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KIOSKCOM: Analysts say self-service spending reached $3 billion in 2008

November 11, 2009

At this week's KioskCom Self Service Expo, representatives from technology research firm VDC Research Group Inc. discussed the state of the self-service industry as it moves toward a new year.

In a session entitled "Analyst Alert: Analysis of the Self-Service Kiosk Industry and Usability Studies," VDC executive vice president Chris Rezendes said the firm's data indicates the self-service industry has remained relatively healthy through the economic struggles of the past 18 months. VDC's figures, derived from a survey of 400 self-service deployers, indicate that North American deployers invested nearly $3 billion in self-service hardware, software and services in 2008.

"Self-service delivery-platform budgets survived the recession so far," Rezendes told attendees. "Your peers are continuing to invest in self-service projects."

Rezendes also told attendees that the self-service market is becoming more fragmented, which means deployers have to be smarter about the applications they roll out and the providers they work with.

"If you're considering deploying a self-service delivery platform, a kiosk for example, we think your decision has only gotten more complicated," he said. "The onus is now on (deployers) to clearly define what you want to do with the kiosk."

But coupled with that clear strategy must be room for flexibility and the goal of expanding a self-service deployment's functionality to serve multiple business needs, Rezendes said.

"You must have a razor-sharp definition of the primary application you're rolling out," he said. "At the same time, don't get caught deploying a solution that only supports that application. If you're going to invest in a platform, think of it as just that — a platform that will provide you with flexibility."

And Rezendes said self-service will only become more important to operators' bottom lines as consumers continue to deal with a shaky financial landscape — they have fewer dollars but more information than ever before.

"When they show up in your store or on your floor, they take leverage from you," he said. "Self-service is part of regaining that leverage at the point of decision."

Other numbers from VDC:

• Spending in the North American self-service market is expected to reach $5.6 billion by in 2013.
• According to VDC's survey results, 55 percent of respondents have deployed self-service solutions, and 39 percent plan to do so within the next 12 to 24 months.
• Self-service deployers cited customer empowerment, operations improvement and cost savings as their top-three deployment drivers.