I was in the cleaning equipment game for 30 years before I became a handyman, the hand driers v paper towels argument was a regular feature in the trade press.
The paper manufacturers are huge multi nationals, the hand drier manufacturers are largely SME's.
The paper guys have two competitors - other paper guys & hand driers.
They compete with each other buy offering free dispensers which only take their paper, until a 'patent part' paper roll is introduced, then they change again.
The problem is they can't get into the huge high volume market with paper towels; shopping malls, airports, motorway service areas - because of the huge logistics problem - storing paper, replenishing supplies, removing waste.
So they constantly make the claim that hand driers spread bacteria.
However, if you have just wased your hands in a biocidal soap, there are no bacteria to be blown about.