Entry of Large Corporations into the 'Kiosk' Market... Patent Applications Increase by 16% Annually Amid Intensified Competition

Image of the payment process using a kiosk. Source=Clipart Korea

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Following Samsung Electronics' introduction of the 'Samsung Kiosk' last year, LG Electronics launched an unmanned terminal (kiosk) equipped with a 27-inch large screen in April this year, marking a trend of major corporations rushing into the unmanned terminal market.

As the spread of COVID-19 accelerated the adoption of unmanned terminals and the related market showed remarkable growth, patent applications related to unmanned terminals have also increased accordingly. Analysts suggest that beneath the surface, competition to secure patents in the unmanned terminal market?where contactless functionality is the main weapon?is intensifying.

According to the Korean Intellectual Property Office on the 22nd, the number of patent applications related to unmanned terminals steadily increased at an average annual rate of around 16% from 2012 to 2021.

Regarding application trends by the latest technologies introduced in unmanned terminals (2000?2021), near-field communication technology, which processes payments through information transmission and reception with mobile devices, accounted for the highest number of applications at 266 cases.

Following that were artificial intelligence technologies for recognizing users' faces or voices or managing inventory of goods with 66 cases, and authentication technologies identifying user identity through biometric information such as fingerprints and iris scans with 56 cases.

During the same period, the share of applicants by type showed that small and medium-sized enterprises (SMEs) led patent applications with 54%, followed by individuals at 26%, large corporations at 10%, and universities at 4%.

Among SMEs leading patent applications related to unmanned terminals, small enterprises (venture companies confirmed by the Comprehensive Venture Verification System) accounted for 52%, and venture companies (enterprises classified as small enterprises under Article 2 of the Framework Act on Small and Medium Enterprises) accounted for 34%, highlighting the prominence of innovative companies' patent applications.

Domestic top applicants were BizModelLine with 26 cases, Hyosung TNS with 17 cases, Samsung Electronics with 14 cases, Hanasis with 11 cases, and IPO.net with 11 cases.

Data on the proportion of unmanned terminal applicants by type from 2000 to 2021 and the ranking status of domestic multiple applicants. Provided by the Korean Intellectual Property Office.

Park Jae-woo, an examiner at the Control Machinery Examination Division of the Korean Intellectual Property Office, said, "As more large corporations enter the unmanned terminal market recently, competition for major technology development and patent acquisition related to unmanned terminals is expected to intensify further." He added, "For domestic companies to utilize the unmanned terminal market as a new opportunity for growth, securing strong intellectual property rights is an urgent priority."

Meanwhile, the unmanned terminal market is expected to form a market value of $28 billion this year, with projections indicating that the market value will increase to $79.5 billion by 2032.

Currently, the unmanned terminal market is dominated by retail stores such as supermarkets, restaurants, and convenience stores, which account for more than half (55%) of the market share.