The global smart vending machines market is expected to grow at a CAGR of 13.30% from a market value of US$4.807 billion in 2020 to reach up to US$11.522 billion in 2027.
A vending machine is a machine that dispenses things kept within it in return for cash or tokens placed within. A complex vending machine that not only serves products but also interacts with consumers through the touchscreen, video, music, hand motion engagement, and cashless payment is known as an intelligent vending machine. Typically, smart vending machines deliver packaged food, drinks, and tobacco items. Furthermore, the increasing global e-commerce sector in addition to the rise of cashless and contactless payment methods by several companies will boost the market share in the upcoming years.
The global smart vending machine market is growing due to the increased need for cashless transactions, fast digitalization, increased reliance on ATMs, and global internet penetration.
Additionally, the increased usage of the Internet of Things (IoT) and smart device technologies is expected to drive the growth of the smart vending machines market during the estimated period. Consumers’ increased use of contactless and cashless payments for food and beverage transactions is driving industry expansion. The latest technologies, such as contactless mobile payments, face and voice recognition, Near-field communication (NFC), and government controls to display nutrition information and product warning, is expected to positively impact the intelligent vending machines market size over the forecast period.
Companies have taken the initiative to expand their operations along with enhancing their product offerings which are projected to be beneficial for the market trend
The implementation of innovative product launches along with the expansion of business operations will enable the market to explore international markets. The rising initiatives towards building enhanced productivity will generate market revenue in the long run. For instance, Asia Pioneer Entertainment, a Macau-based electronic gaming goods distributor, debuted a new business section in March 2021, with Smart Vending Machines deployed in various locations across Macau.
Additionally, the incorporation of digital payments will be beneficial for market growth. For instance, Co-op collaborated with Unilever in May 2021 to unveil a new smart ice cream vending machine in its Battersea Bridge Road shop in London. The machine is the UK’s first and only customer-smart ice cream vending machine, according to the business. The Walls-branded machine sells a variety of ice cream. Customers must tap their mobile on the vending machine “NFC” tag to purchase ice cream goods. Customers are then requested to confirm their payment method, which may include Apple Pay or Google Pay.
Moreover, Subway, a fast-food restaurant, introduced its vending machine in November 2022, taking its marketing to the next level. The firm opened its first “Grab and Go” location, which is stocked with pre-made sandwiches, beverages, and snacks. Subway’s Grab & Go smart vending machine is also known as a “smart fridge” since the foods offered there are refrigerated. Subway has chosen high-traffic areas for the installations, which will most likely be at hospitals, airports, and college campuses.
The increasing usage of cashless transactions in addition to the rise of the internet of things (IoT) will surge the market trend in the upcoming years.
According to the Ministry of Electronics and Information Technology, 74.22 billion digital payment transactions were registered in 2021-22, up from 55.54 billion in 2020-21, representing a 33% increase. One of the primary reasons for UPI’s rapid development is the success of payment system players’ (PSPs’) marketing initiatives in acquiring clients. Another element driving UPI penetration is its compatibility, which has expanded its use beyond payments to merchants via PSPs, allowing UPI to surpass all other types of digital payments. Furthermore, the deployment of universal QR codes across all types of stores in the country has boosted transaction convenience. Due to the rise of such payment methods, the market for smart vending machines is anticipated to surge.
The government has taken several initiatives to introduce digital payment methods that have added value to market sales. For instance, in August 2021, Prime Minister Narendra Modi via the use of video conferencing unveiled e-RUPI, a new digital payment option. e-RUPI is a cashless and contactless digital payment platform. The Prime Minister’s Office (PMO) stated in a statement that several programs have been implemented over the years to guarantee that benefits reach their intended users in a targeted and leak-proof method, to minimize touchpoints between the administration and the beneficiary. The instrument functions as an e-voucher based on a QR code or SMS string given to recipients’ mobile phones.
Furthermore, in July 2021, Parimal Shah, a Tea Sommelier from a family of Tea growers, founded the Indian business Cherise India, which launched a variety of smart, IoT, and Android-based vending machines. Cherise’s extremely user-friendly smart vending kiosks have their own customized Cherise IoT dashboard and application for monitoring operations. The Cherise offers its customers access to the IoT vending platform, which delivers real-time information about customer consumption habits, inventory, and payment at the push of a button.
According to analysts, the North American region is expected to witness positive growth during the forecast period.
Based on geography, the global specialty enzymes market is divided into North America, South America, Europe, and the Asia Pacific. Geographically, North America is anticipated to hold a significant amount of market share. Organizations in the North American area have a lot of money and can easily afford to spend it on intelligent vending machines, which drives up demand in the region. Furthermore, higher utilization of mobile payments, advancements in communication technology, and quicker internet access, among other factors, all contributed to the expansion. For example, in January 2021, France-based Sodexo will purchase Accent Food Services, a fast-growing regional consumer services organization located in the United States. Sodexo intends to improve its takeaway, delivery, and convenience store concepts, as well as multi-channel products like self-service pantries, workplace refreshments, and smart vending machines, with this purchase.