The interactive kiosk market is expected to grow at a CAGR of 4% during the forecast period. Adoption of smart parking solutions, drivers.2, and drivers.3 are some of the significant factors fueling interactive kiosk market growth.
Adoption of smart parking solutions
North America has the highest share of the global interactive kiosk market with both the US and Canada generating significant demand. Customers in the region are early adopters of new technologies and have a high preference for personalized services, owing to which the adoption of interactive kiosks in the region is increasing. Enterprises in the region are increasingly using interactive kiosks for their marketing campaigns. Also, interactive kiosks are being increasingly deployed to enhance consumer engagements and branding initiatives.
One of the prominent factors driving the growth of the interactive kiosk market in the region is the growing investments in the establishment of new retail stores. The following are some such investments:
In April 2019, Canada Goose Inc. (Canada Goose) announced that it would open one new store in the US and three in Canada. It is estimated that the stores will open in fall/winter 2019.
In March 2019, Amazon.com Inc. (Amazon. com) announced that it would open its new line of grocery stores, with three new stores in the US. The company has already signed a lease for three stores; of which one will be located in Los Angeles, US.
In October 2018, Target Brands Inc. (Target Brands), also known as Target, one of the biggest retailers in the US, announced that it would open a new store in New York, US.
These retail stores use interactive kiosks for information, advertisement, and self-checkout purposes. For instance, in June 2017, Walmart Inc. (Walmart) announced that it installed interactive kiosks for self-service in a few of its stores in Oklahoma City, US. Hence, the increase in the number of retail stores being built is driving the demand for interactive kiosks during the forecast period.
The growth of the interactive kiosk market in the region is also attributed to the rapid growth of QSRs in the region. North America has prominent QSRs, including McDonald's, Starbucks, Subway IP LLC (Subway), Wendy's, Burger King Corp. (Burger King), and Taco Bell. The number of QSRs in the US grew at a CAGR of 4.34% between 2012 and 2018. The concept of QSR is based on fast service offered. The adoption of interactive kiosks streamlines the operation of QSRs, thus ensuring faster service, thereby increasing the adoption of interactive kiosks by QSRs. Following are a few examples of QSRs deploying interactive kiosks:
In June 2018, McDonald’s announced that it would add self-order kiosks to 1,000 stores in each quarter, and by 2020, all the McDonald’s in the US will have self-service kiosks.
In February 2018, Costco Wholesale Corp. (Costco Wholesale) announced that it would install self-service kiosks in the food courts in the Tustin and Pacoima stores to reduce customer wait time and improve customer experience.
Furthermore, the interactive kiosk market in North America is witnessing various challenges. Many end-user sectors, especially commercial end-users, have partially shut down their operations owing to the COVID-19 pandemic. This disease, and the subsequent lockdown, has led to the downfall of the economy and trade in North America. For instance, in April 2020, around 37 state governments in the US ordered or recommended that statewide closures continue until further announcement to help reduce the spread of the novel coronavirus. This disease has limited people’s movement in public places where interactive kiosks are primarily used. Such partial shutdowns of companies, industries, healthcare institutions, shopping malls, and transportation can hinder the growth of the regional market during the forecast period.
