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The automated teller machine (ATM) market size is estimated to grow at a CAGR of 4.56% between 2022 and 2027. The market size is forecast to increase by USD 5,641.95 million. The market's growth is influenced by various factors, including the incorporation of multifunctionality features in ATMs, the rise in mobile ATMs, and the increasing adoption of remote teller technology in ATMs.
This automated teller machine market report extensively covers market segmentation by type (brown label, white label, and others), deployment (offsite ATM, onsite ATM, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The multifunctionality features in ATMs are notably driving the market growth, although factors such as high costs associated with ATMs are a major challenge impeding the growth. Our researchers analyzed the data with 2022 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.
One of the key factors driving the ATM 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, ATMs provide an alternative to such services. ATMs offer a faster way to avail of banking facilities and services beyond the normal working hours of a bank. ATMs 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 own convenience in terms of time and place, unlike in banks.
ATMs also provide various non-financial services, including balance inquiries, PIN changes, requests for chequebooks, and other inquiries. Thus, their multifunctionality has led to an increased demand for ATMs across the world. This has, in turn, resulted in an increase in the number of ATMs globally. Therefore, the multifunctionality of ATMs has led to a rising number of ATMs across the world. This, in turn, is expected to drive the growth of the global ATM market during the forecast period.
Increased rate of EMV adoption in ATMs is a prominent ATM industry trends. 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 in ATMs is a positive trend in the market, which is expected to significantly drive the growth of the global ATM market during the forecast period.
High costs associated with ATMs are one of the key challenges hindering the ATM market growth. ATMs help banks to reduce the number of people approaching a branch for services by automating cash dispensing and cash recycling. Despite these advantages, there are a number of factors that affect the wider adoption of ATM machines. ATMs 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. Due to these reasons, there are countries that have fewer ATMs per 100,000 adults. Thus, the several costs associated with ATMs might result in their reduced adoption, thereby negatively impacting the growth of the global ATM market during the forecast period.
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 brown-label ATMs has increased in India owing to the recommendations of the Reserve Bank of India. Hence, the rising adoption of brown-label ATMs with propel the growth of the brown-label ATM segment, which, in turn, is expected to drive the growth of the market in focus during the forecast period.
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The brown label segment was valued at USD 15,037.26 million in 2017 and continued to grow until 2021. 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 brown-label ATMs 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 lead brown-label ATMs to continue gaining market share during the forecast period.
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North America 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 of ATMs.
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 ATMs while carrying out banking transactions. Such factors will increase the market growth in this region during the forecast period.
The COVID-19 outbreak in 2020 impacted major North American countries, including the US. However, in 2021, due to large-scale vaccination drives, there has been an uptick in cash transactions through ATMs. This resulted in an increase in demand for ATMs. Additionally, the growth of e-commerce and online transactions has created new opportunities for ATM companies to provide secure and reliable payment solutions, which will accelerate the growth of the ATM market in North America during the forecast period.
Vendors 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The automated teller machine market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Automated Teller Machine Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.56% |
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Market growth 2023-2027 |
USD 5,641.95 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.75 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 52% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Cashway Fintech Co. Ltd., Diebold Nixdorf Inc., Eastcompeace Technology Co. Ltd., Euronet 360 Finance Ltd., Fujitsu Ltd., G4S Ltd., Genmega Inc., GRGBanking, HANTLE Inc., Hitachi Ltd., Lipi Data Systems Ltd., NCR 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 dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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