The global ATM market size was valued at over USD 11.0 billion in 2014. Increasing demand for automated systems, in developing countries, is expected to influence the installation base over the forecast period. Additionally, factors such as enhanced security standards, technological advancements and integration of wireless communication devices such as smartphones are also anticipated to spur growth. This is mainly since the integration has resulted in reduced frauds, and has provided diverse service offerings in financial transactions.
Online cash transfers and another mode of cash transactions are expected to pose a challenge to growth. However, increasing usage of solar powered machinery reducing the overall cost leading to minimal operational cost is anticipated to boost ATM market demand.
The introduction of the smart and solar ATMs in developing countries such as China, India and Japan are anticipated to enhance growth opportunities. These technologies enable financial transactions over wireless network or devices at customer convenience.
Europe ATM market by solution, 2012 - 2022 (USD Million)
The industry can be categorized by solution into deployment and managed services. ATM deployment solutions market accounted for over 70% of the overall industry in 2014 and is expected to lose share over the next few years. This segment comprises installed machines on the basis of accessibility into onsite, offsite, worksite and mobile.
Deployment has facilitated the 24/7 availability of banking services for the customers. The increase in installation base and maintenance activities has impacted the revenue generation drastically.
Onsite machines are set up in the premises of the bank where both machines and physical bank branch can be used. These machines reduce the work pressure of bank staffs by avoiding long queues in bank premises for transfers, withdrawals, and cash deposits. It reduces probability causing errors allowing banks to have smooth financial transactions. The foreseen factors are estimated to drive onsite machinery demand.
Mobile ATMs are expected to observe substantial growth with a CAGR of over 13% from 2015 to 2022. These solutions are introduced in order to reduce the traffic at high-volume locations such as social gathering, trade fair, sports events. They provide flexibility and enhances branding &promotions for the institutions.
Managed services allow financial institutions to move its non-core activities to a specialized and trained service provider and concentrate on their core financial businesses. Various industry participants such as NCR, Wincor, and Diebold provide managed services at low costs. Managed services contribute significantly towards strengthening the infrastructure for multichannel delivery for better customer retention, acquisition and cross-selling opportunities. Outsourcing the managed services to a service provider offers various benefits such as reduced operational and infrastructure investment costs, improved operational profits, compliance with new regulatory policies and simplified network operations and services.
North America ATM market accounted for over 35% of the overall share in 2014. Europe and North America are anticipated to witness slow growth rate owing to the saturation in the industry. Increasing operational costs in the U.S. have led the service providers to adopt other solutions.
However, MEA and Asia Pacific are expected to exhibit substantial growth over the forecast period owing to increasing demand of interactive machines. Over a million ATMs are estimated to be installed across the globe, with over 800,000 of these in Asia Pacific. Need to serve vast unbanked populations across countries such as India and China as well as developing markets across Indonesia and Vietnam is anticipated to drive the industry demand across this region. Further, countries such as Brazil, Nigeria, Russia, and Iran are projected to witness strong demand for new machines.
Middle-East and Africa region are also anticipated to witness enormous growth owing to the cash-based economy which is coupled with high consumer demand and government support for electronic banking.
Competitive Market Share Insights
Companies dominating ATM market share include Diebold Inc., NCR Corporation, Wincor Nixdorf and Nautilus Hyosung. The industry has witnessed a rise in demand due to the consumerization of IT in workplaces as consumers use multi-function devices for work purpose. Therefore, suppliers, as well as manufacturers, focus more on developing multi-function devices to meet the evolving consumer taste and preferences. Companies have been focusing on providing additional benefits of improving customer service, freeing up shelf space, realizing cost savings, and adding operational efficiencies.
Other leading players include Euronet Worldwide, Fujitsu, Trinton Systems of Delaware LLC, HESS Terminal Solutions GmbH & Co., Hitachi-Omron Terminal Solutions Corporation, .and GRG Banking.
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