STRATEGIC PARTNERS
According to the 'Global ATM Market to 2007,' a new report by Retail Banking Research Ltd, there is still plenty of room for global ATM growth. While the North American and Western European markets are showing signs of saturation, other areas are primed for a major influx of ATMs.
September 22, 2002
LONDON -- The world market for ATMs is set to grow by 35 percent over the six years from 2001 to 2007, according to "The Global ATM Market to 2007." a new report by Retail Banking Research Ltd (RBR).
At the end of 2001, RBR says there were more than 1.14 million machines operating worldwide, a figure which will rise to more than 1.5 million by 2007, the consulting firm predicts.
According to the report, at the end of 2001, the largest regional market for ATMs was North America -- comprising the U.S. and Canada -- which accounted for a third of world installations. More than 90 percent of the 381,000 ATMs in the region were located in the U.S.
ATMs by region |
Asia-Pacific was the second largest region, with just under 329,000 ATMs, or 29 percent of the global installed base, at the end of 2001. Japan accounted for nearly half the machines in Asia-Pac.
Western Europe was the third largest region with almost 268,000 machines, a share of 23 percent. The Western European ATM market is dominated by Germany, Spain, France, the UK and Italy, which together account for three quarters of the region's installed base.
Latin America accounted for 118,131 ATMs, or 10.3 percent of the world's installed base. Eastern Europe has 25,965 ATMs, or 2.3 percent, and the Middle East and Africa has another 21,155 machines, or 1.9 percent.
Together, the top six ATM deploying countries account for 63 percent of ATMs worldwide, according to the RBR report. They are, ranked by number of machines in 2001: the U.S. with 345,000 ATMs; Japan with 157,425; Brazil with 70,000; South Korea with 51,400; China with 51,000; and Germany, with 49,620.
While RBR predicts the world ATM market will expand by 35 percent over the years from 2001 to 2007, growth will slow over the course of the forecast period. While about 85,500 ATMs will be added to the installed base during 2002, that number will shrink to 50,000 in 2007, the report says.
Also according to the report, growth rates will differ considerably between the world's regions. Among the three largest regions, Asia-Pacific is expected to see the most rapid growth in the installed base, with the number of installations forecast to grow by 38 percent between 2001 and 2007.
The Big Six in ATMs |
Almost half of the increase will be due to growth in the installed base in China, which will rise from the fifth largest to the third largest ATM market over the forecast period, RBR researchers believe.
The fastest-growing ATM markets will be Eastern Europe, followed by the Middle East and Africa, which will see growth of 100 percent and 87 percent, respectively, over the forecast period. According to the RBR report, the percentage growth in ATM Installations by region will be: Eastern Europe, 100 percent; Middle East and Africa, 87 percent; Latin America, 48 percent, Asia-Pacific, 38 percent; North America, 28 percent; and Western Europe, 24 percent.
Based on feedback from deployers in 50 countries surveyed by RBR, public demand and competition between deployers are the most important drivers of growth. Both are critical as an ATM market develops, but diminish in importance as it matures, according to RBR's report.
Also considered important are the replacement of staff by automation -- particularly in Latin America -- and growth in branch numbers -- especially in Eastern Europe.
Costs remain the strongest factor discouraging deployment. Operational costs were identified as the most critical inhibitor, slightly ahead of purchase costs, according to the report. Deployers in Latin America were particularly concerned about these factors, and also about ATM security. Site rental was also considered important, most notably in the Asia-Pacific region, perhaps reflecting the high cost of real estate in many cities there.
The 800 page analysis, which covers 53 individual countries as well as providing global and regional forecasts of installations and shipments, costs £9,950 (about $15,428) and is now available from Retail Banking Research Ltd.
The independent consultancy specializes in banking and payment systems, and publishes reports and a newsletter. Areas covered include plastic cards, EFT/POS, EFT policy, smart cards and branch automation. As well as "The Global ATM Market to 2007," RBR publishes Banking Automation Bulletin for Europe (BABE), a regular newsletter reporting on developments in banking automation.
Other reports that are available from RBR include "ATMs and Cash Dispensers 2002," "Interchange Fees: The Hidden Dynamo of the Cards Business," Payments Card in Europe 2002: International Survey and Analysis," Off-Site ATMs 2001," Eastern Europe 2000: Banking Automation and Payment Systems" and ATM Strategy for Retail Banks: Improving Usage and Profitability."
