Smart Finance Hardware Market is Predicted to Observe a Tremendous Growth, With a CAGR of 2.4% From 2022 To 2028: Grand View Research Inc.

 

The global smart finance hardware market size has been projected to reach USD 16.66 million by 2028, advancing at a CAGR of 2.4% from 2022 to 2028, according to a new report by Grand View Research, Inc. The major growth factors for the market include the growing adoption of smart ATMs, coupled with the growing number of ATM installations and rising smart city projects across the globe. Moreover, the rising trend toward online banking services further increases the demand for smart ATMs, thus encouraging the demand for smart finance hardware such as network modules, sensors, and others. However, the growing privacy and security concerns related to consumer data are projected to hamper the market growth during the forecast period.

The market for smart finance hardware witnessed a slight decrease in the overall revenue due to COVID-19, owing to a decrease in transactions through ATMs due to government-imposed restrictions and lockdowns. Additionally, under the lockdown conditions imposed in some countries, there was a complete shutdown of the manufacturing process of electronics parts and devices, including smart finance hardware. Therefore, the significant decrease in the manufacturing of electronics components for smart ATMs during the pandemic further affected the market growth.

Based on end-users, the global market is classified into banks & financial institutions, and independent ATM deployers. The bank & financial institutions segment is poised to register a growth rate of 2.3% during the forecast period. The significant adoption of smart and contactless ATMs among bank premises for reducing crowds and queues is a major factor contributing to the market growth. Smart ATMs help consumers to effectively and easily transfer money in the cloud environment. The significant growth in the BFSI industry and the rising demand for digital payment banking provide ample opportunities for the demand for smart finance hardware. 

Europe held a significant market share of more than 26% in 2021. Well-developed countries such as Germany, the U.K., and France positively contribute to the market revenue. The high market share can be attributed to the significant presence of banks and financial institutions that are increasingly adopting smart technologies on their premises, and the long-existing demand for remote monitoring of ATMs in the region. Moreover, the growing number of secured internet servers further provides ample growth opportunities for the adoption of connected and smart ATMs in the region, which is further projected to result in significant growth of the market. The growing number of ATM installations in Germany, the U.K., Italy, and France further contributed to the significant regional market share.

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Smart finance hardware includes IoT components such as a communication module, a processing module, data acquisition, and sensors for ATMs. The rising adoption of smart ATMs across smart cities is one of the major factors propelling the market growth during the forecast period. Smart ATMs are increasingly being deployed in bank locations for providing customers the ease of cash withdrawals, deposits, and transfers. Moreover, the rising technical development in IoT technologies, such as the integration of data analysis tools, is further projected to contribute to the growth of the market during the forecast period. However, the growing data breaches and rising concerns related to data security are anticipated to hinder the market growth.

The growing integration of next-generation smart ATMs that can be remotely maintained further encourages the demand for smart devices among end-users, which is projected to contribute to the growth of the smart finance hardware industry. For instance, a bank in Russia is using facial recognition through Intel RealSense camera technology to avoid fraud in ATMs.

Smart Finance Hardware Market Report Highlights

• Europe contributed more than 26% of the overall revenue in 2021 in the global market for smart finance hardware. The significant presence of key players in the regional market and the long-standing demand for smart ATMs, as well as substantial growth in smart city projects, are responsible for the significant market share of the region
• The banks & financial institutions end-user segment is forecast to register a CAGR of 2.3% from 2022 to 2028. A significant rise in the use of digital payment solutions, coupled with the significant development of IoT applications in the BFSI sector, is further projected to drive the segment growth
• Asia Pacific accounted for the highest market share of more than 35% in 2021 and is expected to maintain its dominance during the forecast period by advancing at the fastest CAGR

Moreover, the growing number of ATMs is further projected to provide ample opportunity to the market for growth. As per World Bank data, in 2022, there were 42.6 ATMs per 100,000 people across the globe, which further increased to 51.6 ATMs per 100,000 in 2020. Therefore, the growing number of ATMs coupled with the rising integration of IoT devices in ATMs further enhance the growth of the market during the forecast period.       

The COVID-19 outbreak negatively impacted the smart finance hardware market, as many of the bank ATMs were closed during the lockdown. This measure by the governments globally restricted the new installation of ATMs. The restriction of outbreak further decreased the transactions through ATMs, as people chose UPI and other wireless transactions during the pandemic that affected the market growth.  Moreover, the shutdown of manufacturing units of hardware across the globe during the pandemic further impacted the market advancement. However, the adoption of contactless ATMs is projected to rise after the pandemic is over, owing to the high demand for less contact-based transactions in the BFSI sector.     

List of Key Players in the Smart Finance Hardware Market

• Intel Corp.
• Fujitsu Limited
• Diebold Nixdorf
• NCR Corp.
• InHand Networks
• KT Corp.
• Digi International Inc.
• Microchip Technology Inc.
• HiSky
• Multi-Tech Systems, Inc.
• OptConnect Management, LLC