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UAE ATM Managed Services Market Future Outlook and Projections

INVC NEWS 

New Delhi,

The report titled “UAE ATM Managed Services Market Outlook to 2024 – By Off-Site and On-Site ATMs and By Type of Service (Cash Management Services, ATM Maintenance Services and ATM Supply)” provides a comprehensive analysis on the ATM managed services industry of UAE. The report covers various aspects including market overview, value chain and ecosystem analysis, market evolution, market segmentation by location of ATM i.e. off-site and on-site ATMs and by the type of service i.e. cash management services, ATM maintenance services and ATM supply services. The report also includes trends and developments, challenges, major cost components and profitability analysis of ATMs in UAE, Regulatory framework and Snapshot on UAE ATM supply market. Competition landscape includes market share on major ATM suppliers on the basis of revenue and their company profiles. The report concludes with future projections in the UAE ATM Managed services space and analysts recommendations for the same.

UAE ATM Managed Services Market Overview and Size

The UAE ATM managed services market was observed to be operating at its growth stage, approaching maturity as banks and ATM managed services companies begin investing in innovative technology to automate their services. The market is expected to increase in size due to increase in cash management services market. Banks in UAE have taken various steps in order to reduce overall costs of operations. Apart from outsourcing management of the ATMs, banks have begun reducing their commercial footprint by closing down branches, merging with other banks and investment in technology based services to reduce reliance on ATMs for customer services.

UAE ATM Managed Services Market Segmentation

By Location of ATM (Off-Site and On-Site)

Off-Site ATMs are installed in location where there are no branches such as hospitals, malls and airports among others. The segment dominated in the UAE during 2018. Additionally, the management of off-site ATMs is completely outsourced to the cash management companies. On-site ATMs on the other hand, are located near bank branches, electronic service units and representative offices. For these ATMs, cash management services and ATM maintenance services are outsourced while security and surveillance services are managed by the banks themselves.

By Type of Service (Cash Management Services, ATM Maintenance Services and ATM Supply)

The market was dominated by cash management services for the period 2013-2018. Banks outsource cash management services to Transguard or manage it themselves for on-site ATMs. Cash management services include cash in transit and other cash services. Cash in Transit market includes cash replenishment and transportation of cash between bank branches, central bank and between corporate or retail outlets with cash handling centers. Cash in Transit services were seen to dominate the ATM services market as these services require fleet of armored vehicles and vans and require experienced manpower. ATM maintenance services included hardware, software and currency template management of three types of ATM machines namely cash dispensers, cash recyclers and cash in cash out machines. The market for ATM maintenance was observed to decline in the period 2013-2018 due to improvement in technology and competition between banks to provide low cost services. Hardware maintenance includes First, Second Line Maintenance and Breakdown Maintenance and software maintenance includes monthly or quarterly check up of ATM operating software.

Comparative Landscape in UAE ATM Managed Services Market

Competition stage within UAE ATM managed services market was observed to be highly concentrated between three major companies. For cash management services, Transguard has a monopoly while Brink’s has just started to enter the market with a small market share. Transguard acquired its competitor G4S in 2018 to become the market leader in cash management and security services. Also, Transguard handles a massive proportion of cash in circulation in the UAE while the remaining is handled by banks. Lastly, competition with ATM supply market of the UAE was also seen to be highly concentrated between 2 companies namely NCR Corporation and Diebold Nixdorf.

UAE ATM Managed Services Market Future Outlook and Projections

UAE ATM managed services market is further expected to rise in the forecast period 2018-2024, driven by rise in total ATM transactions, increased card usage and entry of several players in the cash management services segment. The ATM maintenance market of UAE is expected to decline as newer advanced technology in ATMs will be introduced over long term. The total number of ATMs is also expected to decline as consolidation in the banking industry is underway and as banks look to reduce costs, branches and ATMs are expected be closed down.

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