The US cannabis tech landscape is fragmented and complex. This is due to the varying regulations across different states and the federal illegality of cannabis, which creates challenges for tech providers to develop solutions adaptable to multiple markets. Each state operates as a separate market with its unique regulations and compliance requirements. This necessitates tech solutions that can cater to specific state requirements and integrate with various components of the tech stack, including mandatory track-and-trace systems.

Point of Sale (POS) systems are essential for dispensaries. POS systems are crucial for dispensaries to track sales and inventory, comply with regulations, and shape customer experience. The choice of POS system is crucial for dispensaries as it impacts their compliance, operational efficiency, and customer experience. Integration capabilities with track-and-trace software, payment solutions, and other tech components are vital considerations. Dutchie is currently the leading POS provider in the US, capturing a significant market share through strategic acquisitions of companies like Greenbits and LeafLogix.

Track and Trace (Compliance) systems are mandatory in most states. Track and Trace systems, like Metrc and BioTrack, are required for all cannabis operators in most legal markets. These systems track the production and movement of cannabis products from cultivation to retail sale to ensure compliance with regulations and prevent illicit market products from entering the legal supply chain. Metrc and BioTrack dominate the market, with a few exceptions like Pennsylvania, Washington, and Arizona, which have different approaches to track and trace.

Enterprise Resource Planning (ERP) software is critical for large-scale cannabis businesses. ERP tools allow businesses to streamline and optimise their processes, integrate with track-and-trace systems for efficient compliance and data analysis, and fill gaps in functionality of track-and-trace platforms. ERP systems help businesses improve operational efficiency, manage costs, and enhance profitability by providing insights into their operations. They offer tailored features for different operators, such as label creation and printing for producers and automated product data uploads for retailers.

The payments landscape presents challenges for cannabis operators. Due to federal restrictions, cannabis businesses face difficulties in processing payments through traditional channels. This reliance on cash transactions poses security risks and logistical challenges for operators. While workarounds like 'cashless ATMs' and 'PIN debit' systems exist, they are often deemed non-compliant and face crackdowns. ACH payments, though less seamless, are emerging as a more reliable alternative. The report predicts the US cannabis industry will remain cash-heavy until federal regulations change.

Telemedicine is playing a growing role in medical cannabis access. Telehealth services have become increasingly important for patients seeking access to medical cannabis, particularly during the COVID-19 pandemic. Telemedicine platforms allow patients to connect with licensed physicians remotely, obtain certifications or recommendations for medical cannabis use, and renew their medical cannabis cards. The adoption of telemedicine for medical cannabis varies across states, with some allowing certifications through telehealth while others mandate in-person examinations.

Mergers and Acquisitions (M&A) activity is shaping the market. The US cannabis tech industry has witnessed a surge in M&A activity between 2020 and 2024, particularly in 2023. Companies like Dutchie, Fyllo, and Alleaves are consolidating the market through acquisitions, aiming to offer comprehensive tech solutions to cannabis operators across multiple states. This trend reflects the industry's growth and the drive towards providing integrated solutions that streamline operations and enhance customer experience.