Global ATM Software Market Size, Share & Industry Trends Analysis Report By End User (Banks & Financial Institutions and Independent ATM Deployer), By Function (Cash Dispenser, Bill Payment, Card Payment and Cash Deposit), By Regional Outlook and Forecast, 2022 - 2028
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Market Report Description
The Global ATM Software Market size is expected to reach $6.1 billion by 2028, rising at a market growth of 4.4% CAGR during the forecast period.
The design of an ATM (Automated Teller Machine) combines hardware and software. The hardware of the device is primarily intended for cash deposits, withdrawals, credit card payments, and reporting account information. The ATM's software is made to regulate channels and transactions on centralised databases. Concern over the ATM software stack has grown since the machines were converted to industry standards.
Banks and other financial institutions can manage their ATM networks using ATM software to improve functionality, boost competition, and cut costs. Targeted marketing, cash dispensing & recycling, and advanced banking services like transaction preferences are all aided by it. It makes it possible to significantly cut the cost of implementing, testing, certifying, and maintaining ATM hardware and software upgrades. Through the use of a single software platform, it also offers quicker maintenance and updates, as well as a consistent user interface.
One of the key factors fueling the expansion of the ATM software market is the growing awareness of the advantages of ATM software. The emergence of new technologies like touch screens, cashless transactions, and QR codes, as well as an increase in demand for self-service ATM software across a variety of financial sectors.
The rising demand for contemporary ATM software and hardware and the high adoption of the technology due to the increased use of advanced analytics for preventative maintenance in multivendor ATM support services is rising the need for ATM software.
COVID-19 Impact Analysis
The ATM software market suffered as a result of the COVID-19 pandemic. In 2020, the pandemic compelled governments of several nations to lock down international borders and temporarily close markets, businesses, and other public areas. The various regions that were in lockdown experienced a loss of revenue and business as a result of the closure of manufacturing facilities. A significant decline in demand and sales of ATM software and services resulted from the disruption of supply chains, which had an adverse effect on the sales, manufacturing, and delivery schedules.
Market Growth Factors
The Use of Artificial Intelligence (Ai) Becoming an Emerging Trend
Machine learning is being incorporated into ATM technology in addition to more conventional features like cash dispensing and payment processing to increase efficiency and security. The level of mechanics, machine operation, sensor working patterns, and other discrete information that show how well a system works, streamlines service operations, and predicts problems and machine behavior are also tracked back with the aid of ATM software. AI offers a completely new perspective as well as a wide range of new technologies to ATM system developers, enabling them to create ATM systems with the potential to solve some of the most difficult issues facing the sector.
Demand for Automated Teller Machines Is Growing
The demand for ATMs is increased by the independent feature of the 24-7 availability of transactional services offered by banks across numerous locations. With technological advancements in the banking and financial sectors, ATMs are evolving from straightforward cash dispensers into richer and more personalized communication channels. By implementing more integrated and value-added services, has aided in achieving customer loyalty. Therefore, enhanced use of automated teller machines is likely to generate sizable amounts of revenue in the coming years. Owing to this, the ATM software market would expand in the upcoming years.
Market Restraining Factors
Insufficient Security Standards
Previously, there was a much lower chance of fraud because online authorization combined with PIN integration made ATMs seem secure. With increased innovation in the fintech sector, con artists have developed new scams like magnetic stripe skimming and pinhole cameras, which restrain market expansion. However, financial institutions and ATM operators are concentrating on requirements for EMV migration at ATM in order to provide customers with convenience and security while handling financial transactions. As sensitive information appears on the screen, individuals may attempt to spy on users without the user's knowledge. These security issues are the major concern of the people restraining the use of ATMs due to which the ATM software market would be hampered.
Based on component, the ATM software market is segmented into software, and services. In 2021, the software (without services) segment dominated the ATM software market by generating maximum revenue share. This can be attributed to the rise in demand for self-service ATM software across all financial sectors as well as the growing demand for self-service ATM software among end users.
End User Outlook
On the basis of end-user, the ATM software market is fragmented into banks and financial institutions, and independent ATM deployer. In 2021, the independent ATM deployer segment covered a substantial revenue share in the ATM software market. This is explained by the rising demand for and usage of ATM software technology in the banking and financial industries. Customers can keep utilizing their old TDM voice equipment without having to buy new Voice over Internet Protocol compatible equipment due to an Integrated Access Device (or IAD).
By function, the ATM software market is divided into bill payment, card payment, cash deposit and cash dispenser. In 2021, the cash dispenser segment led the ATM software market with the largest revenue share. Throughout the forecast period, the cash dispenser segment is anticipated to maintain its market leadership. This is understandable given that ATMs' primary feature is their cash dispenser.
|Market size value in 2021||USD 4.6 Billion|
|Market size forecast in 2028||USD 6.1 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 4.4% from 2022 to 2028|
|Number of Pages||180|
|Number of Tables||338|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling|
|Segments covered||Component, End-User, Function, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region wise, the ATM software market is analyzed across the North America, Asia Pacific, Europe, and LAMEA. In 2021, the North America region witnessed the highest revenue share in the ATM software market. The main factors influencing the market growth in the region include the presence of major market vendors and the high adoption of advanced technologies. The region’s demand is further growing due to government support and initiatives as well as increased funding in the banking sector of nations such as Canada.
Free Valuable Insights: Global ATM Software Market size to reach USD 6.1 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Fiserv, Inc., GRGBanking Equipment Co., Ltd., SBS Software Ges.mbH., Paragon Application Systems, Inc., Fidelity National Information Services, Inc., KAL ATM Software GmbH, Vortex Engineering Pvt. Ltd. and CR2
Strategies deployed in ATM Software Market
- Aug-2022: Fiserv partnered with Rutgers University-Newark. This partnership aimed at creating and funding a new program designed to drive diversity and innovation within the financial technology field. This partnership would add a new dimension to the ability to bring together a diverse range of perspectives as Fiserv develops new answers to the challenges faced by its clients and the financial services industry.
- Jul-2021: KAL came into a partnership with EVO Payments, a leading global payments technology, and services provider. This partnership brings together proven technologies that guarantee ATM deployers an unprecedented level of flexibility & efficiency when responding to local market demand.
- Dec-2019: GRGBanking signed an agreement with FPT IS, a pioneer in digital transformation in the banking and financial sector. Under this agreement GRGBanking would provide FPT IS with the opportunity to develop solutions and many latest technology product lines, new interfaces for banks like VTM (Virtual Teller Machine) and STM (Smart Teller Machine) and also helps FPT IS have more potential to participate in digital transformations projects offered for banks.
- Sep-2019: CR2 entered into a partnership with Network International, the leading enabler of digital commerce across Africa and the Middle East. This partnership would deliver mobile banking as a Managed Hosted Service, allowing banks to rapidly deploy & cost-effectively manage their mobile banking services.
- Sep-2019: Fiserv Interactive Branch Kiosk, a souped-up ATM. It can perform cash & check transactions in addition to credit card applications, loans, and other advanced transactions that typically could only be done at the teller line. The machine further integrates with the company's Verifast palm vein identification solution to provide the ease and security of biometric authentication.
- Apr-2019: CR2 partnered ERA-InfoTech, a pioneer in the automation of financial inclusion and software development. This partnership focused on providing a range of sophisticated ATM banking software services to banks in the region.
- Jan-2019: Fiserv announced a merger with First Data Corporation, a financial services company. This merger would offer comprehensive distribution channels and have expertise in partnering with merchants, financial institutions, billers of all sizes, and software developers.
Scope of the Study
Market Segments Covered in the Report:
- Software (without Services)
By End User
- Banks & Financial Institutions
- Independent ATM Deployer
- Cash Dispenser
- Bill Payment
- Card Payment
- Cash Deposit
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Fiserv, Inc.
- GRGBanking Equipment Co., Ltd.
- SBS Software Ges.mbH.
- Paragon Application Systems, Inc.
- Fidelity National Information Services, Inc.
- KAL ATM Software GmbH
- Vortex Engineering Pvt. Ltd.
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