Automated Teller Machine (Atm) Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Germany, India, UK - Size and Forecast 2024-2028

Automated Teller Machine Market Size 2024-2028

The automated teller machine market size is estimated to grow by USD 5.91 billion at a CAGR of 4.56% between 2023 and 2028. Market growth is driven by the integration of multifunctional features like digital payment, mobile top-ups, and mini-statement services. Additionally, the increase in mobile ATMs and the adoption of remote teller technology, including cardless ATM, enhance accessibility and real-time customer support, further driving market expansion. The market continues to evolve with advancements in technology, offering essential services such as cash withdrawal, fund transfer, and deposit in the banking sector across developed and emerging countries. ATMs are increasingly incorporating biometric authentication and smart features such as smart ATMs, expanding their reach into rural areas and enhancing security mechanisms.

What will be the Size of the Automated Teller Machine Market During the Forecast Period?

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Automated Teller Machine Market Segmentation

The ATM market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Type Outlook 
  • Brown label
  • White label
  • Others
• Deployment Outlook
  • Offsite ATM
  • Onsite ATM
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Type 

The market share growth by the brown label segment will be significant during the forecast period. In this segment, governments across the world are becoming increasingly cognizant of the potential of brown-label ATMs to broaden financial inclusion, particularly in rural areas. To improve access to banking services, the Indian government has been actively supporting the installation of such ATMs. The usage of these has increased in India owing to the recommendations of the Reserve Bank of India. Hence, the rising adoption of brown-label ATMs will drive the growth of the brown-label ATM segment, which in turn is expected to drive the growth of the market during the forecast period.

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The brown label segment was valued at USD 15.48 billion in 2018. The utilization of brown-label ATMs is gaining traction in the global ATM market. Non-banking businesses deploy brown-label ATMs to enter the financial services sector. These are owned by non-financial businesses and run by third-party service providers. In 2020, brown-label ATMs accounted for more than 35% of all ATMs worldwide. The increased need for cash and the need for more cost-effective ATM deployment will help brown-label ATMs to continue gaining market share during the forecast period.

Regional Analysis

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APAC is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The ATM market in North America is mainly driven by the increasing need to reduce manual operations. As a result of this, customers in North America are increasingly opting for automated devices like ATMs for carrying out both financial as well as non-financial banking services. Moreover, most of the financial institutions in the region are promoting ATM services and making customers increasingly aware of the benefits.

Furthermore, ATM manufacturers and financial institutions in North America are incorporating and opting for advanced technologies, such as anti-skimming, biometric devices, and voice recognition systems, to reduce fraudulent activities. This instils a sense of security among customers and therefore encourages them to use while carrying out banking transactions. Such factors will drive ATM market growth in this region during the market forecast period.

Automated Teller Machine Market Dynamics

Companies like NCR Corporation play a pivotal role in manufacturing operations and portfolio expansion, offering services including system reconstruction, repair & maintenance, and upgrading services. ATMs are deployed in various locations including onsite, offsite, and worksite, serving members of credit unions and fulfilling contracts to meet diverse banking needs. As digital banking platforms advance, ATMs continue to innovate, ensuring convenient and secure access to financial services globally. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

One of the key factors driving the market growth is the multifunctionality features of ATMs. As the banking industry is growing and there is an increase in demand to deal with the growth in banking-related services and queries, and therefore, they provide an alternative to such services. They offer a faster way to avail of banking facilities and services beyond the normal working hours of a bank. They can perform multiple functions, including both financial as well as non-financial services. For instance, with the help of ATMs, customers can easily withdraw cash at their convenience in terms of time and place, unlike in banks.

They also provide various non-financial services, including balance inquiries, PIN changes, requests for checkbooks, and other inquiries. Thus, their multifunctionality has led to an increased demand across the world. This has, in turn, increased the number globally. Therefore, the multifunctionality has led to a rising number of ATMs across the world. This, in turn, is expected to drive the growth of the global market during the forecast period.

Significant Market Trends

Increased rate of EMV adoption in ATMs is a prominent ATM industry trend. Europay, MasterCard, and Visa (EMV) is a payment method based on a technical standard that has proven to be highly effective for combating ATM fraud. Using the latest technologies available, fraudsters have also become ingenious in using various techniques like magnetic stripe skimming and pinhole cameras to commit fraud, thereby leading to an increasing number of ATM transaction frauds. Thus, to reduce such fraudulent activities, financial institutions and ATM operators have started to focus on the need for EMV migration at the ATM.

With the increased rate of EMV adoption in ATMs, customers feel more secure while carrying out transactions. Consumers prioritize convenience and security while handling financial transactions, and to achieve this, financial institutions are increasingly focusing on providing access to EMV-compliant ATM services not only to protect their customers' financial information but also to reduce the threat of fraudulent activities. Thus, the increased rate of EMV adoption is a positive trend in the market, which is expected to significantly drive ATM market growth during the forecast period.

Major Challenge

High costs associated with ATMs are one of the key challenges hindering the market growth. They help banks reduce the number of people approaching a branch for services by automating cash dispensing and cash recycling. Despite these advantages, several factors affect the widespread adoption of ATMs. They are an expense for a bank, in terms of the cost of the machine, monthly rentals for the space that they occupy at a branch office or off-site (outside the bank premises), the cost of commercial electricity, and the cost of hiring a security guard to prevent untoward incidents.

All these costs add to the bank's expenses. Although banks charge customers for transactions made via ATMs, in many countries, there is a certain number of such transactions that are free of charge for customers. Thus, some countries have fewer ATMs per 100,000 adults, and the various costs associated with these might result in their reduced adoption, thereby negatively impacting ATM market growth during the forecast period.

Customer Landscape

The automated teller machine market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the ATM market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Key Automated Teller Machine Market Companies & Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Cashway Fintech Co. Ltd.: The company offers various ATMs such as CASH80AWI ALI and ATM dispensing systems with wireless POS payment technology.

The ATM market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 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.
• Triton Systems

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Outlook

The automated teller machine market is pivotal in bridging gaps in financial access, offering essential services like cash-based transactions, digital payments, and mobile banking solutions. Despite challenges such as a lack of awareness and a significant unbanked population, ATMs and interactive machines provide crucial access points for financial services. Companies like Hitachi Terminal increase market share through innovative deployment solutions and managed services, ensuring adequate manufacturing capacity to meet global demand. Deployed as onsite, offsite, and worksite ATMs, these machines support both urban and remote areas, bolstered by partnerships with organizations like the World Bank to expand financial inclusion initiatives. As e-commerce grows, ATMs continue to evolve, facilitating convenient and secure transactions in a digitally transforming world.

Manufacturers focus on improving manufacturing operations and supply chains to meet the demand for ATMs. The market also leverages digital platforms for easy transactions and implements strong security mechanisms for fraud prevention. ATMs play a vital role in facilitating the easy flow of cash, providing transactional benefits for users, and supporting offline shopping. With increasing urbanization and digital convergence, ATMs are integrating IoT data analysis for enhanced services, including contactless ATM kiosks and QR code payments. Major players like NCR Corporation drive market growth through product portfolio expansion and strategic contracts with entities like Members ATM Alliance (MAA) and credit unions. Collaborations with retailers and use of innovative solutions like cash recycling machines (CRMs) and cash management systems further drive the market. Technologies such as PalmSecure biometric authentication ensure a frictionless and secure method of ATM usage, utilizing vein patterns and near-infrared light for authentication.

The automated teller machines (ATM) market is witnessing significant growth, driven by technology advancements and the increasing adoption of digital payment methods. The rise of ecommerce, mobile banking, and digital platforms has led to a shift toward smart ATMs, which offer features like cash withdrawal, fund transfer, deposit, and biometric authentication. Onsite ATMs, offsite ATMs, worksite ATMs, and mobile ATMs provide convenient banking solutions, while contactless ATM kiosks enhance user experience and fraud prevention. The banking sector is focusing on managed services, deployment solutions, and system reconstruction to keep up with consumer demand. Despite growth, a lack of awareness remains a challenge, requiring interactive machines and upgrading services. Repair and maintenance, along with product portfolio expansion, are key for ensuring efficient manufacturing operations and long-term success.

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What are the Key Data Covered in this Automated Teller Machine Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies