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Future looks 'sunny' for global ATM market

China and India will drive growth; in India, expansion will be fueled by solar ATMs that can be used in remote rural locations.

February 9, 2015 by Dan Kramer — Senior Vice President, Marketing & Merchant Servic, SHAZAM

The ATM channel continues to evolve, offering innovative services that go beyond simply dispensing cash. As the industry adapts to the digital age and shifting consumer expectations, it looks to enjoy continued future growth. In fact, a recent Allied Market Research report predicts the global ATM market will reach $22 billion in the next five years.

The study, "Global ATM Market — Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013–2020," forecasts annual growth of 7 percent from 2014 to 2020. This growth will be assisted by further integration and popularity of smartphone scan technology at ATMs.

Based on information from the U.S. Federal Reserve banking system and Reserve Bank of India, the report concludes that most ATM growth will come from developing countries. The two largest countries in the world, China and India, will primarily fuel that growth. Both billion-plus population countries have seen rapid economic growth in the last two decades.

The development of solar ATMs will also play an important role in India's ATM growth. Solar ATMs stack notes vertically instead of horizontally so cash can "fall" out of the machine rather than being dispensed. The device's unique design and few moving parts make it less susceptible to breakdowns.

Additionally, solar ATMs function in temperatures up to 122 degrees Fahrenheit, require just 100 watts of energy and are equipped with solar power cells that enable them to work in remote locations. This is key, as access to an ATM will tap into the 60 percent of India's rural population who do not have a bank account.

photo courtesy temporalata | flickr

The growth in independent, third-party ATM developers is also a contributing factor in the report's predictions of expansion within the ATM market.

These statistics are encouraging, as the ATM industry is poised for significant growth in the coming years. The factors listed above, along with innovative technological advances in ATMs, and the growing list of ways consumers can use them, are strong indicators of a robust current and future ATM market.