As China Gears Up for the 08 Olympics, ATM OEMs Jockey for Market Share

Implications: ATM OEMs (Original Equipment Manufacturers) are looking to the Asia-Pacific region for new growth opportunities as China's FIs prepare to provide ATM access and banking services during the 2008 Olympics in Beijing, China. The Asia-Pacific region currently has over 476,000 ATMs installed and is expected to reach over 642,000 ATMs by 2011 and China is fueling that growth. Over the next 4-5 years the Asia-Pacific region will add more than 165,000 ATMs, a 35% increase and China will install 65,000 of those 165,000 ATMs. ATM OEMs NCR, Diebold, Wincor, Hitachi and China's only ATM OEM, GRG Banking is jockeying for market share and ramping up their production efforts to prepare for the 2008 Olympics. GRG Banking will face stiff competition from the ATM giants, NCR and Diebold, who ships between 15,000 - 17,000 ATMs annually, compared to GRG Banking, who ships approximately 10,000 ATMs annually. China's, FIs are working with domestic and foreign OEMs, as a result of the ATM growth in China.

Analysis: Comments/Perspective:

ATM OEMs (Original Equipment Manufacturers) NCR, Diebold, Wincor, and Hitachi have setup operations in China and conducted R&D to determine China's ATM needs and to provide customized ATM solutions for some of China's largest banks (China Construction Bank, Bank of China, Agricultural Bank of China and the Industrial & Commercial Bank of China), in preparation for the 2008 Olympics and to carve out more market share in the region.

1.  China's Central Bank, the People's Bank of China, will lead the efforts to ensure China's banks are prepared for the 2008 Olympics and  NCR, Diebold and  Wincor has already inked major deals with some of China's largest banks, who realize the importance of offering ATM access to build up their customer service offerings

2.  ATM OEMs also realize the need to manufacture ATMs locally, to maximize customer service efforts, save on distribution costs, react quickly to local market issues and cultural concerns where local banks are concerned about buying from what they perceive to be U.S. or global companies

Adopting leading technologies is becoming a pressing task for local banks to help them meet the needs of China's fast growing consumer base and to compete with overseas companies and ATM OEMs NCR, Diebold, Wincor and Hitachi are well positioned in China to assist China's banks with their ATM growth, while capturing market share in the fastest  growing region in the world.