Automated teller machine (ATM) market size accounted for over USD 13 billion in 2015 and is likely to achieve more than USD 22 billion by 2023, at a CAGR of over 8%. Wireless communications coupled with technological advancements are the major factors driving the global demand over the forecast period.
Rising trend of automation coupled with emerging markets is expected to drive the global industry over the forecast period. In addition, security standards is also anticipated to fuel the industry growth over the coming few years. However, card skimming along with logical and data attacks are anticipated to hinder demand growth. Rural areas, especially in emerging nations are expected to offer significant growth opportunity over the forecast period.
Deployment solutions accounted for around 70% of the ATM market share in 2014. It is likely to grow at high pace owing to its accessibility in banking services for the consumers over the forecast period. In addition, rising maintenance as well as installation base activities has boosted the demand growth over the forecast period. On site ATMs are mostly installed in the bank premises and facilitate bank workers by eliminating queues for various causes such as withdrawals, cash deposits and transfers. This also reduces the errors allowing smooth functionality of financial transactions. The above mentioned factors are expected to drive on site machinery demand over the forecast period.
On the other hand, managed services are likely to grow at steady rate from 2016 to 2023, facilitating financial institutions to adopt trained and specialized service professionals. The key players such as Wincor, Diebold and NCR offers managed service solutions at low cost. In addition, it also contributes towards growth of infrastructure to facilitate multichannel delivery for improved customer retention, cross selling and acquisitions. Outsourcing of managed services is likely to furnish the industry with numerous benefits such as high operational profits, reduced infrastructural & operational cost, and simplified network services & operations.
The global ATM market can be segmented on the basis of solutions which include deployment solution and managed services. Deployment solutions are sub segmented into on site, off site, mobile and worksite ATM. The industry can also be bifurcated on the basis of types which include brown, conventional or bank, smart, cash dispenser and white label ATM.
Key regions occupying significant industry share are Asia Pacific, North America, Europe, MEA and Latin America. Mobile ATM deployment solution is likely to observe substantial gains at over 5% from 2016 to 2023. The solution reduces the traffic at high-volume locations such as social gathering, trade fair, sports events. In addition, it enhances branding &promotions as well as flexibility.
North America ATM market size was valued more than 35% of the global industry in 2014. It is likely witness constant growth over the forecast period. This can be attributed to the infiltration in the industries across the region. In addition, increasing operational costs in the U.S. have led the manufacturers to install other solutions. Asia Pacific ATM market size is anticipated to observe significant growth from 2016 to 2023. This can be attributed to rising demand of interactive machines in the region.
Increasing demand from China, Indonesia, Vietnam and India ATM market usage is likely to surge regional industry demand. In 2014, it is expected that around 80% ATMs are being installed in this region. Middle East and Africa market share is likely to exhibit substantial growth owing to government initiatives and increasing customer demand for electronic banking over the forecast period. In addition, cash based economy is also likely to favor the industry demand in this region. Other nations such as Nigeria, Iran, Russia and Brazil are forecast to observe huge demand growth for new machines.
The major competitors for the global ATM market share include Euronet Worldwide, Fujitsu, Nautilus Hyosung, HESS Cash Systems, GRGBanking, Triton Systems of Delaware, Hitachi-Omron Terminal Solutions, Wincor Nixdorf, NCR and Diebold among others.
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