The global ATM market size is expected to reach $29.89 billion by 2028 and is projected to register a compound annual growth rate (CAGR) of 4.9% from 2021 to 2028, according to a study conducted by Grand View Research.
Increasing demand for automated systems in developing countries is expected to positively influence the global ATM installed base over the forecast period.
However, the market is projected to lose momentum due to a significant increase in the adoption of mobile and internet banking applications.
The rising demand for automation in the banking sector in several developed and emerging countries is expected to fuel the demand for ATMs in the near future.
Improved security measures, including biometric and one-time password authentication systems to prevent fraud, and the advent of Smart ATMs for users with special needs contribute to market growth.
Increased adoption of advanced technologies and digital infrastructure in the banking sector, coupled with the rising demand for quick cash withdrawal by the user, is a major factor expected to drive the market growth.
The increasing deployment of ATMs in organisations and financial institutions in developing economies is also anticipated to boost the demand for ATMs over the forecast period.
Onsite ATMs are being deployed in the bank premises to help customers avoid long queues for cash deposits, withdrawals, and cash transfers. The evolving banking infrastructure and an increasing number of onsite ATMs to enhance customer satisfaction are also expected to provide growth opportunities to the market.
Asia Pacific accounted for the largest share of the market in 2020. The radical economic and industrial development witnessed in recent years has attracted several global banks to developing economies such as India, China, South Korea, and Taiwan. This has helped boost the regional market growth.
COVID-19 and ATMs
The COVID-19 pandemic has significantly disrupted ATM manufacturing operations and supply chains, impacting the overall ATM market.
While the stringent restrictions on movement and varying degrees of lockdowns across several countries paralyzed business activities, many people shifted toward digital platforms for banking transactions.
However, the demand for ATMs is expected to rise after the pandemic is over owing to the high demand in rural areas of developing countries such as China and India.
The introduction of smart ATMs in developing countries such as India, China, and Japan is expected to augment growth opportunities for the market.
Furthermore, cash continues to be the first choice of customers to make payments owing to the convenience involved. The evolution of digital payment solutions will hamper the market growth in the long run.ATMs