As cryptocurrency awareness and adoption grows, the bitcoin ATM market is forecast to expand at a CAGR of over 50% in a five-year period.
This is according to a study conducted by business-to-business research firm Market sand Markets indicating that the cryptocurrency ATM market will grow at a compound annual growth rate of 54.7% between 2018 and 2023. Consequently, the value of this market will rise to a figure of $144.5 million in the five-year period.
At the moment, the number of bitcoin ATMs in the world is 3,650, up from a figure of 3,500 that reported early last month. On a daily basis, an average of approximately four bitcoin ATMs are installed, according to cryptocurrency ATM tracking website, Coin ATM Radar. It is estimated that the cryptocurrency ATM market was worth $6.8 million last year but has since then grown to reach a figure of $16.3 million in 2018.
The study also determined that two-way ATMs, which allow users to both buy and sell cryptocurrencies from a single device, will enjoy a higher CAGR compared to one-way ATMs. However, one-way ATMs currently dominate the market at 62.49% against a percentage of 37.51% for two-way ATMs.
Regarding hardware, the display segment of the bitcoin ATM market is expected to emerge as the more popular one over time, according to the study. At the moment, other segments include QR Scanner and ATM Printer types. The user-friendliness of the display hardware will be largely responsible for the popularity. Additionally, for those looking to set up bitcoin ATMs, the display hardware comes with the added benefit of bringing cost savings since there is no need for keyboards and other extra hardware.
United States, Canada, and Mexico
Across the globe, the largest market for cryptocurrency ATMs by 2023 will continue to be North America. This will be a maintenance of the status quo, as currently, North America has 73.07% of the bitcoin ATMs in the world, with the United States being the clear leader. The survey attributed this to a regulatory environment that is relatively conducive for cryptocurrencies.
“The US is expected to continue to dominate the crypto ATM market during the forecast period owing to the presence of a large number of crypto ATM hardware and software providers and favorable investment environment (without any legal barriers),” the report titled “Crypto ATM Market – Global Forecast to 2023” said. “In 2017, the Government of Mexico declared bitcoin legal, and it would be regulated by the Fintech Law. In addition, Canada has recorded extensive start-up activity, especially for cryptocurrency.”