Competition Scenario In India ATM Managed Services Market
The market of ATM Supply companies is highly concentrated with few players constituting more than two-thirds of the total share. The majority of industry players have formed strategic alliances and collaborations with international firms to lower production costs or provide their customers with other value-added services. Such alliances are anticipated to lower ATM machine costs in the future, and the industry may change to become more concentrated in the years to come. Major players are NCR Corporation, AGS Transact, Diebold Nixdorf, Hyosung, Hitachi Payments are the major players in the industry
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India ATM Managed Services Market Future Outlook And Projections
In the future, growing numbers of ATMs are being installed in outlying areas, less accessible to service and maintenance teams, while cash recyclers, which typically have a shorter lifespan than cash dispensers, are set to grow as a share of the total. These factors are expected to shorten average ATM replacement cycles. However, to reduce costs, deployers may attempt to make their machines last longer, perhaps by repairing terminals that would otherwise be replaced. Over the forecast period, ATM managed services market is estimated to grow at a CAGR of ~% during the period FY’2022-FY’2027F. It is expected that as more population will come under the domain of banking services, the number of transactions performed at an ATM will eventually increase. The revenue generated by the end of FY’2027 is expected to be over ₹ ~ billion from ATM-managed services. In the future, the confidence of consumers will increase with the introduction of the new RBI circular which implies increasing the security of ATMs.
How Are the ATMS Being Managed In India?
In India, there are four types of ATMs which exist for the management. These are namely Managed Services (MSPs), Brown label ATMs (Completely Outsourcing/IADs), ATMs managed by banks and White label ATMs. Majority of ATMs are from managed services which were recorded at ~ ATMs as on 31st March 2022. However, Brown Label ATMs has been recorded as ~ in numbers as of 31st March 2022. These ATMs are owned by banks and further deployed to ATM management companies for their management.
As of 31st March 2022, ~ ATMs are entirely owned and managed by banks which are less as compared to number of brown label ATMs operated in India. On the other side, penetration of White label ATMs in India is quiet low as compared to other ATMs operating in the market as only ~ ATMs are installed in India as of 31st March 2022.
White label ATMs in India have their penetration majorly in semi-urban and rural areas as government is encouraging non-banking entities to open white label ATMs in these areas to reduce the shortage of ATMs and financial services in rural areas of the country. It was recorded that as of March 31st 2022, ~ White label ATMs exist in rural centers, ~ WLAs in semi urban centers, ~ in metro centers and ~ in urban centers.
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Which Type of ATM Machines Are Operated In India?
In India, ATM machines are primarily of two types which are Cash dispensing machine (CDM) and cash recyclers. Cash dispensing machine have dominated the number of ATMs as they have high percentage share as compared to number of cash recycler machines recorded at approximately ~% as of 31st March 2022. However, number of cash dispensing machines operating in India was observed to be ~ as of 31st March, 2022.
Majority of the ATM cash recycler machines have been observed in the Metro cities and urban areas as people are using these ATMs to save their time in reaching out to a particular bank branch and standing in a queue to deposit the money. However, cash recyclers are not widely present in rural areas owing to limited know how of the machines.
Major players in the market which manufactures the CDM are NCR Corporation, AGS Transact, Hitachi Payments and others. During FY’2022, it was recorded that State Bank of India had the most of number of Cash Recycling Machines deployed which was ~ number of machines, followed by Axis Bank and Bank of India with ~ and ~ number of cash recycling machine units installed.
Overview Of the Indian Economy
Indian Economy’s long-term growth potential is positive due to the penetration of young population, corresponding low dependency ratio, robust savings and investment rates, and increasing globalization of the economy. India is world’s sixth largest economy by nominal GDP and third largest by purchasing power parity (PPP) during 2020. The country is positioned at 162nd rank in the World in per capita GDP (nominal) with USD ~ as of 2022.
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What Are the Major Services Which Are Provided By MSP’S?
ATM managed services market incorporates various services such as ATM Site Management, Cash management services, Transaction processing, ATM supply, ATM repair and maintenance, Cash Reconciliation Statement and Content & Electronic Journal Management. ATM Site Management and other services which include services such as (payment of rent, man guarding, network services and services such as ATM deployment, management and operationalization of ATM) has dominated the market in terms of revenue which was reported at INR ~ million during FY’2022. This was followed by cash management services with revenues of INR ~ million in FY’ 2022. However, other services (Transaction Processing, ATM supply, ATM repair and maintenance Cash Reconciliation, Content & Electronic Journal Management) contributed revenue of INR ~ million during FY’ 2022. ATM repair and maintenance has contributed ~% share in the revenue generation in the ATM managed services market in India. The least amount of revenue is generated through content and electronic Journal management services as banks generally manages these services on their own.
Snapshot On India Cash Management Services
The current cash management cycle involves cash pick up from bank, cash movement from the bank to the ATMs’ locations, grading, counting, monitoring ATMs for assessing the level of cash in an ATM, and replenishing cash in the machine accordingly. India cash management services market has increased at a CAGR of ~% during the period FY’ 2016 – FY’ 2022. Market attained significant growth during the period FY’2016 – FY’ 2022 due to increase in services offered by the cash management companies such as cash vault services, bullion management, cash processing and others. However, Demonetization had led to decline in currency circulation in the country from INR ~ billion in FY’ 2016 to INR ~ billion during the FY’2017, which negatively affected the profitability of cash management companies as majority of the ATMs remained out of cash during the period of demonetization. Similarly, during FY’2021, covid-19 had a negative impact on the cash management revenues because of the restrictions and lockdowns imposed by the government in the country.
Major services offered by the cash management companies include ATM replenishment, CIT, RCM or CPD. Cash management companies also provides other services such as transportation of jewels, bullion, other valuables, artwork, cash processing and cash vaulting services to its customers.
Key Target Audience
- ATM Managed service providers
- Cash management companies
- ATM Manufacturers
- White Label ATM Management companies
- Public and Private Sector Banks including Payments Banks
- Reserve Bank of India (RBI) and NHB
- ATM Switch companies
- Cash Reconciliation Companies
- Digital Payments Merchants
- VC & PEs, Investment Bankers
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Time Period Captured in the Report:
- Historical Year: FY2016-FY2026
- Base Year: FY2022
- Forecast Period: FY2022 – FY2027F
- Hitachi Payments
- AGS Transact
- Diebold Nixdorf
- NCR Corporation
- Tata Communication Payment
- CMS Infosystems
- Writer Business Services
- Brink’s Arya
- SIS Prosegur
- And Others
Key Topics Covered in the Report
- India ATM Managed Services Market Size (FY’2016-FY’2022)
- India ATM Managed Services Market Overview
- India ATM Managed Services Market Segmentation By Type Of ATMs (Managed Services, Brown Label ATM, Managed By Banks, White Label ATMs)
- India ATM Managed Services market Segmentation By Type Of ATM Machine (Cash Dispensing And Cash Recyclers)
- India ATM Managed Services Market Segmentation By Service Offerings (ATM Repair And Maintenance, ATM Site Management, Transaction Processing, Cash Reconciliation Statement, Content And Electronic Journal Management )
- India ATM Managed Services Market Segmentation By Business Model (Fixed Pay Model And Variable Pay Model)
- India ATM Cash Management Services Market Segmentation By Services (ATM Replenishment, CIT, CPD And Others)
- India ATM Managed Services market Ecosystem And Value Chain Analysis
- Snapshot on India ATM Cash Management Services Market.
- Snapshot on India ATM Supply Market
- Decision Making Process And Tender Process Applicable In India ATM Managed Services Market
- Trend And Developments In India ATM Managed Services Market
- Issues And Challenges In India ATM Managed Services Market
- Impact of Demonetization and COVID-19 on the ATM Managed Services Market
- Current Deployment and Future growth of Cash Recycling Machines in India
- Recent Investment Details (Mergers, Acquisition And Partnerships) In India ATM Managed Services Market
- Complete Competition Analysis Including Heat Maps & Strength and Weakness Of The Major Companies.
- Competitive Landscape Of Major Players In India ATM Managed Services Market
- SWOT Analysis Of India ATM Managed Services Market
- Future Outlook And Projections Of India ATM Managed Services Market (FY’2022-FY’2027F)
- Analyst Recommendations
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