Bank Kiosk Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Deployment, By Location, By Application, By End-user, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global bank kiosk market was valued at USD 16.26 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 14.7% from 2023 to 2030. The growth is driven by consumer demand for self-service banking, technological advancements, and the need for financial inclusion. A bank kiosk is a self-service machine that provides various banking services to customers without the need for human interaction. This market has grown significantly in recent years, and it is expected to continue to grow in the coming years. The significance of kiosks lies in their ability to provide customers with convenience, accessibility, and cost-effectiveness. With the increasing demand for fast and convenient banking services, kiosks are likely to remain a crucial part of the banking industry.

Financial institutions continue to invest in innovative kiosk technologies that provide value-added services to customers, such as mobile banking, contactless payments, and cash recycling. These developments will further improve the efficiency, security, and usability of bank kiosks, making them an essential part of the banking ecosystem. Kiosks are further categorized into ATMs, VTMs, and self-service kiosks. One of the main advantages of kiosks is their ability to improve efficiency in banking operations.

By automating routine transactions, financial institutions can reduce wait times, decrease transaction times, and free up bank tellers to handle more complex transactions. This increased efficiency leads to a better customer experience and enables financial institutions to serve a greater number of customers at a lower cost. Additionally, kiosks are available 24/7, which means that customers can perform transactions at their convenience without waiting for a bank branch to open.

Another significant advantage of these kiosks is their cost-effectiveness. Kiosks utilized by financial institutions reduce the workload on bank tellers, reduce their staffing needs, and save money on operational costs. Additionally, these kiosks can handle a large volume of transactions simultaneously, which increases the efficiency of banking operations. This has led to many financial institutions installing kiosks at multiple locations to improve customer access and reduce overhead expenses. Furthermore, with the advancements in technology, ATMs have become more secure, reliable, and user-friendly, which further enhances their appeal to customers.

COVID-19 Impact

The COVID-19 pandemic has had a significant impact on the bank kiosk market, both in the short and long term. The pandemic caused delays in the deployment of bank kiosks. Many financial institutions have had to delay or cancel plans to install new kiosks due to budget cuts and operational disruptions caused by the pandemic. This has slowed down the growth of the market in the short term. However, the demand for contactless banking is likely to remain strong even after the pandemic, and financial institutions continued to expand their reach and provide convenient, self-service options for customers.

The pandemic has accelerated the trend toward contactless banking, as customers looked for ways to minimize their physical interactions with others. These kiosks provided a convenient and safe way for customers to access banking services without the need for face-to-face interactions. As a result, there has been an increase in demand for bank kiosks since the start of the pandemic. The pandemic has also led to changes in customer behavior, with many customers now preferring self-service kiosks. In the long term, this market is expected to continue growing as financial institutions adapt new and innovative services through self-service channels.

Component Insights

The hardware segment dominated the overall market with a revenue share of 40.6% in 2022 and is expected to witness a CAGR of over 14.0% during the forecast period. The hardware segment is further categorized into printers, displays, secure keypads, biometrics readers, card readers, and others (card/cash dispensers, cameras, speakers, receipt dispensers, and magnetic stripe readers).

The physical enclosure of a bank kiosk needs to be durable and tamper-proof to ensure the security of the kiosk and its components. With the rapid advancements in technology, hardware components in bank kiosks are becoming more advanced and sophisticated. For example, the introduction of touch screens, biometric scanners, and facial recognition technology has improved the functionality and security of the kiosks. The adoption of these advanced components enables banks to remain competitive and meet their customers' needs.

The software segment is anticipated to witness the fastest CAGR of 15.7% throughout the forecast period. Software plays a critical role in this market. Bank kiosks require specialized software to operate and provide financial services to customers. The software components of a bank kiosk include the user interface, transaction processing, security, and maintenance software.

Improving customer experience, reducing costs, increasing efficiency, complying with regulations, and leveraging technology advancements are driving the software segment of this market. The adoption of advanced software is critical for financial institutions to meet the changing needs of their customers and comply with regulatory requirements.

Deployment Insights

The metropolitan segment held the largest revenue share of 44.6% in 2022. It is expected to grow at the fastest CAGR of over 13.0% throughout the forecast period. Growing need to have enhanced reach and greater accessibility by the customers living in the metropolitan region, the adoption of bank kiosk booths has increased in retail points or in local shops which is driving the growth.

As people living in metropolitan cities are well aware of the services offered by these kiosk booths such as internet banking, easier financial services, and NEFT & RTGS, they have a higher penetration of bank kiosks compared to other segments. Furthermore, factors such as high technological advancements such as upgraded ATMs, and the proliferation of non-banks in metro cities are creating lucrative opportunities for the market to grow.

The rural segment is expected to witness the highest CAGR of 16.4% during the forecast period. A number of people from developing economies such as Southeast Asia which includes countries like Pakistan, India, Thailand, Indonesia, and others have no access to financial services. Governments, Banks, and Financial Institutions in these economies are increasingly adopting new advanced solutions to offer banking services to the group of unbanked people to shift from ATMs as well as traditional bank branch offices toward advanced financial solutions.

This major shift to increase the banking penetration of unbanked groups of people is majorly driven by government regulations such as the adoption of payment and subsidies, agricultural subsidies, government aids, etc. through bank accounts only. Furthermore, the banking industry and governments are working together to provide financial access to lower-income level groups living in mainly rural areas which is one of the major reasons for the increasing penetration of these kiosks in rural areas.

Location Insights

The off-site segment dominated with a revenue share of 53.5% in 2022 and is expected to grow at the fastest CAGR of around 15.0% throughout the forecast period. Off-site deployment of bank kiosks refers to the placement of self-service banking kiosks outside of traditional bank branches, in locations such as shopping malls, airports, universities, and other public areas. The significance of the off-site deployment of bank kiosks lies in their ability to increase accessibility, convenience, and customer engagement.

By placing these kiosks in high-traffic areas, financial institutions can reach a wider customer base, including those who may not have easy access to a traditional bank branch. This increased accessibility can lead to increased adoption of financial services, particularly among underserved populations, such as low-income households, students, and rural communities.

Application Insights

The ATMs segment dominated the market in 2022, with a revenue share of 41.6%. It is anticipated to expand at a CAGR of 14.0% throughout the forecast period. Automated Teller Machines (ATMs) have transformed the banking industry by allowing customers to access their bank accounts and conduct various financial transactions 24/7, without the need for interacting with bank staff.

ATMs are widely available at bank branches, shopping malls, airports, and other public areas. They provide a convenient, fast, and secure way for customers to withdraw cash, check account balances, transfer funds, pay bills, and even deposit cash or checks. ATMs also reduce the workload on bank tellers, which enables financial institutions to provide better customer service and improve operational efficiency.

The VTMs segment is anticipated to grow at a considerable CAGR of 15.8% throughout the forecast period. A Virtual Teller Machine (VTM) is an innovative banking technology that combines the convenience of an ATM with the personalized service of a bank teller. VTMs are essentially advanced ATMs that offer customers a live video chat feature that enables them to communicate with a remote bank teller in real time.

Furthermore, VTMs offer a more secure banking experience for customers. By using video technology, VTMs provide an added layer of security for customers conducting transactions, reducing the risk of fraud or identity theft. Additionally, by eliminating the need for cash handling, VTMs reduce the risk of physical security breaches, making them a more secure and reliable way for customers to conduct their banking activities.

End-user Insights

The BFSI segment dominated the market with a revenue share of 71.3% in 2022. It is anticipated to register the fastest CAGR of over 15.0% throughout the forecast period. Bank kiosks play a significant role in the BFSI (Banking, Financial Services, and Insurance) sector, providing a wide range of benefits to both customers and financial institutions.

From a financial institution's perspective, these kiosks offer a cost-effective solution for expanding their reach and providing services to customers without the need to invest in expensive brick-and-mortar branches. By installing kiosks in high-traffic areas like shopping malls, airports, and train stations, financial institutions can reach a larger number of customers and offer services in areas where they may not have a physical branch presence. This helps financial institutions to increase their market penetration and improve their brand awareness, while also reducing operational costs.

Regional Insights

North America led the overall market in 2022, with a revenue share of 31.2%. The North America region is equipped with well-developed infrastructure and spends a large amount on extensive research and development base, which makes the region to be the top revenue contributor during the projected period. The unabated growth of the ATMs and self-service kiosks in line with the growing technological advancements in the U.S. and Canada is also expected to fuel the growth of the bank kiosk industry across North America as industry incumbents put a strong emphasis on automating various functions to enhance operational efficiency.

Moreover, the presence of small and medium players in North America, which offer components and services to the giants such as NCR Corporation, Diebold Nixdorf, Incorporated, and Brink’s, Inc has also propelled the market growth. The U.S. is expected to retain its dominance over the forecast period owing to convenience and accessibility, cost-effectiveness, technological advancements, regulatory requirements, and changing consumer behavior. As the demand for self-service banking options continues to grow, we can expect the bank kiosk industry in the U.S. to continue to expand in the years to come.

Asia Pacific is expected to develop substantially by the projection period at a CAGR of 16.5%. Asia Pacific is poised for the fastest growth as several manufacturing entities in the region are adopting advanced technologies to rake in various benefits, such as increasing the efficiency of banking operations, thereby driving the adoption of bank kiosks across the region. Market players are responding to the situation by introducing innovative solutions in line with the evolving demands of the incumbents of various applications and end-use industries. The growing demand for self-service kiosks in countries, such as China and India, is particularly expected to fuel the demand for bank kiosks over the forecast period.

Key Companies & Market Share Insights

The market is fragmented and is anticipated to witness increased competition due to several players' presence. Major players are spending heavily on research and development activities to integrate advanced technologies in bank kiosks used by several banking and financial institutions have intensified the competition among these players. These companies are also collaborating with local & regional players to gain a competitive edge over their peers and capture a significant market share. Some prominent players in the global bank kiosk market include:

• NCR Corporation

• Diebold Nixdorf

• Incorporated

• Nautilus Hyosung America, Inc.

• OKI Electric Industry Co. Ltd.

• Euronet Worldwide, Inc.

• Brink’s, Inc.

• Azkoyen Group

• Hitachi Channel Solutions, Corp.

• Fiserv, Inc.

Bank Kiosk Market Report Scope

Global Bank Kiosk Market Segmentation

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global bank kiosk market report based on component, deployment, location, application, end-user, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

    • Printers

      • Thermal printer

      • Laser printer

      • Passbook printer

    • Display

    • Secure Keypad

    • Biometrics Reader

    • Card Reader

    • Others (Card/Cash Dispenser, Camera, Speaker, Receipt Dispenser, Magnetic stripe readers)

  • Software

  • Services

    • Managed Services

    • Professional Services

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Rural

  • Urban

  • Metropolitan

• Location Outlook (Revenue, USD Million, 2017 - 2030)

  • On-site

  • Off-site

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Automated Teller Machines (ATMs)

  • Video teller Machines (VTMs)

  • Self-service kiosks

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Government

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia-Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa