Automated Teller Machine Market

Market Overview

The global automated teller machine market size was valued at USD 22,198 million in 2021. It is expected to reach USD 35,666 million by 2030, growing at a CAGR of 5.41% during the forecast period (2022-2030).

An automated teller machine, also known as an ATM, is a type of electronic banking device that enables users to conduct all standard banking operations without the assistance of a teller or branch representative, including deposits, withdrawals, checking account balances, transferring funds between accounts, and clearing checks. Customers' access to financial services around-the-clock is made possible by ATMs. A significant influence on income generation has been caused by an increase in installation base and maintenance operations. Having a reliable cash management solution is vital to carry out ATM cash withdrawals and deposits. Banks can benefit from benefits like counterfeit identification, perfect accuracy, and improved client experience thanks to cash recycling, which is an effective cash management solution.

Due to its convenience, clients choose to make purchases in cash in many different countries. Due to technological improvements, customers are looking for faster, more dependable, secure, and more convenient ways to access money, a significant driver driving the expansion of the worldwide ATM market. The growth of the ATM market is anticipated to be hampered by the introduction of internet banking services. On the other hand, the incorporation of new technologies like touch screens, QR codes, contactless payments, and untapped demand from developing nations is anticipated to create good potential for market expansion in the years to come.

Market Dynamics

Global Automated Teller Machine Market Drivers

The Demand for ATM and Wireless Communication Facility in Smart ATMs

The need for ATMs is increased by the independent aspect of the transactional services offered by the banks being available around the clock in several locations. With technological advancements in the banking and financial sectors, ATMs are evolving from straightforward cash dispensers into richer, more personalized communication channels. Implementing more integrated and value-added services, this has aided in achieving client loyalty.

Additionally, financial institutions assist banks in enhancing their revenue by making sophisticated services like check clearing, money transfers between accounts, and bill paying easily accessible through ATMs. As a result, it is anticipated that an increase in the deployment of automated teller machines will result in significant financial growth. Further, smart ATMs have been created, which can readily interface with consumers' smartphones through near-field communication (NFC) technology to lessen the danger of ATM frauds such as card skimming and card trapping. With the help of NFC technology, data can be transferred wirelessly between an ATM and a mobile app. Customers can then use this code to unlock their bank accounts and use a mobile device to take cash from an ATM.

Thanks to smart ATMs, technology improvements have made carrying ATM cards less cumbersome. As a result, smartphone apps contribute to the security of financial transactions, encouraging the expansion of the ATM sector. Additionally, integrating cutting-edge security technologies like voice recognition, EMV acceptance, and biometrics gives clients' financial transactions an extra benefit. Due to this feature, smart ATM use has increased dramatically, accelerating the ATM market's expansion.

Global Automated Teller Machine Market Restraints

Growing Online Banking Services

The banking sector has always been viewed as the foundation of an economy. The development of new technologies like blockchain, artificial intelligence, and cybersecurity in banking has enabled automation and increased convenience for transactions and other banking activities. This has caused a shift in preference from using ATMs for banking to using e-banking. The global market is significantly constrained by this aspect.

Additionally, consumers may execute various financial activities, monitor their accounts, and pay their bills online from a single location at any time, thanks to e-banking, which has reduced the number of ATMs worldwide and reduced the use of ATM services. The expansion of the worldwide market has been constrained by all of these issues taken together.

Global Automated Teller Machine Market Opportunities

The Advent of New Technologies

Contactless transactions are an essential element that considerably helps the expansion of the ATM sector. For instance, emerging technologies like NFC, contactless payments with QR codes, and pre-staged mobile transactions, which are gaining more acceptance in the ATM market, are made possible by Apple Pay and Android Pay. Various end users are implementing advanced ATMs due to integrating these new technologies to enhance personalization, modernize client ID & authentication, and increase the effectiveness of ATMs & self-service channels. Additionally, launching innovative services like mobile cash withdrawals through smartphone QR codes has given bank clients a higher usage experience, which is anticipated to generate plenty of chances for the ATM industry during the projected year.

Regional Analysis

The region-wise segmentation of the global automated teller machine market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and North America will prevail in the regional market

The Asia Pacific will likely hold the predominant share in the regional market while expanding at a CAGR of 6.2%. Asia-Pacific is predicted to experience rapid development in the following years due to financial institutions switching to ATMs to cut costs, boost income, encourage more client loyalty, and facilitate consumer interaction with bank employees. The main factors driving the ATM business in countries like India include economic growth, increased disposable income, particularly in urban areas, and a paradigm shift from class banking to mass banking. Urban locations are targeted by banks for better income production because they have a vast population base. Due to the large density of ATMs and predilection for cash payments, the zone is regarded as the most lucrative market for ATMs.

Due to the widespread use of ATM services over the past 10 years, India and China have shown tremendous potential for the deployment of ATMs. Additionally, there is a strong demand for ATMs in Japan due to banks issuing more cards than ever. This boosts the market's expansion by driving demand for installing new ATMs in the region. However, banks have adjusted their approach in recent years and are now concentrating on rural areas to improve their penetration by offering services through ATM cards. The RBI granted permission for nonbank businesses to establish ATMs under the category of white-label ATMs, which is anticipated to increase the number of white-label ATMs in the nation and consequently accelerate the expansion of the Asia-Pacific market.

North America will likely develop at a CAGR of 3.5% and hold USD 6,906 million. The region's ATM market is expanding significantly due to banks, financial institutions, and individual ATM vendors concentrating on improving their ATM infrastructure to improve security & convenience and provide clients with a tailored, unified banking experience. Additionally, this region features many retail ATMs in malls, gas stations, and convenience stores.

The deployment of ATMs in several regional countries is encouraged by the demand for automated systems, security for online and offline transactions, and increased attention to avoid long lines in banks for various activities like deposits and transfers. Financial institutions, ATM manufacturers, and banks have begun implementing speech recognition systems, anti-skimming techniques, biometric devices, and advanced ATMs to reduce the risk of fraud. Introducing more financial services also fosters a favorable atmosphere for the expansion of the ATM sector in Mexico. Banks and other financial organizations also boost their footprint by expanding ATM networks.

Segmental Analysis

The global automated teller machine market is bifurcated across the solution, solution type, type, and region.

Per the solution, the categories include deployment solutions and managed services.

The deployment solution section is presumed to have the most significant shareholding, growing at a CAGR of 4.8%. The need for ATM services at work has increased the number of ATMs installed in government offices, academic institutions, and IT enterprises. The installation of ATMs gives users more flexibility regarding financial transactions, which eventually supports a positive perception of the banks' brands and dramatically aids in expanding the global market. The rise in ATM installations at workplaces, on-site and offshore, is one of the key reasons driving the global market's progress.

The managed services section will hold the second-largest share. Financial institutions can focus on their main financial business by outsourcing their non-core activities to a qualified and specialized service provider, thanks to managed ATM services. Several market participants, including NCR, Wincor, and Diebold, offer managed services at affordable prices. These services substantially contribute to building the multichannel delivery infrastructure for improved customer retention, business growth, and cross-selling opportunities.

Per the solution type, the categories include on-site, offsite, worksite, and mobile ATMs.

The offsite ATMs section will presumably grow at a CAGR of 5.2% and hold the largest market share. Increased offsite ATMs have lowered the barriers customers must overcome while withdrawing cash and conducting other financial operations. These ATMs guarantee 24-hour operation, making consumers convenient by preventing long lines for cash transactions like depositing, withdrawing, and transferring. Offsite ATMs are currently offered by public and private sector banks to expand their service network across numerous places. To extend their client base and maintain existing customers, banks are adding offsite ATMs globally, driving the market growth.

The on-site ATMs section will hold the second-largest share. Thanks to on-site ATMs, the need to use banks for cash deposits, transfers, and withdrawals can be lessened. These devices lower the likelihood of making mistakes, ensuring error-free financial transactions. These are the primary driving forces behind the proliferation of on-site ATMs worldwide. Many remote communities also lack access to other types of ATMs. Both public and private sector banks have opportunities to build their own bank branch with on-site ATM services, offering prospects for the on-site ATM industry.

Per the type, the fragments are conventional/bank ATMs, brown ATMs, white ATMs, smart ATMs, cash dispenser ATMs, and smart ATMs.

The conventional/banks ATM section will presumably hold the largest share, expanding at a CAGR of 4.3%. Instead of only dispensing cash, conventional ATMs include various services like cash deposits, bill payments, and account statements. Some vital aspects promoting the growth of the ATM market are the rising trend of automation, technical improvements, and the reduction of operational expenses. Financial institutions are also concentrating on lowering operating expenses to boost profit margins and provide customer-focused services. This has increased the use of ATMs for automating basic activities such as fund transfers, account balance inquiries, and bill payments, driving the global market growth.

The white ATM section will hold the second-largest share. Banks in the public and private sectors utilize white-label ATMs to offer services in outlying areas. This enables them to increase their geographic reach and offer financial services in underserved areas. These ATMs provide various services based on debit, credit, and prepaid cards and accept ATM cards from all central banks. White-label ATM use has grown in sparsely populated areas due to issues including costly initial outlay and ongoing maintenance expenses.

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