ATM Services Australia Market Intelligence

Report Coverage

  • Buyer Trends: Key Statistics
  • Supply Trends and Insights
  • Mergers and Acquisitions
  • Global Supplier List and Product Portfolio

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Regional Market Outlook on ATM services

  • In 2018, the APAC ATM industry market size grew to $6.27 billion at a CAGR of 10–11 percent and is expected to reach above $8 billion by 2021, at a CAGR of 7.9 percent
  • The APAC is the fastest growing market in the industry, with India and China leading, in terms of number of deployments
  • Australia has developed into a matured market, where ATM services have reached a peak stage and consumers have started moving towards  e-payments
  • The market share of the APAC region was recorded above 45% percent of the ATM market in 2018–2019


 Regional ATM Services Market Maturity

  • Until 2020, APAC is expected to be the fastest growing region, with an average annual growth rate of 10.5 percent
  • There is an increasing rate of technological adoption visible among developing geographies
  • Emerging geographies, such as India, China, and Brazil, are witnessing rapid growth in the deployment of ATMs, hence, the adoption rate of outsourced ATM services is also high
  • The FIs in the developing regions choose single service outsourcing
  • The 15” and below screen-size segment is thrice the size of above 15” segment at present; the above 15” segment is expected to surpass $7.5 billion by 2022, at a CAGR of 8.5 percent$ 7.5 billion by the end of 2022

Porter's Five Forces Analysis  

  • Buyer power is medium to high, due to high competition, primarily based on pricing among suppliers
  • The buyers looking for a turnkey engagement will have medium buying power, as the number of suppliers capable of offering end-to-end services is less

Supplier Power

  • Most of the service providers do not have the capability to offer end-to-end outsourced ATM services, which pushes the suppliers to lower their cost of services to win contracts

Buyer Power

  • Banks generally leverage on the count of ATMs to have a check on the contract value
  • High competition among suppliers and high levels of M&A activity in the supplier market push the costs downward

Intensity of Rivalry

  • The supplier market is consolidated with few large players, but the ATM business is highly competitive
  • High competition can drive suppliers to reduce the surcharge revenue or pay high merchant fees

Barriers to  New Entrants

  • New entrants, lacking in economies of scale, can have high operating costs
  • Large capital is required to effectively compete against large players

Threat of Substitutes

  • Competition associated with alternative payment mechanisms and emerging payment technologies
  • Cashless transactions are rising significantly, resulting in reduced demand for cash

Global ATM Industry: Drivers and Constraints


  • Increasing Competition:

The major factor driving the industry is the competition among banks to provide service to customers' convenience

  • Increasing Bankable Population:

In developing markets, such as India, China, and Brazil, there has been a significant surge in opening new bank accounts. About 200 million plus new bank accounts were opened in India in the last three years

  • Cost of Building Branches:

Creating presence around city is very important for banks to attract customers. It is not possible nor cost-efficient to set up branches around all the locations. Hence, the ATM industry is driven by this factor, as it does not require heavy real-estates nor other related costs

  • Low-cost ATMs by IADs:

Deployment of low-cost ATMs and cheaper IP-based communication by IADs push the initial investment costs down

  • Proliferation of Off-site ATMs:

Convenient location of ATMs ranks high among the needs of consumers and has propelled the growth of off-site ATMs


High operational and maintenance costs (CIT) in developed markets

Security Concerns

–Including embedded cameras, GPS systems, as well as seismic and heat sensors, leading to additional cost for banks

Cost of new technology for updating ATMs has become a large issue in the market today. E.g., upgradation of operating systems from Windows XP to Windows 7 or 10 across all ATMs

Card Skimming:

With card skimming, there is a need for physical security and monitoring of ATMs

Wide Adoption of Cashless Transactions:

The proliferation of payment options other than cash, including credit cards, debit cards, stored-value cards, mobile payments, and online purchase activity, could result in reduced need for cash in the market place

Australia ATM Market Overview 

According to the Australian ATM industry statistics, most adopted engagement model is the “Turnkey ATM Program”.

The service provider owns the ATM and performs all operational tasks, including cash management and loading, supply replacement, maintenance, customer care, and processing

Key benefit:

These turnkey service providers are well established players in the market, providing integrated services to buyers and have proven experience in providing turnkey solutions


Turnkey suppliers do not offer the entire range of OEM models. They have certain models and those are offered as a part of bundled service. Mostly, ATMs are basic, low-cost models

ATM providers in Australia must ensure availability ratio of ATM at 98% for all services covered under the maintenance contract. For availability ratio lower than 98%, penalty points should be calculated and deductions should be made off the monthly maintenance fee/ATM x Number of ATMs impacted.

During contract negotiations, ATM providers in Australia may be concerned about uncontrollable expenses for a number of services, especially in hard services spend categories.

Sometimes, service providers ask for these spend areas to be exempted from maximum price controls. 

Unfortunately, removing price controls may lead to higher risks for buyers, and lesser incentive for service providers to manage and deliver services efficiently

The ATM services contract is the first legal relationship with a new/existing service provider. A well-written contract is essential for maintaining a smooth relationship with a service provider and will also help the buyer in avoiding cost overruns.

Why You Should Buy This Report

  • Information on the Australia ATM services market maturity, buyer trends, drivers and constraints, Australia ATM industry statistics, etc.
  • Porter’s five forces analysis of the Australia ATM market
  • Technological trends, supply trends and insights, categorization and product portfolio of key ATM providers Australia
  • Engagement models, sourcing models, pricing models, price analysis, etc.



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