ATM Security Market Expected to Reach $32.4 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “ATM Security Market," The ATM security market was valued at $13.7 billion in 2022, and is estimated to reach $32.4 billion by 2032, growing at a CAGR of 9.2% from 2023 to 2032.

The ATM security market was witnessing increased demand for protection against cyber threats such as malware, phishing, and card skimming. With the growing sophistication of cyberattacks, there was a need for advanced security measures to safeguard ATM networks. In addition, the adoption of EMV (Europay, Mastercard, and Visa) chip technology in payment cards was driving a need for upgraded ATM security. EMV chips enhance card security and reduce the risk of card skimming. Further, biometric authentication methods, including fingerprint and iris scanning are gaining popularity as a secure means of verifying ATM users' identities. This trend is driven by the need for more robust user authentication and improved security. Furthermore, the growth of remote monitoring and management solutions for ATMs allowed financial institutions to efficiently manage and secure their ATM networks. This trend is expected to continue as institutions sought cost-effective ways to ensure security and uptime.

Furthermore, the global ATM security market is in its developing phase, and exhibits high growth potential, due to rise in implementation of advanced technologies such as artificial intelligence (AI) and machine learning (ML). In addition, increase in product launches are expected to promote the of ATM security market growth in future. For instance, in October 2020, CMS Info Systems (CMS) has announced the release of fully automated, artificial intelligence-powered ATM security software application called 'Algo'. It is an end-to-end security encrypted and fool-proof solution that is built to prevent ATM frauds at the time of cash replenishment or maintenance. Further, this AI application is machine-agnostic and can operate on any ATM manufactured by any OEM.

Moreover, many ATM security expanded their geographical presence to expand their customer base and gain more profits. For instance, in September 2023, Bank of Baroda went live with 6,000 UPI ATMs in India where customers could withdraw cash without a debit card by simply scanning a QR code on the ATM's display screen. The facility utilizes an interoperable cardless cash withdrawal technology that allows customers of all participating issuer banks using any UPI-enabled mobile app to withdraw from the ATMs.

By end user, the banks and financial institutions segment acquired a major ATM security market share in 2022. This is attributed to the fact that banks and financial institutions use security service ATM technologies to provide their customers with a more convenient and secure way to secure their accounts. Further, the adoption of advanced ATMs by banks and financial institutions is also driven by the increasing penetration of smartphones and mobile banking apps.

Region-wise, Asia-Pacific is expected to grow significantly in ATM security market during the forecast period. This is attributed to the fact that the adoption of biometric authentication methods like fingerprint and facial recognition at ATMs has been increasing in China, enhancing security and convenience for users. Further, cardless ATM transactions have gained popularity in India, offering users a more secure and convenient way to access cash. The adoption of cash recycling ATMs has increased in India, which not only improves efficiency but also adds an additional layer of security.

Travel restrictions and lockdowns led to disruptions in migration patterns. Migrants who were unable to travel or return to their home countries faced challenges in sending money back to their families. Furthermore, ATM security faced operational challenges due to the pandemic, including disruptions in agent networks, reduced working hours, and restrictions on in-person transactions. These challenges impacted the ability to serve customers effectively. Furthermore, the pandemic introduced volatility in currency exchange rates, which affected the cost and value of cross-border transfers. Customers became more sensitive to exchange rate fluctuations.  Thus, these factors hindered the growth of the ATM security industry during the pandemic.     

Key Findings of the Study

• By component, the solution segment accounted for the highest ATM security market trends, in terms of revenue in 2022.
• On the basis of end user, the independent ATM operators segment is expected to exhibit the fastest growth rate during the forecast period in ATM security market.
• Region wise, North America generated the highest revenue of ATM security market size in 2022.  

The key players operating in the ATM security market analysis include Fujitsu Ltd., NCR Corporation, Euronet USA, LLC, Hitachi, Ltd., Diebold Nixdorf, Incorporated, GRGBanking, Oki Electric Industry Co., Ltd., Hyosung TNS Inc., Triton, LD Systems. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.