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A00141 | Pages: 333 | Charts: 59 | Tables: 108 |
The global automated teller machine market was valued at $22.6 billion in 2022, and is projected to reach $50 billion by 2032, growing at a CAGR of 8.6% from 2023 to 2032.
An automated teller machine (ATM) is an electronic telecommunication device, which offers services to customers in terms of financial transactions such as deposits and withdrawals and account information and transfer of funds, without the physical involvement of bank staff. Continuous innovations in ATMs have made current ATMs more advanced as compared to the first-generation ATMs. With rise in customer demand for mobility and do-it-yourself banking, the industry is anticipated to continue to grow in the coming years. Presently, market have become the most powerful asset for the financial institutions to serve their customers 24X7.
Furthermore, an industry is a self-service banking terminal that enables people to carry out different financial activities without the help of a person. Automated teller machine industry allow users to withdraw cash, check their account balances, deposit money, transfer money between accounts, and obtain mini-statements of recent activities. They are most frequently located in banks, retail establishments, and public spaces. Customers insert a plastic debit or credit card connected to their bank account into an ATM and, for further security, enter a personal identification number (PIN). These devices, which are a common component of contemporary banking systems, have significantly improved the accessibility and convenience of banking services by enabling consumers to manage their accounts at any time of the day or night.
The increase in demand for cash is a significant driver of the growth of the automated teller machine market size. As cash remains a crucial payment method in many regions, and ATMs serve as convenient access points for users to withdraw money, ensuring continued relevance in the financial ecosystem. Furthermore, facility of wireless communication in smart ATMs is driving the demand of the market. However, emergence of online banking services is hampering the growth of the automated teller machine market share. Because the usage of ATMs has been further restricted as a result of the spread of digital payment alternatives, such as mobile wallets and contactless payments, which have reduced the need for cash for everyday purchases. As a cost-effective alternative to maintaining massive ATM networks, financial institutions have supported online and mobile banking to streamline operations and lower expenses.
Moreover, lack of security standard are major factors that hamper the growth of automated teller machine market growth. On the contrary, integration of new technologies such as contactless payments, QR codes, and touch screens is an market opportunity. ATMs are now more versatile and user-friendly owing to these advancements, which also improve their functioning and user experience. The time spent at the ATM is decreased by contactless payments and QR codes, which allow for fast and secure transactions. Users can more easily navigate across different banking services because to touch displays' intuitive user interface. These developments allow market to serve as a central location for a variety of financial services, such as mobile top-ups, bill payments, and even digital wallet transactions, in addition to catering to the changing tastes of tech-savvy clients. The fmarket can maintain its relevance and fulfill the evolving needs of consumers by adjusting to various technologies, resulting in sustained development.
The automated teller machine market is segmented on the basis of type, deployment and region. By type, it is segmented into conventional/ banks ATMs, brown ATMs, white ATMs, cash dispenses ATM, and smart ATMs. On the basis of deployment, it is segmented into onsite ATMs, offsite ATMs, worksite ATMs, and mobile ATMs. By region, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.
[DEPLOYMENTGRAPH]
On the basis of deployment, the offsite ATMs segment attained the highest market share in 2022 in the automated teller machine market. This can be attributed to the fact that offsite ATMs significantly expand ATM accessibility by being deployed in a wide range of locations, including convenience stores, retail outlets, and other high-traffic areas. This extended accessibility appeals to a broader user base. Meanwhile, the mobile ATMs segment is projected to be the fastest-growing segment during the forecast period. This is attributed to the fact that Mobile ATMs can be installed in a variety of places, such as isolated and underserved communities, to offer easy access to financial services. Their quick increase in market share can be attributed in large part to this accessibility.
[REGIONGRAPH]
On the basis of region, North America attained the highest market share in 2022 and emerged as the leading region in the market. This is attributed to the fact that The North America region's emphasis on innovation has prompted the adoption of advanced ATM technology, including contactless payments and improved security features, which has increased market development as governmental assistance and a strong focus on banking convenience have encouraged a competitive ATM sector in North America, making it the world leader in terms of market share. On the other hand, the Asia-Pacific region is projected to be the fastest-growing region for the automated teller machine market during the forecast period. This growth is attributed to the fact that the Asia-Pacific region has a diversified and widely distributed population, which has increased demand for cash-based transactions. ATMs are essential in facilitating money transactions. The continuous need for ATMs in the area is a result of the region's growing urbanization, expansion of the retail and hospitality industries, and continued reliance on cash for everyday transactions in the culture.
The report analyses the profiles of key players operating in the market such as Diebold Nixdorf, Incorporated., Euronet Worldwide, Inc, FUJITSU, GRGBanking, HESS Cash Systems, Hitachi Channel Solutions, Corp, Hyosung TNS Inc., NCR Corporation, Source Technologies, and Triton Systems of Delaware, LLC. These players have adopted various strategies to increase their market penetration and strengthen their position in the automated teller machine market.
In September 2023, Hitachi payment services launched India's first UPI-ATM in collaboration with the National Payments Corporation of India (NPCI) at the Global Fintech Fest. The launched of the UPI-ATM, which smoothly integrated UPI's convenience and security into conventional ATMs, represented a significant turning point in financial services. Without a physical card, this novel idea aims to make instant access to cash possible even in distant parts of India.
In July 2023, Red Link extended its partnership with Diebold Nixdorf to migrate 90% of its network to DN Series. The remaining 10% are planned to be replaced with the DN Series later this year. This partnership offers the flexible ATM has a minimal footprint while providing the latest cash processing technology and multi-layered security features. The transition to the DN Series has allowed Red Link and its more than 40 partner banks to improve the consumer experience with additional functionalities, such as fingerprint and facial recognition, and increase efficiencies.
To reduce the risk of automated teller machine market frauds such as card skimming and card trapping, smart ATMs have been introduced, which can communicate with the smartphones of customers easily through near field communication (NFC) technology. NFC technology is a way of transferring data wirelessly between ATM and mobile app by generating code that consumers use to unlock their bank accounts, then withdraw money from an ATM with the tap of a mobile device. With advancements in technology, smart ATMs have reduced the burden of carrying ATM cards. Thus, smartphone apps help to secure financial transactions, which is supporting the ATM market growth. Furthermore, integration of advanced security features such as voice recognition, EMV adoption, and biometrics provide additional advantage in securing customers financial transactions.
Moreover, wireless connectivity allows banks and ATM operators to remotely monitor and manage smart ATMs. With the help of this function, downtime and operating expenses can be decreased by real-time upgrades, software maintenance, and troubleshooting. In addition, stronger security measures are made possible by wireless technology, including monitoring ATM activities and real-time fraud detection. It makes it possible to apply biometric authentication techniques, substantially boosting transaction security as well. Therefore, facility of wireless communication in smart ATMs are driving the demand of automated teller machine market outlook.
Despite the growth of digital payment methods, the demand for physical cash remains significant, particularly in emerging markets and regions with limited banking infrastructure. ATMs continue to be the primary source for accessing cash. Furthermore, many individuals still prefer using cash for daily expenses, such as small purchases, tips, and personal transactions. ATMs provide convenient access to cash, allowing people to manage their finances based on their preferences. In addition, cash is essential in emergency situations when electronic payment methods may not be available due to power outages or network disruptions. ATMs serve as a critical resource for obtaining cash in such scenarios. Furthermore, in regions with limited banking infrastructure, ATMs play a vital role in providing access to financial services. They help bridge the gap between unbanked or underbanked populations and essential banking services. Furthermore, certain services, such as public transportation, parking, and vending machines, continue to accept cash payments. ATMs ensure individuals have access to the necessary funds for these services. Therefore, demand for cash are driving the growth of automated teller machine market.
Earlier, the risk of fraud was considerably low, as ATMs were considered secure due to PINs integrated with online authorization to authenticate transactions. With the increase in innovation in the FinTech industry, fraudsters have been coming up with new frauds such as magnetic strip skimming and pinhole cameras, which hamper market growth. Furthermore, attacks on ATMs can take many different forms, including malware-driven attacks, cash trapping, card skimming, and card trapping. It is more difficult for ATM makers and operators to successfully protect against these risks because there are no strict security standards in place. In addition, consumer confidence in using ATMs may be damaged by security issues. The demand for ATM services is impacted when users believe that ATMs are not secure and are therefore less inclined to utilize them for transactions.
Furthermore, security breaches and fraud incidents result in substantial financial losses for banks and ATM operators. These costs can be a deterrent to investing in new ATM installations and can impact profitability. Therefore, lack of security standards are hampering the growth of automated teller machine market.
Contactless transaction is considered as a key factor that significantly contributes toward the growth of the automated teller machine market. For instance, Apple Pay and Android Pay enable new technologies such as NFC and contactless payments with QR codes and pre-staged mobile transactions, which are gaining increased traction in the ATM market. Owing to the integration of these new technologies, a range of end users are adopting advanced ATMs to improve personalization, modernize customer ID & authentication, and maximize the performance of ATMs & self-service channels.
Moreover, the introduction of new services such as mobile cash withdrawals with a QR code on smartphones has enabled bank customers to experience superior usability, which is expected to create ample opportunities for the ATM market during the forecast period. In addition, interactions with ATMs are more simple and user-friendly because to touch screens and intuitive user interfaces. More people may use ATMs as a result of the enhanced experience. Furthermore, integration with contactless payment methods allows users to quickly and securely complete transactions without the need to insert a physical card into an ATM machine. This aligns with the growing preference for contactless payments and card less ATMs. Therefore, integration of new technologies such as contactless payments, QR codes, and touch screens are opportunity for automated teller machine market.
Key Market Segments
Key Market Players