Automated Teller Machine (ATM) Market

Automated Teller Machine (ATM) Market Outlook (2024 to 2034)

The global automated teller machine (ATM) market reached a valuation of US$ 25.11 billion in 2023 and is projected to climb to US$ 40.45 billion by the end of 2034, advancing at a CAGR of 4.4% between 2024 and 2034. Automated teller machines stand as a cornerstone in the evolution of modern banking, revolutionizing how individuals access and manage their finances. ATMs have undergone remarkable transformations, becoming an indispensable part of the banking infrastructure and customer experience.

The growth trajectory of the ATM market has been shaped by various factors, prominently including the ever-increasing demand for convenient and accessible banking services such as bank kiosks. This demand stems from consumers seeking flexibility in managing their finances, with ATMs providing round-the-clock availability, breaking the barriers of traditional banking hours and locations.

The convenience offered by cash vending machines aligns with the fast-paced, digitally-driven lifestyles of modern society. From the introduction of magnetic stripe cards to more secure chip-based cards, biometric authentication methods, contactless transactions, and advanced encryption technologies, ATMs continue to embrace innovation to enhance security and user experiences. Integration with mobile banking platforms has blurred the lines between physical and digital banking, enabling users to perform a myriad of transactions seamlessly.

Key Market Growth Drivers

• ATMs offer round-the-clock availability via kiosks, empowering customers to conduct financial transactions at their convenience and contributing significantly to the automated teller machine market growth.
• Despite the increasing popularity of digital payments, cash remains a crucial mode of transaction in many regions, fueling the ATM market share.
• Innovation in ATM technology, including biometric authentication, contactless transactions, and enhanced security features, has attracted customers and contributed to the automated teller machine market expansion.
• Emerging economies witnessing increased banking penetration and financial inclusion efforts have seen a surge in the installation of ATMs, thus driving market growth.

Report Attributes	Details
ATM Market Size (2023A)	US$ 25.11 Billion
Estimated Market Value (2024E)	US$ 26.21 Billion
Forecasted Market Value (2034F)	US$ 40.45 Billion
Global Market Growth Rate (2024 to 2034)	4.4% CAGR
North America Market Share (2024E)	28.6%
East Asia Market Growth Rate (2024 to 2034)	5% CAGR
Above 15” Screen Size Segment Growth Rate (2024 to 2034)	4.9% CAGR
Key Companies Profiled	Hitachi Channel Solutions, Corp. Euronet Worldwide, Inc. Hyosung TNS Inc. Diebold Nixdorf, Incorporated. HESS Cash Systems GmbH GRGBanking Triton Systems of Delaware NCR Corporation OEMs Fujitsu Frontech Ltd. Oki Electric Industry Co., Ltd. Display Manufacturers and Suppliers AU Optronics Corp. KYOCERA Corporation Mitsubishi Electric Corporation Sharp Electronics Corporation Tianma Micro-electronics Co., Ltd.

What’s Contributing to Global Increase in Automated Teller Machine Demand?

“Constantly Growing Need for Accessible and Convenient Banking Services”

Modern lifestyles emphasize efficiency and accessibility, and ATMs perfectly cater to these needs. They offer a pervasive presence, providing customers with 24/7 access to various banking services without the constraints of branch hours or locations. Convenience is a critical factor; users seek immediate access to cash and banking functionalities, whether they are in urban centers or rural areas. This demand is further augmented by the increasing preference for self-service options in banking.

Customers find ATMs more user-friendly and time-saving, especially for routine transactions like cash withdrawals, balance inquiries, and deposits. ATMs serve as a vital bridge between digital and physical banking, accommodating users who prefer tangible transactions over purely digital interactions.

“Reliance on Cash in Regions with Limited Digital Infrastructure”

Despite the surging popularity of digital payment methods, cash remains a prevalent and preferred mode of transaction for many individuals and businesses globally. ATMs play a pivotal role in fulfilling this need by providing easy access to cash anytime and anywhere. They serve as crucial touchpoints for individuals seeking immediate access to physical currency, whether for daily expenses, emergencies, or preferences in conducting transactions.

In regions where digital infrastructure is not fully developed or where cultural and economic factors favor cash transactions, ATMs become indispensable. The enduring reliance on cash for various transactions ensures a consistent demand for automated teller machines, thereby driving their continued relevance and growth in the financial landscape.

Which Factors Pose as Hurdles to Automated Teller Machine Market Expansion?

“Vulnerability of ATMs to Skimming, Malware Attacks, and Physical Attacks”

Security concerns restrain the demand for automated teller machines due to the constant evolution of sophisticated threats targeting these machines. Despite advancements in security measures, automated teller machines remain vulnerable to various risks, including skimming, card trapping, cash trapping, and malware attacks.

Skimming devices are covertly installed on automated teller machines to steal card information, compromising the financial data of customers. Additionally, physical attacks, such as ram raids or explosive methods, pose risks to both the automated teller machine and public safety. The increasingly complex nature of cyber threats demands continual investment in security upgrades and maintenance, elevating operational costs for ATM operators and financial institutions.

What are the Key Success Factors for Start-ups Venturing into ATM Technology?

“Focus on Creating Compact, Cost-effective Machines with Enhanced Security Measures”

Start-ups can differentiate themselves by developing cutting-edge ATM solutions that offer unique features or cater to specific niche demands. This might involve creating compact, cost-effective machines with enhanced security measures or integrating advanced technologies like biometric authentication or AI-driven user interfaces. By offering a distinctive value proposition, start-ups can attract customers and gain a competitive edge.

Teaming up with financial institutions, banks, or ATM networks can provide start-ups with access to an established customer base and infrastructure. Partnerships can also facilitate the integration of their ATM solutions into existing banking systems, enabling seamless transactions and enhancing market reach.

Country-wise Insights

The market in North America reflects the maturity and widespread usage of automated teller machines, driving technological advancements such as contactless transactions. East Asia is witnessing a surge in the installation of bank ATMs aligned with the expanding banking sector in the region and urbanization efforts. Bank ATMs account for 30% of the global automated teller machine market share. The ATM landscape of each region is shaped by unique economic, regulatory, and technological factors, impacting the pace and nature of the proliferation of automated teller machines.

Why is China a Leading market for Automated Teller Machines?

“Technological Advancements and Efforts by Government to Promote Financial Inclusion”

Attribute	China
Market Value (2024E)	US$ 5.66 Billion
Growth Rate (2024 to 2034)	4.8% CAGR
Projected Value (2034F)	US$ 9.07 Billion

China is experiencing an upsurge in demand for banking services due to its rapid urbanization. This growing desire for financial inclusion, particularly in rural areas, has motivated significant investments in banking infrastructure, resulting in a rise in ATM installations across the country. Substantial economic growth in China has bolstered the middle class, resulting in a larger consumer base with higher banking needs. This demographic shift has augmented the demand for convenient and accessible banking services, leading to the necessity for more automated teller machines across urban and rural areas alike.

Government policies mandating the presence of automated teller machines in remote and rural locations have further accelerated the proliferation of these machines across the nation. Automated teller machines in China are at the forefront of technological innovation, boosting the user experience and assuring secure transactions by implementing cutting-edge security measures and incorporating innovative features such as contactless transactions and biometric authentication.

How are ATM Manufacturers Faring in the United States?

“Combination of Technological Innovations and Cash-reliant Consumer Base”

Attribute	United States
Market Value (2024E)	US$ 5.37 Billion
Growth Rate (2024 to 2034)	4.9% CAGR
Projected Value (2034F)	US$ 8.65 Billion

The United States has long been at the forefront of technological innovation, and this translates directly into the evolution of ATM technology. With a sophisticated financial ecosystem and a culture deeply rooted in convenience, the United States continually demands cutting-edge advancements in banking services. This drive for innovation propels the development of automated teller machines equipped with the latest features such as contactless transactions, biometric authentication, and enhanced security measures, thereby stimulating market growth.

While digital transactions gain traction, cash remains a preferred mode of payment for many Americans in various transactions, from daily purchases to larger-scale transactions. This consistent demand for cash reinforces the necessity and usage of automated teller machines across the nation, ensuring a steady market. As the economy thrives, consumer spending increases, further bolstering the need for accessible cash withdrawal and deposit services, thereby fueling the demand for automated teller machine (ATM) market share.

Category-wise Insights

The ATM market segmentation encompasses various categories based on type and deployment. These categories delineate the diverse range of automated teller machines available in the market, addressing different preferences, technological advancements, and deployment strategies to meet the evolving needs of consumers and businesses alike.

Why are Above 15” Screen Size ATMs More Popular?

“Offering Intuitive Interface with Ease of Navigation”

Attribute	Above 15” Screen Size
Segment Value (2024E)	US$ 21.59 Billion
Growth Rate (2024 to 2034)	4.9% CAGR
Projected Value (2034F)	US$ 33.25 Billion

The larger screen size catalyzes revolutionizing the traditional ATM landscape, acquiring a significant portion of the automated teller machine market size. A screen size exceeding 15 inches significantly amplifies user visibility and interaction, offering a more intuitive and user-friendly interface. The expansive display enables clearer and more detailed transaction information, facilitating easier navigation through various banking options, thus enhancing the overall user experience.

With the integration of advanced features and interactive functionalities in modern automated teller machines, a larger screen area provides ample space for incorporating innovative technologies such as touchscreens and biometric authentication, fostering more secure and seamless transactions. The larger screens cater to diverse customer demographics, including elderly or visually impaired users, by ensuring better readability and accessibility, aligning with the principles of inclusivity in banking services.

Financial institutions leverage these spacious screens to incorporate marketing initiatives, showcasing promotional content or targeted advertisements, thereby enhancing engagement and potentially driving additional revenue streams. The automated teller machine market trend towards larger screens reflects a strategic response to evolving consumer expectations, technological advancements, and the quest for an optimized user interface that fosters convenience, security, and an immersive banking experience.

Competitive Landscape

Leading global ATM manufacturers such as NCR Corporation, Diebold Nixdorf, and GRG Banking Equipment Co. Ltd. continuously invest in research and development to introduce cutting-edge features in their ATM systems. These advancements encompass enhanced security measures, user-friendly interfaces, and integration with mobile banking platforms, aiming to improve the overall customer experience while addressing emerging security threats.

The competitive landscape of the ATM market revolves around a dynamic interplay of technological innovation, expansive market reach, strategic partnerships, and the ability to adapt to evolving consumer preferences, ensuring a competitive edge in this rapidly evolving industry.

• NCR Corporation, a corporate technology supplier, joined with Members ATM Alliance (MAA) in June 2023 to provide ATM as a service (ATMaaS) to credit unions.
• Diebold Nixdorf, a manufacturer of automated teller machines, strengthened its foothold in India in November 2022 by constructing a new plant in Bengaluru.

Segmentation of ATM Market Research

• By Deployment :

  • Off-site ATMs
  • On-site ATMs
  • Others

• By Screen Size :

  • 15" & Below
  • Above 15"

• By Type :

  • Conventional/Bank ATMs
  • Brown Label ATMs
  • White Label ATMs
  • Smart ATMs
  • Cash Dispenser ATMs
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa