Market status and development prospects of China's self-service terminal industry

China's self-service kiosk industry is becoming more and more widely used, with more than 5 million units

Self-service terminals are mainly used to alleviate the problem of large flow of people in business halls and improve the speed of business processing, mainly used in banking, telecommunications, electric power, medical, aviation, retail and other industries.

With the development of society, self-service terminals are more and more widely used, from bank ATM machines, POS machines, queuing machines and other self-service terminal equipment favored by many industries, not only because of the convenient services brought by self-service terminal equipment itself, but also an indispensable product of social and economic development. In recent years, with the popularization of Internet technology, the demand for self-service terminal service equipment in finance, medical care, transportation and other industries is increasing.

According to the statistics of the "China Self-service Terminal Industry Market Outlook and Investment Strategic Planning Analysis Report" released by the Prospective Industry Research Institute, the number of self-service terminal equipment in China reached 1.793 million units in 2013. In 2015, the number of self-service terminal equipment in China exceeded 3 million units, and by 2017, the number of self-service terminal equipment in China increased to 4.433 million units, and by 2018, the number of self-service terminal equipment in China exceeded 5 million units, reaching 5.231 million units, a year-on-year increase of 18.00%.

Statistics on the number of self-service terminal devices in China from 2013 to 2018

Data source: Foresight Industry Research Institute

Since 2016, due to the rapid development of China's mobile payment market and the transformation of the banking industry, the growth of China's ATM market has slowed down. Growth resumed in 2018, with the increase of new ATMs in China reaching 150,300 units, and the overall market ownership reaching 1,110,800 units.

Statistics of China's ATM market from 2011 to 2018

Data source: Foresight Industry Research Institute

New incremental statistics of ATMs in China from 2011 to 2018

Data source: Foresight Industry Research Institute

Analysis of the development prospect of China's self-service terminal industry

——Technology drives retail innovation, and the demand for self-service terminals in the retail industry is increasing

In the past two years, domestic self-service cash registers have developed rapidly and have blossomed everywhere in large retail enterprises. On the basis of not changing the existing operation mode of supermarkets, self-service cash registers reduce the number of cashiers, promote the significant increase in human efficiency and floor efficiency output of retail enterprises, and achieve the effect of improving shopping efficiency, reducing labor costs and improving consumer experience. For example, since 2018, Hisense Intelligent Commercial has provided hundreds of sets of large-screen self-service terminals to Chongbai Group (which owns the three major brands of Chongbai Group, New Century Department Store and Trading Company Electrical Appliances), which have been widely used in nearly 200 stores of Chongbai Group. These "cashier generals" were sent to general stores and supermarkets in Chongqing, Sichuan, Guizhou and other places to perform the task of cashier.

In addition, the development of new retail models has also stimulated the demand for self-service terminals. With the maturity of new retail-related application technology, the innovation and development of retail self-service terminals and self-service settlement systems are truly bringing consumers a new experience of easy shopping and convenient payment.

2. The rise of the unmanned market has driven the demand for self-service terminals

Following JD.com and Alibaba, SF also entered the unmanned shelf market with its new brand "Feng E Foot Food", and is expected to stand out with its own office resources and express employees. Not only are giants keen on the "unmanned market", but a large number of startups are also taking this as the direction, such as Gorilla Convenience. The unmanned retail market currently mainly includes three forms, of which the self-service vending machine market is more mature, while the open shelf and unmanned convenience stores are mainly concentrated in 2017, and they are all in the early stage of development. According to the latest statistics, the transaction scale of the unmanned retail market (including buying and selling machines) in 2018 is conservatively estimated to be close to 30 billion yuan, and it is expected to exceed 65 billion yuan in 2020, with a three-year compound growth rate of about 50%.

Statistics and forecast of the market size of China's unmanned retail market (including purchasing and selling machines) from 2018 to 2020

Data source: Foresight Industry Research Institute

The rise of the unmanned market is undoubtedly directly benefiting the self-service terminal industry. It is expected that during the "Thirteenth Five-Year Plan" period, the downstream application of self-service terminals will continue to expand, and vending machines and automatic fuel dispensers will usher in good development opportunities.