PUBLISHER: Grand View Research | PRODUCT CODE: 1092477
PUBLISHER: Grand View Research | PRODUCT CODE: 1092477
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.