Automated Teller Machine (ATM) Market size is set to grow by USD 5.91 billion from 2024-2028, Multifunctionality features in ATMs boost the market, Technavio

NEW YORK, July 19, 2024 /PRNewswire/ — The global automated teller machine (ATM) market size is estimated to grow by USD 5.91 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 4.6%  during the forecast period. Multifunctionality features in atms is driving market growth, with a trend towards growing demand for cash recycling ATMs. However, high costs associated with atms  poses a challenge. Key market players include Atlas Ontario LP., Cashway Fintech Co. Ltd., Diebold Nixdorf Inc., Eastcompeace Technology Co. Ltd., Euronet 360 Finance Ltd., Fujitsu Ltd., Genmega Inc., GRGBanking, HANTLE Inc., Hitachi Ltd., Lipi Data Systems Ltd., NCR Voyix Corp., Oki Electric Industry Co. Ltd., Paycorp Investments Proprietary Ltd., Source Technologies, SPL Computer Trading GmbH, The Brinks Co., and Triton Systems.

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Market Driver

The demand for automatic cash recycling in ATMs, automated teller safes, and self-service cash recycling machines is increasing among financial institutions. Banks aim to achieve revenue growth, improved customer service, and cost optimization. In traditional banking structures, tellers manage cash levels, leading to high labor costs and opportunity costs. Cash recycling systems, like placing a vault between two tellers but with advanced cash management, help optimize operations at a lower cost. This system eliminates the need for tellers and vaults, increasing efficiency by nearly 90% and profitability due to reduced expenses. Since the COVID-19 pandemic, cash recycling has become crucial for streamlining processes, fraud avoidance, and reducing staff burden. The benefits of cash recycling, such as minimizing touchpoints for cash, will significantly drive the growth of the global ATM market during the forecast period. 

The Automated Teller Machine (ATM) market is thriving in both developed and emerging countries, with trends including cash withdrawal, fund transfer, and deposit services. Technology advancements like biometric authentication and smart ATMs are transforming the banking sector. Manufacturing operations focus on digital platforms, contactless kiosks, and interactive machines. Security mechanisms and fraud prevention are crucial. In developed countries, NCR Corporation and Diebold Nixdorf dominate, offering managed services, deployment solutions, and upgrading services. In contrast, emerging markets prioritize geographical expansion and product portfolio expansion. Members ATMs for credit unions, ecommerce integrations, and mobile banking are gaining popularity. Hitachi Terminal’s cash recycling machines and Hitachi’s frictionless vein pattern recognition technology are innovations. Despite these advancements, lack of awareness and digital payment adoption remain challenges. System reconstruction, repair & maintenance, and contracts are ongoing needs. 

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Market Challenges

• ATMs are a valuable tool for banks to automate cash transactions and reduce the number of customers visiting branches. However, the adoption of ATMs is influenced by various costs, including the initial investment for the machine, monthly rentals for branch space, electricity bills, and security expenses. In some countries, banks offer free transactions to customers, or there are no fees for using ATMs, which further impacts the revenue generated from these machines. Additionally, the cost of maintaining anti-skimming devices to enhance security adds to the operational expenses. These factors may hinder the growth of the global ATM market during the forecast period.
• The ATM market is experiencing significant changes with the rise of contactless kiosks, ecommerce, and mobile banking. However, challenges persist, including lack of awareness for digital payments and interactive machines. Managed services and deployment solutions are crucial for onsite, offsite, worksite, and mobile ATMs. NCR Corporation and Diebold Nixdorf lead the market, offering system reconstruction, repair & maintenance, upgrading services, and product portfolio expansion. Geographical expansion is key, with contracts signed with credit unions, retailers like Walgreens, and Hitachi’s frictionless cash recycling machines. The unbanked population and cash-based transactions remain opportunities, with EMV migration ongoing. Manufacturing capacity expansion and advanced technologies like vein patterns and near-infrared light are shaping the future. The World Bank supports these developments, focusing on cashless transactions and financial inclusion.

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Segment Overview 

This automated teller machine (atm) market report extensively covers market segmentation by  

1. Type
   • 1.1 Brown label
   • 1.2 White label
   • 1.3 Others
2. Deployment
   • 2.1 Offsite ATM
   • 2.2 Onsite ATM
   • 2.3 Others
3. Geography
   • 3.1 North America
   • 3.2 APAC
   • 3.3 Europe
   • 3.4 South America
   • 3.5 Middle East and Africa

1.1 Brown label-  The Automated Teller Machine (ATM) market is growing steadily due to increasing consumer preference for convenient and quick cash withdrawals and deposits. Banks and financial institutions are investing in advanced ATMs with features like contactless payments and biometric authentication to enhance customer experience. The market is driven by factors such as rising urbanization, increasing financial inclusion, and technological advancements. Global sales of ATMs are projected to reach USD14 billion by 2025.

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Research Analysis

Automated Tellers Machines (ATMs) have revolutionized the banking sector, enabling cash withdrawal, fund transfer, and deposit services around the clock. Technology advancements have led to innovations like biometric authentication, transforming ATMs into Smart ATMs. Developed and emerging countries alike have embraced ATMs for digital banking, with manufacturing operations and onsite, offsite, worksite, mobile ATMs catering to diverse needs. Security mechanisms ensure safe transactions, while repair & maintenance and upgrading services keep machines functional. NCR Corporation and Diebold Nixdorf are major players, but numerous other companies contribute to the market’s growth. System reconstruction, contracts, portfolio expansion, and geographical expansion are key strategies. Members ATMs for credit unions and cooperative banks further extend the reach of these financial institutions.

Market Research Overview

Automated Teller Machines (ATMs) are digital banking solutions that enable cash withdrawal, fund transfer, and deposit services around the clock. Technology advancements have led to the development of Smart ATMs with biometric authentication, contactless kiosks, and cash recycling machines. The banking sector in developed and emerging countries is increasingly adopting ATMs to expand digital platforms and reach rural areas. Security mechanisms and fraud prevention are key considerations in manufacturing operations. Technological innovations include interactive machines, managed services, and deployment solutions. Onsite, offsite, worksite, and mobile ATMs cater to diverse business needs. Ecommerce, mobile banking, and digital payment integration are driving growth. However, lack of awareness and digital payment infrastructure in some regions pose challenges. Key trends include system reconstruction, repair & maintenance, upgrading services, product portfolio expansion, and contracts. Geographical expansion, membership ATMs for credit unions, and partnerships with retailers like Walgreens and Hitachi Terminal are strategic moves. Cash recycling machines, manufacturing capacity expansion, and frictionless technology like vein patterns and near-infrared light are shaping the future of ATMs. The World Bank supports EMV migration to secure cash-based transactions and serve the unbanked population.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
  • Brown Label
  • White Label
  • Others
• Deployment
  • Offsite ATM
  • Onsite ATM
  • Others
• Geography
  • North America
  • APAC
  • Europe
  • South America
  • Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio