Automated Teller Machine Market Expected to Reach $50 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Automated Teller Machine Market, by Type (Conventional/banks ATMs, Brown ATMs, White ATMs, Cash Dispenser ATM, and Smart ATMs), and Deployment (Onsite ATMs, Offsite ATMs, Worksite ATMs, and Mobile ATMs) and Global Opportunity Analysis and Industry Forecast, 2022–2032."  The automated teller machine market was valued at $22.6 billion in 2022, and is estimated to reach $50 billion by 2032, growing at a CAGR of 8.6% from 2023 to 2032. 

Automated teller machine (ATM) devices for wireless communication, security, EMV migration, and cash recycling across the world propels the growth of the global ATM market. Moreover, retail houses, corporate instructions, and banking companies are globally adopting ATM devices for functions such as offsite, mobile site, and worksite, as these ATMs facilitate quicker and efficient services with flexible cash withdrawals and deposits This, in-turn, reduces the footfall in banks (for the purpose of cash withdrawal or deposits), enabling the bank staff to focus on core financial activities, thereby fuels the growth of automated teller machine industry.

Furthermore, an automated teller machine market analysis are becoming multipurpose service centers, delivering not just cash-related services but also other ones like purchasing event tickets, topping off mobile phones, and even providing details about neighborhood services and establishments. In addition, cash-recycling ATMs, which enable customers to deposit cash and withdraw that same currency, are becoming more and more common. These devices are more effective and reduce the need for touching actual currency. Furthermore, remote management and maintenance of ATMs is becoming more and more critical. Reduced downtime, improved security, and more effective software updates are all benefits of remote administration.

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers, for instance, in September 2023, Hitachi Payment Services launched India's first-ever UPI-ATM with NPCI. This ATM will allow cash withdrawals without a card, eliminating the necessity for paper documents. Using the United Payments Interface (UPI) software, customers of a UPI-ATM can take out cash from several accounts at once. Non-banking organizations run WLAs. Furthermore, in October 2023, Hyosung America launched three banking ATM solutions, such as Hyosung Series 5 ATMs, Hyosung Series 7 ATMs, and MS500EL TCR, that bridge the legacy of Hyosung’s innovation and modular design with the industry’s most transformational cash-automation solutions. These strategies reflect efforts of the automated teller machine industry which helps to expand its global footprint and leverage technology to deliver better services to clients.

By type, cash conventional/Banks ATMs segment attained the highest market share in 2022 in the automated teller machine market, this attributed to the fact that Conventional bank ATMs primarily offer cash withdrawal and basic banking services, catering to the essential needs of customers. These are the most commonly used services, making bank ATMs indispensable. Meanwhile, smart 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.

On the basis of region, North America attained the highest market share in 2022 and emerged as the leading region in the automated teller machine market due to North America, especially the U.S., which is one of the world's major ATM markets, has a well-established banking infrastructure and a high density of ATMs. The region's financial industry is well-developed, and despite the extensive use of digital banking services, ATM demand continues to rise. On the other hand, the Asia-Pacific 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's rapid economic development, the financial industry has grown and a larger population now has better access to banking services. The need for ATMs has increased as more people and businesses become financially integrated. This is especially true in developing nations in the Asia-Pacific, where access to banking services is still growing.

The COVID-19 had a negative impact on the automated teller machine market growth, the pandemic lowered the use of cash and raised concerns regarding the security of handling real money, which decreased ATM usage. Access to ATMs was also constrained by lockdowns and social isolation policies. However, the increasing demand for ATMs in some areas, particularly those with weak digital banking infrastructure, where ATMs remained a crucial source for getting cash during the crisis, somewhat countered the negative impact. 

The report focuses on growth prospects, restraints, and trends of the automated teller machine market analysis. The study provides Porter’s five forces analysis to understand the impact of several factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the automated teller machine market size.

Key Findings of the Study

• By type, the conventional/banks ATMs segment led the automated teller machine market trends in terms of revenue in 2022.
• By deployment, the offsite segment accounted for the highest automated teller machine market share in 2022.
• By region, North America generated the highest revenue in 2022.