Globally, retailers are experiencing limited consumer spending, increasing gas and energy prices, decreasing customer confidence, and the typical operational issues (i.e., labor, location, technology, etc.). In attempts to address these pressures, retailers evaluate and invest in automation technologies, allowing them to improve product turnover, enhance customer interaction, eliminate costs, synchronize their multi-channel strategies and develop their competitive advantage. Investment into retail automation technologies enables retailers to address a wide range of applications, appropriately align themselves with altering customer requirements and preferences, and address the information parity between the retailer and the consumer. Retailers from every market segment have more choices than ever regarding potential investments and deployments of automation technologies, creating more opportunities to capitalize on new and existing revenue streams. Sorting this out has become a major ongoing strategic initiative for all involved. Retailers who invest in the wrong solution risk alienating hard-won, fickle and expensive-to-replace customers. Suppliers who pursue the wrong market opportunity risk precious resources drilling a dry well, and join the ready-to-invest markets too late.

The retail automation market will be redefined over the next decade as new technologies provide greater visibility, predictability, efficiency and flexibility to retailers. Successful suppliers of retail automation technologies need to deftly navigate a fragmenting, faster-moving, more crowded market. In order to do so, suppliers will need the most granular, accurate and reliable market intelligence and analysis. VDC’s 2009 Retail Automation Equipment Service will deliver the insight, analysis and data that suppliers need to make the most profitable product, market and channel development decisions.

RESEARCH SUMMARY

• In-depth analysis of global market opportunity for retail automation equipment, with detailed market definitions and segmentations including: core technology, application, vertical markets, etc;
• Market penetration scenarios, estimates and forecasts for retail automation equipment;
• Customers’ technical and commercial requirements and preferences, including end-user investment drivers and applications, system integrator/OEM selection criteria, and distribution channel capabilities;
• Analysis of the structure of the retail automation equipment supplier community, including leading and emerging supplier market share, position, direction and profiles; and
• Discussion of key issues, forces and trends driving and restraining market growth and development, including opportunities and requirements for suppliers to grow share and profit.

I EXECUTIVE SUMMARY 1

MARKET ANALYSIS 2

SCOPE 6

INTRODUCTION 6

STUDY GOALS 6

STUDY TOPICS 6

MARKET SEGMENTATION 7

METHODOLOGY 8

PRIMARY RESEARCH 8

SECONDARY RESEARCH 8

MARKET ANALYSIS RESEARCH NOTES 12

TECHNOLOGY OVERVIEW AND DEFINITION 12

GLOBAL AND REGIONAL MARKETS FOR RETAIL-BASED KIOSKS 14

PRODUCT SPECIFICATIONS AND COMPONENTS 16

INPUT COMPONENTS: 17

OUTPUT COMPONENTS: 18

VERTICAL MARKET ANALYSIS 19

INTRODUCTION 31

END-USER RESPONDENT DEMOGRAPHICS 32

REQUIREMENTS, PREFERENCES, AND SOLUTION CRITERIA 33

INTRODUCTION 46

MARKET ANALYSIS RESEARCH NOTES 46

RETAIL-BASED KIOSKS 46

FRIENDLYWAY AG 51

IBM 52

KIOSK INFORMATION SYSTEMS (KIOSK) 53

NCR 54

WINCOR-NIXDORF 55

RETAIL-BASED KIOSK MARKET SUMMARY OBSERVATIONS AND

COMMENTS 57

INTRODUCTION 57

2008 PREDICTIONS 59

WAYS TO WORK WITH US 60

LIST OF EXHIBITS

I-1 Global Shipments of Retail-Based Kiosks Segmented by Region (Millions of Dollars) 2

I-2 Global Shipments of Retail-Based Kiosks Segmented by Region (Thousands of Units) 2

I-3 Global Shipments of Retail-Based Kiosks Segmented by Vertical Market (Millions of Dollars) 3

I-4 Global Shipments of Retail-Based Kiosks Segmented by Type of Solution (Millions of Dollars) 3

I-5 Global Shipments of Retail-Based Kiosks Segmented by Distribution Channel (Millions of Dollars) 4

III-1 Global Shipments of Retail-Based Kiosks Segmented by Region (Millions of Dollars) 20

III-2 Global Shipments of Retail-Based Kiosks Segmented by Region (Thousands of Units) 20

III-3 Global Shipments of Retail-Based Kiosks Segmented by Region (Average Factory Selling Price - AFSP) 20

III-4 Global Shipments of Retail-Based Kiosks Segmented by Vertical Market (Millions of Dollars) 21

III-5 Global Shipments of Retail-Based Kiosks Segmented by Vertical Market (Thousands of Units) 21

III-6 Global Shipments of Retail-Based Kiosks Segmented by Vertical Market (Average Factory Selling Price - AFSP) 21

III-7 Americas Shipments of Retail-Based Kiosks Segmented by Vertical Market (Millions of Dollars) 22

III-8 Americas Shipments of Retail-Based Kiosks Segmented by Vertical Market (Thousands of Units) 22

III-9 Americas Shipments of Retail-Based Kiosks Segmented by Vertical Market (Average Factory Selling Price - AFSP) 22

III-10 EMEA Shipments of Retail-Based Kiosks Segmented by Vertical Market (Millions of Dollars) 23

III-11 EMEA Shipments of Retail-Based Kiosks Segmented by Vertical Market (Thousands of Units) 23

III-12 EMEA Shipments of Retail-Based Kiosks Segmented by Vertical Market (Average Factory Selling Price - AFSP) 23

III-13 Asia-Pacific Shipments of Retail-Based Kiosks Segmented by Vertical Market (Millions of Dollars) 24

III-14 Asia-Pacific Shipments of Retail-Based Kiosks Segmented by Vertical Market (Thousands of Units) 24

III-15 Asia-Pacific Shipments of Retail-Based Kiosks Segmented by Vertical Market (Average Factory Selling Price - AFSP) 24

III-16 Global Shipments of Retail-Based Kiosks Segmented by Type of Solution (Millions of Dollars) 25

III-17 Global Shipments of Retail-Based Kiosks Segmented by Type of Solution (Thousands of Units) 25

III-18 Global Shipments of Retail-Based Kiosks Segmented by Type of Solution (Average Factory Selling Price - AFSP) 25

III-19 Americas Shipments of Retail-Based Kiosks Segmented by Type of Solution (Millions of Dollars) 25

III-20 Americas Shipments of Retail-Based Kiosks Segmented by Type of Solution (Thousands of Units) 26

III-21 Americas Shipments of Retail-Based Kiosks Segmented by Type of Solution (Average Factory Selling Price - AFSP) 26

III-22 EMEA Shipments of Retail-Based Kiosks Segmented by Type of Solution (Millions of Dollars) 26

III-23 EMEA Shipments of Retail-Based Kiosks Segmented by Type of Solution (Thousands of Units) 26

III-24 EMEA Shipments of Retail-Based Kiosks Segmented by Type of Solution (Average Factory Selling Price - AFSP) 27

III-25 Asia-Pacific Shipments of Retail-Based Kiosks Segmented by Type of Solution (Millions of Dollars) 27

III-26 Asia-Pacific Shipments of Retail-Based Kiosks Segmented by Type of Solution (Thousands of Units) 27

III-27 Asia-Pacific Shipments of Retail-Based Kiosks Segmented by Type of Solution (Average Factory Selling Price - AFSP) 27

III-28 Global Shipments of Retail-Based Kiosks Segmented by Distribution Channel (Millions of Dollars) 28

III-29 Americas Shipments of Retail-Based Kiosks Segmented by Distribution Channel (Millions of Dollars) 28

III-30 EMEA Shipments of Retail-Based Kiosks Segmented by Distribution Channel (Millions of Dollars) 28

III-31 Asia-Pacific Shipments of Retail-Based Kiosks Segmented by Distribution Channel (Millions of Dollars) 29

IV-1 Total Kiosk Respondents Segmented by Vertical Market (Percent of Kiosk Respondents) 34

IV-2 Total Kiosk Respondents Segmented by Current Use of Self-Service and Interactive Kiosk Solutions (Percent of Kiosk Respondents) 35

IV-3 Kiosk Respondents Segmented by Current Use of Self-Service and Interactive Kiosk Solutions (Percent of Kiosk Respondents - Excluding those Not Using/No Plans for Adoption) 35

IV-4 Survey Respondents Segmented by 2007 Planned Budget/Expenditure for Self- Service and Interactive Kiosk Deployments (Percent of Respondents - Excluding those Not Using/No Plans for Adoption) 36

IV-5 Percent Breakdown of Average 2007 Planned Budget/Expenditure for Self- Service and Interactive Kiosk Deployments by Product Category (Average Percent) 36

IV-6 Kiosk Respondents Segmented by Total Number of Self-Service and Interactive Kiosk Terminals Currently Deployed (Percent of Respondents - Excluding those Not Using/No Plans for Adoption) 37

IV-7 Kiosk Respondents Segmented by Number of Weekly Users at Each Kiosk Terminal (Percent of Respondents Currently Using Kiosk Solutions) 37

IV-8 Kiosk Respondents Segmented by Initial Primary Driver for Investing in Self- Service and Interactive Kiosk Solutions (Percent of Respondents - Excluding those Not Using/No Plans for Adoption) 38

IV-9 Kiosk Respondents Segmented by Perceived Level of Importance of Specific Kiosk Benefits (Average Level of Importance Rating) 38

IV-10 Survey Respondents Segmented by Perceived Factors Encouraging Customer Use of Self-Service and Interactive Kiosk Solutions (Percent of Respondents - Excluding those Not Using/No Plans for Adoption) 39

IV-11 Kiosk Respondents Segmented by Components Included in Self-Service and Interactive Kiosk Terminals (Percent of Respondents Currently Using Kiosk Solutions) 40

IV-12 Average Perceived Level of Importance for Specific Product Selection Criteria (Average Level of Importance Rating) 41

IV-13 Average Perceived Level of Importance for Specific Kiosk Features (Average Level of Importance Rating) 41

IV-14 Survey Respondents Segmented by Primary Source* for Self-Service and Interactive Kiosk Solutions (Percent of Respondents - Excluding those Not Using/No Plans for Adoption) 42

IV-15 Survey Respondents Segmented by Order of Approach for Sources from which to Purchase and/or Evaluate Self-Service and Interactive Kiosk Solutions (Percent of Respondents - Excluding those Not Using/No Plans for Adoption) 42

IV-16 Average Perceived Level of Importance for Specific Vendor Selection Criteria (Average Level of Importance Rating) 43

IV-17 Average Perceived Level of Importance that Supplier Offers a Complete Solution Independently or Via a Partner Network (Percent of Respondents - Excluding those Not Using/No Plans for Adoption) 43

IV-18 Survey Respondents Segmented by ROI for Self-Service and Interactive Kiosk Solutions (Percent of Respondents Currently Using Kiosk Solutions) 43

IV-19 Survey Respondents Segmented by Estimated Annual Revenue (2007) (Percent of Respondents - Excluding those Not Using/No Plans for Adoption) 44

V-1 Global Shipments of Retail Based Kiosks by Supplier Share (Percent of Dollars) 48

V-2 Americas Shipments of Retail Based Kiosks by Supplier Share (Percent of Dollars) 49

V-3 EMEA Shipments of Retail Based Kiosks by Supplier Share (Percent of Dollars) 49

V-4 Asia-Pacific Shipments of Retail Based Kiosks by Supplier Share (Percent of Dollars) 50

Related Report :

Track 1: POS Terminals and Peripherals
Volume 1: Market Drivers, Customer Requirements and Plans
Volume 2: Payment/Transaction Terminals, Supply-Side Analysis
Volume 3: POS Terminals/Workstations, Supply-Side Analysis
Volume 4: POS Receipt Printers, Supply-Side Analysis
Track 2: Emerging In-Store Technologies
Volume 1: Market Drivers, Customer Requirements and Plans
Volume 2: RFID POS Solutions, Supply-Side Analysis
Volume 3: Electronic Shelf Label (ESL), Supply-Side Analysis
Track 3: Self-Service Technologies
Volume 1: Market Drivers, Customer Requirements and Plans (Hospitality)
Volume 2: Market Drivers, Customer Requirements and Plans (Retail In-Store)
Volume 3: Self-Checkout Solutions, Supply-Side Analysis
Volume 4: Retail-Based Kiosks, Supply-Side Analysis
Volume 5: Personal Shopping Systems, Supply-Side Analysis
COMPLETE SERVICE (All 3 Tracks), Includes Customized Executive Summary with
research implications specific to your company