The global secure logistics market size to cross USD 26 billion by 2025, growing at a CAGR of 5% during the forecast period. The growing demand for cash in the emerging markets and the increasing number of fully automated smart cash-in-transit machines in developing countries are expected to generate new growth opportunities for the cash logistics market. Cash-in-transit services dominate the global market. The industry has witnessed the growing adoption of new technology in the logistics industry by major secure logistics market players to ensure the safety and security of cash-in-transit vehicles. The demand for cash pick-up & delivery, intercity bulk cash movement, and ATM cash management has increased. This is expected to contribute to the secure logistics market growth.
The demand for newly launched products from major premium electronic gadget manufacturers like Apple and One Plus has created a hike in demand for secure logistics services in several growing economies between 2016 and 2019. These tech firms make major investments in innovations in technology and design. The extended supply chain of these newly launched gadgets is transported with high-level secure logistics to protect the intellectual property of the company. Therefore, the demand for secure logistics is expected to increase significantly with the growing number of customers for electronic gadgets globally.
Since the outbreak of the COVID pandemic, several premium goods manufacturers have suffered major losses due to the lockdown imposed in economies around the world. The demand for secure logistics was impacted in Q1 and Q2 of 2020. However, the growth rates remain modest in Q3 and Q4.
- The cash services segment is expected to reach over $22 billion by 2025. The growth is on account of the positive trend experienced in the value of ATM withdrawals.
- The financial institution segment is likely to observe an incremental growth of $2.65 billion by 2025.
- The government agencies segment is projected to grow at the highest CAGR of over 5% during the period 2019–2025.
- The secure logistics market in India is expected to reach $360 million by 2025, owing to the increasing cash circulation in the country post demonetization.
- The market in Latin America is projected to reach close to $2 billion by 2025. This is due to the rise in cash circulation and increased ATM installations.
SECURE LOGISTICS MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Service Type
INSIGHTS BY SERVICE TYPE
Cash-in-transit services are experiencing exponential growth in emerging countries, especially in APAC. China and India are the fastest-growing segments for cash-in-transit services. The increasing ATMs, mainly in developing economies, is the major driving factor for the growth of cash services. The market in emerging countries, which include India, Indonesia, and Morocco, where cash accounts for more than 80% of transactions, is growing. The annual rate of decline in cash transactions is marginal, providing high growth opportunities in the secure logistics industry and for the companies operating in the industry.
Security services are predominantly witnessed in developed regions such as the US, Canada, France, and other developing countries in Latin America and the Middle East and Africa. This service has opted for the transportation of valuables such as gold bullion, premium goods, and other high-value goods between source and destination. The growth in the manufacturing and retail sectors and transportation and logistics industry trends are the driving factors for increased security services. The US, Western Europe, and Japan are mature markets for private security services. In developed economies, the ongoing proliferation of technologically advanced security systems drives the growth of security services. The demand for precious metals in industrial, jewelry, investments, and net official purchases by central banks and global organizations are significantly increasing, thereby developing demand for intense security services.
INSIGHTS BY END-USER
Globally, the recent developments in international logistics is increasing the level of transactions in point of sale (POS) and withdrawal activities in ATMs, especially in rural markets in emerging countries, is expected to fuel the demand for secure logistics in financial institutions. In 2019, increasing urbanization and access to technology that is observed with 72% of account holders increase the level of transactions in POS and withdrawal activities in ATMs. The demand for secure transit in financial institutions holds a major portion on the global scale. The growth in investment banking and financial institutions globally was a mixed bag in 2019. Global deposit growth over the year between 2015 and 2019 remained relatively flat, with a modest growth of approximately 1.5% in 2019.
The demand for secure transits gained its popularity in large-scale global retailers in 2019. Increasing security concerns and protection of intellectual properties of the state-of-the-art technology that is used by manufacturers are expected to be key major drivers, which are expected to drive the market in emerging economies. The growing demand for premium gadgets and high investments in large-scale machinery has been driving the market in APAC and Europe.
In 2019, the demand from several government operational activities grew strongly in the majority of emerging economies around the world. The rapid increase in the vehicle population in emerging countries increased workload significantly in 2019. The growing implementation of automatic toll collection units in APAC, the Middle East, and Africa is expected to increase the value for secure transits.
INSIGHTS BY GEOGRAPHY
The secure logistics market in Europe is in the mature stage. The industrial surge with high-end innovations in the manufacturing sector increased the growth potential for secured transit services in Europe significantly in 2019. The increasing rate of cash circulations and trade investments among European countries provides ample secure logistics opportunities. However, the market is currently is affected majorly due to the outbreak of the COVID pandemic. Trade policies among countries, Brexit issues majorly affect the secure logistics market share in the upcoming years. Few countries such as Italy, the Netherlands, and Spain are focusing on reducing the number of ATMs and bank branches to overcome the high operational cost, thereby developing electronic payment systems. Several initiatives taken by government agencies of emerging and developed countries to promote digital payments had lowered the operation of secure logistics in cash circulation significantly in 2019. However, the retail business is expected to be promising post-pandemic, developing ample growth opportunities for future trends in the logistics market.
INSIGHTS BY VENDORS
The global secure logistics market share is highly competitive due to the presence of several global, regional, and local players. The majority share of the market is captured by global players, including Brink’s, G4S, Garda World, Loomis, and Prosegur. To maintain a competitive advantage with other players in the market, global players are focusing on inorganic growth strategies, developing differentiated services by making high-value investments in technology. Besides, the threat of new entrants in the industry is low due to the high regulatory compliance and the client’s preference toward well-established companies. Therefore, high competition is witnessed among major players for global secure logistics companies.
The global secure logistics market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Service Type
- Cash Services
- Security Services
- Financial Institutions
- Australia & New Zealand
- South Korea
Middle East & Africa
- Saudi Arabia
- South Africa