Cellular POS Terminals to Reach 247 Million by 2029 as Retail IoT Expands

Why It Matters

Cellular POS growth turns payment hardware into a high‑value IoT segment, demanding robust connectivity, remote management, and security at scale. This accelerates convergence of retail payments with broader IoT infrastructure, influencing vendor strategies and investment priorities.

Key Takeaways

• Cellular POS shipments hit 53% in 2025, reaching 247M by 2029
• NFC support climbs to 97% of terminals, easing contactless payments
• Android POS accounts for half of 2025 shipments, shifting focus to software
• mPOS base hits 84.9M in 2025; SoftPOS still under 15M devices
• IoT providers must deliver managed connectivity and lifecycle services for POS fleets

Pulse Analysis

The surge in cellular‑connected POS terminals reflects a broader retail shift toward network‑agnostic infrastructure. As fixed‑line access becomes a bottleneck in dense urban stores, pop‑up locations, and mobile service vans, manufacturers are embedding LTE/5G modules directly into device designs. This hardware change drives a 7.6% compound annual growth rate, pushing the installed base to 247 million units by 2029. For OEMs, the implication is clear: connectivity is no longer an optional upgrade but a core component that must meet certification, antenna, and power‑efficiency standards from day one.

Concurrently, near‑universal NFC adoption—forecast to exceed 97 % of terminals—and the rapid rise of Android‑based POS platforms are redefining the value proposition. With half of 2025 shipments running Android, software ecosystems, app stores, and security patch cycles become the primary differentiators. Retailers can now roll out new loyalty programs, analytics tools, and contactless payment options without hardware swaps, but they also inherit continuous device‑management responsibilities. Effective fleet management, OTA updates, and robust security frameworks are essential to protect transaction data and maintain compliance.

The emergence of SoftPOS—software that turns ordinary smartphones into payment readers—adds a second, more flexible model to the market. Although SoftPOS devices number fewer than 15 million today, their growth threatens the traditional hardware‑centric approach, especially for small merchants seeking low‑cost entry points. This dual‑model landscape forces connectivity providers and IoT platforms to support both dedicated, managed POS fleets and consumer‑grade devices, emphasizing service quality, rapid provisioning, and lifecycle support as new competitive levers. Companies that can seamlessly bridge these worlds will capture the most value as retail payments converge with the broader Internet of Things.