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Open POS Systems Poised for Growth: Study

FRANKLIN, Tenn. -- While category killers drove demand for PC-based point-of-sale (POS) systems in 2005, shipments in 2006 should see strengths among grocers and specialty stores, says a new study released today by IHL Consulting Group.

The PC-based POS market in North America experienced solid 5 percent shipment increases in 2005. "We are seeing strong interest among grocers in particular," said Greg Buzek, president of IHL Consulting Group, a research and advisory firm that serves retailers and retail technology vendors. "Terminals with lower total cost of ownership than previous models and with touchscreen LCD display interfaces appear to be in demand this year, particularly in grocery and other retail segments."

According to the study, retailers in all vertical segments are looking more to purchasing their POS hardware and software from different vendors. With few exceptions, the dual vendor strategy is being pushed by lower cost hardware options that run on Microsoft Windows operating systems and Linux.

Additional study findings include:

--Specialty category killers made up the strongest market segment, adding over 321,000 new terminals in 2005.

--In 2005, Intel Celeron/AMD Sempron processors were the most popular choices for new POS units purchased.

--Microsoft Windows operating systems continue to gain market share, with a combined 71 percent of the market in 2005. Windows XPe and WEPOS accounted for 12 percent of shipments in 2005.

--Linux has also increased its market share from 5 percent to 9 percent, and experienced an impressive 80 percent increase in 2005.

IHL's "2006 North American Retail POS Terminal Study" reviews the shipments and installed base of POS terminals sold into retailers in North America. It includes market shipment and installed base figures, market value, situation analysis for 10 retail market segments, overall trends affecting the POS market, and forecasts through 2010.
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