Report: Crypto ATM Market Expected to Grow to $144.5 Million by 2023
A new report projects the crypto ATM market to grow to $114.5 million by 2023, from $16.3 million in 2018.
Researchers expect the cryptocurrency ATM market to grow from $16.3 million in 2018 to $144.5 million by 2023, citing a compound annual growth rate (CAGR) of 54.7 percent from 2018 to 2023.
According to the study, significant growth during the forecast period will be from two-way ATMs, which let customers change digital currency into fiat and vise-versa using a single machine. The study says that the machines’ functionality is the key driver of two-way crypto ATMs’ popularity among users.
The authors of the report highlight rapidly expanding capabilities in developed countries like the U.S., Germany, and Japan, and the increasing rate of crypto adoption as prime growth factors in the crypto ATM market.
The North American crypto ATM market will purportedly hold the largest share of the crypto market by 2023. The presence of a large number of crypto ATM hardware and software providers, as well as a favorable investment environment will facilitate the dominant position of the U.S. in the market.
At the same time, the study also identifies regulatory uncertainty, in addition to lack of awareness and technical understanding of cryptocurrencies as factors that can limit the growth of the crypto ATM market.
Targeting mainstream adoption, Ontario-based Bitcoin (BTC) and Ethereum (ETH) ATM manufacturer LocalCoinATM installed a batch of ETH ATMs in three different locations in Canada, including Toronto, Brampton and Etobicoke in 2017. That year South Korean ATM manufacturer Hyosung officially integrated BTC into its international ATM models.
While the crypto ATM market is projected to grow over the next five years, traditional ATM manufacturers consider digital currencies a threat to their business. In March, the world’s largest ATM operator Cardtronics pinpointed cryptocurrencies among the major risks to their business in an annual report. Consumer behavior analysis reportedly showed a significant shift in preferred payment methods, with more customers now choosing electronic forms of payment over traditional physical banknotes, leading to a decline in the use of ATMs.