Overall, unit shipments in the segment grew by 11 percent in 2004, with total spending on POS hardware, software, and services reaching $2.9 billion. Revenue growth was not as high as unit growth, according to IHL, due to the lower price point of PC systems.

The study also found that although unit shipments of Linux-based POS devices increased 73 percent year-over-year, Linux represents a mere 4 percent of the overall market. However, IHL says it expects the Linux share to "rise dramatically" in future years.

"2004 was an outstanding year of unit growth for vendors, particularly in table service restaurants and quick service/fast food restaurants," noted Greg Buzek, president of IHL Consulting. "Looking ahead, our research indicates that every segment of the hospitality industry will increase its POS purchases in 2005 over 2004 as hospitality providers upgrade to more reliable and easier to use systems."

Further information on the IHL study, 2005 North American Hospitality Point-of-Sale Terminal Market Study, is available here.

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