Cash Logistics Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI4895
Cash Logistics Market size is expected to grow substantially over 2021-2027, due to the increasing rate of currency in circulation in various economies. The Currency in Circulation in India grew by over 13% in the first 9 months of FY2020, with people showing preference towards cash as a precaution amid the rising uncertainty posed by the coronavirus pandemic. The ongoing need for cash has led to the increased installation of more ATMs worldwide, as banks shift to these machines to fulfill transactions that were previously conducted at the teller.
Cash logistics refers to the handling and physical movement of cash from one location to another. It generally consists of services such as cash management, cash-in-transit, and ATM replenishment. Moreover, it includes other services like sorting, wrapping, conditioning bills, and checking the quality of bills, among others.
Rapid introduction of safes and vaults for efficient cash management is one of the prominent trends stimulating the cash logistics market expansion. For example, Cash Connect’s N3K cash vault was designed to fit into retail stores with limited floor space, without reducing the security and cash management features. Additionally, the significant increase in interchange fees for financial transactions by the Reserve Bank of India and the anticipated rise in penetration of ATMs will further proliferate industry share in the upcoming years.
Considering the service, the cash logistics market from the cash management segment will hold an appreciable share by 2027, owing to its ability to efficiently process payables and receivables, thus optimizing cash flow. For example, ICICI’s cash management services can ensure efficient logistics and advanced technology support, in addition to ensuring timely deposit of collections and execution of disbursement requests.
From a regional perspective, Europe is poised to emerge as a lucrative revenue pocket for the cash logistics industry by 2027. This is driven by the growing demand for cash across households and monetary financial institutions and businesses in the region. According to European Central Bank reports, the value of euro banknotes in circulation increased from $1.5 trillion in 2019 to $1.7 trillion in total at the end of 2020. However, the increasing rate of cash-in-transit attacks across the region may create adverse impacts on the adoption of cash logistics solutions in the coming years.
Major players operating in the cash logistics market include Lemuir Group, Prosegur Cash SA, G4S, Global Security Logistics Co., CMS Info Systems Ltd., The Brink’s Company, GardaWorld Corporation, Loomis, GSLS, and Cash Logistik Security AG, among others. These companies are focusing on various strategies such as mergers and acquisitions and business expansion to reinforce their shares across the global market.
For instance, in April 2021, The Brink’s Company announced the acquisition of PAI, Inc. The deal was made with an aim to accelerate the execution of Brink’s Strategy 2.3 initiatives and offer complete, end-to-end cash management in North America.
COVID-19 impact on cash logistics market trends:
In light of the coronavirus pandemic, an unprecedented surge in demand for contactless payment has been witnessed worldwide, leading to a drastic decline in cash usage to avoid the risk of contamination. According to Pew Research Center, nearly one-third of the adult population in the U.S. typically makes no purchase using cash. This considerable decrease in cash usage over the past months may pose challenges to the growth of the cash logistics industry in the coming years.
However, a significant recovery in product sales across the retail sector may assert a positive influence on the cash logistics market. The retail sector is on the path to recovery from the crisis, as it recorded 93% of the pre-COVID sales in February 2021, which could, in turn, bolster demand for robust cash logistics solutions in the years ahead.
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