Key Market Overview:
ATM Market size was worth USD 21.41 Billion in 2022, accounting for a CAGR of 4.8% during the forecast period (2023-2030), and the market is projected to be worth USD 32.65 Billion by 2030.
ATM (Automated Teller Machine), also known as a cash machine, cashpoint, or bank machine is an electronic device that allows customers of banks and other financial institutions to perform various banking transactions without the need for a bank teller or other humanitarian assistance. Some of the most common transactions that are performed using an ATM include cash withdrawals, balance inquiries, funds transfers, bill payments, and deposits. Customers withdraw cash from their bank accounts using their debit or credit cards. They also check their account balances to see how much money they have in their accounts, transfer funds between their accounts or to other accounts within the same bank, pay bills, such as utility bills, using their bank accounts, and deposit cash or checks directly into their accounts.
Furthermore, ATMs have become ubiquitous in many countries, and they are an important part of the modern banking system. They provide customers with a convenient way to access their money and perform various banking transactions without having to visit a bank branch or interact with a bank teller. According to the National Cash Systems report from 2021 indicates that 40% of the US population uses an ATM 8-10 times per month, with an average of 300 transactions per month. Furthermore, the report shows that approximately 10 billion transactions are conducted annually using ATMs in the US. This trend of increasing consumer usage of ATMs is expected to drive the growth of the ATM market.
Market Dynamics
Drivers:
The increasing demand for convenient and efficient banking services propels market growth. As customers become more tech-savvy and demand greater convenience in their daily lives, the demand for efficient and convenient banking services is also increasing. ATMs provide a quick and easy way for customers to access their funds and perform banking transactions without having to visit a bank branch or interact with a bank teller. Furthermore, the rapid advancements in technology are also driving the growth of the ATM market. New technologies such as biometrics, near-field communication (NFC), and mobile payments are being integrated into ATMs, which are improving the user experience and expanding the range of services that can be offered.
Restraints:
Increasing the use of digital payment methods, such as mobile payments, the demand for cash withdrawals from ATMs is expected to decline. This trend towards a cashless society could potentially limit the growth of the ATM market in the long run. Furthermore, ATMs are expensive to install and maintain, which restricts smaller banks and financial institutions. Additionally, the costs associated with upgrading and replacing existing ATM infrastructure are high, which limits the rate of adoption of new technologies and features which hamper the market growth.
Opportunities:
Increasing use of biometric authentication in the ATM market presents a significant opportunity for businesses. With the implementation of advanced security measures such as fingerprint scanners, facial recognition technology, and iris scanners, banks can increase security and reduce the risk of fraud and identity theft. This not only benefits customers, but it can also improve the reputation of financial institutions and help them stay ahead of the competition. As technology continues to advance, the potential for even more sophisticated biometric authentication methods presents a promising future for the market.
ATM Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 32.65 Billion |
| CAGR (2023-2030) | 4.8% |
| By Type | Brown Label ATMs, White Label ATMs, Yellow Label ATM, Orange Label ATM, Green Label ATM, and Others |
| By Facility | Onsite ATM and Offsite ATM |
| By Screen Size | <15” and >15” |
| By Region | North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
| Key Players | Diebold Nixdorf, Incorporated, Fujitsu Limited, GRG Banking, Hitachi Channel Solutions, Corp, NCR Payment Solutions, LLC, Oki Electric Industry Co., Ltd., Euronet 360 Finance Limited (Euronet Worldwide), Triton, Hyosung Global, and HANTLE Inc. (Eltna Corporation) |
Market Segmentation:
By Type
Based on type, the market is categorized into brown label ATMs, white label ATMs, yellow label ATM, orange label ATM, green label ATM, and others. The brown label ATMs hold the largest market share in the year 2022. As brown label ATMs are a popular option for non-banking entities that want to enter the ATM market without incurring the high costs associated with owning and operating an ATM network. These are owned by non-bank entities but are operated by a sponsor bank. The sponsor bank provides the cash for the ATM and is responsible for maintaining the network, while the non-bank entity handles the installation and management of the ATM.
However, the white label ATMs are expected to witness the fastest CAGR over the forecast period. White label ATMs are becoming increasingly popular in emerging markets, where there is a large unbanked population and a growing demand for financial services. The ease of setting up and operating WLAs has made them a popular choice for non-bank entities looking to expand their service offerings.
By Facility
Based on facility, the ATM market is classified into onsite ATM and offsite ATM. The onsite ATM holds the largest market share in the year 2022. As onsite ATMs are typically owned and operated by banks and financial institutions and are installed within their premises to provide customers with convenient access to banking services.
However, the offsite ATM segment is expected to witness the fastest CAGR over the forecast period, due to the increasing demand for ATM services in non-traditional locations, such as shopping malls, airports, and convenience stores. Offsite ATMs are becoming more popular as they offer customers the convenience of accessing banking services outside of regular banking hours and in locations where they may not have access to traditional banking services.
By Screen Size
Based on screen size, the market is categorized into <15” and >15”. The <15” screen size segment holds the largest market share in the year 2022. As smaller ATMs are typically less expensive to manufacture and install and are often used in locations where space is limited such as convenience stores, gas stations, or small bank branches. Despite their smaller size, these ATMs still offer a range of banking services, such as cash withdrawals, deposits, and balance inquiries.
However, the >15” segment is expected to witness the fastest CAGR over the forecast period. As larger screens allow for more advanced features, such as video banking and digital advertising, which help banks and financial institutions to improve customer engagement and generate additional revenue streams. Additionally, larger screens are used to display more detailed graphics and text, making it easier for customers to navigate through the banking services offered on the ATM.
By Region
Based on region, the ATM market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America holds the largest share in the year 2022. This is due to the highly developed banking and financial services industry in the region, as well as a large number of banks and financial institutions offering ATM services to customers.
However, Asia Pacific is expected to observe the fastest-growing CAGR over the forecast period. This is due to the large unbanked population in the region, which has created opportunities for financial institutions to expand their ATM networks and reach new customers. In addition, the rapid adoption of new technologies and digital payment systems in the region is also driving the growth of the market.
ATM Market Competitive Landscape:
The market is highly competitive, with a large number of players operating at the global and regional levels. The players compete on various parameters such as price, quality, innovation, and customer service. They are constantly investing in research and development to improve their products and expand their market share. Mergers, acquisitions, and partnerships are also common strategies employed by companies to enhance their market position and expand their product portfolio. Key players in the market include-
- Diebold Nixdorf, Incorporated
- Fujitsu Limited
- GRG Banking
- Hitachi Channel Solutions, Corp
- NCR Payment Solutions, LLC
- Oki Electric Industry Co., Ltd.
- Euronet 360 Finance Limited (Euronet Worldwide)
- Triton
- Hyosung Global
- HANTLE Inc. (Eltna Corporation)
Recent developments
- In August 2021, NCR Corporation, a software company based in the US, purchased LibertyX for an undisclosed amount. This acquisition will enable NCR Corporation to offer its customers digital currency solutions, including the ability to buy and sell cryptocurrencies, perform cross-border remittances, and accept digital currency payments through both digital and physical channels. LibertyX is a US-based software company that offers ATMs, point-of-sale terminals, and scanners for businesses.
- In March 2021, Hitachi, Ltd. acquired 100% ownership of Hitachi-Omron Terminal Solutions Corp. by purchasing all issued shares held by OMRON Corporation. Following the joint venture’s dissolution, Hitachi and OMRON plan to maintain an amicable business relationship and collaborate on a wider range of products and services.
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