IoT platforms for the Vending Machine sector

The Vending Machine market is experiencing substantial growth, with the global market size forecast to rise from USD 12.79 billion in 2024 to USD 51.31 billion by 2034, expanding at a CAGR of 14.9%¹.

This robust growth reflects a strong demand for automated retail experiences that are increasingly enhanced by Internet of Things (IoT) technologies - which are transforming traditional vending machines into efficient, high-tech retail points.

IoT platforms play a pivotal role in this transformation. They provide the necessary infrastructure to manage, automate and optimize vending machines, enabling manufacturers and operators to:

• improve their services
• reduce operational costs, and
• enhance customer satisfaction.

Let’s explore how an IoT platform dedicated to the Vending Machine market can benefit various stakeholders, including consumers, operators, and manufacturers.

Connected vending machines: consumer benefits​

Why are consumers using vending machines, and how can this experience be further enhanced through connectivity? It's all about convenience, product availability and personalized experiences.

Convenience​

Vending machines are loved for their ease of access: they provide quick and uninterrupted access to a variety of products.

Product availability​

IoT solutions come equipped with smart inventory management capabilities. This means customers can trust that their favorite snacks and beverages are always in stock, as vending operators can monitor empty machines in real time and promptly restock them.

Personalized experiences​

Advanced IoT solutions enable personalized commerce. Customers can enjoy reward programs, tailored promotions and product recommendations based on their purchase history. For instance, beverage-serving smart machines can suggest customers customized drink mixes based on their preferences.

Vending machine operators: benefits of IoT solutions​

IoT technologies can lead to improvements in efficiency and profitability for vending machines operators. How?

Efficient inventory management​

With real-time inventory tracking, operators can reduce out-of-stock and overstock instances. An IoT platform that collects and analyses usage data empowers operators to:

• optimize product offerings
• follow predictive resupply schedules

leading to reduced waste and increased revenues.

Enhanced operational insights​

Advanced IoT platforms facilitate machine health monitoring, warning operators about issues before they lead to costly downtimes. Notifications about malfunctions or performance anomalies ensure swift maintenance responses.

Improved revenue through dynamic pricing​

Dynamic pricing features enable operators to adjust product prices, for example depending on:

• demand
• season
• proximity to expiration dates.

Operators can also design special offers and rewards programs: all in all, this leads to the optimization of revenue potential and sales efficiency.

Vending machine manufacturers: benefits of IoT platforms​

Why should vending machines manufacturers also offer an IoT platform? There are several benefits.

Unlock new revenue streams​

By leveraging an IoT platform, manufacturers can create and sell additional services alongside their machines. This includes features such as data analytics subscriptions or advanced inventory management solutions, turning traditional vending into a recurring revenue model.

Continuous product improvement​

IoT connectivity allows manufacturers to update and improve devices over time. This ensures they remain competitive and can implement enhancements based on user feedback while also reducing costs related to recalls or failures.

Performance monitoring​

By having a connected fleet, manufacturers can monitor overall performance and lifecycle based on real-world usage. This provides valuable insights for future product development and improvements, plus helps with taking timely action to prevent failures.

Competitive edge​

In an increasingly crowded market, having an IoT-enabled vending machine plus an entire platform positions manufacturers as innovators and ensures their products stand out.

Building an IoT platform for the vending machine market​

If you're considering building an IoT platform to support your vending machines, Connhex is the perfect choice:

• it has been engineered from the ground up to include custom apps to create a seamless vertical integration with your products
• value-added services are provided out of the box. For example, operators can create dynamic pricing structures through custom rules and receive notifications for real-time health monitoring
• it includes every tool needed to open new revenue streams from your digital services
• with a powerful policy system, it handles as many intermediaries as needed. In other words, you can manage operators and distributors without having to implement any additional logic yourself
• it is tailored to device manufacturers, thus including advanced monitoring tools
• it is backed by Compiuta - should you need any customization or additional functionality, we can do it!

So where should you go from here?

If you're onboard, great! Go here to explore Connhex configurations. Still unsure? You can always reach out for any additional information: we'll be glad to hear from you!