Description
The Global Handheld Terminals Market size was USD $3.60 billion in 2023 and is projected to grow at a CAGR of 7.96% during the forecast period (2024-2031).
Global Handheld Terminals Market: Key Takeaways
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Growing Demand Across Industries & Technological Advancements:
The market for handheld terminals is expanding across various industries such as retail, logistics, healthcare, and manufacturing. These devices enable efficient data capture, inventory management, and real-time communication, making them essential for businesses aiming to enhance operational efficiency. Innovations in technology, such as the integration of AI, IoT, and cloud computing, are enhancing the capabilities of handheld terminals. These advancements are enabling better data processing, improved connectivity, and more robust security features, driving market growth.
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Rising Adoption of Mobile Workforce Solutions & Impact of COVID-19:
The increasing adoption of mobile workforce solutions is a significant driver for the handheld terminals market. As more companies adopt remote and field-based operations, the need for reliable and portable data capture devices is rising, leading to increased demand. The COVID-19 pandemic has accelerated the adoption of handheld terminals, particularly in sectors like healthcare and logistics. The need for contactless operations and efficient supply chain management during the pandemic has highlighted the importance of these devices.
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Challenges in High Cost and Maintenance:
While the market is growing, challenges such as the high cost of advanced handheld terminals and their maintenance can act as restraints. Organizations, especially small and medium enterprises, may find it difficult to justify the investment in these devices.
Global Handheld Terminals Market: Overview
The global handheld terminals market is experiencing robust growth, driven by technological advancements and shifting consumer demands. The integration of advanced technologies like artificial intelligence (AI) and machine learning into handheld terminals is significantly enhancing their functionality, making them indispensable in industries such as logistics and retail, where real-time data access is crucial. Additionally, the rise of mobile solutions across various sectors is propelling businesses to adopt handheld terminals to boost operational efficiency and productivity, particularly in e-commerce, where efficient inventory management and order fulfillment are becoming increasingly vital. The COVID-19 pandemic further accelerated the adoption of contactless payment systems, amplifying the demand for handheld terminals in retail and hospitality sectors as touchless transactions gained prominence. Furthermore, there is a growing emphasis on developing durable handheld terminals that can withstand harsh environments, with innovations focusing on enhancing processing power, connectivity options, and data capture technologies. Regionally, the Asia Pacific is poised to dominate the market, driven by rapid economic growth and a diverse consumer base, with countries like China and India leading the charge in adopting handheld terminals across various industries, supported by strong technological infrastructures. However, despite the promising growth outlook, the market faces challenges, particularly the high initial costs associated with implementing handheld terminal solutions, which can be a significant barrier for small and medium-sized enterprises (SMEs). Nevertheless, as industries continue to evolve, the demand for advanced handheld terminals is expected to rise, presenting substantial opportunities for manufacturers and technology providers in the global market.
Global Handheld Terminals Market: Growth Drivers
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Increasing Demand for Mobile Workforce Solutions
The rise in mobile workforces across industries is a significant growth driver for the handheld terminals market. These devices enable real-time access to data, enhancing productivity and decision-making on the go. As industries such as retail, logistics, and healthcare continue to expand their mobile workforce, the demand for handheld terminals is expected to rise. For example, the global mobile workforce is projected to reach 1.88 billion by 2023, driving the need for reliable and efficient handheld devices that can support various business operations.
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Advancements in Wireless Communication Technologies
The continuous evolution of wireless communication technologies, such as 5G, Wi-Fi 6, and Bluetooth, is fueling the growth of the handheld terminals market. These advancements enhance connectivity, data transfer speeds, and reliability, making handheld terminals more efficient and versatile. With 5G expected to cover 45% of the world’s population by 2024, the adoption of handheld terminals in sectors like transportation, warehousing, and healthcare is set to increase, as they rely on real-time data access and communication.
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Growing Adoption in Retail and E-commerce Sectors
The retail and e-commerce sectors are increasingly adopting handheld terminals for inventory management, point-of-sale (POS) transactions, and customer engagement. The growth of e-commerce, which saw a 27.6% increase in global sales in 2020, is driving the need for efficient logistics and inventory management, where handheld terminals play a crucial role. These devices enable quick and accurate data capture, reducing errors and improving customer satisfaction, thus boosting their adoption in the retail sector.
Global Handheld Terminals Market: Restraining Factors
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Security Concerns and Data Breaches
One of the primary restraints in the handheld terminals market is the increasing concern over data security and breaches. As these devices are frequently used to handle sensitive information, such as financial transactions and personal data, they become attractive targets for cyberattacks. The rise in the number of data breaches, which increased by 15.1% in 2021 compared to the previous year, highlights the vulnerability of handheld terminals. This concern can deter businesses, especially those in highly regulated industries like healthcare and finance, from fully adopting these devices.
Global Handheld Terminals Market: Opportunity Factors
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Integration with IoT and AI Technologies:
The integration of handheld terminals with IoT and AI technologies presents significant growth opportunities. IoT-enabled terminals can connect with various smart devices, enabling seamless data collection and analysis in real-time. This capability is particularly beneficial in sectors like logistics, where it can enhance tracking and monitoring of goods. Additionally, AI integration can improve decision-making processes by providing predictive analytics and automating routine tasks, thereby increasing the efficiency of handheld terminals in various applications.
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Expansion in Emerging Markets:
Emerging markets in Asia, Africa, and Latin America offer substantial growth opportunities for the handheld terminals market. The rapid industrialization and urbanization in these regions are driving the adoption of handheld terminals in sectors such as retail, logistics, and healthcare. For instance, the retail sector in India is expected to reach USD 1.7 trillion by 2025, creating a robust demand for handheld terminals to manage inventory and improve customer service. The growing need for automation and digitization in these regions further accelerates market growth.
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Customization and Industry-Specific Solutions:
The demand for customized handheld terminals tailored to specific industry needs is a growing trend, creating opportunities for market players. Industries such as healthcare, manufacturing, and retail require specialized devices that cater to their unique operational challenges. For example, in healthcare, handheld terminals with integrated barcode scanners and RFID readers can streamline patient management and medication tracking. Companies that offer flexible and customizable solutions are likely to gain a competitive edge in the market.
Global Handheld Terminals Market: Challenges
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Battery Life and Device Durability:
A significant challenge in the handheld terminals market is ensuring long battery life and device durability, especially for devices used in demanding environments like warehouses and outdoor settings. Frequent battery replacements or device failures can lead to operational disruptions and increased costs for businesses. While advancements in battery technology and rugged device design are ongoing, achieving a balance between performance and durability remains a challenge. This issue can impact user adoption, particularly in industries where continuous operation is critical.
Global Handheld Terminals Market: Segment Insights
By Component:
The handheld terminals market is segmented into hardware, software, and services. Hardware dominates due to the need for robust, durable devices that can withstand various environmental conditions. These devices are crucial for industries like retail, healthcare, and logistics, where ruggedness and reliability are essential. Software is the next significant component, with demand driven by the need for advanced features like real-time data processing, inventory management, and customer relationship management (CRM) applications. Service components, including maintenance, repair, and upgrading services, also play a vital role, especially as businesses look to extend the lifecycle of their investments in handheld terminal technology. The service segment is expected to grow as more companies opt for managed services to reduce operational burdens and improve efficiency.
By Product:
The market is categorized into handheld terminals and tablets. Handheld terminals are preferred for their portability, ruggedness, and specialized functions, making them indispensable in sectors like logistics, retail, and healthcare. Tablets, however, are gaining traction due to their larger screens and versatility, which appeal to users in retail, hospitality, and field services. The increasing use of tablets in the hospitality industry for tasks like order taking, payment processing, and customer management is a significant growth driver. Overall, the handheld terminal segment continues to dominate due to its widespread use in high-demand applications, but tablets are rapidly catching up, particularly in environments where a more extensive user interface is beneficial.
By Technology:
The market is divided into biometric and traditional technologies. Traditional handheld terminals dominate, given their established use and reliability in various industries like retail, healthcare, and logistics. However, biometric technology is rapidly gaining ground due to its enhanced security features, which are becoming increasingly critical in sectors like healthcare and finance. The integration of biometric authentication methods, such as fingerprint scanning and facial recognition, is driving innovation in this segment. As security concerns continue to rise, the demand for biometric-enabled handheld terminals is expected to grow, particularly in industries where data protection and secure transactions are paramount.
By Application:
The handheld terminals market serves various industries, including entertainment, healthcare, hospitality, restaurants, retail, and warehouses. The retail sector remains the largest application area, driven by the need for efficient inventory management, point-of-sale transactions, and customer engagement. In healthcare, handheld terminals are crucial for patient data management, medication tracking, and real-time communication among healthcare professionals. The hospitality industry uses these devices for tasks like order management and guest services, while the warehouse sector relies on them for inventory tracking and logistics management. As businesses across all these sectors increasingly adopt digital solutions, the demand for handheld terminals is expected to continue rising.
By Region:
The handheld terminals market is geographically segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and South America. North America leads the market due to its early adoption of advanced technologies and the presence of key players in the region. The Asia Pacific is expected to witness the highest growth rate, driven by rapid industrialization, urbanization, and the growing retail sector. Europe follows closely, with significant demand from the healthcare and logistics sectors. The Middle East & Africa and South America are emerging markets, where increasing investments in digital infrastructure and the expansion of retail and healthcare industries are expected to drive growth.
Global Handheld Terminals Market: Recent Developments
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Advancements in 5G Integration (2023):
The integration of 5G technology in handheld terminals saw significant momentum in 2023, enabling faster data transfer and real-time communication. This development has driven demand in industries such as logistics, retail, and healthcare, where the need for reliable and quick data access is critical. Major players have started rolling out handheld terminals equipped with 5G, enhancing operational efficiency and connectivity in remote and high-traffic areas.
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Increase in Adoption of Android-Based Terminals (2023):
2023 witnessed a substantial increase in the adoption of Android-based handheld terminals. Businesses are shifting away from legacy operating systems like Windows CE, favoring Android due to its user-friendly interface, strong app ecosystem, and regular updates. This trend is particularly evident in the retail and logistics sectors, where flexibility and ease of integration with other systems are crucial.
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Rising Demand for Rugged Handheld Terminals (2024):
In 2024, there has been a growing demand for rugged handheld terminals, particularly in industries such as manufacturing, warehousing, and field services. These devices are built to withstand harsh environments, including extreme temperatures, dust, and water exposure. Manufacturers are focusing on improving the durability and battery life of these terminals, catering to industries that require robust and reliable devices.
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Expansion of Cloud-Based Solutions for Handheld Terminals (2022):
The shift towards cloud-based solutions for handheld terminals gained traction in 2022. Businesses are increasingly adopting cloud-based software to manage their handheld devices, enabling real-time data synchronization, remote management, and enhanced security. This trend is driven by the need for scalable, flexible, and cost-effective solutions that can be easily updated and maintained, making it a key development in the handheld terminal market.
Global Handheld Terminals Market: Key Players
Global Handheld Terminals Market features several key players that dominate the industry, including: Diebold Nixdorf, Epicor Software Corporation, Ingenico Group, Micros Systems, Inc., NCR Corporation, NEC Corporation, Panasonic Corporation, PAX Technology, Square, Inc., VeriFone Systems, Inc.
Global Handheld Terminals Market: Segmentation
Based on Component:
- Hardware
- Software
- Services
Based on Product:
- Handheld terminal
- Tablet
Based on Technology:
- Biometric
- Traditional
Based on Application:
- Entertainment
- Healthcare
- Hospitality
- Restaurant
- Retail
- Convenience Stores
- Department Stores
- Supermarkets/Hypermarkets
- Discount Stores
- Specialty Stores
- Warehouse
- Others