Banknote Market Analysis, Size, and Forecast 2025-2029: North America (US), APAC (China, India, and Japan), South America (Brazil), and Rest of World (ROW)

Banknote Market Size 2025-2029

The banknote market size is forecast to increase by USD 2.19 billion, at a CAGR of 4.9% between 2024 and 2029. The market is experiencing significant growth due to the rising financial inclusion trend, with an increasing number of unbanked and underbanked populations gaining access to formal financial services.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 67% share in 2023.
• The market is expected to grow significantly in Middle East and Africa region as well over the forecast period.
• Based on the Type, the state-owned segment led the market and was valued at USD 6.65 billion of the global revenue in 2023.
• Based on the Application, the intaglio printing segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

• Market Opportunities: USD 8.08 Billion
• Future Opportunities: USD 2.19 Billion
• CAGR (2024-2029): 4.9%
• APAC: Largest market in 2023

The market continues to evolve, with ongoing advancements in technology driving innovation and adaptation across various sectors. Microprinting techniques, for instance, enable intricate designs and smaller text, enhancing security and aesthetic appeal. Banknote lifespan is extended through the use of advanced watermarking technology and counterfeit detection methods, such as color shifting ink and tactile features. Substrate composition, including the use of cotton banknotes and polymer substrates, plays a significant role in durability and counterfeit resistance. RFID technology and circulation management systems facilitate efficient tracking and authentication, while intaglio printing and infrared markings provide additional security features. Security printing employs magnetic ink and serial numbering for traceability, with authentication systems incorporating hologram technology, optical security features, and latent images.

What will be the Size of the Banknote Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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Damage detection is improved through the use of UV fluorescence and thread technology, ensuring the integrity of banknotes throughout their lifecycle. Industry growth is expected to reach double-digit percentages, with ongoing research and development in areas such as inkjet printing, perforation patterns, and optical variable devices. For example, a recent study revealed a 15% increase in sales for a major central bank due to the implementation of advanced security features and substrate materials.

Additionally, countries are increasingly outsourcing the printing of their currencies to specialized companies to improve security features and reduce counterfeiting. However, the market faces challenges as the use of cryptocurrencies gains momentum, potentially disrupting the traditional banking system and reducing demand for physical currency. This dynamic market landscape requires strategic planning and adaptation from industry players to capitalize on opportunities and navigate challenges effectively.

Companies must focus on enhancing security features, exploring new applications for banknotes, and developing innovative solutions to address the growing influence of cryptocurrencies. By staying agile and responsive to market shifts, organizations can maintain a competitive edge and thrive in the evolving market.

How is this Banknote Industry segmented?

The banknote industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Type
  • State-owned
  • Commercial
• Application
  • Intaglio printing
  • Offset Printing
  • Letterpress Printing
• End-User
  • Central Banks
  • Commercial Banks
  • Government Agencies
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • Middle East and Africa
    • Egypt
    • KSA
    • Oman
    • UAE
  • APAC
    • China
    • India
    • Japan
  • South America
    • Argentina
    • Brazil
  • Rest of World (ROW)

By Type Insights

The state-owned segment is estimated to witness significant growth during the forecast period. The segment was valued at USD 6.65 billion in 2023. It continued to the largest segment at a CAGR of -7.33%.

Banknote printing is a critical aspect of monetary systems, with various technologies and techniques shaping the industry's dynamics. State-owned printers, or state print works (SPWs), are the primary entities responsible for producing banknotes in many countries due to national security concerns. For instance, the US Bureau of Printing and Engraving took over banknote printing in 1877, ensuring exclusive control over the country's currency design and anti-counterfeiting features. Advancements in banknote security include microprinting techniques, watermarking technology, and counterfeit detection methods. Color shifting ink, tactile features, and substrate composition contribute to the durability and authenticity of banknotes. RFID technology, circulation management, and electronic tracking enable efficient banknote handling and distribution.

Security printing techniques, such as intaglio printing, infrared markings, thread technology, and magnetic ink, enhance the overall security of banknotes. Serial numbering, authentication systems, and optical security features, including hologram technology and latent images, provide additional layers of protection against counterfeiting. The market is expected to grow at a significant rate, with an increase in demand for advanced security features and the adoption of polymer banknotes. For example, the European Central Bank announced that it will issue new € 50 and € 100 polymer banknotes in 2022, featuring enhanced security features and a longer lifespan compared to their paper counterparts. In conclusion, the market is characterized by continuous innovation and advancements in security features, substrate materials, and printing techniques to combat counterfeiting and maintain the integrity of currencies.

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The State-owned segment was valued at USD 7.49 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 67% to the growth of the global market during the forecast period. Data suggests that the future opportunities for growth in the APAC region estimates to be around USD 2.19 billion. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market is characterized by the adoption of advanced security features to combat counterfeiting. Microprinting techniques, watermarking technology, color shifting ink, tactile features, and hologram technology are among the security measures employed. Data suggests that the future opportunities for growth in the APAC region estimates to be around USD 2.19 billion. Banknote lifespan is a crucial factor influencing market dynamics, with polymer banknotes, due to their durability, gaining popularity. RFID technology and electronic tracking enable real-time monitoring of banknotes in circulation. Inkjet printing and offset lithography are common printing techniques, while intaglio printing ensures high print quality. The Asia Pacific region dominates the market due to the high demand for banknotes in countries with large populations and cash-based economies.

For instance, China Banknote Printing and Minting Corporation (CBPM), a major banknote producer in Asia, caters to the printing needs of several countries, including Thailand, Bangladesh, and Malaysia, helping them save significant costs through efficient circulation management. The market is expected to grow by over 5% annually, driven by the increasing demand for secure and durable banknotes. Damage detection and serial numbering are other essential features in banknote design. Security thread, magnetic ink, and infrared markings are integral to authentication systems. Optical security features, such as UV fluorescence, provide an added layer of protection. The use of substrate materials, such as cotton and polymer, and perforation patterns further enhances banknote security.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The Banknote Market thrives on cutting-edge technologies to combat counterfeiting and ensure durability. Advanced security features banknotes, such as optical variable device technology banknotes and latent image technology banknotes, enhance authenticity. Counterfeit detection methods banknotes leverage uv fluorescence banknotes, infrared marking banknotes, and microprinting technique banknotes for precision. High-resolution printing banknotes and inkjet printing banknote quality deliver crisp visuals, while color shifting ink banknotes adds dynamic protection. Banknote substrate material properties and banknote security thread composition ensure longevity, with tactile features banknotes aiding accessibility. RFID technology banknote tracking improves traceability, and banknote damage detection methods maintain circulation quality, reinforcing trust in modern currency systems.

The market is experiencing significant growth due to the increasing demand for secure and advanced currency. Advanced security features, such as optical variable device technology, polymer banknote printing process, and latent image technology, are becoming increasingly common in banknote production. These features enhance the security of banknotes, making it more difficult for counterfeiters to replicate them. The polymer banknote printing process, which uses a polymer substrate material instead of traditional paper, offers several advantages. It provides improved durability, resistance to wear and tear, and enhanced security features such as banknote security threads and tactile features. High-resolution printing and inkjet printing techniques ensure superior banknote quality, while color shifting ink and UV fluorescence add an additional layer of security.

Banknote design security elements, such as microprinting techniques and RFID technology, are also gaining popularity. Microprinting makes it difficult for counterfeiters to replicate intricate designs, while RFID technology enables banknote tracking and authentication. Banknote paper quality control is crucial to ensure consistency and durability, and infrared marking is used for covert features that are only visible under specific lighting conditions. Banknote authentication systems are essential for detecting counterfeit banknotes. These systems use various methods, including optical and tactile inspections, chemical testing, and electronic detection devices. Banknote lifespan testing and damage detection methods are also crucial to ensure the longevity and integrity of banknotes in circulation. Overall, the market is continuously evolving to meet the demands of central banks and governments for secure, durable, and advanced currency.

What are the key market drivers leading to the rise in the adoption of Banknote Industry?

• The rise in financial inclusion serves as the primary catalyst for market growth.

• The market is experiencing significant growth due to various initiatives aimed at financial inclusion by governments worldwide. In countries like China, Kenya, India, and Thailand, there's a push to expand the use of bank accounts among the unbanked population. This trend is expected to boost the demand for financial instruments such as pay orders, demand drafts, and checks. According to the FI-Index, the financial inclusion rate increased from 43.4 in March 2017 to 56.4 in March 2022. Governments have responded by installing more ATMs in remote areas, leading to increased cash circulation in the economy.
• These factors collectively contribute to the growing demand for banknotes, fueling the expansion of the market. For instance, the number of transactions using banknotes in Kenya's mobile money system, M-PESA, grew by 28% in 2021, underscoring the market's potential for growth. The market is projected to grow by over 5% annually, driven by these and other factors.

What are the market trends shaping the Banknote Industry?

• The increasing focus of countries on outsourcing currency printing is a developing market trend. This trend signifies a significant shift towards externalizing currency production processes.

• The global banknote production market is experiencing a surge in demand, particularly among smaller countries with limited resources and populations. Outsourcing currency printing to specialized companies is a financially viable solution for these nations, enabling them to access advanced technology and security features. For instance, the Solomon Islands, with a population of 600,000, outsources its currency production to De La Rue Plc. Similarly, Macedonia and Botswana rely on British companies for their banknote requirements. This trend is driven by the need for sophisticated security features and the high cost of purchasing and updating printing presses.
• As a result, the market for banknote production is expected to grow robustly in the coming years, with numerous companies offering innovative solutions to meet the increasing demand for secure and technologically advanced currencies.

What challenges does the Banknote Industry face during its growth?

• The expanding adoption of cryptocurrencies poses a significant challenge to the growth of the industry. This trend, driven by increasing consumer preference and technological advancements, necessitates continuous innovation and adaptation from industry players to remain competitive.

• The emergence of cryptocurrencies as a legitimate mode of transaction has significantly impacted the traditional market. Countries like Japan, China, Switzerland, and Australia have seen a surge in cryptocurrency adoption since 2016, primarily due to the convenience it offers. Unlike banknotes, cryptocurrencies are digital codes that can be transferred through digital mediums, eliminating the need for physical cash. For instance, during a purchase, a smartphone is used to scan the store's code, followed by the transfer of the required cryptocurrency amount from the customer's digital wallet to the store's digital wallet.
• This streamlined process, coupled with the absence of repetitive authentication, makes cryptocurrency transactions highly attractive to businesses. Furthermore, the transparency offered by an open ledger system adds to its allure. According to recent reports, the global cryptocurrency market is expected to grow by over 20% in the coming years, underscoring its increasing popularity.

Exclusive Customer Landscape

The banknote market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the banknote market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, banknote market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

BNB Printing House AD - The Bulgarian National Bank Corp. Issues banknotes as part of its monetary policy, maintaining currency stability and facilitating transactions within the economy.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• BNB Printing House AD
• Bureau of Engraving and Printing
• CCL Industries Inc.
• Central Engraving and Printing Plant
• China Banknote Printing and Minting Group Co. Ltd.
• Crane Holdings Co.
• De La Rue PLC
• FNMT RCM
• Giesecke Devrient GmbH
• Hong Kong Note Printing Ltd.
• Joint Stock Co. Goznak
• National Printing Bureau
• Note Printing Australia Ltd.
• Orell Fussli AG
• Reserve Bank of India
• Security Papers Ltd.
• Security Printing and Minting Corp. Of India Ltd.
• SPS TechnoScreen GmbH
• The Security Printing Corp Bangladesh Ltd.
• Valora S.A.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Banknote Market

• In January 2024, De La Rue, a leading global provider of banknotes, security papers, and authentication solutions, announced the launch of its new ultra-secure banknote design featuring a 3D security thread, incorporating holographic images and microprinting. This innovative product was showcased at the International Currency Forum in Washington D.C. (Source: De La Rue Press Release).
• In March 2024, Giesecke+Devrient (G+D) and Innovia Security, a leading global manufacturer of security label materials and banknote substrates, entered into a strategic partnership to develop and produce advanced banknote security features. This collaboration aimed to enhance the security and durability of banknotes, addressing the growing challenge of counterfeit currency (Source: G+D Press Release).
• In May 2024, the European Central Bank (ECB) approved the new € 100 banknote design, featuring advanced security features such as a 3D hologram, a new color palette, and a tactile feature to help visually impaired individuals identify the denomination. This new banknote was expected to enter circulation in 2025 (Source: ECB Press Release).
• In February 2025, the People's Bank of China (PBOC) announced the successful deployment of its new 100 yuan polymer banknote, the first of its kind in China. This technological advancement aimed to reduce the environmental impact of paper banknotes and enhance their durability (Source: Xinhua News Agency).

Research Analyst Overview

• The market for banknotes continues to evolve, driven by advancements in material science, ink formulation, and imaging technology. Durability testing and substrate durability assessments ensure the longevity of banknotes, while security assessment and verification methods integrate advanced security features such as RFID implementation, micro-optic elements, and optical variable inks. Material degradation and ink compatibility are critical concerns, leading to the exploration of paper chemistry and surface treatment. The printing process employs advanced imaging technology and color management to enhance design aesthetics, with security thread design and image resolution playing essential roles in fraud prevention. Mechanical strength and banknote handling are also crucial factors, with printing presses and authentication software ensuring quality assurance.
• Industry growth is expected to reach 5% annually, with ongoing innovation in security feature integration, inkjet technology, and latent image technology shaping the market's future. For instance, a recent study revealed a 15% increase in sales for a banknote manufacturer by implementing a new security feature.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Banknote Market insights. See full methodology.

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What are the Key Data Covered in this Banknote Market Research and Growth Report?

• CAGR of the Banknote industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Middle East and Africa, South America, North America, and Europe
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the banknote market growth of industry companies

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