Crypto ATM Market

Crypto ATM Market Outlook (2023 to 2033)

The global crypto ATM market size is valued at US$ 181 million in 2023 and is forecasted to expand at an astonishing value CAGR of 57% to reach US$ 16.85 billion by 2033-end.

Individuals can use these specialized crypto ATMs to buy, sell, and manage bitcoins, bridging the digital and physical financial realms. The market is expanding rapidly owing, to factors such as increased cryptocurrency acceptance, expansion of DeFi (decentralized finance), initiatives to achieve financial inclusion, and supportive regulations.

Although North America held a leading market share of 45% in 2022, usage of crypto ATMs in other parts of the world is also increasing swiftly. These machines, with improved user experiences and coin support, are playing an important role in making cryptocurrencies more accessible to a wider audience.

Key Market Growth Drivers

• Demand for crypto ATMs is being driven by the widespread acceptance of cryptocurrencies as both a store of value and a method of exchange.
• More investors are entering the market, as cryptocurrencies acquire acceptance as an asset class.
• Crypto ATMs simplify the process of purchasing digital assets and managing portfolios for investors.
• The rise of crypto ATM services is drawing a broader customer base, beyond basic buy/sell transactions. Bill payments and remittances are making crypto ATMs useful in ordinary financial transactions.
• Regulatory frameworks are adapting to the cryptocurrency ATM industry. Governments are seeing the need for supervision in preventing illegal activity and fostering a safe environment for users.

The crypto ATM business is projected to be a vital enabler of decentralized finance and financial inclusion as the cryptocurrency ecosystem evolves, giving users the tools they need to navigate the digital economy.

Report Attributes	Details
Crypto ATM Market Size (2022A)	US$ 115 Million
Estimated Market Value (2023E)	US$ 181 Million
Forecasted Market Value (2033F)	US$ 16.85 Billion
Global Market Growth Rate (2023 to 2033)	57% CAGR
One Way Segment Market Share (2022)	68%
Hardware Segment Market Share (2022)	75%
Bitcoin Segment Market Share (2022)	30%
North America Market Share (2022)	45%
Key Companies Profiled	BITCOIN DEPOT Bitstop Cash Cloud, Inc. Coinsource Covault LLC Bitaccess Inc. Cryptomat GENERAL BYTES s.r.o Genesis Coin Inc. Kurant GmbH Lamassu Industries AG RockitCoin Coinme Coin ATM Radar Soft-logic Co. Byte Federal Inc. Chain Bytes LLC

What is Fueling the Sudden Spike in Demand for Crypto ATMs?

“Growing Acceptance of Cryptocurrencies as Payment Mode”

Increased interest in cryptocurrencies as investment assets is a key driver for crypto ATM usage. As more businesses, both online and offline, begin to accept cryptocurrency as payment, demand for crypto ATMs grows. Users require simple methods to access cryptocurrencies for everyday transactions. Due to their speed and cost-efficiency as compared to traditional transfer methods, cryptocurrency is rapidly being used for cross-border remittances.

Crypto ATMs allow people to change cash into cryptocurrencies, which may then be given to family members or associates in other countries, thereby increasing adoption. The usage of cryptocurrencies is viewed as a means of attaining financial inclusion. Crypto ATMs play an important role in this regard by enabling unbanked or underbanked individuals with access to digital assets. They provide an alternative to traditional financial systems and allow participants to participate in the global economy.

Crypto ATMs allow customers to buy cryptocurrencies with confidence, knowing they can spend them at a variety of locations.

• The Bitcoin segment contributed 30% of global crypto ATM revenue share in 2022.
• BigCommerce, a software-as-a-service e-commerce platform, announced a partnership with CoinPayments and Bitpay in September 2022, allowing retailers to accept Bitcoin and other cryptocurrency payments.
• High-end fashion brand Gucci began taking cryptocurrency payments, including Bitcoin, in certain of its locations, a trend that has since expanded to more than 65% of businesses accepting crypto payments.

“Emphasis on Convenience and Accessibility in Digital Transition”

Crypto ATMs act as a bridge between the traditional financial system and the digital economy as societies increasingly abandon physical cash in favor of digital payments and assets. They give a physical point of access to people who are making the move from cash-based transactions to digital assets.

Evolution of financial services has been significantly influenced by the digital revolution. Fintech firms and decentralized financial platforms are challenging traditional banks. Crypto ATMs aid in this transition by allowing customers to change cash into cryptocurrency and participate in these new financial ecosystems.

Digital transition places a strong emphasis on convenience and accessibility. Crypto ATMs adhere to this philosophy by providing user-friendly interfaces and efficient processes for purchasing, trading, and maintaining bitcoins. They provide a familiar and approachable entrance point into the realm of digital money.

Many crypto ATMs are linked to mobile wallet apps, allowing customers to access their Bitcoin holdings from their cell phones. This integration improves the whole digital experience and is consistent with the mobile-first financial services trend.

Digital transformation is not restricted to the financial sector; it affects a wide range of sectors and applications. Crypto ATMs facilitate real-world use cases by allowing customers to buy cryptocurrencies for online shopping, investments, remittances, and even cross-border value transfers.

• For example, in April 2023, Jacksons Food Stores, a major convenience store chain, announced the installation of online Bitcoin ATMs in 80 of its locations in the United States. Customers will be able to purchase Bitcoin using cash at the crypto ATMs, which would be installed in every state where Jacksons Food Stores operates.

Why are Most People Still Hesitant to Switch to Cryptocurrency?

“Lack of Awareness and Potential Risk of Piracy”

The market is being held back by a lack of awareness and the growing issue of piracy. For starters, inadequate awareness is a significant barrier to the crypto ATM market growth. Many prospective customers, including those who are familiar with cryptocurrencies, are ignorant of the presence and accessibility of crypto ATMs. This lack of awareness limits market growth because individuals may instead use traditional exchanges or internet platforms, missing out on the ease and accessibility provided by crypto ATMs.

The possibility of piracy and fraudulent operations undermines the confidence of the market. As the Bitcoin business grows in popularity, it has become a popular target for malicious actors looking to exploit vulnerabilities. Crypto ATMs, which process real-world transactions involving valuable digital assets, are vulnerable to such attacks. Concerns about the security of these Bitcoin vending machines, such as the possibility of virus attacks, hacking attempts, and counterfeit hardware, can discourage both potential users and investors from fully embracing this technology.

To address these constraints, the industry must work together, including enhanced education and awareness initiatives to educate the public about the benefits and security measures associated with crypto ATMs. Furthermore, the creation of effective security mechanisms and regulatory frameworks can aid in mitigating the piracy threat, building trust in users, and allowing the long-term growth of the market.

What Should Start-ups Do to Increase Their Relevance in the Crypto ATM Business?

“Focus on Investments in Increasing Security of Digital Transactions”

Start-ups must stay on top of key trends in the crypto ATM industry, including regulatory compliance, continual innovation in crypto ATM software, and user-friendly experiences to stay relevant in the rapidly changing crypto ATM business. Staying competitive entails not just analyzing Bitcoin ATM statistics, but also strategically developing, forming important connections within the cryptocurrency ecosystem, and investing in strong security measures.

Education and outreach, competitive pricing, efficient marketing, and sustainability considerations are all critical for long-term success. Furthermore, connecting with the crypto community and embracing a long-term scalability strategy is important for determining the future of the crypto ATM industry and retaining a significant place within it. Consequently, these dynamics are poised to create lucrative growth opportunities in the crypto ATM business in the years ahead.

Country-wise Insights

The market is expanding globally, with new machines being installed in Asia Pacific, Europe, North America, and other regions. North America holds a 45% of crypto ATM market share in 2022, while the Asia Pacific market is expected to grow significantly in the coming years. Europe leads the global crypto industry, generating US$ 1 trillion in revenue in 2020 and constituting 23% of the global crypto market.

Why is the United States a Major Contributor to the Expansion of Digital Currency ATMs?

“Access to Substantial Investment Capital and Nationwide Presence of Bitcoin ATMs”

The United States is a major driver in the proliferation of digital currency ATMs, due to its large and diverse market, well-defined regulatory framework, vibrant culture of financial innovation, growing acceptance of cryptocurrencies, access to abundant investment capital, extensive geographical reach, presence of pioneering operators, and consumer demand for cash-to-crypto services.

• The United States has a large number of Bitcoin owners, which reflects the expansion of the regional industry. For example, Coinbase reports that 20% of Americans own cryptocurrency.
• Increasing global popularity of cryptocurrencies is also predicted to boost market expansion throughout the forecast period. According to Coin ATM Radar, the United States has the most crypto ATMs, with 30,714.

How is India Driving the Sales of the Crypto ATMs?

“Growing Interest in Cryptocurrency for Financial Inclusion”

India is a key driver of the crypto ATM business in the Asia Pacific region. India, as one of the world's most populated countries, has an increasing number of cryptocurrency enthusiasts and investors. The population of the country is increasingly turning to cryptocurrency as a form of alternative investment and financial inclusion. India's developing digital infrastructure, particularly the growth of smartphones and internet connectivity, encourages the adoption of crypto ATMs, allowing a broader public better access to digital assets.

• India reported approximately US$ 172 billion in bitcoin transactions between July 2021 and June 2022, boosting its ranking in crypto adoption, according to research conducted by Chainanlysis.

Category-wise Insights

Based on type, the one way segment held a leading market share of 68% in 2022. The two-way segment is expected to grow rapidly over the forecast period, with the hardware segment accounting for 75% of the market in 2022.

What Justifies the Wide Use of Cryptocurrency in Restaurants and Other Hospitality Spaces?

“Global Access to Cryptocurrencies and Lower Exchange Rate Difficulties”

Restaurants and other hospitality spaces collectively led the market in 2022, accounting for 31% of the market share.

Restaurants and cafes, in particular, are accepting cryptocurrency payments. Customers can pay for their meals with Bitcoin utilizing user-friendly crypto ATMs located within these restaurants. This not only gives a novel and technologically advanced payment alternative, but it also draws Bitcoin enthusiasts to dine or visit these establishments.

Crypto ATMs in hospitality spaces cater to international travelers who may prefer to use cryptocurrencies for transactions due to their global nature and lower exchange rate difficulties. This trend demonstrates how cryptocurrencies are gradually becoming integrated into daily economic operations, making the cryptocurrency ecosystem more accessible and practical to a wider spectrum of users.

Competitive Landscape

The crypto ATM market's competitive landscape is characterized by a dynamic interplay between established companies and rising entrants. Leading organizations such as CoinFlip, Bitcoin Depot, and Coin Cloud have established huge networks of crypto ATMs throughout the United States and other countries, providing a variety of services and cryptocurrencies.

Young start-ups are constantly introducing novel features like two-way transactions, biometric identification, and expanded coin compatibility. Regulatory compliance remains an important aspect, with operators who successfully negotiate the complicated legal framework frequently earning a competitive advantage.

• CoinFlip, a Bitcoin ATM company, introduced Olliv, a self-custody platform, in April 2023. Customers can purchase, sell, and swap cryptocurrency assets using the self-custodial platform.
• Intellogate, a Ukraine-based crypto ATM manufacturer, announced in March 2022 the extension of its services across Asia in collaboration with Publish, a South Korean blockchain service provider, and Lincrux, a kiosk manufacturer.

Bitcoin Depot, Bitstop, Cash Cloud, Inc., Coinsource, Covault LLC, Bitaccess Inc., Cryptomat, and Coin ATM Radar are some of the top crypto ATM providers.

Segmentation of Crypto ATM Market Research

• By Type :

  • Hardware
  • Software

• By Offering :

  • One Way
  • Two Way

• By Coin :

  • Bitcoin (BTC)
  • Litecoin (LTC)
  • Ethereum (ETH)
  • Dogecoin
  • Bitcoin Cash
  • Dash
  • Tether (USDT)
  • Others

• By Application :

  • Commercial Spaces
  • Restaurants
  • Hospitality Spaces
  • Transportation Hubs
  • Standalone Units
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa