LONDON--(BUSINESS WIRE)--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 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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