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The number of ATMs installed worldwide increased by more than 180,000 during 2012 to reach 2.6 million at the end of the year. At 8 percent, the global market grew faster in 2012 than in either 2011 or 2010.
These findings come from the study, "Global ATM Market and Forecasts to 2018," by London-based strategic research and consulting firm RBR.
At 13 percent, growth was strongest in the Asia-Pacific region, which includes established markets such as Japan and South Korea, and high growth markets such as China and India. The latter recorded huge growth while the Indian market expanded by a huge 44 percent. The Middle East & Africa region grew by 12 percent, while central and eastern Europe saw 11 percent growth. Latin America — driven mainly by Brazil — saw 5 percent growth.
Low growth occurred in only two regions: Western Europe and North America have both seen slower growth in recent years as those markets have matured. The latter recorded a slight contraction in its installed base for the first time in 2012, with bank branch closures and a tighter regulatory environment taking their toll.
However, even in regions where growth is less strong, there is still significant demand for new ATMs — primarily as replacements for existing terminals. Annual shipments in both North America and western Europe run into the tens of thousands, and this will continue to be the case for years to come.
Within the Asia-Pacific region, China is by far the largest market, with an installed base surpassing 400,000 ATMs during 2012. According to RBR research, China has now overtaken the U.S. as the world's largest market.
Independent deployers play an important role
While most ATMs continue to be deployed by banks, there are many other types of companies active in the sector. These stakeholders are using income from interchange fees, customer surcharging and advertising to build a business case. According to RBR research, independent ATM deployers are now present in every global region and account for 17 percent of the global installed base.
IAD presence nevertheless varies widely between regions. In North America, IADs account for more than 50 percent of ATMs, while in Asia-Pacific, western Europe, the Middle East and Africa the share is around 10 percent, and in central and eastern Europe and Latin America it is less than 2 percent.
Non-bank deployers vary widely in size and sector. In western markets such as the U.S., Germany and the U.K., commercial IADs have been present for many years, with machines in locations such as convenience stores, shops and bars. Elsewhere, supermarkets (e.g., Lawson in Japan), ATM vendors (e.g., Nautilus Hyosung in South Korea) and payroll services providers (e.g., Workers Equity Holding in the UAE) are turning to ATMs as a way to serve their customers and generate extra revenue.
In India — one of the world's strongest growth markets — the ATM sector is in the process of opening up to non-bank deployers for the first time, with major industrial conglomerates (e.g., Tata) and specialist ATM businesses (e.g., Prizm Payments) coming on board to lead the drive toward greater financial inclusion. This model may be adopted in other emerging markets in Asia and beyond.
Banking the unbanked will drive deployment
Looking forward, Asia-Pacific is set to dominate global ATM growth for years to come. More than one million new installations are forecast to be added worldwide by 2018, with more than 800,000 of these in Asia. The main driver of this phenomenal growth is the need to serve the vast unbanked populations of China and India, with markets such as Vietnam and Indonesia also set to boom. In other regions, markets such as Russia, Nigeria, Brazil and Iran will see the strongest demand for new ATMs.
"Global ATM Market and Forecasts to 2018" contains comprehensive information on all of the world's major ATM markets, and information relevant to hardware and software manufacturers, resellers, outsourcing providers, third-party processors and others.
Read more about trends and statistics.