Cashing Out: ATM Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
There are an estimated 445,000 ATMs operating across the United States. This number has grown substantially since the first modern ATMs were introduced in the 1970s, providing consistent demand for the ATM Manufacturing industry. However, the upward trend has not been without setbacks. The industry's customers have increasingly purchased machines from producers abroad, while major players such as NCR Corporation have developed production facilities outside the United States. Stagnant growth will likely characterize the industry over the next five years due to continued import competition, with major companies focusing more on software solutions than manufacturing. For this reason, industry research firm IBISWorld has added a report on the ATM Manufacturing industry to its growing industry report collection.
Los Angeles, CA (PRWEB) April 16, 2012
There are an estimated 445,000 ATMs operating across the United States. This number has grown substantially since the first modern ATMs were introduced in the 1970s, providing consistent demand for the ATM Manufacturing industry. According to IBISWorld industry analyst Brian Bueno, “in the mid-1990s, the nation's largest ATM networks removed bans on direct ATM fees to customers, creating a rush among private operators and retailers to install machines with profit-producing fees.” However, the upward trend has not been without setbacks. The number of ATMs fell 5.2% in 2009, as retailers and private operators closed their doors in the midst of the recession.
Over the five years to 2012, industry revenue is expected to fall at an average annual rate of 5.6% to $2.05 billion. According to Bueno, “this rate has been pulled down by particularly negative conditions in 2008 and 2009.” While banks and ATM operators have since renewed demand, industry revenue remains below pre-recession levels. The industry's customers have increasingly purchased machines from producers abroad, while major players such as NCR Corporation have developed production facilities outside the United States. As a result, though new regulations are expected to spur demand for ATMs in 2012, revenue is estimated to increase by a meager 0.7%.
Under the American Disabilities Act (ADA), new ATM accessibility standards were issued in 2010. Since March 2012, all ATM owners have been required to comply with the 2010 ADA standards for new construction and alterations. These new standards include voice guidance, Braille signage and input control for visually impaired individuals. While manufacturers upgraded their products when the new standards first took effect, major markets continue to upgrade their ATMs. Nevertheless, independent operators are increasingly sourcing their machines through imports. Stagnant growth will likely characterize the industry over the next five years due to continued import competition, with major companies focusing more on software solutions than manufacturing. Moreover, firms are anticipated to continue moving production facilities abroad, particularly because of fast-growing ATM markets in emerging economies. Despite improvements in the US economy and rising consumer spending, revenue is forecast to record minimal average annual growth of 0.9% to $2.15 billion from 2012 to 2017.
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This industry manufactures automated teller machines (ATMs). An ATM is a computerized telecommunications device that provides the clients of financial institutions with access to financial transaction functionality without the need for a cashier or teller.
IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/4/prweb9402825.htm