Global Cash Logistics Market to Grow at a CAGR of Over 10% Through 2021, Reports Technavio

Technavio has published a new report on the global cash logistics market from 2017-2021. (Graphic: Business Wire)

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LONDON--()--Technavio market research analysts forecast the global cash logistics market to grow at a CAGR of more than 10% during the forecast period, according to their latest report.

The market study covers the present scenario and growth prospects of the global cash logistics market for 2017-2021. The report also lists cash-in-transit, cash logistics, and the ATM services as the three major service types for the cash logistics market, of which cash-in-transit, accounted for more than 42% of the market share in 2016.

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Technavio reports answer key questions relating to market size and growth, drivers and trends, top vendors, challenges, and more. Their analysts continuously monitor and evaluate the market landscape to help businesses assess their competitive position.

Technavio analysts highlight the following three market drivers that are contributing to the growth of the global cash logistics market:

  • Growth in cash circulation
  • Rise in safe and vault demand for cash management from cash logistics firms
  • Rise in security concerns among banks

Growth in cash circulation

Cash circulation has increased globally by around 8%, during the five-year period between 2009 to 2013. With the advent of ATMs, banks have been able to increase their cash circulation by reaching far-off places, thereby pushing the number of ATM installations across remote locations and connecting with new customers. It is observed that despite the new payment methods, most of the transactions in the world are still made in cash.

“This has led the cash logistics firms to provide various services, such as forecasting, loading, monitoring, maintenance, and other ATM cash handling works. These services provided by cash logistics firms to the banks and other financial institutions help in the efficient and secure handling of cash while circulating it in specific regions,” says Sharan Raj, a lead analyst at Technavio for logistics research.

Rise in safe and vault demand for cash management from cash logistics firms

There is always a strong demand for safety vaults and locks from the banking sector for storing cash and other valuable items. To protect vaults from burglar attacks, they are fitted with an array of alarms and anti-theft devices. The demand for safety systems is on the rise, especially in developing regions where there is an increase in disposable income. The growth of the banking sector is propelled by an increase in the number of ATMs worldwide, with the global ATM market expected to cross a revenue of USD 20 billion by 2020. ATMs are protected from gas attacks, physical cutting, drilling, and ram raids using these safes.

Digital electronic safes and vaults are becoming increasingly popular compared to the manually operated ones. The inefficiencies related to manual safes are eliminated using digitized ones. Features like motorized shooting bolts for extra protection, non-volatile memory, low battery indicators, and password protected locks and digital locking mechanisms are in these safes.

“They also have options, such as LED displays, mechanical overrides, touch screen options, and remote controls. One such example is Brink's safe control device installation and service, called CompuSafe,” says Sharan.

Rise in security concerns among banks

Due to the increase in terrorism and organized crime, the need for professional security systems and security professionals has increased. In 2015, cyber-attacks and cyber-crimes against large companies worldwide increased by 40%. These attacks are costing enterprises billions of dollars. Each attack led to a loss of USD 6,80,000, while thousands of attacks take place every year.

This has led to an increase in the number of firms specializing in cash logistics and security services. Cash logistics firms have slowly moved from traditional methods of manning premises to advanced methods, such as regular monitoring and neutralization techniques. Cash transportation and cash in ATMs have become increasingly prone to security threats. These factors are expected to lead to the growth of cash logistics firms.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

Technavio market research analysts forecast the global cash logistics market to grow at a CAGR of more than 10% during the forecast period, according to their latest report.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com