Asia Pacific Smart Vending Machine Market

Asia Pacific Smart Vending Machine Market Analysis:

Asia Pacific Smart Vending Machine Market is estimated to experience reasonable growth to record a CAGR of 17.6% throughout the estimated period 2022 - 2027.

Several manufacturers are launching online vending machines that allow customers to purchase items over the Internet. These machines provide customers with Internet connectivity and enable the online purchase of products through smartphone applications. These interactive solutions will attract more customers to the stores that buy with these machines in the coming years. Several manufacturers in the smart vending industry are integrating these machines with cashless payment technologies.

Recent Developments:

In June 2018, in an effort to establish and expand its offline presence, grocery platform BigBasket was in talks to acquire a controlling stake in the Kwik24 smart vending machine startup, according to two people familiar with the matter. The development comes after the Alibaba-backed company launched a pilot project with Kwik24 to implement smart vending machines in five apartment buildings in Bengaluru.

Almost seven months after raising $ 300 million from Alibaba Group Holding Ltd., online grocery store Bigbasket said it had acquired three startups, which will help it offer subscription-based services and allow customers to buy commodities through vending machines. Bigbasket has acquired two startups: Bengaluru-based Morning Cart and RainCan, a Pune-based milk subscription platform, it said today in a statement. According to the statement, it also bought a controlling stake in the Kwik 24 cloud-connected smart vending machine platform.

365 Retail Markets has acquired 'smart store' technology company Stockwell for an undisclosed figure as the company aims to improve its underserved retail offering. Based in Oakland, California, Stockwell pioneered an unattended retail solution that uses artificial intelligence, machine learning, and computer vision to create fully-managed and customizable "smart stores" for apartments, offices, hotels, and similar venues.

Fastenal Co., Winona, MN, purchased certain assets of Apex Industrial Technologies on March 30, according to an 8-K filed by the company. Over the past 12 years, Apex has supplied Fastenal with thousands of industrial vending machines, and the dealer is widely regarded as the leader in the use of this on-site sales tool at industrial and commercial sites. 

Cleveland-based Vendors Exchange International acquired American Vending Machine, according to a Vending Times report. The combination of the companies and the additional operational site will allow Vendors Exchange to better serve its customers by generating shorter lead times and more profitable solutions. AVM's St. Louis plant will provide additional manufacturing space and a highly skilled workforce.

Luckin Coffee has grown at a rapid pace as it aims to steal market share from Starbucks, its main competitor. Unmanned coffee vending machines are another way to further saturate the market, including key places where busy people need a caffeine boost, such as airports and office buildings. As customers seek convenience, the chance to grab a cup of coffee while traveling in an unexpected location may also boost brand loyalty for some coffee drinkers or entice Starbucks drinkers to try Luckin's coffee, placing them in an area where Starbucks is not available.

Asia Pacific Smart Vending Machine Market Drivers and Restraints:

The increasing penetration of the Internet of Things (IoT) and connected device technologies is expected to drive the growth of smart vending machines. The growing consumer inclination towards cashless payments is further helping accelerate the growth of the industry. Cashless communication, near field communication (NFC), and mobile payment protocols are believed to have a favorable impact on the industry. Technological proliferation is leading to the adoption of innovative techniques, such as facial and voice recognition, in distribution systems. Built-in machines with voice and facial recognition sensors make it easy for users to recommend products based on their age and gender. Vendors focus on implementing interactive distribution systems to generate more revenue through advertising and displaying other information and news. In addition, the systems help reduce operating costs as they can be managed across remote sites, eliminating the need for a machine administrator to intervene. However, increased regulations on the sale of junk food on avenues such as schools and a ban on potentially dangerous confectionery products, such as cigarettes and tobacco, are believed to discourage market growth. Furthermore, the manufacture and deployment of these machines is an expensive affair, which subsequently affects the interests of the seller.

Asia Pacific Smart Vending Machine Market Segmentation Analysis:

The marker segmentation for Asia Pacific Smart Vending Machine can be divided into Type and Application. Beverages are believed to emerge as the fastest-growing type segment in the smart vending market due to the growing emphasis on healthy distribution. The segment mainly includes packaged beverages such as juices, water, milk, flavored water, and energy drinks, among others. Consumers are constantly looking for new packaged beverages that are low in calories and fit healthy lifestyles and needs. The availability of beverages packaged in tetra paks and aseptic multilayer cartons is increasing the adoption of packaged beverages. The adoption of these systems in office buildings offers several advantages, such as space conservation, cost-effectiveness, and cleanliness. Shopping malls and retail stores are expected to dominate the application segment during the forecast period.

Impact of covid-19 on Asia Pacific Smart Vending Machine Market:

With the blockade imposed by governments due to the COVID-19 pandemic, restaurants, food stores, and catering companies have been closed, affecting the sales of equipment manufacturers. The smart vending machine has downfall dramatically during the first half of 2020. All the activities across the world were stopped during this period, and this had led the shares to have less growth rate. China and India are worst affected by the COVID 19 pandemic that all companies were completely shut down for some period of time. However, with some relaxation in the emerging countries, the Asia Pacific smart vending machine market shares started increasing.

Asia Pacific Smart Vending Machine Market Regional Analysis:

The market for Asia Pacific Smart Vending Machine has been categorized on the basis of geography to offer a clear understanding of the market. The Market for Asia Pacific Smart Vending Machine has been divided into China, Taiwan, South Korea, India, Japan, Australia, and New Zealand, and the rest of the Asia-Pacific. The Asia-Pacific smart vending market is expected to register significant growth in terms of revenue due to increasing digitization in the region. Furthermore, the shift in the attention of the tech-savvy population towards hassle-free shopping, coupled with increasing disposable income, are key factors that are expected to drive the demand for smart vending machines in India, especially for installation in metropolitan cities. Additionally, manufacturers are focusing on adopting high-end technologies and launching innovative vending machines to make it easier for consumers to purchase products.

Leading Company
Azkoyen Group had the largest share of the Asia Pacific Smart Vending Machine Market in terms of sales revenue in 2021.

Asia Pacific Smart Vending Machine Market Key Players

The Asia Pacific Smart Vending Machine Market is concentrated with well-established players. Key players in the Asia Pacific Smart Vending Machine Market include IBM Corporation, Azkoyen Group, Fuji Electric Co. Ltd., Glory, Ltd., Fujitsu Limited, Hitachi, Ltd., Honeywell International, Inc., Bianchi Vending Group S.p.A., Aramark Corporation, and Compass Group.