Global ATM Service Industry Outlook

  • In 2017, the global ATM industry market size grew to $18 billion at a CAGR of 7.7 percent and is expected to reach $ 30 billion by 2025 at a CAGR of 7.9 percent
  • APAC is the fastest growing market in the industry, with India and China leading, in terms of the number of deployments
  • The market share of the APAC region was recorded at 47 percent of the ATM market in 2017
  • The US and Europe are the major matured markets for the ATM industry. For the LAMEA region, there is a vacuum in the supply landscape, as the major global players have a less presence in these regions
    Global ATM Service Market

Global ATM Services Market Maturity

  • Until 2020, APAC is expected to be the fastest growing region with an annual growth rate of 10.6 percent
  • There is an increasing rate of technological adoption visible among the developing geographies
  • Emerging geographies, such as India, China, Brazil, are witnessing rapid growth in the deployment of ATMs, hence the rate of adoption 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 end 2022.

Global ATM Service Industry Trends

  • The adoption of outsourced ATM services is a key driver of this industry, as the awareness of potential cost-savings grow among the buyers
  • The ATM industry is characterized by spate of mergers and acquisitions, with suppliers looking to increase their service capability to fulfil the requirements of large buyers

Global ATM Industry Drivers and Constraints


  • Increasing Competition: The major factor driving the industry is the competition among the 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. 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. But 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 marketplace

ATM Services Technological Trends

Self Service ATMs

  • Self Service ATM is a breakthrough technology that combines multiple features into a single machine. Serves as a one stop solution for functions such as cash deposit, withdrawal, cash recycling, check deposit, coin dispense, internet banking, banking products and solutions such as credit cards & loans, opening and changing of bank accounts, options for video assisted remote teller so that the bank could step forward towards branch automation. Widely adopted in American & European Market, certain countries in Asia such as India, China, Japan, Korea & Singapore are also adhering towards such a technology

Deposit Automation and Recycling ATM‘s

  • In the recent times, deposit automation has made the biggest impact on the technological advancements in ATMs. Cash recycling machines, which earlier were seen as an expensive investment by the banks, are now in prime demand with the banks optimizing their cash management to compensate for the high investment costs 

Card-less ATM Transaction

  • Card-less ATM transaction is expected to be a breakthrough innovation and major ATM manufacturers are now offering this service. With enhanced security and a robust model, the service is expected to be a key area of development in the ATM market space

Value-added Services

  • Multi-functional ATMs with value-added services, such as ticketing, bill payment, mobile airtime top ups, etc., are expected to drive major innovations as well
  • These services are expected to enhance the customer experience by offering convenience and availability

Software Migration for ATMs

  • Microsoft’s decision to stop providing updates on Windows XP means that the ATMs with XP operating system face greater risks from malware and network intrusions
  • The industry is expected to witness the migration of ATMs operating systems to Windows 7 or Windows 10

Crypto currency ATMs

  • Crypto currency (Bit coin) ATMs (money transfers through ATMs), offering digital currencies, were seen as a risky investment when they were launched a year ago. However, the trend has changed with Bitcoin ATMs making profit at a rapid pace and enabling the operators to recover their investment within three to nine months only. The adoption has increased with more than 2000 machines deployed world wide. the adoption is high in American & European market while the rest of world is yet to adhere.