This report provides Transforma Insights’ view on the IoT market relating to Automated Teller Machines (ATMs). Included are details of how ATMs have evolved not only as providers of financial services, but also as a means of processing, collecting, and transmitting important consumer data faster, offering services such as scheduling appointments and interactions with bank employees, delivering personalised offers and service messages, and supporting digital signage capabilities for advertising.
ATMs have been a permanent fixture on high streets for decades and their nature requires them to be connected. However, the availability of various cashless payment modes has reduced the need for cash, and therefore ATMs, in many countries. Yet ATMs continue to hold a potential for growth, albeit in developing countries. In developed markets such as the US and Europe the number of ATMs per capita is higher, but gradually declining. Connectivity allows modern ATMs to support video interaction, faster data processing, security monitoring, software updates, advertisements, and processing loans and mortgages, and other financial service activities.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used, and revenue.
A full set of forecast data, including country-level forecasts, sector breakdowns and public/private network splits, is available through the IoT Forecast tool.
This section of the report first talks about the ubiquitous presence of ATMs across the globe and talks about how their features have developed over time. For instance, these days, some ATMs are equipped with video calling features which can be used by consumers to talk to bank employees. The report then examines the key factors that are influencing the development of the ATM market, including:
This section of the report first explains that since ATMs are now dispersed throughout urban areas, connectivity has become even more crucial for their operators. It explains that traditionally, ATMs used Ethernet or fixed-line connections (which are costly and difficult to set up), leading to an increased demand for cellular connectivity and briefly charts both its benefits and drawbacks. For instance, while cellular connectivity allows tracking an ATM if it has been stolen, its connection to the internet can be disrupted at large public events when cell towers become crowded. It also explains why cellular connectivity will play an increasingly important role as the number of bank branches continues to reduce in future.
This section discusses how traditional ATMs can be expensive for banks to maintain and monitor, and how smart ATMs (which have features like remote management) can deal with issues such as system crashes, corrupted operating systems, and reinstallation or upgradation of software.
It also explains how emerging technologies like consent-based verification systems (which require users to input a verification code before completing a transaction) are being increasingly deployed to deal with issues such as Synthetic ID fraud (a technique that uses facial recognition technology for user identification). It then charts how some ATMs are being re-branded as VTMs (Virtual Teller Machines) and describes their features, like being equipped with a live video connection and dispensing internet banking security tokens. It also explains how more advanced user interface features are now being integrated which enhances customer experience, increases transaction speed, and allows banks to provide more consistent messaging across devices. For instance, in 2012, the Royal Bank of Scotland launched its ‘Get Cash’ service, allowing customers to withdraw money from ATMs using a code sent to their mobile phone.
This section of the report discusses in detail the main challenges in the ATM market, such as their declining numbers (especially in developed countries like Sweden, where the number of ATMs declined by 12% between 2020 and 2022). It also explains how the market for ATMs will be affected by the fact that ATMs that are located within a bank’s premises have more features, compared to when they are operated remotely. It then provides a few examples of relevant IoT deployments in this application, Valiant Bank AG using Diebold Nixdorf’s ATM-as-a-Service solution to reduce complexity.
The key vendors section lists some of the main providers of products and services related to the market such as NCR Atleos, Diebold Nixdorf, Hyosung TNS Inc., Hitachi Payment Services, and Triton System. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the ATM market forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of connected ATMs, which will reduce from 4.2 million connections in 2024 to 4 million in 2034. Transforma Insights' forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other. This section discusses which technologies will be used in the ATM application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the ATMs Application Group will grow at a CAGR of 0.068%.
