More vending machines to get on the Internet

The Internet of Things is well on its way with Technavio’s market research analysts estimating that the global connected vending machine market will grow at a CAGR of 23% between 2016 and 2020. The market is witnessing several technological advancements such as the introduction of touchscreen displays with high-definition resolution and better picture clarity. The emergence of near field communication (NFC) technology will be a major revenue booster in the coming years, Technavio adds.

“The latest trend impacting the growth of this market is the retrofitting of existing vending machines. Due to increasing market competition, vendors are bringing in new technologies to the market, but the cost of employing such technologies and installing new vending machines will be very high. Consequently, the need for retrofitting will increase as it will help retailers to avoid the cost of installing a new vending machine amid fluctuating economic conditions,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.

The retail sector is a prominent supporter of vending machines as they reduce labour expenses and help sellers expand store space, the research firm notes. The office segment leads the market, occupying around 22% of the total market share. In offices, connected vending machines are used to serve a variety of beverages like coffee, tea, hot milk, and cold drinks. Since offices are generally crowded areas, they are a favoured location for connected vending machines.

The key vendors are Coin Acceptors, Crane, Cubic, Fuji Electric, and MEI. Low market penetration and rapid technological change are intensifying competition among suppliers.

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