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The security paper market size is forecast to increase by USD 8.4 billion at a CAGR of 7.36% between 2023 and 2028. The market is experiencing significant growth, propelled by key factors reshaping various sectors worldwide. With the expanding global banknote market, there's a heightened demand for security paper to safeguard currency integrity against counterfeiting. Furthermore, the rising adoption of paper ballots in the US electoral system drives the need for secure paper materials to ensure election integrity and prevent fraud. Additionally, the growth in international tourism amplifies the necessity for security papers to produce passports, visas, and other travel documents, enhancing border security measures globally. This market expansion underscores the critical role of security paper in preserving authenticity and trust across diverse applications, from currency to electoral and travel documents.
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In the modernization of the industry, the market has gained significant attention. This market encompasses a wide range of products, including cash bases, passports, and various types of documents. The demand for these papers is driven by the need for secure identification and financial transactions. The cash base segment of the market is a critical component of the financial sector. Cash bases provide a secure storage solution for large amounts of cash, ensuring the safety and integrity of financial transactions. These bases are designed with advanced security features, such as fire-resistant materials and tamper-evident seals, to prevent unauthorized access. Passports are another important segment of the market. With the increasing globalization of economies and travel, the need for secure and reliable identification documents has become essential.
Further, the market plays a critical role in safeguarding sensitive documents and currencies in a cash-based economy. Utilizing natural materials and advanced technological developments, security papers incorporate features like metallic and microprint elements to deter counterfeiting. They are essential in printing currency notes, identity cards, passports, and visa documents, ensuring data security and authenticity. Polymer substrates enhance durability and security in transportation and logistics, while safety papers and stamp papers are integral to legal and governmental applications. Companies like Veridos lead in product development plans for security paper, focusing on digital data protection and ensuring compliance with stringent certificate requirements. As the demand for secure documentation grows, the security paper market continues to innovate to meet evolving global security challenges.
The growing global banknote market is a key factor driving the growth of the market. Although digital payment systems are growing worldwide, hard cash payments still occupy a prominent market share. More than 60% of transactions are done in hard cash across the globe. The high percentage of hard cash in the global payments market will lead to a strong demand for banknotes. The global banknote market is expected to increase the demand for currency security paper, which is made from a blend of two or more materials, such as cotton and linen.
In addition, the circulation of high-denomination banknotes within a country will stimulate its demand. Indeed, governments can at any time cancel and replace this currency with new banknotes. High-denomination coins make up a significant portion of the overall currency circulation in Australia, Canada, and the UK. Hence, these factors are expected to propel the market during the forecast period.
Integration of biometric authentication is a primary trend in the market. Embedding biometrics into secure documents is becoming increasingly popular to prevent document fraud and improve document authenticity. An additional level of protection is added by incorporating biometric technologies, such as fingerprint recognition, which makes it more difficult for forgers to create identical documents.
Moreover, to make personally identifiable documents more reliable and fraud-proof, companies like De La Rue and Giesecke+Devrient are at the forefront of developing secure documents that incorporate features biometric capabilities. The adoption of biometric-enhanced security documents is expected to drive significant expansion of the market during the forecast period as governments and organizations look for advanced solutions to prevent document fraud and identity theft.
The rising global e-passport market is a challenge that affects the growth of the market. Illegal immigration and cross-border crime are the key factors driving the global e-passport market. In addition, e-passports ensure quick security checks and identity verification at airports and international borders. Many government agencies use electronic passports to identify people entering their borders. The growing need to protect citizens and reduce the incidence of passport fraud is contributing to the growth of the global e-passport market.
Furthermore, the frequency of terrorist attacks, such as the 9/11 attacks in New York in 2001, the London train bombings in 2005, the Madrid train bombings in 2004, and the Paris attacks in 2015 led governments around the world to adopt and implement a global security e-passport. The global e-passport market is expected to influence the demand for secure paper used for passport printing. As a result, this is expected to impede the target market during the forecast period.
The market growth and trends 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 strategies.
Global Market Customer Landscape
The currency note segment is estimated to witness significant growth during the forecast period. The banking sector has improved significantly since 2010. North America is the fastest-growing market, with major contributions from the US and Canada. The banking sector in APAC and Latin America has enjoyed steady growth even during financial crises. Currently, the economic growth of Southeast Asian countries such as Singapore, Taiwan, Thailand, and Vietnam are influencing the growth of the banking industry in APAC. In
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The currency note segment was the largest segment and was valued at USD 6.70 billion in 2018. In addition to cash withdrawals, the provision of value-added services such as balance inquiries and checkbook queries via ATM is a key reason for the growth of the global automated teller machine (ATM) services market. The growth of the banking system and the number of ATMs worldwide is expected to increase the demand for currency notes. Therefore, the demand is expected to rise from the currency notes segment, thus driving the market during the forecast period.
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APAC is estimated to contribute 53% 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 APAC market has experienced significant growth due to the increasing use of security papers in various applications, including currency notes and banking applications. With large population bases and active economies, countries like China, India, Japan, and South Korea are major contributors to this expansion. To combat document-related fraud and counterfeiting, governments and financial institutions in the region rely on high-quality security papers with advanced features such as holograms, watermarks, and UV fibers. Key drivers of this market include the susceptibility to forgery and identity theft, infrastructure modernization, and the prevalence of cash-based economies and payments. They are used in various applications, including currency notes, passports, national ID cards, birth certificates, and legal documents.
In addition, emerging technologies like blockchain technology and digitization present new business opportunities in the market. They are being developed with advanced features like magnetic microwires, fluorescent fibers, and hybrid paper made of cotton fiber and synthetic materials using Cylinder mold technology. These advanced features provide enhanced security against alteration and data leaks. Louisenthal, a leading provider of solutions, offers customized papers with sophisticated security mechanisms to meet the evolving needs of the market. The market is expected to continue expanding due to the increasing demand for secure documents and the need to combat counterfeiting and forgery in the region.
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.
Security Printing and Minting Corp. Of India Ltd.: The company offers security-paper applications such as bank note papers, educational certificates, and financial documents.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In the market, cash based payments are a common payment method for transactions. This market involves the sale and purchase of security papers such as checks, bills of lading, and other documents that serve as evidence of a financial transaction. The use of secure paper is essential to prevent fraud and ensure the authenticity of these documents. The demand is driven by various industries, including finance, logistics, and manufacturing. The need for secure documentation is particularly high in the finance sector, where the transfer of funds relies on the integrity of checks and other paper-based instruments. The market is also influenced by technological advancements. Digitalization has led to the emergence of electronic documents and digital signatures, which have challenged the traditional paper-based system. However, the need for physical security paper remains, as some transactions still require tangible evidence that only paper can provide. The Currency Market is another significant player in the market.
In addition, the market is witnessing significant growth driven by factors such as a large population base and the prevalence of cash based payments, which have led to an increase in fraud and counterfeiting cases. To address this, there's been a notable investment in digital transformation, alongside the adoption of hybrid security papers integrating both traditional and digital security features. These papers are utilized in various applications, including paper ballots voting systems, and the production of bank/currency notes. Manufacturers are focusing on using high-quality materials like cotton fiber paper to ensure the authenticity of the original document and mitigate document related fraud and counterfeiting of documents. This underscores the importance of robust security measures in currency printing and document production.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.36% |
Market growth 2024-2028 |
USD 8.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.6 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, Germany, Japan, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ciotola s.r.l., De La Rue PLC, DIPA Zrt, DREWSEN SPEZIALPAPIERE GmbH and Co. KG, EPL House, FEDRIGONI Spa, FNMT RCM, Gemini Graphics Pvt. Ltd., Giesecke Devrient GmbH, HG Technology Sdn Bhd, Joint Stock Co. Goznak, Pura Group, Rolland Enterprises Inc., Security Paper Mill Inc., Security Papers Ltd., Security Printing and Minting Corp. Of India Ltd., and Simpson Security Papers Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market forecast, 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 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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