Analyst at Ken Research in their latest publication “Global Cash Logistics Market Outlook to 2023 – By Region (North America, APAC, Europe, and Latin America Middle East and Africa) and Service (Cash in Transit, Cash Replenishment, Retail Cash Management and Other Cash Services – Cash Processing, Counting, Sorting, Packing and Transportation of Valuables & Bullion)“ believe growth investments in technology based services such as automated cash machines and electronic payment processing, consolidation in developed and tie-ups in emerging markets, need to diversify products and services away from banks and financial institutions towards other end users, and for companies to leverage their expertise to handle the next wave out cash outsourcing and bank automation will provide high value solutions will drive the growth in terms of revenue at a forecasted CAGR of nearly 9.0% for the period 2019-2023.
The first wave of outsourcing was driven by Banks’ need to concentrate on core banking services, reduce costs and commercial footprint. The steady rise in cash in circulation and overnight deposits drove demand for cash transportation services and ATM replenishment.
Growth in Number of ATMs: While emerging markets witnessed an increase in number of ATMs deployed by banks as part of their vision financial inclusion, developed markets witnessed increase in number of independent ATM Deployers or White Label ATMs. More than half of all ATMs in United States are non-bank owned ATMs. These ATMs are usually in far off rural regions, due to which cash logistics companies received better pricing for their services. The trend of White Label ATMs was also observed to grow in Australia, where Westpac Bank sold off a portion of its ATM fleet to ATM Managed Services companies.
Growth within the APAC Region: The region was observed with highest number of ATMs and large proportion of unbanked population therefore, further driving ATM deployment. Regions such as Oceania (Australia and New Zealand) have more than 80.0% outsourcing of ATMs for the year 2017. China was leading in terms of ATM deployments with more than 1 Million ATMs during 2013-2018. Countries such as India and Indonesia are large fragmented markets where many companies operate profitably due to low labor costs and low incidences of cash van robberies thus, generating low insurance costs. White Label ATMs operating in India provided opportunities for cash logistics companies to handle their cash transportation requirements.
Growth in Security Services: Most global companies operating in cash logistics market are also operating in the security services market. The innovation in their security services portfolio worked to complement the growth in cash operations, improve profitability with real time monitoring of cash vans and up-gradation of cash vans to specialized armored vehicles. The rise in technology based solutions drove the sales of cash machines for retailers, banks and other cash using end users. Loomis, for instance, signed a USD 48.0 Million contract with a major retailer in United States for installation of 1000 Safe Point devices by the year ending 2023.
Consolidation in Developed Markets: Companies operating on a global basis were observed to acquire local players in order to improve their market share and thus significantly achieve economies of scale. Mostly, the top 4 companies globally are leading consolidation trend by acquiring smaller regional companies. Acquisitions were also made for companies involved in technology based services such as payments service providers, cloud based solutions, Inter of Things, POS solution providers among others, to reach a greater number of end user such as retailers, industrial facilities and government entities.
Key Segments Covered
By Region
North America
Europe
APAC
Latin America, Middle East and Africa
By Service
Cash in Transit
Cash Replenishment
Retail Cash Management
Other Cash Services – Cash Processing, Counting, Sorting, Packaging,
By Countries Covered
United States of America
Brazil
France
United Kingdom
Germany
India
Australia
Indonesia
Spain
Saudi Arabia
Key Target Audience
Existing Cash Logistics Companies
Investors and Venture Capital Firms
Technology Based Startups
Banking and Financial Institutions
Government Entities
ATM Managed Services Companies
ATM Supply Companies
Retail Stores
Time Period Captured in the Report:
Historical Period: 2013 -2018
Forecast Period: 2019-2023
Companies Covered:
Global
Brink’s
Loomis
Prosegur
G4S
France
Temis
Germany
Ziemann
Kotter
Spain
Trablisa
Australia
Armaguard
United States
Dunbar
Brazil
Rodoban
Protégé
TB Forte
India
CMS Infosystem
Writer Safeguard
Securevalue
Logicash
Radiant Cash
Saudi Arabia
ABANA
Al Hamrani
Indonesia
ABACUS
SSI
Kejar
Advantage
APSG
Key Topics Covered in the Report
Global Cash Logistics Market Value Chain Analysis
Global Cash Logistics Market Overview
Global Cash Logistics Market Trends
Global Cash Logistics Market Challenges
Global Cash Logistics Future Projections
Global Cash Logistics Market Segmentation by Region
Global Cash Logistics Market Segmentation by Service
Competition Analysis of Global Cash Logistics Companies
Country Profiles – United States, Brazil, France, United Kingdom, Germany, India, Australia, Indonesia, Saudi Arabia, Spain
For more information on the research report, refer to below link:
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
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