Retrofitting of Fully Automatic Vending Machines – A Win-Win Strategy
The fully automatic vending machines market is projected to record volume sales of ~4.1 million units in 2019, and automation in the retail landscape will act as a driving force influencing its growth. The retrofitting of vending machines has been one of the significant trends gaining momentum in this landscape. Since vending machines can be associated with impulse purchase behaviors, places such as airports, bus depots, and railway stations make ideal spots for the installation of these machines.
Though fully automatic vending machines are a one-time investment, end users tend to hesitate when it comes to making investments towards the purchase of the latest vending machines. Since withdrawal from the purchase of new machines impacts market revenue, market players offer retrofitting options to end users that help them leverage cost-saving benefits through the installation of the latest software in their conventional vending machines, and add value to their functionalities. However, the technological revolution isn’t only limited to functionalities; upgrades in features such as cashless payment options, LCD displays, big data integration, and outlook designs are projected to resonate well with end users during the forecast period. The fully automatic vending machines market is expected to increase at a CAGR of ~5%, to reach a value of ~US$ 20.5 Bn by 2027.
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Network – Key Requisite to Ensure Health of Vending Machines
Since vending machines are usually considered as a sales channel for snacks and beverages, government authorities of numerous countries have a strict eye against the sales of junk food, unhealthy snacks, tobacco products, and high-sugar beverages. As a result, consumers in the fully automatic vending machines market are hard-pressed to adhere to the protocols and manage inventory with only government-listed products. In addition, regulations governing the sales of products through vending machines vary in different countries, which is likely to slow down the penetration rate of the fully automatic vending machines market.
Another critical aspect worth considering prior to delving into the fully automatic vending machines market is the connection requisite of a fully automatic vending machine. Failure of network connectivity could hamper the ideal working of the system, and, in turn, affect the sales of products. In addition, lack of proper use-case testing of software could stall the ideal functions of a fully automatic vending machine, which implies that, players in the fully automatic vending machines market should take ample care while developing and testing the technicalities of these fully automatic vending machines.
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Cashless Payments to Underpin Growth of Fully Automatic Vending Machines Market
Traditionally, cash was the only mode of transaction offered by vending machines; however, rapid uptake of cashless payment has unlocked an effective medium to offer convenience to end users. With growing awareness regarding the ease of cashless payment, developing countries began following suit, and machines penetrating the market today are equipped with digital payment options.
In 2018, fully automatic vending machines were highly deployed for the sales of beverages. A rapid rise in industrialization coupled with the growing number of corporate offices is leading to the high deployment of coffee vending machines. In addition, gyms and fitness centers are emerging as new end users of fully automatic vending machines, which are used for the distribution of health drinks and juices; this is likely to uptake the adoption of these machines during the forecast period.
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Fully Automatic Vending Machines: Definition/Overview
- Fully automatic vending machines dispense beverages, snacks, sanitary napkins, and other products on inserting money or a payment card.
- Fully automatic vending machines can dispense single or multiple products on selection.
- Fully automatic vending machines are installed in shopping malls, retail stores, hotels, restaurants, recreational facilities, etc.
- Due to their growing popularity in developing countries, the fully automatic vending machines market is expected to grow rapidly during the forecast period.
Global Fully Automatic Vending Machines Market: Regional Overview
- Asia Pacific is likely to be the most attractive region in the fully automatic vending machines market during the forecast period, due to the rise in the population and technological advancements. Manufacturers are entering the Asia Pacific region in order to gain significant market shares.
- Europe and North America are expected to be other major markets for fully automatic vending machines. Technological advancements and changing lifestyles of people living in urban areas are anticipated to drive the fully automatic vending machines market in this region. Increase in the number of shopping malls and retail stores will be a key factor fueling the growth of the fully automatic vending machines market in the region.
- The fully automatic vending machines markets in South America and Middle East & Africa are expected to witness slow growth during the forecast period.
Global Fully Automatic Vending Machines Market: Market Trends
- Fully automatic vending machine manufacturers are launching these machines with the latest features to attract more consumers. Fully automatic vending machines also offer cashless payment options to boost consumer convenience.
- Fully automatic vending machines save the time of buyers by reducing the need to visit restaurants and shops. Moreover, healthy food products are stored in fully automatic vending machines to attract more customers.
- Fully automated vending machines are now installed at various locations. These are generally set up at crowded places such as banks, educational institutes, office spaces, railway platforms, etc.
- Several fully automatic vending machine manufacturers also provide a reverse vending option. This option allows the user to return used packaging, and this reduces wastage.
Global Fully Automatic Vending Machines Market: Drivers, Opportunities, and Restraints
- Fully automatic vending machines have gained immense popularity across the globe due to their high usage and convenience.
- The retail industry has witnessed substantial growth in the past few years. A rise in overall retail sales will also fuel the growth of the market for fully automatic vending machines.
- Manufacturing companies are now producing intelligent vending machines with LCDs, voice commands, and digital signage. This will improve customer experience and boost the global fully automated vending machines market.
- Incorporating high-end technology such as facial recognition, product description/details, and track of inventory in vending machines will give an opportunity to several manufacturers to gain a competitive advantage during the forecast period.
- The issue of network connectivity could hamper the fully automatic vending machines market, as these machines require a strong Internet network for performing various functions. As such, network connectivity might act as a restraint for the fully automatic vending machines market.
Global Fully Automatic Vending Machines Market: Key Segments
- Based on product, the beverage machines segment accounted for a leading share of the global fully automatic vending machines market in 2018. The segment is projected to expand at a significant rate in the near future, as fully automatic vending machines can store beverages at the desired temperature.
- In terms of electric drive, the AC motors segment accounted for a major share of the fully automatic vending machines market in 2018. It is estimated to maintain its dominant position during the forecast period too.
- On the basis of dispersion of product, the single product vending machines segment held a major share of the fully automatic vending machines market. Multiple product vending machines are expensive as compared to single product dispersion machines. Single product vending machines will witness substantial growth in use during the forecast period.
- Automatic vending machine manufacturer are expanding their businesses to various industrial and commercial places. Shopping through fully automatic vending machines saves time of the buyer by reducing the need to visit stores. Consequently, the fully automated vending machines market is estimated to expand at a rapid pace during the forecast period.
Global Fully Automatic Vending Machines Market: Competition Landscape
- Established manufacturers operating in the global fully automatic vending machines market are facing tough competition, owing to technological advancements.
- Market players often use price/quality characteristics to position their brands.
Major players operating in the global fully automatic vending machines market include
- Crane Co.
- Fuji Electric Co., Ltd.
- Glory Ltd.
- Lotte Engineering & Machinery MFG. CO.
- Groupe SEB
- IVS Group S.A.
- Royal Vendors Inc.
- SandenVendo GmbH
- Zhanjiang Sapoe Electric Appliances Co. Ltd.