SECURE LOGISTICS MARKET ANALYSIS

Market Challenges And Opportunities

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 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.