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The cash logistics market size is estimated to grow by USD 24 billion at a CAGR of 10.86% between 2023 and 2028. Cash logistics involves services like money processing, ATM management, and vault management. Market growth is driven by financial institutions outsourcing to reduce costs and enhance efficiency, increasing demand for secure logistics, money transportation and storage, and the need for advanced security measures due to regulatory compliance and security concerns.
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The market plays a critical role in cash management and security for businesses, financial institutions, and government agencies. Services such as money-in-transit, ATM points and ATM replenishment, and center operations ensure the safe and efficient handling of flows. Bank branches and ATMs rely on these services to maintain adequate levels. With the rise of digital money, the market is adapting to meet evolving cash demand and currency circulation needs. Major players like the State Bank of India (SBI) and the Bank for International Settlements (BIS) are key influencers in the market, emphasizing the importance of safe and secure cash management. Safety vaults and secure transportation are crucial for protecting valuable assets and mitigating hazards associated with public exposure during handling and transportation. Our researchers analyzed the data with 2023 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 growing preference for outsourcing cash management services by financial institutions is the key factor driving the growth of the global market size. The increase in the number of ATMs has led to the outsourcing of cash management and security. The volume of money processed by ATMs is expected to exceed that processed by bank employees, increasing the need for specialized cash logistics service. As the world's population grows, so does the demand for notes, accelerating the growth of cash logistics services outsourced by banks and financial institutions. Outsourcing security and management services has reduced the time it takes to move money. Customers are paid substantial compensation in the event of loss, misplacement, theft, or other incidents once the money is handed over to an external logistics company.
Banks are increasingly engaging in money management outsourcing activities to reduce their in-house operational activities. The growing adoption of automated cash management solutions is also a significant driver of the market. These solutions help retailers analyze their positions and provide finance and operation teams with clear visibility into these activities across all stores. This intelligence allows each store to make important decisions regarding staffing, security protocols, and procedures, float fund management, banking relationships, and the frequency of the pickups. Therefore, the growing preference for outsourcing management services by financial institutions is driving the growth of the market share during the forecast period.
Increasing demand for ATMs is the primary trend in the global market. There is a growing demand for automated recycling in ATMs, ATMs, and self-service money recycling machines. Banks and other financial institutions aim to achieve higher revenue growth, improved customer service, and cost optimization. There are certain market areas where retail customers need to withdraw money frequently, creating demand for regular cash replenishment. Such activities impose high costs on banks, such as labor costs, hiring counter staff, and the opportunity cost of storing large amounts of money in ATMs. Traditional banking structures require bank tellers to maintain balances. If the available money is above or below certain limits, the teller must sell or buy notes from the vault. Such a system requires multiple authentications and requires staff such as money handlers and supervisors.
Using a recycler system is like putting a vault between two tellers but with a superior cash management system. The recycling at modern ATMs with a notes recycler thus helps financial institutions optimize their operations at a lower cost by eliminating the costs incurred on resources, like a teller and a vault, for managing the balance. This also increases efficiency by roughly 90% over the traditional system and increases the profitability of banks because of lower expenses. Therefore, the rising demand for recycling is significantly driving the global ATM as well as the global market during the forecast period.
The highly competitive market is a major challenge to the growth of the global market. The global market is highly competitive, with many regions, such as Asia and Africa remaining untapped. Due to the similar nature of the services offered by various vendors, the pressure on price and reputation is enormous, making the quality of services offered a key differentiator in packing logistics contracts. Cost efficiency and the ability to effectively manage risk are key factors driving vendor selection.
The banking crises in Europe during 2009 and the devaluation of the currency in some countries of South America have increased pressure and competitiveness. The operating profit of all major vendors was offset by nearly 10% because of currency fluctuation in EMEA and South America. The duration of a typical contract is three years, and hence, currency fluctuation during this period can be a major problem for vendors.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
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.
AGS Transact Technologies Ltd.: The company offers cash logistics services under the brand Securevalue India.
Allied Universal: The company offers cash logistics services under the brand G4S Ltd. Also, the company provides security, professional, and technology services.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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 financial institutions segment will account for a major share of the market's growth during the forecast period. The financial institutions segment in the global market includes banks, credit unions, and other financial service providers that handle large volumes of transactions. These institutions often require secure and reliable transportation of money to and from their branches, ATMs, and other locations, which is where these logistics companies come in.
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The financial institutions segment was valued at USD 10.10 billion in 2018. Due to the high demand for these services from banks and other financial institutions, the financial institutions segment is expected to make the largest contribution to the market share during this period. Banks are the primary customers of logistics companies as they handle most transactions. In addition, credit unions, which are like banks but are member-owned, also need logistics services. They often have fewer branches than banks, but they still process a significant amount of transactions.
Other financial services providers, such as check-cashing businesses and payday lenders, also require these logistics services. These businesses often deal with large volumes of money and need to transport it securely to their locations. Therefore, the financial institutions segment will contribute largely towards the growth of the global market during the forecast period.
Based on service, the market has been segmented into cash-in-transit, cash management, and ATM service. The cash-in-transit segment will account for the largest share of this segment. They generally involve secure transportation of money between business and financial institutions, such as banks and credit unions. This segment includes services that minimize the risks associated with money transfers or assets by ensuring safe transportation using different armored vehicles. Moreover, cross-border transportation and storing during transit are generic money logistics solutions that are primary services offered by these services. An increase in money circulation and growth in outsourcing money-related activities by financial and business institutions will have a positive impact on this segment as well as the global market during the forecast period.
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North America is estimated to contribute 29% 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. The market is a significant component of the economic landscape, serving as a crucial link between economies, shops, wholesalers, and raw materials suppliers. In various economic regions, this market facilitates the exchange of cash and other financial instruments, ensuring client satisfaction through efficient and secure transactions. Electronic payment methods, such as internet banking and digital payment solutions, have gained prominence in recent years, transforming the cash logistics sector.
Further, financial service providers and technological improvements have played a pivotal role in enabling these advancements. Smartphones and internet users have become the driving force behind the shift towards digital transactions. The convenience and speed offered by these modern payment solutions have made them increasingly popular, particularly among younger generations. Wholesalers and raw materials suppliers benefit from cash logistics services by ensuring timely and secure receipt and disbursement of funds. The market's ability to adapt to changing consumer preferences and technological advancements is essential for maintaining client satisfaction and staying competitive. In conclusion, the Cash Logistics Market plays a vital role in connecting various economic actors, enabling secure and efficient transactions, and adapting to the evolving needs of clients and technological advancements.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market plays a crucial role in the banking sector and economies worldwide. These services include ATM replenishment, cash centers, and valuable transport for banks and businesses. Companies like The Brink’s Company and CompuSafe provide secure cash management solutions that form a huge component of the secure logistics market, utilizing technologies such as digital electronic vaults and motorized shooting bolts for safety.
Further, despite the rise of digital payment methods, physical cash remains vital, leading to a demand for efficient cash logistics agencies. With the advent of smartphones and mobile-based fund transfer applications, the industry continues to evolve with technological improvements to meet the needs of Internet users seeking digital payment solutions. The global market is evolving with advanced biometric POS terminals to enhance security for cashiers, ensuring smooth cash flows and efficient service at any location.
Cash logistics services are crucial for ensuring the smooth operation of financial systems and businesses. These services encompass various aspects, such as ATM replenishment services, cash movement, and cash processing. However, the industry faces challenges such as cash robbery and vehicle robberies during cash-in-transit. Companies utilize secure vehicles like the Mercedes Benz Sprinter to transport precious assets. Effective currency management and cash processing are essential for maintaining client satisfaction and ensuring the smooth flow of payments.
Additionally, with the rise of electronic payment methods and Internet banking, the industry is also adapting to provide digital cash management systems to meet the evolving needs of businesses and consumers. This is essential for businesses, encompassing cash payment, secure transportation to prevent cash-in-transit vehicle robberies, and facilitating transactions in shops, wholesalers, and distributors. It also involves managing cash flow with Cash management system suppliers, and raw materials suppliers, ensuring currency exchange in the local economic region, and providing cash management system solutions to streamline operations.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.86% |
Market growth 2024-2028 |
USD 24 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.55 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 29% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGS Transact Technologies Ltd., Allied Universal, AXIOM Armored, CMS Info Systems Ltd., GardaWorld Security Corp., Global Security Logistics Co., GSLS, Knightguard Protection Services Pty Ltd., Linfox Pty Ltd., Loomis AB, Prosegur Compania de Seguridad SA, Radiant Cash Management Services, SecureCash, SIS Ltd., The Brinks Co., Titan Armored Inc., TRABLISA, Transguard Group LLC, Writer Business Services Pvt. Ltd., and ZIEMANN SECURITY Holding GmbH |
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 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 End-user
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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