Executive Summary

www.frost.com. March 2003. 1-1. 1. Executive Summary. THE EUROPEAN KiOSk MARkET MUST AND WiLL. CHANGE. Too Many Vendors-Not Enough Value.
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1 Executive Summary Th e








Too Many Vendors-Not Enough Value Against the backdrop of falling revenues, delayed decision-making and failing pilot schemes, some of the leading multimedia kiosk vendors in Europe are looking at how they can shed the 'PC-in-a-box' image that threatens to undermine what they maintain is real value-add. However, with only a handful of strong references and a tide of low value kiosk vendors maintaining a small but serviceable market for kiosks which are nothing but a 'PC-in-a-box', the task is huge. In describing the current and future trading environments for kiosk vendors, this paper highlights some of these vendors' strategies and argues that the market is set for a strong round of consolidation that will sweep away a large number of small players that add little value over and above a basic PC-in-a-box solution. It suggests that although other labels such as 'selfservice' help in distinguishing high value kiosks from lower value PC-in-a-box type solutions, in reality the basis for any kiosk implementation must be to address a clear and present business need. Definitions We define a kiosk as a freestanding computer based device that allows the public or a specified group of users access to device-based or on-line information and/or services. We include within this definition devices that allow public access to the Internet and specific web sites, self service devices such as that allow users to transact with their stores loyalty scheme, print digital photos, buy theatre tickets, check-in to air flights, check out of hotels, order and pay for meals at fast food outlets and so forth. We do not include within this definition Automatic Teller Machines (ATMs), lottery equipment and gaming devices.


© 2003 Frost & Sullivan


March 2003


Another way of looking at our definition of a kiosk is to compare its form with its function. ATMs do not qualify as part of our definition of a kiosk market because they need to incorporate specific features (forms) such as secure, alarmed enclosures combined with a specific purpose (function)—dispensing cash. Similarly lottery equipment and gaming machines whilst often labelled self-service, are highly specific in both their forms and their functions. We include self-service terminals that allow airline check-in, hotel check-out and digital photo development where they are based on standardised kiosk elements. Thus the form of the machines is non-specific even if the function is highly specific. Chart 1.1 graphically demonstrates our definition. Chart 1.1 Total Kiosk Market: Kiosk Definition (Europe), 2003

Highly specific

Airline Check-in Kiosks Hotel Check-out Kiosks


In-store loyalty kiosks

Digital photo printing kiosks

Lottery equipment

Gaming machines

ATM Public information points

Public access web kiosks PCs Non specific

Highly specific Function

Source: Frost & Sullivan

This study is concerned with the markets addressed by complete and turnkey kiosk vendors. These vendors produce finished kiosk products for end users. In some cases they may provide the content but in many cases the content may be provided by the client or indeed a third party. Chart 1.2 shows the kiosk value chain and highlights the focus of this study. This report focuses on the markets for Kiosks in France, Germany, UK and Italy. The majority of Kiosk vendors are based in these regions. We are aware of significant markets in Spain, Portugal and in Scandinavia. Please enquire with regard to analysis of these markets.


© 2003 Frost & Sullivan


March 2003


Chart 1.2 Total Kiosk Market: Value Cha