March 15, 2023 | #Vending
It’s been a long time since vending machines were the cold impersonal boxes that had customers fumbling around in their pockets for exact change.
Over the last decade, transformation in the vending industry has happened fast. And, today, powered by new technologies in security, payment, and data, new vending models have arrived on the scene. They’re models that offer greater choice and convenience to customers and easier management for operators.
In this post, we want to show you around one particular trend that has recently emerged. That’s smart vending machines - machines that are empowered to communicate with customers and operators through the Internet of Things (IoT).
So, what is the state of the smart vending market? What can we expect in the future? And, crucially, what is CCV doing to drive innovation? Let’s take a look.
What are smart vending machines?
Smart vending machines are machines that can do more thanks to IoT connectivity. Equipped with new payment, security, and communication technologies - and empowered by smart data - smart vending offers new opportunities to create value for customers and convenience for machine operators.
IoT connectivity. Smart vending machines are equipped with sensors, cameras, microphones, and more. These deliver smarter insights to operators.
New payment options. From QR codes and NFC payments to closed-loop cards, payment at vending machines has come on leaps and bounds. Alongside greater choice and convenience for users, this boosts security for operators, too.
Deeper customer interactions. Colour touch screens allow customers to engage with machines in exciting new ways. They can access detailed product information, including nutritional and calorific data, and select products more easily. For vendors, better-informed customer decisions can mean higher revenue in the long run.
Live marketing. With smart touchscreens, operators can deliver advertising based on the time of the day, the time of year, or the weather - to engage customers and drive more sales.
Smart operation and maintenance. Customers aside, IoT-enabled machines make life easier for operators. With the information these devices supply, operators can monitor stock levels, access live vending data, and manage troubleshooting, all remotely.
The state of the smart vending industry
Smart connectivity has turned vending machines from inert objects into sophisticated devices that offer a smooth, rich, and more enjoyable customer experience. That sounds great—but how is the industry developing?
The truth is smart vending is growing fast. Here’s what you need to know:
4 Million Vending machines generating over $ 16 billion turnover.
The Vending machine market will grow by nearly $ 10 billion before 2024.
The CAGR of smart vending industry in Gemany is expcted to be 8 %.
- According to the European Vending & Coffee Service Association, there are over four million vending machines across Europe, generating over $16 billion in turnover.
- While COVID-19 knocked sales in 2020, the industry is recovering fast. According to Technavio, the vending machine market will grow by nearly $10 billion before 2024. Smart vending is expected to lead that growth.
- Between 2021 and 2027, the compound annual growth rate (CAGR) of the smart vending industry in Germany is expected to be 8%. And in some parts of the world, that number is as high as 20%.
So, what’s behind this incredible growth?
Four factors behind the growth of smart vending
Telemetric data. Developments in technology have driven the smart vending industry from the beginning. With smart machines, data on stock, security, hygiene, and product conditions can be sent to remote operators who can monitor quality at distance. For operators, this has delivered huge benefits in terms of maintenance, that they can pass on to customers.
Customers want more. These days, customer experience matters just as much as the product itself - if not more so. And as customers have demanded a better vending experience that delivers extra value, the vending industry has risen to the challenge.
Find out more about how smart vending data can improve customer experience.
We’re using less cash. In many countries across Europe - particularly in Scandinavia and the Netherlands - cash is no longer king. As customers have sought new payment methods, technologies have needed to change. And these have brought new opportunities for smart vending systems too.
COVID-19 has sparked a growth in demand for impersonal transactions and packaged food. While the pandemic knocked growth during lockdowns, the industry is springing back with new solutions.
CCV and the future of smart vending
So, what’s next for the industry? To begin with, further technological developments are driving growth and transformation across the smart vending industry - and CCV is at the heart of this growth.
Here’s what we’re doing to lead the way.
Android-enabled vending devices
At CCV, we’ve developed a payment terminal powered by Android. Equipped with the full potential of Android applications, a machine’s capabilities are now limitless. Here’s some of what CCV devices can offer:
- New marketing opportunities. Through embedded advertising on the payment device itself, operators have the opportunity to deliver value for customers and generate extra revenue.
- Easier product selection. A payment terminal with a colour touchscreen enables customers to select products with ease.
- QR and barcode scanners - meaning greater options for payment, while machines can be equipped to accept vouchers too.
- Inbuilt camera and microphone - enabling remote assistance for customers.
We’re working with app development partners to continually build new app capabilities. Get in touch to find out more - and discover the full range of solutions we can offer.
Multiple product selection and payment
One of the newest trends in smart vending is basket functionality - allowing customers to select multiple products and pay only once. Here, CCV is leading the way.
Remote purchasing
Building on the machines’ IoT functionality, we’re working on new solutions to enable customers to select and pay for products remotely. Once they arrive at the terminal, they can retrieve their items through Bluetooth. It’s the next step in customer convenience
We’re making vending even smarter
Android promises to open new horizons in smart vending. At CCV, we’re leading the industry, to make Android-powered payment terminals a reality across vending, micro-markets, and attended retail contexts.
For customers, this means a richer vending experience. For operators, it revolutionises the management of smart vending machines. Get in touch to find out more.
