The research report from Juniper Research says the growth will be fuelled by the increasing availability of app integrations, such as Shopify and QuickBooks, as vendors expand and seek to augment their capabilities through partnerships and consolidation.
The new research - POS Software: Key Opportunities, Vendor Analysis & Market Forecasts 2020-2024 - identified that forging partnerships will enable connections with third-party platforms, allowing vendors to grow their user base.
And the research urges vendors to leverage cloud-based systems to integrate with eCommerce platforms, enabling retailers to offer seamless omnichannel experiences.
The report also forecasts that larger POS software vendors will seek to acquire niche POS software innovators to integrate their disruptive services into their portfolios.
The research forecasts that China will be a key market for software vendors, accounting for 40% of global revenue by 2024.
The report also notes that Chinese retail innovation has traditionally occurred in the online area, rather than in traditional ‘bricks and mortar’ retail - a trend which POS software will alter, by offering eCommerce integrations, enabling a highly effective omnichannel experience.
“China represents a crucial opportunity for POS software vendors to attract smaller businesses, but vendors must quickly seek effective partnerships in the country to gain market share, or risk being bypassed by local POS hardware vendors,” said research author Susannah Hampton.
Juniper says that POS Software will “level the playing field in retail”, and suggests that POS software can be an important enabler for smaller retailers, by granting access to management tools previously only available to large businesses.
“By 2024, 81% of all POS software will be used in retail,” says Juniper, with monetisation a crucial issue for vendors, as many payments companies offer some tools free with payments processing.
“Vendors must ensure that their propositions are highly tailored, to ensure sufficient user appeal,” Juniper concludes.