Vending Machines Market Size and Outlook:
The retail sector is supply driven and this is a good time for large-scale grocers to re-evaluate their long term strategies. The world continues to be startled by the speed of technology. As vending machines maket their foray into the retail sector, the market is showing tremendous scope. Projected to be valued at US$ 12 Bn in 2020, the market is set to grow at a posiitve 6% during the forecast period.
The pandemic is expected to have an adversarial impact on the vending machines market with stringent lockdowns and reduced footfalls at malls and retail outlets. Shutting down of production facilities will further dampen demand for vending machines in the first few quarters of 2020. However, stringent social distancing protocols in the aftermath and rising preference for automated systems is expected to benefit the vending machines market in the long term.
Vending Machines Market Share Analysis by Application
Whilst the vending machines market has shown myriad trends over the last few years, a significant uptick in demand from the commercial sector has catalysed the growth of the market. Commercial applications of vending machines include corporate offices, shopping malls & retail stores. Corporate offices, which account for nearly one third share in the global vending machines market, are expected to show prominent growth during the forecast. Shopping malls & retail stores on the other hand will show the fastest growth, at a steady CAGR of nearly 5% during the forecast period.
Vending Machines Market Share Analysis by Region
East Asia is estimated to account for more than 30% share in the vending machines market. High usage and adoption of newer technologies in countries such as Japan has led to this region’s dominance in the vending machines market. Also, leading vending machine companies are strategically working on increasing their penetration in China. This move is expected to increase value proposition in the East Asia market. The region is anticipated to present high returns on short-term investments, and is projected to be a cash cow for key stakeholders in the long term forecast.
Vending Machines Market Manufacturers: Competitive Strategies
The vending machines market is fragmented with top players accounting for one fourth of the revenue share in the market. Rapid expansion of the top players in foreign markets is expected to pave way for consolidation of the market. Key players in the market like Fuji Electric, Selecta TMP AG, The Vendo Group and Crane Merchandising Systems have been expanding their reach in the market to herald an era of true transformation in the retail-customer arena. Many have already started to strategize on expansion into other adjacencies such as healthcare and wellness items especially now at the height of the pandemic.