Automated Teller Machine (ATM) Market Size (2025 – 2030)

The Global Automated Teller Machine (ATM) Market was valued at USD 29 billion in 2024 and is projected to reach a market size of USD 34.61 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 3.6%. 

The importance of ATMs has not diminished as a result of the widespread use of digital banking; rather, it has prompted their development into multipurpose kiosks that provide a range of financial services beyond just disbursing cash. As banks and other financial organizations make investments to modernize their ATM networks with capabilities like check deposits, cash recycling, and even video banking, this shift is a major driver of development. The incorporation of cutting-edge security features, such as encryption and biometric verification, further increases the acceptance of ATMs globally by guaranteeing the security and trust of transactions. Furthermore, the market for ATMs is still being driven by the need for easy-to-access financial solutions in rural and semi-urban regions.

Key Market Insights:

• The Indian ATM market is forecast to register around 7% gains through 2027 owing to the outsourcing of managed services for proper maintenance of the systems.
  The ATM market demand is poised to witness a growth rate of nearly 5% in the UAE till 2027 led by the increase in the tourism sector.
• The government sector in the automated teller machine market is estimated to exhibit over 4% CAGR during 2021 to 2027. The introduction of new policies from the governing authorities to develop the industry's safety & operationality standards will boost the sector's growth.  
• The rise in tourism will increase the need for in-hand cash for passengers across the countries, thus creating market growth opportunities. With scalability advantages offered through the deployment of white-label ATMs as the operational activities are handled by non-banking entities, bankers can focus on expanding their network to cater to the growing demand.  
   

Global Automated Teller Machine (ATM) Drivers:

Demand for digitalization in the banking sector is propelling the demand for ATMs.

Digitalization of the banking industry is deeply impacting the Automated Teller Machines (ATMs) demand. As banks strengthen their digital journey, ATMs are transforming themselves to be smarter, quicker, and networked, making their place in today's banking universe stronger. In spite of the boom in online banking solutions, ATMs remain a vital function for delivering core banking services, particularly in areas lacking adequate traditional bank branches. With features including biometric authentication, contactless transactions, and mobile integration, today's ATMs provide added security and convenience, better suited to the needs of today's technologically savvy consumers. In addition, the inclusion of digital currency services in ATMs offers a chance to gain customers who use cryptocurrencies as their preferred option, thus broadening the scope and applicability of ATMs in the modern era. This transition not only serves to respond to changing consumer behavior but also helps to place ATMs as a link between conventional banking and new financial technologies.

Post-pandemic the adoption of ATMs in emerging nations is increasing.

Following the COVID-19 pandemic, developing countries have seen a significant rise in the use of Automated Teller Machines (ATMs). This is a result of the desire to extend accessible banking services to underprivileged segments and assist economic recovery processes. In India, for instance, the ATM industry is expected to expand at a compound annual growth rate (CAGR) of about 7% until 2027. This expansion results from managed service outsourcing for appropriate maintenance of ATMs and regulation efforts for an improved ATM environment. Similarly, in the UAE, the market for ATMs is anticipated to grow at a rate of almost 5% through 2027. Reopening of borders and easing of COVID-19 restrictions has stimulated tourism, and hence the need for cash accessibility points has picked up. The introduction of white-label ATMs by non-bank players is also adding to the growth. In general, the post-pandemic era has highlighted the significance of ATMs in emerging economies, not just as key instruments for financial inclusion but also as central elements in the overall plan for economic recovery.
 

Global Automated Teller Machine (ATM) Market Restraints and Challenges:

High initial costs and increasing ATM fraud pose major challenges to the ATM market.

The ATM industry is under serious threat because of the high initial installation charges and rising security issues. It involves a huge investment in the installation and maintenance of ATMs in terms of infrastructure, software, and periodic servicing, which hinders small financial institutions from expanding ATM networks. Moreover, ATM frauds like card skimming, jackpotting, and cyberattacks have gained momentum over the past few years, and customer security is at stake. Banks and ATM operators must spend heavily on sophisticated security features, including biometric authentication, real-time fraud protection, and end-to-end encryption, which contribute to additional operational expenses. These issues limit the deployment of ATMs, especially in cost-constrained and security-exposed areas.

Global Automated Teller Machine (ATM) Market Opportunities:

The ATM market offers many opportunities fueled by technological changes and changing consumer behavior. The adoption of advanced technologies like artificial intelligence, blockchain, and IoT is creating new opportunities for ATM manufacturers and providers. These technologies provide better security features, predictive maintenance, and customized banking experiences, which can substantially enhance customer satisfaction and operational efficiency. Furthermore, the worldwide thrust toward financial inclusion offers a massive opportunity for ATM deployment, especially in emerging economies that have underpenetrated banking. The other huge opportunity is through the creation of green and power-saving ATM solutions. As global consciousness about being sustainable continues to grow, the demand for green ATMs that consume lower amounts of energy and produce a lower environmental impact is also increasing. Innovations here, including solar-powered ATMs and recyclable material ATMs, are becoming popular and can offer a competitive advantage to industry players. Furthermore, the use of mobile ATM units to cover distant and underserved locations is an untapped potential for industry expansion, delivering financial services in remote locations with scarce traditional banking facilities.
 

AUTOMATED TELLER MACHINE (ATM) MARKET REPORT COVERAGE:

Global Automated Teller Machine (ATM) Market Segmentation:

Global Automated Teller Machine (ATM) Market Segmentation: By Types

• Brown Label
• White Label

In the ATM sector, the division based on the type of ATM—conventional/bank ATMs, brown label ATMs, white label ATMs, smart ATMs, and cash dispensers—represents the range of technological improvements and service structures in the industry. Conventional or bank ATMs, commonly owned and controlled by banks, remain the leading segment because they have a direct linkage with a bank's network and are highly trusted by customers. Nonetheless, these ATMs have their disadvantages when it comes to maintenance costs and requiring periodic updates in order to support the latest technology. Brown-label ATMs are an economical solution for banks, where hardware is owned by a service provider but cash management and network connectivity are managed by the bank. It is becoming popular as it enables banks to grow their ATM base without having to worry about the physical infrastructure. The flexibility and lower capital outlay attached to brown-label ATMs is what is fueling their adoption, especially in emerging markets where banks are fighting tooth and nail to grow their presence. White-label ATMs, which are run by non-bank organizations, have a special proposition in that they serve customers of several banks. White-label ATMs are gaining popularity in areas where financial inclusion is a focus, as they provide easy access to banking services without the necessity of having a high density of bank branches. Regulatory assistance and the drive for financial inclusion have been instrumental in the growth of white-label ATMs, creating opportunities for non-bank players to enter the market and provide competitive services.

Global Automated Teller Machine (ATM) Market Segmentation: By Application

• Commercial
• Government
• Residential

The usage of ATMs cuts across different industries, with major use in banking, retail, and other ancillary business segments like transport terminals and hospitality establishments. In the banking industry, ATMs are an important point of customer contact, delivering key services like cash dispensation, balance checking, transfer of funds, and bill payment. The significance of ATMs in banking is highlighted by their function in increasing customer convenience and accessibility, particularly in areas where branch networks are thin. The retail industry offers a distinct and expanding usage domain for ATMs. Retailers are increasingly using ATMs in their establishments to drive foot traffic and increase customer satisfaction. The availability of ATMs in retail establishments not only adds value to the customer but also generates additional revenue opportunities for retailers in the form of transaction fees and extended time spent by customers in the store. This mutually supportive ATM-retail outlet relationship is expected to develop the market in this application segment. Apart from banking and retail, ATMs are also being utilized in various environments like airports, railway stations, hotels, and educational institutions. In these environments, ATMs extend important financial services to a transient segment that needs instant and simple access to cash and other bank transactions. The need for ATMs in these locations arises due to the desire for 24/7 financial services availability, suiting the convenience of a diverse user base. The ability of ATMs to serve across several application areas emphasizes their central position in the larger financial landscape. Their versatility to operate across diverse environments and customer requirements is a reflection of their long-term relevance and market expansion potential. The converging nature of technological advances between old-style banking and new-style digital alternatives will continue to promote the extension of application domains for ATMs, representing new avenues for growth and development.

Global Automated Teller Machine (ATM) Market Segmentation: By Solution

• Deployment
• Managed Services

On the basis of the solution, the ATM market is classified as a deployment and managed service. ATM deployment solutions hold the largest share of the overall market with a revenue of 54.11% in 2024. The segment is anticipated to develop at the highest CAGR during the forecast period. The installation of an ATM includes installing, setting up, testing, running, and implementing an ATM. The segment is also bifurcated into onsite, offsite, worksite, and mobile ATMs. ATMs are placed onsite in or adjacent to the bank, where the physical branch as well as the ATM can be utilized. The ATMs alleviate the workload of bank staff, preventing lengthy queues within bank premises for withdrawals, cash deposits, and transfers. The ATMs also lower the chances of errors with withdrawals and deposits and enable banks to have smooth financial transactions. These elements are projected to drive the demand for onsite ATMs in the future.

Global Automated Teller Machine (ATM) Market Segmentation: Regional Analysis:

• North America
• Asia-Pacific
• Europe
• Latin America
• Middle East and Africa

The regional market distribution of the ATM market is defined by unique growth trends and market dynamics. Asia-Pacific is set to lead the global ATM market due to fast-paced urbanization, economic development, and a dramatic rise in the banked population. The size of the region's market is supported by high investments in banking infrastructure and technology, rendering it a high-value market for ATM deployment and management services. The CAGR for Asia-Pacific is likely to be strong, driven by the region's surging financial inclusion efforts and growing middle class. The ATM market in North America is mature and is centered around technological enhancements and service improvements. The priority is to incorporate cutting-edge features like biometrics and contactless transactions to enhance security and customer ease. The region's market expansion is underpinned by a robust regulatory environment and a well-developed banking industry. Europe also features along the same lines, where there is an emphasis on upgrading current ATM infrastructure to respond to changing consumer needs and regulatory demands. European nations are also launching new ATM models such as smart and mobile ATMs to improve service delivery. Latin America and Middle East & Africa offer upstart opportunities for ATM market growth. Latin America, with improving economic conditions and rising usage of banking services, is leading ATM installations. Financial inclusion, with increasing demand being seen in the region, is poised to propel market growth. Middle East & Africa, though smaller in market terms, are also seeing an emerging demand for ATMs on the back of economic conditions and government-sponsored financial inclusion programs. The potential for growth in these markets is enormous, with market players able to tap into unmet demand.

COVID-19 Impact Analysis on the Global Automated Teller Machine (ATM) Market:

The COVID-19 pandemic had a deep influence on the worldwide Automated Teller Machine (ATM) market, resulting in significant changes in consumer behavior and banking activities. In 2020, the global installed base of ATMs was reduced by about 2%, with a total of 3.1 million devices. This reduction was mostly due to decreased cash usage amid the pandemic and the hastened uptake of digital payment technologies. As the pandemic went on, financial institutions increasingly focused on digital banking solutions, leading to the closure of many bank branches and the elimination of related ATMs. Even so, some regions, especially the Middle East and Africa, saw growth in ATM installations. For example, Egypt witnessed strong growth in ATM deployment, spurred by government-driven financial inclusion efforts. In the future, the worldwide ATM market is set to keep on declining gradually, with projections indicating a drop to approximately 2.9 million machines by 2028. This projected decline is an indication of continued branch closures and increased use of cashless payment methods. However, in emerging markets, initiatives to increase financial inclusion are likely to maintain or even increase ATM installation in the short term.

Latest Trends/ Developments:

The ATM market is undergoing major changes fueled by technological innovation, shifting consumer habits, and regulatory interventions. New ATMs are increasingly adopting cutting-edge technologies to improve user experience and security. Biometric authentication, contactless payments, and mobile connectivity are becoming the norm, offering users more secure and convenient access to banking services. The use of Artificial Intelligence (AI) and video banking features is also gaining traction, allowing for personalized customer interactions and effective service delivery.

There is a discernible global trend to move away from cash payments, driven by the spread of digital wallets, mobile banking, and contactless cards. This trend has been reducing the usage of ATMs in some markets, and this has necessitated financial institutions to re-strategize their ATM deployment. For example, Germany, which was once a cash-based economy, experienced a huge shift towards digital payments, and this has resulted in a lower usage of ATMs. Regulatory authorities are introducing new measures to promote fair access to bank services and add security features. Programs like the Banking Fairness Rule place added importance on the requirement that banks make individualized risk determinations instead of relying on mass decisions, which can have an influence on ATM operation. Additionally, efforts are on to raise ATM-related crime penalties as physical as well as fraud-based attacks against ATMs continue to grow in number.

Key Players:

1. Diebold Nixdorf Inc.
2. FUJITSU
3. G4S Limited
4. GRGBanking
5. Hitachi Channel Solutions
6. NCR Atleos
7. Euronet Worldwide Inc.