ATM as a Service Market Size, Share, Growth, And Industry Analysis By Type (Network Management, Security Management, Incident Management, Others) By Application (Bank ATMs, Retail ATMs) Regional Forecast By 2031

Updated On: 29 April 2024

ATM as a Service Market Report Overview

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The global ATM as a service market size was USD 6.281 billion in 2021. As per our research, the market is expected to reach USD 15.03 billion in 2031, exhibiting a CAGR of 9.31% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with ATM as a service market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Automated teller machines (ATMs) provide a dependable, user-friendly interface for withdrawing cash as well as features that make it simple to deposit, withdraw, and access cash 24 hours a day. With advancements in technology, consumers are seeking reliable, quick, convenient, and safe means to get cash, which is promoting ATM usage around the world. Additional factors influencing market growth include the introduction of Smart ATMs for users with specific needs and improved security measures including biometric and one-time password authentication systems to stop fraud. The need for ATMs is anticipated to rise along with the desire for automation in the banking sector in a number of established and developing nations.

The ownership, management, and operation of ATM programmes can be totally outsourced by an ATM service provider, or you can choose particular services from a menu of options. The simple accessibility of complicated services like money transfers between accounts, check clearing, and bill transfers through ATM devices boosts revenue growth for many banks, financial institutions, and other businesses. As a result, a surge in the deployment and application of technologies in the ATMs is propelling market expansion by offering convenient and effective services while lowering operational costs.

COVID-19 Impact: COVID pandemic hindered market growth significantly

Covid-19 has completely changed the banking and finance sector by requiring them to adopt digital channels to lessen client interaction and crowding in banks. Banks found it challenging to operate ATMs and in-branch service with less staff as a result of COVID-19. This growing need for ATM outsourcing services is the result. Technology development is crucial and required because it has improved ATM features and services and decreased the likelihood of Covid-19 virus transmission. Due to the COVID pandemic, ATM outsourcing firms have predicted an increase in the anticipated time.

Latest Trends

"Increase Usage Of Banking Cards Propel The Market"

The sector for ATM services is expanding as a result of the rapid rise of self-service ATM machines in recent years. It is regarded as a technological breakthrough that combines numerous features into a single device, acting as a one-stop shop for a variety of functions, including cash deposit, cash recycling, withdrawal, check deposit, internet banking, coin dispensing, banking products and solutions like loans and credit cards, and the opening and changing of bank accounts. In addition to Asian nations like China, India, Korea, Japan, and Singapore, the European and American markets have adopted this technology to a large extent.

ATM as a Service Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Network Management, Security Management, Incident Management, Others. Network Management will lead the market segment.

• By Application Analysis

Based on application, the market can be divided into Bank ATMs, Retail ATMs. Bank ATMs will be dominating segment.

Driving Factors

"Technological Progress Promotes Market Expansion "

The independent characteristic of constant accessibility of transactional services provided by banks across many locations raises the demand for ATMs. ATMs are changing from simple cash dispensers into richer, more personalised communication channels as banking and financial technology advances. Increasing the integration and value of services has helped businesses build loyal clientele. Financial institutions also assist banks in boosting income by simplifying access to sophisticated services like bill payment, account transfers, and check clearance at ATMs. As a result, it is projected that a rise in the number of ATM deployments will bring about significant financial expansion.

"Wireless Communication Capability In Smart ATMs Growing Market Significantly"

Smart ATMs have been introduced, which can readily interface with users' cellphones through near-field communication (NFC) technology, to lower the risk of ATM scams including card skimming and card trapping. By creating a code that customers use to unlock their bank accounts and then withdraw cash from an ATM with the tap of a mobile device, NFC technology sends data wirelessly between ATM and mobile app. With the advent of smart ATMs, technological improvements have lessened the inconvenience of carrying ATM cards. Thus, smartphone apps contribute to the security of financial transactions, supporting the expansion of the ATM sector. Additionally, integrating cutting-edge security technologies like voice recognition, EMV acceptance, and biometrics gives clients' financial transactions an added layer of security. The market for ATMs has grown as a result of this factor, which has considerably enhanced the use of smart ATMs.

Restraining Factors

"Online Banking Services' Emergence Hampering Market Growth"

The banking industry is essential to a nation's economy. Automation has been made possible by new technologies like blockchain, AI, and financial cybersecurity. It has made transactions and other banking operations more convenient, which has caused a shift in preference from using ATMs for banking to using e-banking. The global market is significantly hampered by this aspect. Additionally, e-banking allows users to execute a variety of financial transactions, monitor their accounts, and pay bills online from a single location at any time. As a result, the number of ATMs around the world has decreased, which has limited the usage of ATM services. The expansion of the worldwide market has been constrained by all of these issues taken together.

ATM as a Service Market Regional Insights

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"Asia Pacific To Be The Leader In The Market During Forecast Period"

During the projected period, the market for automated teller machines in the Asia Pacific region is anticipated to grow at a 5.9% CAGR. A growing number of ATMs are being installed, mostly in developing nations like China and India, which is responsible for the expansion of the regional market. The lack of knowledge about digital payment options in the majority of the region's economies also contributes to the importance of ATMs for cash-based and other financial transactions. The majority of the approximately three million ATMs that have been placed worldwide are in Asia and the Pacific. The demand for ATMs in the region is also anticipated to increase due to the need to serve the sizable unbanked populations in nations like China, India, and Japan, as well as rising markets like Vietnam and Indonesia.

The second biggest region is North America. By 2030, it is anticipated to reach a value of USD 23500 million, representing a CAGR of 4.8%. The implementation of ATMs across many nations is encouraged by the rise in demand for automated systems, security for both online and offline transactions, and a growing emphasis on avoiding lengthy lines in banks for tasks like deposits and transfers. In order to reduce the risk of fraud, financial institutions, ATM manufacturers, and banks have begun implementing biometric devices, speech recognition systems, and anti-skimming techniques, which has driven the adoption of advanced ATMs. Additionally, the rising trend of introducing new financial services is fostering an environment that is favourable for the expansion of the ATM business in Mexico.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

CashTrans (U.S.)

Cardtronics (U.S.)

CMS Info Systems (India)

FUJITSU (Japan)

Hitachi Payment Services (India)

Financial Software and Systems (India)

Diebold Nixdorf (U.S.)

Cashlink Global System (India)

HYOSUNG (South Korea)

Vocalink (U.K.)

Fiserv, Inc. (U.S.)

Automated Transaction Delivery

Electronic Payment and Services (U.K.)

QDS, Inc.

Euronet Worldwide, Inc. (U.S.)

AGS Transact Technologies Ltd. (India)

NCR Managed Services (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.