The number of ATMs installed worldwide grew 3 percent to 3.3 million in 2016. As in recent years, the vast majority of new ATMs were installed in Asia-Pacific, according to the RBR study, Global ATM Market and Forecasts to 2022.

At a country level, China added by far the most ATMs in 2016, RBR research finds. However, the rate of growth in China has slowed as banks ramped up deployment of alternative self-service terminals, which are cheaper to install than ATMs, and typically offer a wider range of functionalities.

India, the Philippines, Pakistan and Bangladesh also saw strong growth in 2016, the study finds. In these countries, financial inclusion initiatives have bolstered the number of banked individuals — and the demand for cash.

The global importance of Asia-Pacific as an engine of growth is demonstrated by the fact that the region now accounts for more than half of all terminals installed worldwide — a share that is expected to reach 54 percent by the end of 2022.

While growth remains robust in Asia-Pacific, the number of ATMs in western Europe underwent a decline for the first time in 50 years, shedding 2,000 terminals in 2016.

The U.K., Germany and France, the region’s three largest markets, saw marginal falls, while Sweden, Norway, Denmark and Finland all experienced reductions of 5 percent or more, due to the falling demand for cash as consumers adopt alternative payment methods such as cards and mobile banking apps.

“Over the past decade, the number of ATMs deployed in Asian markets such as China and India has risen at breakneck pace,” said Rowan Berridge, who led the research forGlobal ATM Market and Forecasts to 2022. ” … [B]y the end of 2022, China alone will host close to 1 million machines, more than all North American and western European countries combined.”

ATM market growth in Asia makes up for contraction in Europe, RBR study finds