Uncovering the Market Drivers of the ATM Industry
The market/” title=”Competition in the ATM Industry: A Look at the Forex Trading Market”>ATM industry is a swiftly growing market, and its core business drivers hold significant importance to investors and other stakeholders. As increasingly more stakeholders focus on the industry, there is an increase in demand for insights into the market’s drivers. This article offers a deeper look at the major drivers of the ATM industry forex. , neutral
Overview of the ATM Industry
The Automated Teller Machine (ATM) market size reached USD 20.18 billion in 2020 and is expected to reach USD 32.9 billion by 2028, at a compound annual growth rate (CAGR) of 4.9%. ATMs are self-service electronic terminals that help consumers to withdraw money, transfer funds, deposit cash, and perform other financial services. As ATMs automate the self-service of banking operations, they simplify the banking process for customers. Banks are splitting their focus into the establishment of new ATM networks and the utilization of ATM technologies to enhance usage of existing ATM networks.
Key Drivers of the ATM Industry
The demand for ATMs is driven by the growing shift to cashless payments from traditional methods, rising adoption of mobile banking, and increasing focus on offering convenient banking services to customers. Moreover, with the emergence of new banking regulations and the introduction of new technologies like internet of things (IoT), cloud computing, and biometrics, the market is anticipated to experience increased demand. Furthermore, the growing shift toward online banking to reduce operational costs and facilitate customer convenience is expected to drive the growth of the market. In addition, the rising acceptance of virtual currency, electronic banking, and advances in AI-based solutions are also driving the adoption of ATMs across different industries.
Market Trends and Opportunities
The ATM industry is rapidly adopting technologies such as artificial intelligence (AI), cloud computing, analytics, Machine Learning (ML), Big Data, biometrics authentication, mobile, internet of things (IoT), and virtual reality (VR) to offer a secure and personalized customer experience. Further, the advent of digital wallets, NFC enabled payments, and digital banking are expected to create vast opportunities for the ATM industry. The increasing trend towards cashless payments and the rising implementation of the Unified Payment Interface (UPI) are expected to further drive the growth of the market. With the rising introduction of cashless modes of payments, ATMs are anticipated to gain additional features for meeting customer’s payments needs.
Due to the ongoing pandemic, many countries are putting a lockdown on ATMs, expecting banks to temporarily close some ATMs. This is anticipated to have a temporary negative impact on the market in the year 2020. Moreover, the rising government regulations for transacting cash are expected to further limit the use of ATMs. However, the increasing popularity of contactless payments and various digital payments modes are expected to maintain the market growth. Therefore, the rising adoption of ATMs in public and private sectors is likely to offer immense opportunities for key players in the industry.
In conclusion, the adoption of contactless payments and the increasing focus on offering secure and efficient banking solutions to customers are expected to drive the growth of the ATM industry in the near future. Moreover, the increasing implementation of digital payments with various technological advancements in the payment systems is anticipated to create lucrative opportunities for the market players.