China's ATM Market Now Biggest in the World According to a New Report from Kapronasia
Shanghai, China (PRWEB) June 19, 2014 -- A new study by Kapronasia shows that 520,000 ATMs were installed in China in 2013, surpassing the United States, and making China the biggest ATM in the world. Although that is good news for ATM vendors as a whole, it is bad news for the foreign vendors who are rapidly losing market share to domestic ATM producers.
The study from Kapronasia shows that the ATM market in China maintained strong growth in the last ten years as banks have expanded their footprint in the market through both branch expansion and ATM deployment. With an average annual growth rate of 20%, China’s ATM market will continue to grow in 2014. China’s number of ATMs installed per million people lags significantly behind developed countries and the number of payment cards served by a single ATM is also far less than the international standard, both indicators that ATMs will continue to be part of the growing economy.
Although the market is growing, there is a shift in providers as China shifts toward relying on domestic providers of technology solutions. Foreign ATM vendors will struggle to maintain market share as they are replaced by the home-grown technology of domestic ATM manufacturers. Current foreign vendors including Hitachi, NCR and Diebold have lost market share as foreign vendors make up only 47.5% of the domestic market. In January 2014 ICBC, which has cooperated with Hitachi for years, made an order from GRG, a domestic provider, for the first time.
“The shift away from foreign ATM providers is part of recent pressure by China government to decrease reliance on foreign information technology in strategically important industries, including financial services,” said Zennon Kapron of Kapronasia. “However, it is also an indication that domestic vendors have increased the strength of their offerings with better technology, more confident domestic operations and a shift towards more functional ATMs that fit the needs of the Chinese consumer.”
Based on both primary and secondary research, the report takes an in-depth look at who the ATM buyers and manufacturers are, the main industry trends, and how mobile and “smart” technologies are changing the market landscape. The report answers questions like what types of ATMs are there, why machines with cash recycling function are becoming more popular with buyers and how China government’s push toward more abundant banking in rural areas is driving the demand and how virtual teller machines might change banking in China itself.
The report is available now on the Kapronasia.com website.
About Kapronasia
Kapronasia was founded in 2007 to meet the needs of Financial Service technology companies doing business in Asia. Kapronasia provides research, consulting and full services marketing to the financial services industry. Focusing on banking, insurance and capital markets, Kapronasia works closely with clients to create sustainable value for their businesses. For further information please visit: http://www.kapronasia.com.
Jane Li, Kapronasia, +86 13817896332, [email protected]
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