Automated Teller Machine (ATM) Market to Grow by USD 6.2 Billion (2025-2029), Multifunctional Features Boosting Growth, AI's Impact - Technavio

NEW YORK, Jan. 31, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global automated teller machine (atm) market size is estimated to grow by USD 6.2 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 4.6% during the forecast period. Multifunctionality features in atms is driving market growth, with a trend towards growing demand for cash recycling atms However, high costs associated with atms poses a challenge.Key market players include Atlas Ontario LP., Cashway Fintech Co. Ltd., Diebold Nixdorf Incorp., Eastcompeace Technology Co. Ltd., Euronet 360 Finance Ltd., Fujitsu Ltd., Genmega Inc., GRGBanking, HANTLE Inc., Hitachi Channel Solutions Corp., Lipi Data Systems Ltd., NCR Voyix 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 Driver

The Automated Teller Machine (ATM) market is thriving, with trends such as cash withdrawal, fund transfer, and deposit services driving growth. Technology advancements like biometric authentication and smart ATMs are transforming the banking sector in developed and emerging countries. Manufacturing operations are focusing on digital platforms to meet the increasing demand for interactive machines. Security mechanisms and fraud prevention are key concerns, with contactless ATM kiosks and mobile banking gaining popularity. Lack of awareness and digital payment adoption in rural areas present opportunities for expansion. NCR Corporation and Diebold Nixdorf lead the market, offering managed services, deployment solutions, and upgrading services. Geographical expansion through onsite, offsite, worksite, and mobile ATMs is a priority. Partnerships with entities like Members ATM, credit unions, Walgreens, Hitachi Terminal, and cash recycling machines are essential for growth. Hitachi's frictionless technology using vein patterns and near-infrared light is a game-changer. The World Bank's EMV migration and reduction of cashbased transactions are influencing market trends. 

The ATM market is witnessing a growing demand for automatic cash recycling systems, including automated teller safes and self-service cash recycling machines. Financial institutions seek to enhance revenue growth, provide superior customer service, and optimize costs. Frequent cash withdrawals by retail customers in specific areas necessitate regular cash replenishment, leading to increased expenses for banks in terms of labor costs, hiring teller staff, and opportunity costs of keeping substantial cash reserves in ATMs. In the conventional banking setup, tellers are responsible for managing cash levels. To address these challenges, banks are adopting advanced ATM technologies to streamline operations and reduce costs. 

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Market Challenges

• The Automated Teller Machine (ATM) market is witnessing significant growth in both developed and emerging countries. Cash withdrawal, fund transfer, and deposit services are the primary functions driving this growth. Technology advancements, such as biometric authentication and smart ATMs, are transforming the banking sector. However, challenges persist, including security mechanisms for fraud prevention and contactless ATM kiosks in the digital age. Manufacturing operations for ATMs require upgrading services and product portfolio expansion. Lack of awareness in rural areas and cashbased transactions in some regions pose challenges. NCR Corporation and Diebold Nixdorf are key players, offering managed services, deployment solutions, and various ATM types like onsite, offsite, worksite, and mobile. Geographical expansion and partnerships with entities like credit unions, Walgreens, Hitachi, and Members ATM are strategic moves. Cash recycling machines, EMV migration, and frictionless technology are future trends. The World Bank supports ATM deployment to reach the unbanked population.
• ATMs serve as valuable tools for banks by automating cash dispensing and recycling, reducing the number of customers visiting branches for basic transactions. However, the adoption of ATMs comes with associated costs. Banks bear expenses for the machine's purchase, monthly rentals for branch or offsite locations, electricity bills, and security personnel. While customers pay for transactions, many countries offer a set number of free transactions. These costs and considerations impact the overall financial implications for banks implementing ATM services.

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Segment Overview 

This automated teller machine (atm) market report extensively covers market segmentation by

1. Type 
• 1.1 Brown label
• 1.2 White label
• 1.3 Others
2. Deployment 
• 2.1 Offsite ATM
• 2.2 Onsite ATM
• 2.3 Others
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Brown label- The deployment of non-banking business owned ATMs, known as brown label ATMs, is experiencing significant growth in the global Automated Teller Machine (ATM) market. These ATMs, operated by third-party service providers, enable non-financial businesses to enter the financial services sector. The increasing demand for cash and the need for cost-effective ATM deployment are driving the popularity of brown label ATMs. Additionally, governments worldwide recognize their potential in promoting financial inclusion, particularly in rural areas. For instance, the Indian government is actively supporting the installation of brown label ATMs to expand access to banking services. The Reserve Bank of India's recommendations have also contributed to their increased usage in India. As a result, the expanding adoption of brown label ATMs is expected to boost the growth of the market during the forecast period.

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Research Analysis

Automated teller machines (ATMs) are digital banking solutions that enable cash withdrawal, fund transfer, and deposit services outside of traditional banking hours. Technology advancements have led to the development of smart ATMs, offering biometric authentication, digital platforms, and expanded functionalities. The banking sector in developed and emerging countries continues to adopt ATMs for manufacturing operations, rural areas, and various worksites. Security mechanisms are a crucial aspect of ATM manufacturing, ensuring safe transactions. Onsite, offsite, worksite, mobile ATMs cater to diverse customer needs. NCR Corporation and Diebold Nixdorf are significant players in the market, providing system reconstruction, repair & maintenance, upgrading services, and portfolio expansion through contracts and geographical expansion. Members ATMs, including those for credit unions, also contribute to the market's growth. Overall, the ATM market continues to evolve, offering convenience and digital banking services to a broader audience.

Market Research Overview

Automated teller machines (ATMs) have revolutionized the banking sector, enabling cash withdrawal, fund transfer, and deposit services around the clock. Technology advancements continue to drive the market, with biometric authentication and smart ATMs becoming increasingly popular. Developed and emerging countries are deploying ATMs to expand financial inclusion, focusing on manufacturing operations and digital platforms. Rural areas and worksites also benefit from onsite and mobile ATMs. Security mechanisms and fraud prevention are crucial considerations, with contactless ATM kiosks and ecommerce integration adding convenience. However, lack of awareness and digital payment infrastructure remain challenges. Interactive machines, managed services, and deployment solutions are key offerings from major players. Geographical expansion and product portfolio expansion through contracts and partnerships are common strategies. Cash recycling machines and manufacturing capacity expansions are priorities for leading manufacturers like NCR Corporation, Diebold Nixdorf, Hitachi, and others. The World Bank supports EMV migration to enhance security and reduce cash-based transactions. The unbanked population in emerging economies presents significant opportunities for growth.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Brown Label
• White Label
• Others
• Deployment
• Offsite ATM
• Onsite ATM
• Others
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio