Respondents Segmented by Current Use of Retail Automation Equipment (Percent of Self-Checkout Respondents) 33

IV-5 Total Self-Checkout Respondents Segmented by Current Use of Self-Checkout Solutions (Percent of Self-Checkout Respondents)  34

IV-6 Total Retail Respondents Segmented by Most Recent Installation of Retail Automation Equipment (Percent of All Respondents)  34

IV-7 Total Self-Checkout Respondents Segmented by Most Recent Installation of Retail Automation Equipment (Percent of Self-Checkout Respondents)  35

IV-8 Total Retail Respondents Segmented by Annual Retail Automation Budget (Percent of All Respondents)  35

IV-9 Total Self-Checkout Respondents Segmented by Annual Retail Automation Budget (Percent of Self-Checkout Respondents) 36

IV-10 Total Self-Checkout Respondents Segmented by % of Retail Automation Budget for Self Checkout Solutions (Percent of Self-Checkout Respondents)  36

IV-11 Total Retail Respondents Segmented By Current and Future Retail Automation Equipment/POS System Purchase Source (Percent of All Respondents)  37

IV-12 Total Self-Checkout Respondents Segmented By Current and Future Retail Automation Equipment/POS System Purchase Source (Percent of Self- Checkout Respondents)  37

IV-13 Total Retail Respondents Segmented By Retail Automation Equipment/POS System Purchase Source Selection Criteria (Average Level of Importance and Satisfaction Rating) 38

IV-14 Total Self-Checkout Respondents Segmented By Retail Automation Equipment/POS System Purchase Source Selection Criteria (Average Level of Importance and Satisfaction Rating) 38

IV-15 Total Self-Checkout Respondents Segmented by Average Number of Self- Checkout Solutions Used In Retail Outlet (Percent of Self-Checkout Respondents) 39

IV-16 Total Self-Checkout Respondents Segmented by Primary Adoption Drivers for Self-Checkout Solutions (Percent of Self-Checkout Respondents Currently Using or Planning to Install)  39

IV-17 Self Checkout Respondent's Segmented by ROI (Percent of Self Checkout Respondents Currently Using Self Checkout Solutions)  40

IV-18 Self-Checkout Respondents Segmented by User Interface Incorporated with Self-Checkout Solution (Percent of Self-Checkout Respondents Currently Using Self-Checkout Solutions)  40

IV-19 Self-Checkout Respondents Segmented by Primary Manufacturer of Installed Self-Checkout Solutions (Percent of Self-Checkout Respondents Currently Using Self-Checkout Solutions)  41

IV-20 Total Retail Respondents Segmented by 2007 Revenue Classification (Percent of All Respondents) 41

IV-21 Total Self-Checkout Respondents Segmented by 2007 Revenue Classification (Percent of Self-Checkout Respondents)  42

V-1 Global Shipments of Self-Checkout Solutions by Supplier Share (Percent of Dollars) 46

V-2 Americas Shipments of Self-Checkout Solutions by Supplier Share (Percent of Dollars) 46

V-3 EMEA Shipments of Self-Checkout Solutions by Supplier Share (Percent of Dollars) 46

V-4 Asia-Pacific Shipments of Self-Checkout Solutions by Supplier Share (Percent of Dollars) 47

Related Report:
 
 Retail Industry Statistics
 Volume 2: Electronic Shelf Label (ESL)
 Volume 3: POS Terminals/ Workstations
 Volume 4: Self-Checkout Solutions
 Volume 5: Payment Transaction Terminals
 Volume 6: POS Receipt Printers
 Volume 7: Handheld POS Bar Code Scanners
 Volume 8: Stationary POS Bar Code Scanners
 Volume 9: Retail-Based RFID Solutions
 Volume 11: Retail-Based Kiosks