A new “POS Security Market Global Forecast to 2027″, estimates that POS security market size is expected to grow from an estimated value of USD 4.0 billion in 2022 to USD 6.1 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 8.6% from 2022 to 2027.
The POS Market report by offering includes Solutions and Services; Organization Size: SMEs and Large Enterprises; Vertical: Retail, Restaurants, and Hospitality, and Region: North America, Europe, APAC, MEA, Latin America.
According to experts at MarketsandMarkets, growing scale of data breaches that involve POS system compromise and compliance with regulations are some of the factors that are driving the market growth.
Some of the prominent key players in POS Security Market are;
- Oracle (US)
- Micro Focus (UK)
- NCR (US)
- Fortinet (US)
- Verifone (US)
- PayPal (US)
- Check Point (US)
- CardConnect (US) and many more…
By organization size, SMEs to grow at the highest CAGR during the forecast period
SMEs play a key role in most economies, particularly in developing countries. They are important contributors to job creation and the global economic development. According to the World Bank’s report, Small and Medium Enterprises Finance, they represent 90% of the businesses and more than 50% of the employment worldwide.
The threat of cybercrime is continuously rising but the general awareness and resilience amongst small and medium enterprises remains low.
One of the obstacles faced by SMEs in growing their business in emerging markets and developing countries is finance. SMEs also lack appropriate security measures deployed to their systems. One of the most common forms of cyber-attacks against SMEs are related to payments.
The methods to steal the confidential data include through malware and skimming. These attacks aim at exploiting the customers’ personal data and payment data. These factors have contributed to SMEs increasingly adopting POS security solutions.
The adoption rate of POS security solutions and services by SMEs is expected to increase over the years.
By vertical, retail segment to hold a larger market size during the forecast period
Retailers are increasingly deploying POS systems to increase the efficiency of their operations. The retail vertical consists of supermarkets/hypermarkets, grocery stores, specialty stores, convenience stores, gas stations, discount stores, department stores, among others.
Greater convenience comes through better connectivity between retailers and customers across multiple checkpoints.
However, growing intensity of cyber threats along with the pressure to keep up with the technology innovation has put retailers in a precarious situation. Moreover, regulatory compliances by the central banks and governments of several countries, including the PCI DSS, has prompted the retail trade owners to adopt POS security products and solutions.
According to the TrustWave Global Security Report in 2018, the retail industry bagged the ‘most compromised’ industry label. The primary target was the payment card data. POS security vendors are increasingly offering solutions in the retail industry.
Tripwire POS threat protection, a part of Tripwire Enterprise, delivers comprehensive POS protection with over 35 policies and 55 tests, and offers early detection, reducing the time for massive damages and the recovery time.
By region, Asia Pacific to grow at the highest CAGR during the forecast period
Asia Pacific is expected to be the fastest growing region in the POS security market. APAC experiences substantial security spending owing to the ever-growing threat landscape of the region.
Digitalization has been impacting countries in Asia and this effect is set to grow in the aftermath of the Covid-19 pandemic. One of the characteristics of this vast and diverse region is the presence of a large SME sector comprising most enterprises in all the region’s economies.
The requirement of large investments acts as a barrier for SMEs to adopt POS security solutions. But factors such as increasing digitalization, high internet usage, and adoption of smartphones are the factors fueling the POS security market. In recent years, Asia Pacific has undergone tremendous economic growth, political transformation, and social change.
Organizations in this region are also increasingly focusing on creating better experiences for their users by providing security to their sensitive payment data.
Organizations that deal with highly sensitive customer data are increasingly adopting POS security solutions.
The governments of the countries in Asia Pacific have also set up regulations and compliances for payment systems including POS terminals, to ensure security.