Cash Logistics Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Cash Logistics Market Forecast 2023-2027

The cash logistics market size is estimated to grow by USD 20.26 billion at a CAGR of 10.16% between 2022 and 2027. The growing preference for outsourcing management services by financial institutions is driven by the desire to reduce costs and improve efficiency. This trend is leading to increased demand for services such as money processing, ATM management, and vault management. The rise in safe and vault demand logistics firms is driven by the need to secure money in transit and storage, as well as to comply with regulatory requirements. The rise in security concerns among banks is also driving demand for secure money management solutions, such as high-security vaults and advanced surveillance systems.

What will be the Size of the Cash Logistics Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by end-user (financial institutions, retailers, government agencies, and others), service (cash-in-transit, cash management, and ATM service), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By End-User 

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 9.28 billion in 2017 and continued to grow until 2021. 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.

Service Segment Analysis

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.

By Region

APAC is estimated to contribute 35% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  

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In this region, a developing transportation infrastructure, a rise in the number of ATMs, and an increase in spending power in the region have contributed to the growth in the market. In addition, an increase in foreign trade and investments and a rise in safety and security concerns in the region will propel the growth of the market during the forecast period. Furthermore, more than half of the population in Asia prefers to use notes. Australia, India, China, Japan, Singapore, and South Korea are home to a massive portion of the world's underbanked population, a population that relies on transactions. This presents great growth opportunities for the market in the region. This culture is prevalent in these countries despite the wide range of government-driven noteless initiatives. Such factors will increase the market growth in this region during the forecast period.

Key Market Customer Landscape

Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027. 

Global Market Customer Landscape

Market Dynamics and Customer Landscape

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 replenishment, and center operations ensure the safe and efficient handling of flows. Bank branches and ATM points 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 studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.    

Key Market Driver

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. 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.

Significant Market Trends

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.

Major Challenge

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.

Who are the Major Cash Logistics Market Companies?

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.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:

• 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.
• ZIEMANN SECURITY Holding GmbH

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak based on their quantitative data analysis.  

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-User Outlook 
  • Financial institutions
  • Retailers
  • Government agencies
  • Others

• Service Outlook
  • Cash-in-transit
  • Cash management
  • ATM service

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market play 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, utilizing technologies such as digital electronic vaults and motorized shooting bolts for safety. 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.

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. 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.

Cash Logistics Market Scope
Report Coverage	Details
Page number	169
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.16%
Market growth 2023-2027	USD 20.26 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	9.49
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 35%
Key countries	US, China, India, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, 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 Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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