Kiosk market to more than double

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Technology: Providing the Customer a Better Experience While Increasing Efficiency, Controlling Costs," the kiosk market will grow from an installed base of about 1 million units in 2009 to more than 2.5 million units worldwide in 2014.

The United States currently is home to two-thirds of global kiosk deployments, and will continue to be the site of most kiosk deployments over the next five years, as the popularity of self checkout, entertainment and travel kiosks continue to grow. Europe and Asia also will see growth in kiosks, while the rest of the world continues to adopt them slowly.

"Self-service is driving consumer behavior," says Larry Fisher, Research Director of NextGen Research. "Kiosks are an extension of a broader self-service trend, where consumers want more control of their environment. The growth of online banking is an example showing that customers want to transact on their own schedule; kiosks will follow the same growth trajectory, as customers can choose when and how they transact."

Found in airports, retail stores, building lobbies, government offices and a host of other locations, the key benefit of kiosks is in the convenience they provide, as an alternative channel that can be used to reduce waiting times, while enhancing customer perception of a brand.

Kiosks have made headlines in recent months, with the rapid expansion of Redbox DVD rental kiosks; the company said it would have 20,000 such kiosks deployed in North America by year-end 2009. Competitor Blockbuster plans to have 10,000 DVD rental kiosks deployed in North America by the end of 2010. DVD rental kiosks are part of the entertainment category, which makes up just a quarter of the total kiosk market; other leading categories tracked by the NextGen Research study include the financial, retail, travel, and municipal and government sectors.