Automated Teller Machine (ATM) Market Share, Size, Trends, Industry Analysis Report, By Type (Conventional ATMs, Brown Label ATMs, White Label ATMs, Smart ATMs, and Cash Dispensers); By Solution; By Application; By Region; Segment Forecast, 2022 - 2030
- Published Date:Aug-2022
- Pages: 119
- Format: PDF
- Report ID: PM2530
- Base Year: 2021
- Historical Data: 2018 - 2020
Report Outlook
The global Automated Teller Machine (ATM) market was valued at USD 20.39 billion in 2021 and is expected to grow at a CAGR of 4.9% during the forecast period. The ease of withdrawing cash, the high proportion of transactional advantages, easy withdrawal, customer satisfaction, and the supportability of offline shopping have all powered automated teller machine usage around the world, indicating the global market's promising growth prospects favorably.
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The key element driving the Automated Teller Machine (ATM) market's growth is increasing urbanization in both established and emerging economies. For instance, as per the World Bank, in 2020, around 56.1% of the total population was urbanized. Also, market demand for ATMs is boosted by the one feature that makes banks' transactional services available around the clock in various locations.
Technology improvements in the banking and finance sectors are transforming ATMs from basic cash dispensers into deeper and more personalized communication channels. To increase customer loyalty, more integrated and value-added services have been implemented.
Additionally, having quick access to high-end services like bill payment, account transfers, and check clearance through ATMs aids financial institutions in boosting revenue. As a result, increased use of automated teller machines will probably result in significant revenue generation in the upcoming years.
Additionally, there was once a low danger of fraud because PINs and online authorization were used to validate transactions at automated teller machines, which were considered to be secure. The increased innovation in the fintech industry has led to new fraud tactics being developed by con artists, such as magnetic stripe skimming and pinhole cameras, which have restricted Automated Teller Machine (ATM) market growth.
On the other hand, financial institutions and ATM operators are concentrating on requirements for EMV migration at ATMs to provide customers with convenience and security when performing financial transactions. Smart cards with greater security are referred to as EMV, which stands for Europay, MasterCard, and Visa.
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Industry Dynamics
Growth Drivers
The Automated Teller Machine (ATM) market has undergone significant changes over the past few decades, fueled by several causes, including organizations focusing on increasing their market share through strategic acquisitions and introducing cutting-edge technologies to the ATM market.
For instance, in April 2021, PAI, Inc., a significant ATM services provider in the United States, was acquired by The Brink's Company, a prominent end-to-end automated solutions supplier. By merging its solutions with generic ATM systems, Brink's Company was able to develop its comprehensive end-to-end cash management services.
In addition, in July 2021, KAL and EVO Payments introduced a new service option for their European customers. The solution combines EVO's payment infrastructure with KAL's Kalignite software suite, allowing independent ATM deployers and banks to quickly deploy automated teller machines across the region.
The software enables service providers to quickly select teller machines from more than 40 suppliers and any automated teller machine type that meets regulatory requirements. Thus, major players' collaborations, mergers & acquisitions, and trending innovations are the factors that boost the Automated Teller Machine (ATM) market growth during the forecast period.
Report Segmentation
The market is primarily segmented based on solution, type, application, and region.
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By Solution |
By Type |
By Application |
By Region |
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Managed Service is expected to witness fastest growth
Managed services allow financial institutions to delegate non-core functions to a trained service provider, providing them to focus on their core financial operations majorly. Managed services assist financial institutions in strengthening their multichannel delivery infrastructure and improving client retention, acquisition, and cross-selling opportunities. Reduced operational and infrastructure investment costs, higher operational profits, compliance with new regulatory laws, and simplified network operations and services are advantages of outsourcing managed services to a service provider.
On-Site ATMs accounted for the highest market share in 2021
Due to the outsourcing of managed services for proper system maintenance, the Automated Teller Machine (ATM) market is anticipated. Numerous bankers have decided to outsource post-installation services as a result of the strict regulations from the Reserve Bank of India (RBI) regarding ATM usage, such as the emergence of a penalty scheme for machine breakdown and the application of magnetic tape swap for restocking the automated teller machines.
Customers can avoid lengthy lineups at the branch and save time while completing transactions due to on-site ATMs, which are either positioned within the branch or close to the bank's premises. Automated teller machines are utilized for a variety of banking tasks, including money transfers, deposits, and withdrawals.
The ability to recycle or withdraw cash at any time during the day has also raised the market demand for off-site ATMs. By eliminating the need to visit banks and wait in lines at the bank counters to do financial activities including cash withdrawals, deposits, and recycling, ATMs have allowed consumers to save time.
Cash Dispensers ATM is expected to hold the significant revenue share
ATMs with cash dispensers have made it easier to withdraw cash whenever they need it for everyday necessities. The demand for cash recycling devices to exchange with new currency denominations has increased due to the expanding use of cash in grocery stores, transportation, and stationery stores. Users can deposit cash into their bank accounts without going to a physical bank owing to the usage of a highly accurate technology platform and a cash deposit feature.
Future growth of the automated teller machine industry is anticipated to be driven by rising consumer usage of ATMs. Cash is the favored mode of payment for many consumers since it is convenient. Customers are asking for ways to access money that are quicker, more dependable, safe, and convenient as technology develops. Using ATMs, customers can conduct banking operations at any time and anywhere. By reducing transaction costs and boosting accuracy and speed, automated teller machines assist users in saving time, money, and effort.
The demand in North America is expected to witness significant growth
In terms of geography, North American market had the highest share in 2021. Due to the strong adoption of modern technologies in many end-use industries and the growing need for advanced interactive machines in financial and associated institutions, the region has seen a significant increase in income.
The rising focus of market participants on diversifying their service portfolios will help the market expand throughout the area. Companies are boosting their R&D activities to increase their solution offerings to serve a large set of clients to obtain a differentiated market positioning. This element has influenced the sector's strategic collaborations and acquisitions.
Moreover, APAC is anticipated to register the highest growth rate over the study period. The region's growth is accelerated by the rising deployment of ATMs, primarily in developing countries like China and India.
There is a shortage of information regarding digital payment choices in most regions' economies, which highlights the value of ATMs for cash-based and other financial transactions, such as updating personal details, passbook entry, and others. The region has many ATMs deployed worldwide. Furthermore, the demand for automated teller machines in the region is projected to be fueled by the demand to serve the region's vast unbanked population in nations like China, India, and Japan and growing markets.
Competitive Insight
Some of the major players operating in the global market include Diebold Nixdorf, Euronet Worldwide Incorporation, Fujitsu Ltd, Guangzhou KingTeller Technology Co. Ltd., GRG Banking Equipment Co. Ltd., Hyosung Corp., Hitachi Ltd., Hess Cash Systems GmbH, Incorporated NCR Corporation, NHAUSA, Oki Electric Industry Co. Ltd. Source Technologies, and Triton Systems of Delaware LLC
Recent Developments
In June 2021, CaixaBank introduced facial recognition technology in automated teller machines, removing the requirement for the customer to enter a pin. The technology is paired with software and cameras capable of detecting over 16,000 locations on the user's face to ensure user safety. Shortly, the business plans to install roughly 100 devices across Spain.
Automated Teller Machine (ATM) Market Report Scope
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Report Attributes |
Details |
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Market size value in 2021 |
USD 20.39 billion |
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Revenue forecast in 2030 |
USD 31.42 billion |
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CAGR |
4.9% from 2022 - 2030 |
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Base year |
2021 |
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Historical data |
2018 - 2020 |
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Forecast period |
2022 - 2030 |
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Quantitative units |
Revenue in USD billion and CAGR from 2022 to 2030 |
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Segments covered |
By Solution, By Type, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
Diebold Nixdorf, Euronet Worldwide Incorporation, Fujitsu Ltd, Guangzhou KingTeller Technology Co. Ltd., GRG Banking Equipment Co. Ltd., Hyosung Corp., Hitachi Ltd., Hess Cash Systems GmbH, Incorporated NCR Corporation, NHAUSA, Oki Electric Industry Co. Ltd. Source Technologies, and Triton Systems of Delaware LLC |
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