The cryptocurrency automated teller machine (ATM) market is expected to grow nearly tenfold over the next five years, according to a report by ResearchandMarkets.
According to the 94-page research paper, the crypto ATM market will post a compound annual growth rate (CAGR) of 54.7%, rising in value from $16.3 million in 2018 to $144.5 million in 2023.
“Growing fund transfers in developing countries, fluctuating monetary regulations, and increasing installations of crypto ATMs in restaurants, bars, general stores, and gas stations are the factors driving the growth of the crypto ATM market,” ResearchandMarkets said.
The analysts noted the growing demand for two-way ATMs, where users can buy and sell cryptocurrencies. The rising popularity of these machines is fueled by their multifunctionality features, ResearchandMarkets added.
According to Coin ATM Radar, one-way ATMs currently dominate the market, accounting for about 62.5% of all existing machines. Most of the crypto ATMs are located in the US.
ResearchandMarkets expects the North American region to maintain its leading position due to its favorable investment environment and increasing rate of crypto adoption, as well as the large number of crypto ATM hardware and software providers operating in Canada and the US. Other countries, including Germany and Japan, are also seen expanding their crypto ATM capabilities.
The analysts also outlined factors that may hinder the growth of the crypto ATM market in some regions:
“Uncertain regulatory status of cryptocurrencies, and lack of awareness and technical understanding regarding cryptocurrencies restrict the market growth for crypto ATM manufacturers and operators. Further, concern regarding security and privacy is expected to pose a challenge to the market players.”
While the report does not cite security as a concern, Bitcoin (BTC) ATM malware has reportedly been sold on the dark web for $25,000. The malware comes with a ready-to-use card with EMV/NFC capabilities, cybersecurity firm Trend Micro revealed in August.
More recently, Russian police officers seized more than 20 cryptocurrency ATMs, owned and operated by a company called BBFpro. The reason for the appropriation remains unknown, but BBFpro said the authorities wanted to know the working system used in the ATMs and how the company operates these machines.