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The banknote market size is estimated to grow at a CAGR of 4.46% between 2023 and 2028. The market size is forecast to increase by USD 1.90 billion. The growth of the market depends on serval factors, including the rise in financial inclusion, the implementation of central bank policies for clean banknotes, and the rise in the adoption of durable solutions for printing currency.
The research report of the Banknote Market, offers industry forecasts and segmentation based on Type including state-owned and commercial. It also segments the market by Application, which comprises intaglio printing, offset printing, and letterpress printing. Geographically, the report covers APAC, Middle East and Africa, South America, North America, and Europe. The market size, historical data for 2018-2022, and future forecasts are presented in terms of value (in USD billion) for all these mentioned segments.
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The implementation of central bank policies for clean banknotes is notably driving market growth. Implementing and stringently enforcing central bank standards for clean banknotes are viewed as critical drivers in driving the growth of the banknote printing industry. Central banks across the world guarantee that the banknotes in circulation are clean and of high quality by implementing the 'clean banknote' policy. These clean banknote policies entail a variety of currency management actions aimed at the efficient circulation of premium-grade banknotes and the removal of unfit/soiled banknotes.
Moreover, certain soiled and mutilated notes, however, continue to circulate as a result of the carelessness and negligence of several intermediaries, including deposit money banks, microfinance banks, merchant banks, cash processing companies, bank customers, market associations, government agencies, and general public. As a result, numerous central banks have established rules and are taking steps to prevent the inflow of soiled currency. For example, in India, the Reserve Bank of India (RBI) has implemented the Clean Note Policy to keep banknotes clean and useful while in circulation. This is expected to boost the demand for the reprinting of banknotes and currencies to replace discarded banknotes, which is expected to drive the growth of the market in focus during the forecast period.
Significant Banknote Market Trend
The development of various security printing methods is an emerging trend in the market. Several methods are used in security printing, and they play a pivotal role in addressing the issue of forgery and counterfeiting of currency notes. With the availability of various security inks and security printing methods, the global market is expected to grow during the forecast period. The different types of security inks and security printing methods include watermarks, holograms, serial numbers, intaglio printing, geometric lathe work, fluorescent dyes, and fluorescent dyes.
Moreeover, market players are introducing innovative new security inks to prevent counterfeiting and product piracy. In 2021, Indian scientists introduced nano-material-based security ink that emits luminescent light due to its unique chemical properties to prevent the counterfeiting of branded goods, banknotes, medicines, certificates, and currency. Hence, the introduction of new security inks would prevent fraudulent activities in highly secured printed products. Thus, such factors are expected to fuel the growth of the global market during the forecast period.
Major Banknote Market Challenge
The increasing use of cryptocurrencies is a major challenge impeding market growth. The use of cryptocurrencies has increased since 2016, mainly owing to the ease of transacting. Cryptocurrency does not involve handheld physical cash. It is a digital code that can be transferred through digital mediums. While making a purchase, smartphones are used to scan the code of the store, which is followed by the transfer of the required amount in terms of cryptocurrency to the store's digital wallet from the customer's digital wallet. An increasing number of stores are accepting cryptocurrency as the transactions are extremely easy, with no repetitive authentication required.
Moreover, cryptocurrency software allows a network of computers to maintain collective bookkeeping through the internet. It also contains all information, such as the time, date, and amount of the transaction. Moreover, cryptocurrency facilitates easy online shopping. It is similar to an e-wallet, which can store, spend, and track digital money. As it is less volatile than cash and local currencies, it becomes easier to transact across boundaries. Additionally, it is impossible to duplicate cryptocurrencies, and hence, it is a secured mode of transaction. Thus, these factors will impede the growth of the market during the forecast period.
The market research 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Banknote Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
CCL Industries Inc.: The company offers banknotes such as polymer banknotes through its subsidiary CCL Secure.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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 market 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.
The market share growth by the state-owned segment will be significant during the forecast period. Banknotes are usually printed by state-owned printers, also known as state print works (SPWs), of issuing countries. Owing to concerns related to national security, many countries adhere to SPWs. For instance, before 1877, most US banknotes were printed by various private firms. However, in March 1877, the Bureau of Printing and Engraving based in the US took over the exclusive responsibility of banknote printing in the US market.
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The state-owned segment was valued at USD 7.25 billion in 2018. Offering banknote printing contracts to printers located in a different country may be dangerous as then, the central bank would have to share important details about the currency's design and anti-counterfeiting features with the printer, which may lead to security-related issues and leak of sensitive information. This can result in the production of fake currencies and can eventually lead to tremendous fiscal damage to the economy. There is also the threat of economic destabilization as the contract agencies may undertake excess production, and the excess money could be supplied to unscrupulous elements to fuel terrorism and extremism. Thus, cross-border printing contracts for currency notes are always risky. Hence, the global market is likely to remain dominated by SPWs during the forecast period owing to the importance of preserving national security.
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APAC is estimated to contribute 67% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC dominates the global market owing to the high demand for banknotes from its large population base. The growth of banknotes is outlined with the prevalence of cash-based economies such as India. Additionally, many countries in APAC print their banknotes outside their national borders. China Banknote Printing and Minting Corp. (China Banknote Printing and Minting), which is one of the major banknote producers in Asia, has been printing banknotes for various countries, including Thailand, Bangladesh, Sri Lanka, Malaysia, Pakistan, and Nepal. The Belt and Road Initiative launched by China in 2013 has helped these countries promptly save a large sum of money by lodging their security printing requirements with China. This, in turn, is likely to fuel the growth of the market in China during the forecast period.
The banknote market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Banknote Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.46% |
Market growth 2024-2028 |
USD 1.90 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.54 |
Regional analysis |
APAC, Middle East and Africa, South America, North America, and Europe |
Performing market contribution |
APAC at 67% |
Key countries |
US, China, India, UK, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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., and Valora S.A. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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