The report titled “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 and Bullion)” provides a comprehensive analysis on the historical and future analysis of the cash logistics industry globally. The report covers various aspects such as market overview and genesis, value chain analysis, industry cycle, market segmentation by region (North America, Europe, Asia Pacific and Latin America, Middle East and Africa) and service (Cash in Transit, Cash Replenishment, Retail Cash Management and Other Cash Services such as Cash Processing, Vaulting, Sorting, Packing, Transportation of Bullion and valuable Assets), profiles of major countries (US, Brazil, France, UK, Germany, India, Australia, Indonesia, Spain and Saudi Arabia) in terms of number of ATMs, competition scenario in those countries including Market share in terms of revenue and number of ATMs managed, business model for ATM management, cross comparison of companies on the basis of Number of ATMs managed, Name of Cash Machines Sold, Annual Revenue and Number of Cash Vans, ATM withdrawal and cash circulation scenario. The report concludes with future projections in the global market size and analyst recommendations.
Global Cash Logistics Market Overview and Size
The growth in global cash logistics market has been driven by the first wave of outsourcing of cash management services by banks, financial institutions and retail end users. The growth in ATMs worldwide, especially in developed economies to bring more people under the banking system has been the major growth drivers. The growth in retail end user segment has been driven by the need for cash automation services. This has forced cash logistics companies to shift away from traditional cash services to smart cash devices to automate retail front and back end cash operations.
Global Cash Logistics Market Segmentation
By Service (Cash-in-Transit, Cash Replenishment, Retail Cash Management and Other Cash Management Services): Cash in Transit service segment has traditionally been a cash cow for cash logistics companies are circulation of cash has been steadily growing. The growth in number of ATMs has contributed to the growth in the Cash Replenishment Service, which also complements the growth in Cash in Transit Services. The rise of digital payments in recent years has dampened the profitability from these services due to rising costs associated with handling of cash. Companies have invested in new technology based products and services that have given rise to Smart Cash machines that automate the cash cycle and adopt the use of digital technology.
By Region (North America, APAC, Europe and LAMEA): The North American Cash Logistics market held the highest share in the global market and grew at a CAGR of 3.6% in terms of revenue for the review period 2013-2018. The growth was driven by rise in ATMs deployed by Independent Operators such as Cardtronics, which led to increased outsourcing revenue for cash logistics companies.
The European region market size in terms of revenues earned by cash logistics companies grew at a CAGR of nearly 3.0% for the review period 2013-2018. The growth was driven by introduction of high value services that included automating cash cycle for retailers, improving cost efficiency through operational restructuring and increased outsourcing by banks and retailers. France and UK were the leading regions during 2013-2018 in terms of market size by revenue, occupying more than half of the regional market share.
The APAC region was second largest on the back of increased ATMs by IADs which led to greater outsourcing. China, India and Indonesia were the leading countries in terms of revenue in the APAC region during the year 2018. The entry of international companies by way of strategic tie-ups increased the competition in this region.
The Latin America, Middle East and Africa region was the fastest growing region due to the nascent state of the market. Brazil, with the highest revenue in the region, saw an increase in ATM outsourcing, followed by Saudi Arabia and South Africa.
United States was the largest market in terms of revenue during the review period 2013-2018, growing at a CAGR of 8.0% for the review period 2013-2018. The majority of ATMs deployed in the country belong to non-bank entities, and management of these ATMs for CIT and cash replenishment is outsourced completely. The region also saw growth in sales of automated cash machines as retailers’ demand for cash automation rose.
Brazil’s Cash Logistics market grew at a CAGR of 0.9% from 2013-2018; however the country’s revenue was the second highest in the American region. The country has the highest number of ATMs deployed in Latin America. Half of all retail payments were made in cash, which drove the cash management for retail end users.
France is the largest market for cash logistics in Europe. The market size in terms of revenue declined marginally at a CAGR of 0.4% during 2013-2018. The competition in the region saw consolidation during the period as costs associated with cash in transit and cash replenishment were rising for companies.
United Kingdom’s Cash Logistics market in terms of revenue grew at a CAGR of 4.6% from 2013-2018. The region’s market share is the second highest in Europe, while the number of ATMs deployed is highest in Europe. The trend of cash usage is declining in the region as both value and volume of ATM withdrawals declined during 2013-2018.
Germany’s cash logistics market was the fastest growing cash logistics market in terms of revenue, at a CAGR of 7.6% for the review period 2013-2018. The region saw consolidation as a way of market entry as well to increase market share.
India’s cash logistics market was the fastest growing market in terms of revenue in APAC region, growing at a CAGR of 16.5% for the review period 2013-2018. The main drivers for rise in ATM deployment drop in surcharge fees due to government regulations and increase in outsourcing and number of companies operating in the country.
Australia cash logistics market in terms of revenue grew at a CAGR of 6.8% from 2013-2018. The region witnessed increased outsourcing from banks such as Westpac, which sold a major portion its ATM fleet, to be operated as White Label ATM. The country is expected to encourage the formation of a common ATM utility provider.
Indonesia Cash Logistics Market has witnessed growth due to an increase in number of ATMs, fall in the prices charged by managed service providers, surge in initiatives taken by Bank Indonesia to promote financial inclusion across the country. The market in terms of revenue grew at a CAGR of 6.3% for the period 2013-2018.
Spain’s cash logistics market in terms of revenue grew at a CAGR of 7.7% for 2013-2018. The number of ATMs in the region witnessed a steady drop from 2013-2018. As most of the ATMs are at off-site location, the degree of outsourcing by banks has been large. The competition in the region is concentrated between three companies.
Global Cash Logistics Market Competition Scenario
The competition in the global cash logistics market was observed to be moderately fragmented among 4 players who hold a majority share for the period 2013-2018. The market was observed to have more than 500 players operating, with just 4 companies operating globally. While companies compete on basis of traditional cash handling services, the rise of the digital technology has shifted their efforts towards automating their services and employing more technology. With traditional services suffering from declining margins, consolidation has begun and is growing among the top companies. The need for Consolidation is driven by the need for companies to enter new markets, increase market share in existing markets, and diversify product and service portfolios to accommodate technology based offerings.
Global Cash Logistics Market Future Outlook and Projections
The global cash logistics market in terms of revenue is forecasted to grow at a CAGR of 9.0% from 2018-2023. Growth is expected to be driven by the shift from traditional CIT services to high value services enabling cash automation and sales of cash machines. Companies providing cash logistics services are expected to expand their service portfolios to provide end-to-end management of ATM fleets, as the next wave of outsourcing is set to take shape in emerging economies. The shift to digital payment methods is expected to reduce the footprint of banks, cash usage and cash sales for retailers among others. The APAC region is the fastest growing market and is further expected to grow at a CAGR of 7.3% from 2018-2023, and is expected to be the second highest region within terms of revenue. The LAMEA region, due to the nascent stage of market is expected to grow at a CAGR of 13.6%, while the European region is forecasted to grow at a forecasted CAGR of 4.1% from 2018-2023, driven by further consolidation in the market. Lastly, North American region is forecasted to lead the introduction of high value services for retail end users and bank automation, and is forecasted to grow at a CAGR of 7.9% in terms of revenue from 2018-2023.