The global self-service technology market was estimated at over USD 14 billion in 2014. Varied technological advancements such as remote management and wireless communication are estimated to facilitate growth over the forecast period. The integration of biometric security services including fingerprint recognition that ensures secured financial transactions is expected to drive the self-service technology industry.
These technologies enable customers to produce a service independent of direct service employee involvement. Increasing demand for self-service machines and automated devices, wireless communication, technology advancements and remote management are the major factors driving the self-service technology market. Additionally, rising consumerism is playing a critical role in the growing demand.
Booming retail industry paired with emerging economies across the globe is projected to offer numerous opportunities for growth over the next seven years. Further, widespread awareness about benefits of these machines is estimated to impact demand positively. Besides urban areas, the manufacturers and service providers are now aiming at rural areas to enhance further self-service technology industry growth.
The energy management and power consumption regulations imposed on different regions may curb demand. The government of various regions restricted the usage of food and beverage vending machines in many places such as schools, colleges, thereby limiting the demand for these machines. However, companies are introducing technologically advanced products by strictly adhering to government regulations.
North America self-service technology market by product, 2012-2022, (USD Million)
The industry has been classified on the basis of product into ATM, kiosks, and vending machines. The ATMs segment includes conventional, brown label, white label, smart ATM and cash dispenser. The increasing trend of automation, technology up-gradation, minimization of operation costs and need of expansion across various geographical areas is likely to foster self-service technology market growth over the forecast period.
Kiosks have been further classified into ticketing, photo, information kiosks, self-healthcare service and others such as banking & financial, restaurants, tele-kiosk, and building directory kiosks.
The kiosk market is expected to grow at a significant growth rate of over 25% from 2015 to 2022, mostly driven by rising demand in the developing countries. Kiosks are becoming the key growth factor for self-service technology providers and are acting as a lucrative means of enhancing consumer service. Retail stores, airports, and government organizations are deploying kiosks in an effort to increase the number of customers served per day. This enhances revenue generation opportunities for these organizations, thereby increasing customer satisfaction and radically driving down the cost per customer.
Vending machines have been sub-segmented into beverage, snacks, specialized and others. Other segment comprises candy and gumball vending machines. The vending machines industry has gained considerate momentum in the recent years as vending operators have been deploying vending technology solutions and cashless payment systems on a large scale. Demand for cashless payment systems is driving demand for vending machines.
North America has a high adoption rate for technologically advanced vending machines leading to maximum revenue contribution. The emergence of new business models are some of the key factors contributing to the rapid growth of the IT enabled self-services in this region.
Asia Pacific self-service technology market is projected to witness considerable growth over the forecast period growing at a CAGR of over 17.0 % from 2015 to 2022. Increasing awareness and rising consumer spending tendencies towards this technology is expected to drive demand across the region. Rising urbanization across countries such as India, China and Japan with exponential growth in the banking sector have led to a huge demand for such automated machines.
Competitive Market Share Insights
Companies dominating self-service technology market share include NCR Corporation, Diebold, Wincor Nixdorf, Kiosk Information System, Euronet Worldwide, amongst others. Leading players are constantly developing new solutions and focusing on providing better services while upgrading the security features of the existing self-service products.
The network providing companies are now entering into partnerships with manufacturers or service providers to expand their network. The banks are also entering into partnerships to add new services and enhance the security of their transactions. For instance, Hua Xia bank, a nationwide commercial bank in China, entered collaborated with NCR Corporation, which would help the bank to run its ATMs machines on NCR APTRA Activate software. In December 2013, Crane Co. acquired MEI Conlux Holdings to expand its share and gain competitive advantage.
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