ATM Software Market Size Worth USD 7.50 Billion By 2030

August 2022 | Report Format: Electronic (PDF)

ATM Software Market Growth & Trends

The global ATM software market size is anticipated to reach USD 7.50 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to grow at a CAGR of 4.5% from 2022 to 2030. The popularity of new ATM software technology in the banking & financial sector has been gaining momentum as the demand for cardless transition through facial recognition, QR code, and UPI has risen tremendously over the years, acting as one of the key drivers of market growth.

The COVID-19 pandemic significantly impacted the market. Lockdowns were implemented due to the pandemic that led to a temporary prohibition on import and export and manufacturing across multiple industries. The use of ATM machines witnessed a decline due to the worldwide lockdown caused by the COVID-19 pandemic. This caused barriers for customers in terms of visiting the ATM locations and completing various procedures. The reduction in ATM software sales was caused by travel limitations and the market shutdown, which prevented customers from using ATM machines and eventually led to reductions in ATM software demand. However, the deployment of smart ATMs in developing nations such as India, China, and Japan, on the other hand, is expected to increase market growth potential.

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ATM Software Market Report Highlights

In terms of components, the software segment accounted for the largest revenue share of 83.4% in 2021 and is expected to retain its dominance during the forecast period. The service segment is likely to register the highest CAGR of 5.1% during the forecast period.
In terms of end-user, the banks & financial institution segment accounted for the largest revenue share of 69.7% in 2021 and is expected to retain its dominance during the forecast period. The independent ATM deployer (IAD) segment is expected to grow at the fastest CAGR of 4.8% during the forecast period. The growth can be attributed to the number of banks outsourcing the management of their ATM estates to IADs.
In terms of function, the cash dispenser segment accounted for the largest revenue share in 2021 and is expected to retain its dominance during the forecast period. The cash deposit segment is likely to register the highest CAGR of 5.0% during the forecast period. The growth can be attributed to the increasing customer preference for ATMs for cash deposits rather than going to the bank.
Mergers & acquisitions, partnership, agreements, and expansions are the key strategies being adopted by the companies. For instance, in February 2021, ACI Worldwide, partnered with Auriga SPA. Through this collaboration, the companies aim to develop and launch a next-generation self-service banking platform and ATM to improve customer experience.
North America held the highest market share of 30.6% in 2021 and is expected to retain its position over the forecast period. Asia Pacific is anticipated to expand at the highest CAGR of 5.0% during the forecast period. The market growth in this region is primarily attributed to the increasing adoption of new technologies in the banking and financial sectors. For instance, in February 2022, India-based Bank of Baroda chose U.S-based NCR Corporation's ATM solution ATM-as-a-Service (ATMaaS) to upgrade its 9,800 ATMs.