SECURE LOGISTICS MARKET ANALYSIS

The global secure logistics market size was valued at US$ 83.28 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8% from 2023 to 2030. The global market for secure logistics is growing rapidly. A number of factors are driving this growth, including the rising amount of money that is moving around the world, warehouse technology, and the explosive growth in e-commerce sales. Other factors that are impacting the industry include a shortage of trained workers, cybersecurity problems, and increasing fuel prices. The demand for secure logistics services is expected to grow in the coming years, especially from emerging economies.

Global Secure Logistics Market: Regional Insights

The global secure logistics market is expected to gain substantial growth in North America region over the forecast period. This growth can be attributed to presence of large number of vendors, a high competitive market with presence of two robust economies, the U.S. and Canada. The region has huge number of international banks, a well-established manufacturing sector, and financial institutions. Thus, due to aforementioned factors, North America is anticipated to witness major growth in the global secure logistics market in the near future.

Furthermore, Asia Pacific is also anticipated to gain promising growth in the global secure logistics market over the forecast period, owing to rise in demand for secure transit in urbanizing cities around the region, expanding banking facilities in remote locations, and growing cash circulation. The region is witnessing a growth in number of ATM installation. Along with this, the population density and economic size of major cities is developing countries is positively impacting the financial sector. Thus, the regions is expected to show strong growth in the global secure logistics market in the coming years.

Figure 1: Global Secure Logistics Market Share (%), By Region, 2022

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Global Secure Logistics Market Drivers:

Increasing cash circulation all over the world to propel growth of the market

The retail and business sectors across the globe are witnessing rise in global cash circulation. Region such as Asia Pacific, and Middle East and Africa are witnessing high volumes of cash circulation. The high cash circulations in these regions is a result of restructuring of banks and financial operations, along with rising fiscal activities in developing countries. South Africa is witnessing a large number of cash circulation, as the country has high unbaked population. According to the Coherent Market Insights, South Africa had nearly 11 million unbaked population in 2019. Thus, the demand for secure logistics is increasing all over the world. The aforementioned factors are in turn expected to drive growth of the global secure logistics market over the forecast period.

Rise in preference for outsourcing cash management solutions to boost the market growth

Banks opt for outsourcing cash management services to armored car carriers or cash-in-transit companies for reducing liabilities and improving operational efficiency. The cash-in-transit companies serve financial institutions and banks, as they provide transportation, processing, storage, and accounting services. As the geographic dispersion of ATMs and bank branches is extending, the adoption of outsourcing the operations of cash management services has increased rapidly. This in turn is driving the demand for secure logistics. Thus, these factors are expected to augment growth of the global secure logistics market over the forecast period.

Global Secure Logistics Market Opportunities:

Growing demand for ATMs in developing countries is expected to create growth opportunities in the global secure logistics market over the forecast period. The global ATM market is likely to gain significant growth due to growing cash transactions in various developing countries around the world. There is a surge in the number of ATM installations in many emerging markets due to growing cash withdrawals. This in turn is likely to drive the demand for secure logistics creating growth opportunities in the global market.

Furthermore, increasing demand for cash in emerging regions is anticipated to generate business opportunities in the global secure logistics market over the forecast period. Cash payment is the highly preferred method of payment all over the world. The ATM withdrawals are increasing rapidly all over the world, especially in many developing countries. The rural segments of Asia Pacific are showing increased cash in circulation. Thus, this factor is expected to create business opportunities in the global secure logistics market over the forecast period.

Global Secure Logistics Market Trends:

Rise in number of high technology-based vehicles is a recent trend

In past few years, the major challenges faced by the global banking industry were in-transit security for vehicles that carried cash around different locations of the country. Most of the developing countries across the world, carry out cash transfer through transporting the currency chest of the bank to different ATMs and branches. For this, the industry is now adopting highly advanced technology-based vehicles in order transport the cash securely. This trend is expected to fuel growth of the global secure logistics market over the forecast period.

Rapidly developing logistics services is a new trend in the market

Logistics services are witnessing rapid developments and are likely to boost the demand for secure logistics in financial organizations, as the amount of transactions at the point of sales as well as ATM withdrawal activities are increasing in developing markets. As the urbanization is increasing around the world along with access to technology, the amount of cash withdrawals and POS transactions is likely to increase in the coming years. Thus, the trend is likely to continue in the global secure logistics market over the forecast future.

Global Secure Logistics Market Restraints:

Highly competitive market for cash logistics to hinder the market growth

The cash logistics market is highly fragmented and competitive. Major companies in the market competed on basis of conventional services of cash handling, meanwhile, the growing digital technology services are shifting efforts of companies in cash logistics towards developing and automating efficient service solutions.  This is further impacting the demand for secure logistics in the cash logistics market. Thus, this factor is expected to limit growth of the global secure logistics market over the forecast period.

Rise in use of electronic payment to hamper the market pace

Developed countries are witnessing declined cash transaction rates, as the expansion of electronic payment systems is increasing steadily. Moreover, due to convenience of card transactions for businesses and customers, the demand for secure logistics is likely to decline in the near future. The use of digital transactions reduces money laundering, grey economic activities, and frauds, and therefore, many countries are promoting cashless initiatives. This factor is expected to hinder growth of the global secure logistics market over the forecast period.            

Figure 2: Global Secure Logistics Market Share (%), By Service Type, 2022

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Global Secure Logistics Market Segmentation:

The global secure logistics market report is segmented into Service Type and End User.

Based on Service Type, the market is segmented into Cash Services, Security Services. Out of which, Cash Services is expected to dominate the global market over the forecast period and this is attributed to the rise in installation of ATMs in emerging countries. Cash-in-transit services are witnessing strong growth in the developing countries of Middle East and Africa and Asia Pacific. The countries in these regions are increasingly adopting ATMs in various region. This in turn drives the demand for secure logistics, which is expected to boost growth of this segment.

Security Services segment is also expected to witness significant growth in the near future and this is owing to the increasing proliferation of advanced security systems in developed countries. The adoption of security services is predominant in developed regions such as the U.S., France, and Canada among others. This service is used for transporting valuables such as premium goods, gold bullion, and other goods of high value. The demand for security services is increasing rapidly across such regions, which is likely to propel growth of the market.

Based on End User, the market is segmented into Financial Institutions, Retailers, Government, and Others. Out of which, Financial Institutions is expected to dominate the global market over the forecast period and this is attributed to the increasing value of currency in circulation around the world, specifically in Asia Pacific region. Several emerging countries are witnessing rise in asset services. Transactions in the investment banking and banking industry globally is stably contributing to the growth of the economies. The demand for secure logistics is increasing across these countries along with the value of currency in circulation. This factor is thus anticipated to drive growth of this segment in the coming future.

Retailers segment is also expected to witness significant growth in the near future and this is owing to the growing popularity of secure transit services among large-scale retailers across the world. Moreover, the security concerns along with number of newly opened retail stores are increasing rapidly. This in turn is driving the demand for secure logistics, as these retail stores are located on the outskirts of the city. Thus, the segment is likely to show strong growth in the global market.

Global Secure Logistics Market: Key Developments

In May 2022, Brink’s Incorporated announced partnership with Metaco, for the development of physical disaster recovery solution in order to safeguard private cryptocurrency key. The physical backups come in the form of smartcards for users.

In 2021, Prosegur and Foretica formed a partnership to aim development of alliance, which would help boost the process of transition toward a sustainable model.

In April 2023, Secure Logiq announced technology partnership with Briefcam, and under this partnership both the companies will combine the benefits of innovative video analytics solutions of briefcam with servers of Secure Logiq designed for HD surveillance applications for creating a strong security solutions.

In January 2023, BVC, a logistics company for jewelry and diamonds launched a novel service called BVC MarketSHIP, for making the marketing trips undertaken by the industry for securely acquiring new clients.

Global Secure Logistics Market: Key Companies Insights

The global secure logistics market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global secure logistics market are Garda World, Brinks, Securitas, G4s, and Loomis.

*Definition: A secure logistics service is provided to protect the cargo during transport, storage, and delivery. It involves providing a wide range of services such as armored car transportation, cross-border transport, armed security personnel, ATM management, cash-in-transit, and more.