RBR study: What does the future hold for NCR, Diebold and Wincor?
New research bystrategic research and consulting firm RBR reveals an evolving ATM supplier landscape, with the "Big Three" manufacturers expanding even as Asian vendors take advantage of fast growth in that region.
ATMs purchased by banks in developed markets, where the Big Three are traditionally strong, have for many years been mostly replacement units, according to RBR. As a result, despite strong shipment figures, U.S. firms NCR Corp. and Diebold Inc., and Germany's Wincor Nixdorf, are gradually losing installed base market share to their Asian rivals.
The growing influence of Asia in the global ATM market can be measured not only by its installed base, but also by the expansion of the region's own suppliers.
The high global rank of Nautilus Hyosung stems primarily from its strong position supplying low-cost cash dispensers to the U.S. convenience segment, rather than its presence in the bank sector in South Korea and elsewhere.
Japan's Hitachi-Omron and OKI focus on high-end recycling ATMs that can accept and redispense banknote deposits. Both firms have benefited from demand for recycling functionality, which is fast becoming the norm in cash-centric economies across Asia and beyond.
The study found that the remarkable growth of the Chinese ATM market has led to the emergence of several domestic suppliers, most notably GRG. The scale of the company's home market results in significant presence at a global level even though business outside China remains limited.
Broad product portfolios, advanced software, extensive service networks and strong brand reputations have enabled major western suppliers to expand despite stiff competition from Asian vendors, RBR said.
FIs' rising demand for advanced hardware and software solutions as part of branch transformation programs — and their desire to more closely integrate these solutions with mobile and other banking channels — should continue to generate opportunities for several years to come, according to the research.