Automated Teller Machine (ATM) Market Size By Solution (Deployment [Onsite, Offsite, Worksite, Mobile], Managed Services), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: Oct 2017 | Report ID: GMI409 | Authors: Ankita Bhutani, Pallavi Bhardwaj
ATM Market size estimated at over USD 14 billion in 2016 and will grow at a CAGR of 9% from 2017 to 2024. The installed base will exceed 4 million units by 2024.
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The growing demand for automation in the banking sector in several emerging and developed countries is driving the ATM market growth. The global banking sector has witnessed several technological advancements over the last decade. It is witnessing rising security threats and changing consumer demands & regulatory requirements. The machine provides an opportunity for banks to go for competent and cost-effective models. With the advent of these machines, banks can serve a wide customer base even outside the banking institution. These cards help to replace hassles of bank transactions, bank hour constraints, paper-based validations, and personal attendance of customers, providing enhanced banking experience for customers as well as bankers. They allow banks to reach customers at a lower initial and transaction cost, resulting in higher adoption.
Improved security mechanisms, such as biometrics, fingerprints, and two-factor authentication services, to prevent fraudulent transactions are being implemented to provide an additional layer of security to individuals. Banks are introducing new security features for verifying whether the physical card is a fake or duplicate. For instance, in January 2019, Reserve Bank of India mandated banks to upgrade their older magstripe cards to EMV chip cards as they offer enhanced authentication, preventing scams/fraudulent activities. Banks are also focusing on developing additional security measures, such as the intelligent anti-ATM skimming devices, that help to monitor the system for illegally mounted intrusion mechanisms and help in safeguarding card & PIN data theft.
Rising digitization in developing countries may adversely affect the automated teller machine (ATM) market revenue in the coming years. The evolution of digital payment solutions, such as online & mobile banking and digital wallets & Bitcoin transactions is being witnessed in the payment industry. Consumers are increasingly preferring online banking channels as they provide convenient, fast, and secure transactions. The growing inclination toward mobile payments and the adoption of online channels may change the competitive landscape across various regions, challenging industry growth. Stringent government regulations to mandate the hardware & software upgrades for security purposes in these machines can result in high maintenance costs for operators.
|Base Year:||2016||Market Size in 2016:||14 Billion (USD)|
|Historical Data for:||2013 to 2016||Forecast Period:||2017 to 2024|
|Forecast Period 2017 to 2024 CAGR:||9%||2024 Value Projection:||16 Billion (USD)|
|Pages:||145||Tables, Charts & Figures:||263|
|Geographies covered (16):||U.S., Canada, Germany, UK, France, Italy, China, India, Japan, South Korea, Australia, Brazil, Mexico, Saudi Arabia, UAE, South Africa|
|Segments covered:||Solution and Region|
|Companies covered (10):||Diebold Nixdorf, Incorporated, Euronet Worldwide, Inc., Fujitsu Limited, GRG Banking Equipment Co. Ltd., Hess Cash Systems Gmbh & Co. Kg, Hitachi-Omron Terminal Solutions Corporation, Nautilus Hyosung, NCR Corporation, Tidel Engineering, L.P., Triton Systems of Delaware LLC|
|Pitfalls & Challenges:||
Automated Teller Machine (ATM) Market, By Solution
Deployment solutions will witness a growth of 9% CAGR over the forecast timespan. Onsite ATMs are being widely deployed in bank premises for helping customers to avoid long queues for cash transfers, deposits, and withdrawals. They offer advantages such as flexibility of cash withdrawals & deposit, privacy in transactions, quicker, and efficient services. These ATMs reduce the frequency of errors, helping banks in making smooth financial transactions. The evolving banking infrastructure and increasing installation of onsite systems to enhance customer satisfaction will provide several growth opportunities to the market.
The managed services segment has been witnessing steady growth in the ATM market. These services allow banking institutions to focus on their core financial business activities and contribute significantly to develop infrastructure for multichannel delivery for enhancing customer retention and cross-selling opportunities. Outsourcing services to a trained and specialized service provider offer several benefits such as reduced maintenance & operational costs, improved profit margins, simplified network services, and compliance with new regulatory policies.
ATM Market, By Region
Europe Automated Teller Machine (ATM) Market size, by country, 2024
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Developments in technology and self-service functionality in European countries have led to replacements of existing aging by financial institutions. The installation of intelligent deposit technology is serving as a key contributor to the rise of self-service technology across the country. In the UK, around 10,000+ multi-function systems have been deployed for various forms of functions, increasing the flexibility of transactions for customers. Banks are integrating capabilities, such as video conferencing, biometrics, and remote assistance through machines, to deliver valuable flexibility and choice for their customers, driving the revenue of the market across the region. Furthermore, the introduction of cash recycling capabilities and mobile integration is helping to modernize traditional ATMs, allowing banks to have cost-effective banking solutions in the European market.
In Latin America, vendors are focusing on green resources for power and energy savings, easier installation, and simpler maintenance. For instance, Diebold Nixdorf, Incorporated developed a green and power-efficient intelligent-powered ATM that runs on 70 watts of power, consuming up to 40% less energy than other models. The banks in Brazil are developing electronic data to capture devices and mini-ATMs and support mobile banking and payments with additional security measures, such as specialized systems, with facial recognition cameras.
Competitive Market Share
The key players operating in the industry are NCR Corporation, Fujitsu Limited, Diebold Nixdorf, Incorporated, Euronet Worldwide, Inc., GRG Banking Equipment Co., Ltd., Hess Cash Systems GmbH & Co. Kg, Hitachi-Omron Terminal Solutions Corporation, and Nautilus Hyosung. These companies are engaged in providing systems, repair & maintenance, reconstruction, and upgrading services to financial organizations, retailers, and independent deployers. They are providing advanced deposit machines with a wide range of deposit, withdrawal, and recycling options to financial institutions. Companies are entering into partnerships with other players to expand their presence in untapped markets. For instance, in January 2016, Diebold Nixdorf collaborated with the Mumbai-based AGS Transact Technologies Ltd., a payment technology solution provider to manufacture around 40,000 ATMs at its plant in Daman, India. This will help the company to offer machines tailored to the requirements of remote, rural, and urban areas.
The companies operating in the automated teller machine (ATM) market are investing highly in R&D and engineering for product innovations to expand their product offerings and attract a large customer base. For instance, in 2018, NCR Corporation invested USD 252 million in R&D for providing advanced solutions that help to drive revenue, reduce cost, manage risk, and enhance the customer experience. Players are also offering advanced technologies to increase their customer base globally. For instance, in September 2014, Hitachi-Omron Terminal Solutions, Corp. introduced its global ATM “SR Series”. These new ATMs are equipped with Banknote Validation and Recycling Module, improving the capability for banknote validation. The industry has progressed significantly and is expected to grow rapidly in developing countries with high adoption of machines within retail banking industries.
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