Press Release

MCP-2903: AUTOMATED TELLER MACHINES (ATMs) – A GLOBAL STRATEGIC BUSINESS REPORT

November 22, 2011 -- Global Installed Base of Automated Teller Machines (ATMs) to Reach 3.9 Million Units by 2017, According to New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Automated Teller Machines (ATMs) market. World Automated Teller Machines (ATMs) market is projected to have an installed base of 3.9 million units by the year 2017. Growth in the market over the next few years will be primarily driven by introduction of advanced ATMs with superior capabilities, and number of promotional schemes that increase ATM usage. Robust demand for new installations in developing markets, particularly Asia-Pacific, also augurs well for the market.

ATM market is a combination of large number of business entities that function in unison to develop and expand the concept of 24/7 banking. The ever growing need for speed and convenience and customers’ habit driven use of the services are forcing banking/financial institutions to expand ATM installations to ensure customer retention, and satisfaction. Tried and tested levels of secure and safe processing of transactions has over the years stepped up customer confidence in ATM services, and today the use of ATM is moving beyond simple cash dispensing to use advanced self-service functions such as e-ticketing, bill payment, pass book updates, third party product marketing, and DVD rentals. As a result, companies are integrating their software and services more holistically with ATM cards for greater innovation, efficiency, productivity, and ultimately, financial performance.

Factors that kept the global Automated Teller Machines market afloat and rising through the 2007-2009 economic meltdown included growing customer adoption of ATM services and rising preference for self-service banking. The recession interestingly resulted in bank customers resorting to increased ATM transactions, which is direct fallout of rising overdraft fees on debit cards, high service charges for credit cards and reduced preference for plastic money against a backdrop of weak personal finances, and tight liquidity. The recession-induced reliance on cash as against credit is fingered as the prime reason pushing up ATM cash withdrawals. For instance, paralyzed credit markets and drying up of debt markets fueled the use of cash. Broken consumer confidence in banking and financial institutions also played an instrumental role in reinstating customers’ preference for cash options. In addition to consumers heightened use of ATMs, banks also made additional use of ATMs by providing additional services on ATMs to bankcard holders.

In taut economic conditions, where operating costs and productivity at every branch office is of critical importance, banks reduced costs and improved productivity by reducing time-consuming, repetitive, low value-added transactions in branches and providing them through ATMs. The cumulative strength of the installed base of these machines worldwide was relatively unruffled, unlike new installations in developed markets, which witnessed moderate slowdown in growth as a result of banks/financial institutions postponing replacement of aging equipments/machines, and canceling branch expansions, which typically provide a business case for new machines. Future growth in the market, post recession, will be driven by increasing regulation and impending political changes driven by the financial crises led economic recession.

Despite the threat to ATM/debit card market from smart cards, POS, and other new payment methods, ATMs will continue to remain a trusted standard in banking operations, and replacement demand will continue to stem from the developed countries where older & existing units will need to be replaced with higher functionality units. Demand is forecast to be especially high for sophisticated ATMs with superior capabilities. For example, deposit processing is a classic example of new ATM capabilities that attracted the attention of banks in developed nations. Image-enabled ATMs that can simultaneously process up to 50 checks without the need of an envelope, display and print images on a receipt holds ample appeal to small/medium size businesses with busy schedules. In addition, the steady political thrust in the form of EMV (Europay-MasterCard-Visa) and 3-DES (triple data encryption standard) specifications, technical innovation, rapid advances in the form of intelligent deposit, and solutions that integrate mobile-banking with the self-service/ATM channel, will drive future gains in this space. Various promotional schemes offered by banks also augurs well for the market, as these schemes, especially cash-return rewards or incentives drive increased usage of ATMs, thereby demanding more machines to be installed.

As stated by new research report on Automated Teller Machines (ATMs), Asia-Pacific is the largest and the fastest growing regional market for ATMs, with installed base of ATMs waxing at a CAGR of about 11.9% over the analysis period. Growth in Asia-Pacific market will be especially driven by increased ATM installations in emerging markets such as China and India. Also, new government regulations in countries such as Thailand are stimulating growth of ATM market.

Major players in the marketplace include Diebold Inc., Euronet Worldwide Inc., Fujitsu, Hitachi-Omron Terminal Solutions, Corp., NCR Corporation, Triton Systems, VeriFone Holdings, Inc. Wincor Nixdorf International GmbH, among others.

The research report titled “Automated Teller Machine (ATM): A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The single-segment report provides market estimates and projections (in Thousand Units) for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, the UK, Italy, Spain, Russia, Rest of Europe), Asia-Pacific (Australia, China, India, Korea, Rest of Asia-Pacific), Middle East & Africa, and Latin America (Brazil, Mexico and Rest of Latin America).

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