The ATM industry has spent an estimated $5.5 billion over the past decade and will have to foot several billion dollars more in operational costs every year according to a new report from the ATM Industry Association.

The 2014 "U.S. ATM Industry Overview," a white paper published by the Tremont Capital Group in partnership with the ATM trade association, suggests the industry is struggling to keep up with needed technology updates.

It finds that during the past four years the percentage of turnkey "placements" by independent ATM providers in the U.S. increased by 10%, while their aggregate net interchange income declined more than 25%.

Total expense as a percentage of transaction revenue has increased for all business models, according to the report. Changes also include regional redistributions of ATMs over the past few years, showing movement from Northeastern and Western states to Midwestern and Southern.

Data confirm that despite being under pressure from increased costs, the ATM industry continues to improve various aspects of existing business models, says David Tente, ATMIA U.S. executive director. New data about investments made to facilitate Windows 7 and EMV migrations this year will give an even clearer picture of ongoing industry changes, Tente says.

Despite many headwinds in recent years, especially in 2006 and 2007, the industry remains resilient, says the author of the report, Sam Ditzion, CEO of Tremont Capital Group, a payments business strategy, research, merger and acquisition advisory firm.