Global ATM Managed Services Market Size USD 12.48 billion by 2030 | CAGR of 6.7%

Introduction

Providers of ATM managed services deal with and manage professional ATM services. Its services include ATM network operations and management, deposit collection and delivery, ATM replenishment and currency management, and anti-skimming monitoring. In addition, by assuming responsibility for ATMs, these managed service providers enable banks, financial institutions, and other business entities to improve user experience, maximize operational efficiency and profitability, and concentrate on productive tasks, customer acquisition, etc. In addition, ATM service providers offer various service selection options, such as outsourcing the entire ownership, management, and operation of ATM programs or selecting individual services.

Multiple banks, financial institutions, and others see revenue increase due to easy access to complex services such as account-to-account transfers, check clearance, and bill transfer via ATMs. Improved deployment and implementation of technologies in ATMs are driving market growth to provide more convenient and cost-effective services and reduce operational expenses.

Market Dynamics

The Facility of Wireless Communication in Smart ATMs to Drive the Global ATM Managed Services Market

To reduce the risk of ATM frauds such as card skimming and card trapping, smart ATMs that can easily communicate with customers' smartphones via near-field communication (NFC) technology have been developed. NFC technology is a method for wirelessly transferring data between an ATM and a mobile app. It generates a code that consumers can use to unlock their bank accounts and withdraw cash from an ATM using a mobile device. With technological advancements, smart ATMs have lessened the burden of carrying ATM cards. Thus, smartphone apps contribute to the security of financial transactions, boosting the growth of the ATM market. In addition, the integration of advanced security features such as voice recognition, EMV adoption, and biometrics adds to the security of the customer's financial transactions. This factor has substantially increased the adoption of intelligent ATMs, which has consequently fueled the expansion of the ATM market.

Integration of New Technologies to Provide Opportunities for the Global ATM Managed Services Market

Contactless transactions are believed to contribute to the ATM market's expansion significantly. For instance, Apple Pay and Android Pay enable new technologies like NFC and contactless payments with QR codes and pre-staged mobile transactions, which are gaining traction in the ATM market. Various end users are adopting advanced ATMs to enhance personalization, modernize customer identification and authentication, and optimize the performance of ATMs and self-service channels due to the integrating of these new technologies. Moreover, introducing new services such as mobile cash withdrawals with a QR code on smartphones has enabled bank customers to enjoy superior usability, which is anticipated to generate ample opportunities for the ATM market over the forecast period.

Regional Insights

Region-wise, the global ATM managed services market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue contributor and is estimated to grow at a CAGR of 7.5%. In the coming years, Asia-Pacific is anticipated to experience a high growth rate as several financial institutions are shifting their focus toward ATMs to reduce costs, increase revenue, foster greater customer loyalty, and facilitate customer interaction with bank staff. The key drivers of the ATM market in India are economic development, increased disposable income, particularly in urban areas, and the paradigm shift from class banking to mass banking. Banks have targeted these regions for increased revenue generation as a significant portion of the population resides in urban areas. In recent years, however, banks have shifted their focus to rural areas to increase their market share by providing ATM card services. The Reserve Bank of India has recently permitted nonbank entities to establish ATMs in the white-label ATMs category, which is expected to increase the number of white-label ATMs in the country and boost the growth of the Asia-Pacific market.

North America is the second largest region. It is estimated to reach an expected value of USD 23500 million by 2030, registering a CAGR of 4.8%. Increased demand for automated systems, security for online and physical transactions, and a greater emphasis on avoiding long lines in banks for various activities such as deposits and transfers all contribute to the global proliferation of ATMs. Financial institutions, ATM manufacturers, and banks have begun deploying biometric devices, voice recognition systems, and anti-skimming methods to reduce the risk of fraud, which has accelerated the adoption of advanced ATMs. In addition, the increasing trend of adding new financial services is fostering the expansion of the ATM market in Mexico. In addition, banks and financial institutions are focusing on expanding their ATM networks to increase their visibility. However, rising ATM operating costs are hindering the expansion of the ATM market in the United States. In contrast, ATM manufacturers are integrating new services such as mobile payments, funds transfers from one account to another, cash deposits, and bill payments to gain a competitive edge in the market, which is expected to provide lucrative opportunities for the expansion of the market in North America.

Europe is the third largest region. The proliferation of digital electronic devices, the rise of cashless payments, and the growth of the e-commerce industry are significant challenges for the ATM market. They have posed numerous obstacles to Europe's cash infrastructure. To overcome the impact of these obstacles, however, European banks have been focusing on incorporating advanced features into their existing ATMs to reduce operational costs, driving the adoption of advanced ATMs in the region. In recent years, France has seen an increase in the number of ATMs installed in non-traditional locations to provide customers with more convenience. Most ATMs are installed in post offices to avoid long lines for financial transactions, driving the adoption of offsite ATMs in the region.

Key Highlights

• The global ATM-managed services market was valued at USD 6960 million in 2021 and is estimated to reach an expected value of USD 12480 million by 2030, registering a CAGR of 6.7% during the forecast period (2022 – 2030).
• Based on service type, the global ATM managed services market is segmented into ATM replenishment & currency management, network management, security management, incident management, and others. The ATM replenishment & currency management segment was the highest contributor to the market and is estimated to grow at a CAGR of 5.6% during the forecast period.
• Based on ATM locations, the global ATM managed services market is segmented into Onsite ATMs, Offsite ATMs, Worksite ATMs, and Mobile ATMs. The offsite ATM segment was the highest contributor to the market and is estimated to grow at a CAGR of 7% during the forecast period.

Competitive Players

1. AGS Transact Technologies Ltd
2. Cardtronics
3. FUJITSU
4. Diebold Nixdorf
5. Incorporated
6. Euronet Worldwide Inc
7. Financial Software & Systems Pvt. Ltd
8. Fiserv, Inc
9. Hitachi Payment Services Pvt. Ltd
10. NCR Corporation
11. NHAUSA

Recent Developments

Recent Developments

• September 2022 - The board of directors of NCR Corporation (NYSE: NCR), a top enterprise technology provider to banks, retailers, and restaurants, unanimously approved the plan to split NCR into two separate, publicly traded companies, one focused on digital commerce and the other on ATMs. The separation, which is planned for the end of 2023, is designed to be tax-free.
• August 2022 - NCR Corporation announced the expansion of its long-standing partnership with Wendy’s to provide data services via NCR Commerce Platform

Segmentation

1. By Service Type
   1. ATM replenishment & currency management
   2. Network management
   3. Security management
   4. Incident management
   5. Others
2. By ATM Location
   1. Onsite ATMs
   2. Offsite ATMs
   3. Worksite ATMs
   4. Mobile ATMs