What is the condition of the market for smart vending machines?

The vending machine sector has always welcomed new technology as a means of enhancing client satisfaction and offering a more effective service. It follows that the smart vending industry, with some of the largest and most developed device fleets on the market, is among the most well-established IoT adopters today.

More than a quarter (27%) of respondents from the industry stated in Linkitsoft’s third annual State of IoT Adoption research that their estate sizes varied from 5,001 to 10,000 devices, the largest number among the five industries we polled. Over the next 18 months, 76% of respondents anticipate having more devices in use than they do now. Of these, 20% intend to double or even triple their IoT estates—again, the highest figure when compared to other industries.

These clever vending companies' investment in their IoT skills seems to be paying off as well: 53% of them claim that IoT has allowed them to boost sales.

A disparity in investments?

The lowest percentage of all the industries questioned, only 65% of smart vending respondents anticipate increasing their IoT budgets in the next two years, despite the industry's good return on investment. All things considered, the companies in this industry are only anticipating an 8% budget rise over the prior year.

With 58% of respondents anticipating a budget increase of between 51% and 100%, smart vending had the most ambitious expectations in 2023. This is a substantial change from that year. In contrast, only 11% of respondents anticipated increases of the same size in 2023.

Whether the industry can maintain the business advantages it has gained via its successful IoT projects remains to be seen in light of this prognosis.

The challenge of maintaining smart vending machine connectivity

Vending machines are usually found in locations where it can be challenging to get connectivity, including underground parking lots or off-the-beaten-path gas stations. This is evident in the largest problem smart vending operators are facing: according to 71% of respondents, connectivity problems are brought on by IoT technology.

This is consistent with our view that the majority of IoT problems are device-related. Only 4% of respondents across all industries polled for Linkitsoft’s IoT research said they had never experienced device difficulty, while 64% acknowledged that they have occasionally encountered problems connecting their IoT devices due to underlying hardware issues.

The smart vending business case stand-in-need as close to 100% connectivity as advantageous. If the process fails and the consumer is unable to acquire the goods they want or pay for it, even a 1% reduction in connectivity levels will have a significant outcome on customer happiness and profitability. As a result, companies won't be able to absolutely utilize IoT.

It is indispensable to approach Internet of Things enterprise with a "device-first" mentality because hardware issues are common. The majority of responding’s (81%) to Linkitsoft’s study concurred that the key to achievement is having a well-designed device.

The Development of Applications for Vending

Although the idea of a vending machine has been around for millennia, the incorporation of software has made these machines more than just common coin-operated machines; they are now confused, interactive gadgets. At first, only food and beverages could be contribute via vending machines.

Interactive User Interface: Touchscreens with user-friendly interfaces are a feature of modern vending machines. Customers may interact with the apps' interactive features, promotional films, and comprehensive product information.

Data analytics: Applications for vending collect useful information about the preferences and behavior of customers. Operators use this information to identify patterns, manage inventories, and customize product offerings to satisfy consumer needs.

Sustainability and Energy Efficiency: A lot of vending systems these days come with energy monitoring capabilities that encourage more environmentally friendly behavior. This covers the usage of refrigeration and lighting technologies that consume less energy.

Uses Not Just for Conventional Vending

Applications for vending machines go beyond just product sales. Creative applications consist of:

Library Book Dispensing: In certain areas, vending machines provide the ability to borrow books; these devices are often found in areas where library access is restricted.

Pharmacy vending machines: These devices offer health supplies and over-the-counter drugs, sometimes with the option for remote consulting services.

Tool Rental Services: Industrial and construction settings might benefit from the tool rental provided by specialized vending machines.

Difficulties and Opportunities for the Future

Vending apps have many advantages, but they also have drawbacks. These include protecting user privacy, guaranteeing cybersecurity, and bridging the digital divide, which might prevent certain users from using them. In the future, there is a great deal of promise for even more individualized and effective services thanks to the integration of AI and IoT technology.

It seems that the only restrictions on vending apps' future are our own imaginations. They will develop further as they become more ingrained in our everyday lives, providing a really improved, customized, and engaging buying experience rather than merely convenience.

Smart vending has security problems that are above average.

IoT security was identified by 23% of smart vending operators as their top challenge. This is more than the average for all industries polled, where only 17% of respondents thought it was a significant obstacle. This degree of discomfort may stem in part from vending machines' typical locations, which are open spaces overseen by a third party.

In general, security has continued to be an issue for the organizations that Linkitsoft’s has polled over the last three years, although falling from the top spot in 2021 and 2022 to third place in 2023.

It is crucial to achieve strong end-to-end security, which entails many layers of defense and a lot of labor, from the network to the actual hardware of the devices.

Businesses can be tempted to settle for inexpensive connectivity providers in order to offset their predicted small budget increases, but this is probably a false economy. 71% of respondents discovered that lower cost vendors don't offer long term value, despite 95% of respondents to Linkitsoft’s poll stating that the cost of connectivity is an important aspect in the decision-making process when choosing a provider.