The crypto ATM market size was $75.01 million in 2021 and is predicted to grow at a Compound Annual Growth Rate of 59.2% between 2022–2028. In January 2021, there were more than 14,000 of these ATMs worldwide, and by July 2021, the installation statistic had reached 50.9 units per day. This rise in installations is one of the driving factors behind the increase in the crypto ATM market size.
Governments in different countries are implementing policies to attract cryptocurrency businesses. The El Salvadoran government accepted Bitcoin as a legal tender and installed more than 200 Chivo Bitcoin ATMs across the country.
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Also, the rising adoption of smartphones is one of the main factors opening doors for crypto ATMs providers. Smartphones enable Crypto ATMs to read cryptocurrency wallet addresses directly from QR codes and conduct financial transactions. Coin Dance revealed that globally 34.45% of individuals exchanged Bitcoin via smartphones in March 2021, while 3.03% and 62.53% people used tablets and desktops, respectively, to research and exchange crypto.
Crypto ATM providers are focussing on reducing cyberattacks on the machines. This factor, along with increased security measures, is expected to pave the way for more opportunities, adoption, and increased crypto ATM market size. For instance, August 2021 witnessed the formation of Cryptocurrency Compliance Corporation by Bitcoin ATM providers in the United States. The 15-member group’s mission is to create a compliant and secure landscape for the cryptocurrency industry. Moreover, other security measures are also being implemented, such as biometrics, facial recognition, time-stamps, QR codes, KYC, and compliance with AML rules.
Below are some of the most vital parameters that have dominated and are expected to impact crypto ATM market growth:
- Type: 2021 saw the one-way segment lead the crypto ATM industry, accounting for roughly 68.0% of revenue. Between 2022–2028 the two-way sector is predicted to grow at the fastest rate. The segment’s growth is likely to be fueled by various initiatives, including new product introductions.
- Offering: In 2021, the hardware category influenced the market, accounting for roughly 78.0% of total sales, including door switches, ATM stands, cash recyclers, and extension boxes. Over the projected period, the software category is predicted to grow at the fastest rate because it ensures connectivity and control for the operators.
- Type of Coin: In 2021, the Bitcoin category led the market, accounting for nearly 30.0% of total revenue. Over the projection period, the Litecoin category is likely to increase significantly. LocalCoinATM, for example, stated in July 2017 that their Bitcoin ATM will now accept Litecoin transactions.
- Application: In 2021, the market witnessed a large number of installations in restaurants and other hospitality spaces. Bitcoin ATMs are increasingly being installed at nightclubs throughout the world. Over the projected period, the commercial spaces category is predicted to increase at the fastest rate. For example, Blue Ridge Bank established cooperation with Bitcoin ATM software developer BluePoint ATM and LibertyX in February 2021.
- Region: North America led the 2021 crypto ATM market. It houses several of the market’s major companies, including Coin Cloud, Bitcoin Depot, and CoinFlip. The use of two-way crypto ATMs, smartphones, and 5G in Asia Pacific nations is projected to fuel regional industry expansion.
The subject market’s growth forecast reflects the rise in secure installations, legislative initiatives, and an increase in smartphone usage. Consequently, crypto ATMs may soon emerge as an important tool for cryptocurrency transactions.
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