OUTDOOR KIOSKSTECHNOLOGIESAND TRENDS

4.67%EXPECTED2016-2020

SELF-SERVICEKIOSKS MARKET

RESEARCH AND MARKETS "GLOBAL SELF-SERVICEKIOSK MARKET 2016-2020" REPORT FORECAST THEGLOBAL SELF-SERVICE KIOSK MARKET TO GROW AT ACAGR OF 4.67% DURING THE PERIOD 2016-2020

MAY 2016

CAGR

Advantech

Outdoor Kiosks Technologies and Trendstable of contents

03 SELF-SERVICE KIOSKSDEFINITION

04

TIPS TO SUCCESS05

INDUSTRY TRENDS

07 OUTDOOR THREATS

09 EV CHARGINGSTATIONS

10 SEAMLESS PARKINGJOURNEY

Ekkersrijt 5708 Science Park, Eindhoven 5692 ERSon, The Netherlands

embedded@advantech.eu

www.advantech.eu

08 ENTERTAINMENT

11 VENDING KIOSKS

REVERSE VENDING

GLOBAL SUPPLIERS

ABOUT ADVANTECH

13

14

16

A SELF-SERVICE, OR INTERACTIVE, KIOSKIS A CUSTOMIZED COMPUTER TERMINAL

THAT IS EITHER STANDALONE ORNETWORKED AND IS USED TO ACCESS

INFORMATION AND SERVICESCONVENIENTLY. A SELF-SERVICE KIOSKCONSISTS OF A MONITOR, USUALLYTOUCH ENABLED, THROUGH WHICHPEOPLE CAN SEEK INFORMATION OF

THEIR CHOOSING. SELF-SERVICE KIOSKSENABLE SERVICE PROVIDERS TO CATERTO HIGH CUSTOMER TRAFFIC. THEY AREOF IMMENSE HELP IN RETAIL STORES AND

OUTLETS, WHEN THE NUMBER OFSUPPORT STAFF IS FEW AND THE NUMBER

OF CUSTOMERS IS HIGH

SELF-SERVICE KIOSK DEFINITION

["Global Self-service Kiosk Market 2016-2020", Technavio, Jan 2016]

4 TRENDS IN SELF-SERVICEKIOSKS INDUSTRY

Outdoor Kiosks

Niche Focus Self-service kiosk industry has become mature and Vendors arefocusing - rather than general purpose approach - on specific fast-growingniches and are starting to develop user-friendly solutions to engage theconsumers and reinforce brand equity and awareness

Also Self-service kiosks marketing and advertising now target vertical marketexhibitions and events that potential clients in specific niches attend and thetrade magazines they read

Mobile threat vs integration Smartphone diffusion is a threat to some types ofkiosks and Vendors need to develope smarter, more capable kiosks offeringadvanced functions which can’t be replicated on a smartphone andunderstanding the unique purposes that mobile technology can't support: amobile device can't handle cash payments and can't immediate deliver aproduct

Also integration is possible: for example in automated retail solution, whereconsumers can search for kiosk that have a certain product available, reserve it,drive to the kiosk and have the product dispensed, without having to wait for itto be shipped to consumers' home

Vending The distinction between kiosks and vending machines Vendors isbecoming blurred: Kiosk industry is starting to make intelligent vendingmachines much smarter than vending machines were in the past, especially forclothing, cosmetics and for high-end products vulnerable to theft into in-storekiosks

New Business models Redbox is a case study of how a brand new kiosksbusiness model can transform an industry: starting from zero, Redbox changedthe way people rent DVDs and put Blockbuster out of market

5 Tips to Success

Interactive kiosks are deployed in a wide variety of applications to maximizeefficiency in a variety of industries. Many businesses see digital kiosks as amagic genie that will increase revenue while cutting costs: even if this is almosttrue, it's anyway necessary to look at a kiosk deployment as a strategic projectthat involves planning, execution and follow-up to ensure that the kiosks aremaximizing their potential

Location and Convenience are critical to a successful kiosk project: kiosks arelike retail stores and people won't go to a kiosk just because it exists. People willusually choose the path of least resistance: when confronted with aninconvenient location, customers will choose an easier option. Thant means thatif a kiosk is placed in an out-of-the-way location or consistently has long lines,then consumers will naturally look for a more convenient option

1. Kiosk's Business Objectives and Potential Audience Definition -

Interactive kiosks are able to handle nearly infinite numbers of businessfunctions: while planning a kiosk project, it is important to define the businessobjective and the demographics of the group that will be using the kiosk.Kiosk's objectives, potential audience, volume of users and location caninfluence the design of the kiosk, the selection of optional components and theuser interface

2. Kiosks Promotion - Since kiosks use for self-service transactions is growing,it is necessary to promote new kiosk deployments - and particular self-servicefeatures - with visible signage on and around kiosks to ensure that it capturesthe attention of potential new users that are passing by

OUTDOOR KIOSKS

5 Tips to Success

3. Human Trainers - Even if the demand for self-service solutions is becominghuge, sometimes humans can be resistant to change: when customersencounter a new kiosk, they may be reluctant to try the new system. Thissituation can be overcome by training customer service staff to closely monitorusers of the kiosks and function as Trainers for those users that encounter anydifficulties. A person that gain confidence in a self-service solution starts toprefer that self-service option for every transaction

4. Strategic Kiosk Placement - To start a new kiosk deployment, it is importantto gather as much data as possible on current users of that kind of services andto develop projections of estimated potential users of the new kiosk systems.For example, in a wayfinding solution it is mandatory to position the the kiosk inthe highest traffic areas and in a location that will be unobtrusive to the flow oftraffic

5. Analyze Data and Split-Test - After a new kiosk project is launched, theproject is not finished: that is the moment to start with data tracking andanalysis

Kiosk softwares offer advanced tracking tolls to get detailed information on avariety of usage statistics including total users, average session duration,transactions started/finished and user goals accomplished

From this data, by using split-testing technique, a retail business can test up-selland cross-sell options to determine which is the most successful and drives thegreatest ROI

OUTDOOR KIOSKS

OUTDOOR THREATS CHECK-LIST

Outdoor Kiosks

After defining an outdoor kiosk development plan, it is necessary to considerspecific outdoor threats, to choose the best fitting solution and vendor

Exposure to the sun The position must be determined with great care: to face the strongest sunlight ofthe day, outdoor kiosks must have high brilliance screen

Vandal-proofing The outdoor terminal can be located in neighborhoods where the need forarmoring can be much greater, involving

- physical strength of the casing- ruggedness of the touch screen- durability of the keyboard and the pointing tool- security of the locking structure for the maintenance access door

Thermal controlOne of the key success factors of an outdoor kiosk is having appropriate andeffective thermal insulation or better hardware components resistant todemanding environments

HumidityOutdoor kiosk need relative humidity control: an internal dehumidifier may berequired in the terminal (especially if it has to print paper or tickets)

PollutionAtmospheric agents attack outdoor kiosks and they must be designed andmanufactured to be highly resistant to attacks by contaminants

Urban regulations Implementation of outdoor terminals requires compliance with local planning andzoning regulations and especiallythird party liability is an important issue

ENTERTAINMENTH OW I N T E R A C T I V E K I O S K SA R E C H A N G I N G

Interactive outdoor kiosks arebecoming useful entertainmentservices channels in a wide varietyof entertainment settings. Commonsample applications include:interactive maps, events listings,local attractions and venues andticketing for amusement parks,museums, stadiums, cinemas

Outdoor kiosks can be used toaccept payments for parking lots.Integration with ATM functions,allows kiosks to provide to gueststo acquire money to spend atamusement or entertainment venue.

Outdoor kiosks also can act asvirtual ticketing office, so consumerscan pay and print out tickets.

Outdoor kiosks applicationpotential in amusement andentertainment is positively huge:zoos, amusement parks, and otheroutdoor entertainment venues canuse the kiosk to provide to guestsspecific information aboutattractions. Festival grounds andamphitheaters can use outdoorkiosks to help customers acquireinformation about upcoming eventsor acts, both by a print-on-demandfunction and by simply beingdisplayed on the screen

But outdoor kiosks can also beexploited to directly deliverentertainment products / services toconsumers, acting as merchantlocation: in USA and Ireland forexample, kioskssuccessfully provide since someyears low-cost movie andvideo-games rental services. Afterstarting positioning movie rentalkiosks in consumers’ line of sight atstores entrance, outdoor placementprovided huge expansionsopportunities

Photo-printing services too areconsidering outdoor - instead oftraditional in-store placement - as anopportunity to grow, alsocombining kiosk services withsmartphones app services:consumers can start placing theorder at the kiosk and finish it lateronline or upload images from asmartphone into their online accountand then move to the nearest kioskand print

O U T D O O R K I O S K S

ELECTRICVEHICLESCHARGINGSTATIONS

An Oppor tun i t y t o Boos t Brand ing ,Cus tomer At t r ac t i on & Re ten t i on

There are many benefits related to the application of charging

stations, whether out of a retail center, grocery store, parking

garage, entertainment venue or airport

Charging stations are a great way to attract and keep customers

because locating a charging station is not always the easiest task.

Electric Vehicles charging stations provide to businesses a unique

way to differentiate from competitors, promoting a positive

environmentally friendly brand image

By placing an information kiosk at charging station, businesses

can gain advertising opportunities: each time an EV owner charges

the car, it is the perfect opportunity to advertise to that driver, for

example, with paid advertising from store locations inside a retail

center

Of course, charging stations roll-out requires investments: in a

2013 report, Deloitte stated "that electric vehicle (EV) charging

infrastructure can be effectively rolled out, with future earning

opportunities available to utilities and other third parties willing to

invest in public charging stations. The research indicates that the

key to profitability depends on various pricing models and the

level of EV penetration. Present trends draw into question

whether adequate levels of penetration can actually be achieved,

absent subsidies, to offset infrastructure investment cost"

N O M A D I C | 2 4

CREATING A SEAMLESSPARKING JOURNEY

OUTDOOR KIOSKS

he greatest challenges facing motoristsscouting the landscape for parking areavailability and to have enough right kinds ofcoins in their pockets to feed the meter

In a more and more cashless society andeconomy, fewer people are carrying coins andin many places business owners have becomefrustrated by people frequenting their shopssimply to exchange banknotes for coins

Outdoor kiosks that allow people to pay forparking with credit and debit cards offer asolution

On the other hand, outdoor kiosks solutions- cooperating with smartphones app services- can create a seamless online-to-offlineparking journey: the motorist can simply startlooking for the nearest parking lot on his/herpreferred smartphone app, reach the parkingspace, be guided to the parking lot by awayfinding service and self check-out withher / his preferred paying option

T

RELATED TOPICS

VENDING KIOSKS, THE NEWPURCHASING EXPERIENCE

Pharmaceutical

Healthy Foods

When we all think of vending machines, we often envision anobsolete device that offers just a few snacks, soft drinks or coffe andonly accepts basic payment methods. New vending kiosks arestarting to change this situation, offering products that range frombicycle to medical products

One example of a new format is the pharmaceutical kiosk: severalcompanies are experimenting the deployment of kiosks thatdispense medicines. Other kiosks allow consumers to order specialmedications and have them delivered to the kiosk. This can be agreat opportunity for remote areas without easy access to apharmacy. Also new regulations can provide opportunities to kiosksvendors: for example, regulations that require vending machines todisplay nutritional information are moving vending kiosksmanufacturers to provide kiosks that offer nutritional information andhealthy foods

VENDING KIOSKS BENEFITS

1 Shrink Theft prevention: according to the Global Retail TheftBarometer Highlights 2014-2015, shrinkage costs USD 123.4 B toRetailers (39% dishonest employee theft, 38% shoplifting, 16%administration / non-crime losses, 7% supplier fraud)2. GUIDED SELLING from shopping cart selection to productpurchase, presenting multiple consumer payment methods3. Loyalty and advertising for maximum platform leverage4. Efficient remote management & field services5. Cash Flow: vending machines can be income-producing workhorses 24 hours a day6. No Overhead Costs: no employees costs, no advertising costs

Bicycles

OUTDOOR KIOSKS

OU

TD

OO

R K

IOSK

S

Pizza

“The world’s first pizza vending machine”

cooks an individual pie with the topping ofconsumer's choice in less than threeminutes. The machine uses an infra-red ovenand contains enough ingredients for 200pizzas

Burrito

This burrito kiosk cooks burritos in 60seconds. Consumers can choose betweenmeat or vegan and have guacamole or sourcream on the side

more food vending kioskssolutions

Cupcakes

This cupcake dispensing ATM offers up to760 cupcakes at a time with up to 20varieties

CLOSING THECONSUMPTIONS LOOP:REVERSE VENDING

OUTDOOR KIOSKS

n recent years, with an alarming amountof untreated waste, demand for recyclingsolutions like reverse vending machines (RVMs)have increased consistently. RVMs aredeveloped to recover recyclable products moreeffectively and are used for cost effective wasterecycling. Effectively, RVMs helps to reducelandfills, increase recycling rates, avoids usingvirgin material for new products and lowersgreenhouse gas emissions

Governments regulations in most developedcountries have further contributed to RVMsdemand

RVM companies operate with two differentbusiness models: sales model - wheremachines are sold to the food retail stores -and lease model in which RVM companiesmaintains ownership of the installedmachines and receives payment based onthe number of containers handled by themachines

The global RVM market is highlyconcentrated: the three largest playerscontrol maximum market share

I

Outdoor Kiosks

Main Kiosks, Vending and ReverseVending Machines Suppliers

ADVANTECHFanless Embedded Systems

for Smart Parking

Request more info: embedded@advantech.eu

Visit:http://select.advantech.com/outdoor­kiosks/

Advantech’s ARK fanlessembedded systems are self­sensing, intelligent devicesthat integrate advancedsoftware and  hardwaretechnologies, enablingcustomers to realize IoTapplications.These systems are capableof self­management,seamless communication,and self­protection, and can 

be used to conduct real­time monitoring and controlling of connectedperipherals, automatic data collection, and reporting of abnormalities.The “Self­Sensing” capability of ARK systems canbe easily initiated in various application environments

ENABLINGAN

INTELLIGENTPLANET

ADVANTECHMISSION

MAY

2016

| Outdoor Kiosks

Founded in 1983 and headquartered in Taipei, Taiwan, Advantech is aglobal company focused on the realization of PC platforms, softwares,embedded and industrial automation solutions, providing systems

integration services and customer-centric designs.With over 7300 employees, 2 manufacturing plant, 4 logistics centers,15 service centers, Advantech is present in 21 countries worldwide.In over 30 years of growth, Advantech has established itself as a

reference brand in the industrial PC market, reaching the 7th place inInterbrand ranking of the 20 Taiwanese brand with greatest economicvalue and, according to IHS, already in 2013 by holding the 29.5%

market share of global industrial PC.To achieve its mission - Enabling an Intelligent Planet - Advantech isgeared toward the Internet of Things, Smart City and Industry 4.0 andis structured in IIot divisions, Smart City and Embedded Design-In.The IoT architecture developed by Advantech is divided into threelayers: devices, sensors and gateways; WISE-PaaS cloud services forbusiness intelligence, machine learning and virtualization; cloud

platforms for specific sectors.