What does the future hold for NCR, Diebold and Wincor Nixdorf?

New research by RBR reveals an evolving ATM supplier landscape, with the “big three” manufacturers expanding, even as Asian vendors take advantage of fast growth in that region. ATMs purchased by banks in developed economies, where the big three are traditionally strong, have for many years been mostly replacements units. As a result, despite strong shipment figures, US firms NCR and Diebold, and Germany’s Wincor Nixdorf, are gradually losing installed base market share to their Asian rivals.

Manufacturers’ Share of Global ATM Installed Base, end-2014

Source: Global ATM Market and Forecasts to 2020 (RBR)

Low-cost cash dispensing and high-end cash recycling boost sales by Asian vendors

The growing influence of Asia in the global ATM market can be measured not only by its installed base, but also in the expansion of the region’s own suppliers. The high global rank of Nautilus Hyosung stems primarily from its strong position supplying low-cost cash dispensers to the US convenience segment, rather than its presence in the bank sector in South Korea and elsewhere.

Japan’s Hitachi-Omron and OKI focus on high-end recycling ATMs that can accept and redispense banknote deposits. Both firms have benefited from demand for recycling functionality which is fast becoming the norm in cash-centric economies across Asia and beyond.

The remarkable growth of the Chinese ATM market has led to the emergence of several domestic suppliers, most notably GRG. The scale of their home market gives them significant presence at a global level, even though their business outside China remains limited.
Banks require advanced technology to transform branches and integrate with other channels

The major western suppliers’ broad products portfolios, advanced software experience, extensive services networks, and strong brand reputations, have enabled them to continue to expand despite stiff competition from the Asian suppliers. Going forward, banks’ requirements for advanced hardware and increasingly sophisticated software solutions, as part of radical branch transformation programmes and vital requirements for closer integration with mobile and other banking channels, should continue to generate opportunities for several years to come.