This report provides Transforma Insights’ view on the connected Vending Machines market. This segment comprises two segments: Goods Vending Machines (including hot drinks, food, and sundry items) and Transport Vending Machines (dispensing transport tickets).
The connected vending machines market is a mature market due to the widely recognised benefits of contactless payments and the business efficiencies achieved through remote maintenance of unattended machines. As a result it is expected to witness slow growth.
Vending machines are connected mostly via cellular networks for fast and remote data processing.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue. A full set of forecast data, including country-level forecasts, sector breakdowns and public/private network splits, is available through the IoT Forecast tool.
The introductory part of the “Market Development” report briefly talks about the major use cases of vending machines and charts their advantages over traditional staffed retail premises (such as lower labour costs). This section has been further bifurcated into Goods Vending Machines and Transport Ticket Machines.
This section of the report charts the major countries that are using goods vending machines, instead of traditional retail stores. It also mentions the reasons why connected vending machines are being increasingly preferred.
This subsection discusses the major advantages of connected vending machines like supporting better stock management (by predicting demand and analysing real-time data on stocked goods) and cost savings. For instance, one food and beverage (F&B) company used
IoT in its vending machines and witnessed a decrease of 15% in supply chain costs.
This section talks about how the increasing preference for cashless and touchless payments (especially by the younger generations) has increased the need for connectivity to handle payment processing. For example, a survey conducted in March 2023 revealed that 70% of respondents preferred to receive payments digitally and 73% preferred to shop and pay with digital methods.
It then talks about the increasing collaborations between the providers of vending machines and payment platform providers along with its benefits, owing to the rising trend of using contactless payments. Case in point, in May 2023, IVS Group collaborated with Worldline to integrate the latter’s payment terminals to equip the company’s vending machines with cashless payments.
This section focusses on the major barriers that are hindering the adoption of vending machines, including the rise of 24/7 convenience stores (which offer more variety of products to customers), theft and vandalism of vending machines (rendering them unsuitable for places with high crime rates), and the availability of cheap labour in countries such as India.
This subsection talks about the major connectivity technologies used in these machines (such as Ethernet and Wi-Fi) and discusses the scope of other communication technologies such as WAN, LPWA, and cellular.
It also gives some examples of relevant IoT deployments in this application, such as Costa Coffee is using Eseye’s IoT connectivity solution to offer a smart vending solution.
This part focuses on the major reasons behind the increasing adoption of connected transport ticket machines (like rising digital payments) and their benefits (like lowering the dependency on workers to manage ticketing, which in turn, decreases wage costs and operational time spent handling ticketing services). It also discusses how retrofitting is also an option for ticketing operators and explains how new hardware and software can offer significant savings.
It also talks about how mobile ticketing can be a barrier for the adoption of smart transportation ticket machines, since they allow customers to buy tickets online, eliminating long waiting lines. This section also mentions a few relevant IoT deployments in this application, such as Bochum-Gelsenkirchener Straßenbahnen (BOGESTRA) leveraging ICA Group, a provider of technology products in the healthcare, parking, and ticketing industries, to replace 50 ticket vending machines with new ones to generate e-tickets.
The key vendors section lists some of the main providers of products and services related to the vending machine market, such as Aeguana, AEP Ticketing Solutions, Azkoyen, Crane Merchandising Systems, Krauth Technologies, Selecta, Sigma SpA, and Westomatic. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of vending machines, which will grow from from 16.7 million in 2024 to 21.8 million in 2034. Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the vending machines application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Vending Machines Application Group will grow at a CAGR of 3%.
