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Indian interactive kiosks market poised for growth: Frost & Sullivan Study

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Indian interactive kiosks market poised for growth: Frost & Sullivan Study

According to a report by Frost & Sullivan titled ‘Indian Interactive Kiosks Market, the interactive kiosks market in India is poised for growth. The study predicts that revenues for the kiosks industry (excluding ATMs) could grow from $10.86 million in 2001 to $33.56 million in 2008, a compounded annual growth rate (CAGR) of nearly 18 per cent.

The report covers 20-25 major players involved either directly or indirectly with kiosks. These include the hardware and software vendors and some end users. The study has been conducted in major metros such as Mumbai, New Delhi, Kolkata, Bangalore, Chennai and sub-metros such as Hyderabad.

In India, despite large potential, the interactive kiosks market remains a nascent one due to considerable lack of awareness about usage, says the study.

As per the study, government departments and the banking sector continue to be the major customers for kiosks, with most kiosks being used to provide information services. However, banks may begin adopting transactional kiosks as well in a significant way over this decade, according to the report. Other sectors such as hospitality and retail are also likely to adopt kiosks in increased numbers.

The study predicts that, in the short term, the industry will grow due to spending by governments and banks but this will change as more aggressive marketing by vendors convinces other potential segments of the benefits of kiosks.

According to the study, pricing restricts market size and would continue to do so if hardware prices do not drop to expected levels. The study reveals that industry participants may adopt innovative pricing strategies to acquire new customers.

There is a possibility of some form of backward integration happening with solution providers entering the manufacturing arena and vice versa. The most important factor holding back growth, however, is low awareness among end-users of benefits and usage of kiosks, sums up the report.


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