Global Cash Logistics Market Future Outlook And Projections: Ken Research
by Rati Ram Business DeveloperGlobal
Cash Logistics Market Size
The market has been observed to be at mature stage, with competition being moderately fragmented with more than ~ companies operating globally. The growth in the industry has been driven by increased outsourcing of cash management and transportation by banks, financial institutions and retailers. The trend of ATM outsourcing is expected to increase in regions of low penetration as banks are increasingly looking to cut costs. The growth in Global Cash Logistics market is observed to have been driven by a new wave of outsourcing of cash management services by Banks, Financial Institutions and Retail end users. The global market revenue was observed to grow from USD ~ Million in 2013 to USD ~ Million in 2018, at a CAGR of ~%. The growth in the retail end user segment has been driven by 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
Region:
The North American market size was the highest in 2018 at USD ~
Million.
United
States’ market size was the highest in 2018
at USD ~ Million. The growth was driven by rise in ATMs deployed by Independent
Operators such as Cardtronics, which led to increased outsourcing revenues for
cash logistics companies.
The APAC cash logistics market size was second largest on the back of
increased in ATMs by IADs which led to greater outsourcing.
China,
India and Indonesia were the leading countries in terms of
market size in the APAC region. 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
largest market size, saw an increase in ATM outsourcing, followed by Saudi Arabia
and South Africa.
By Service: The 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.
Cash
in Transit revenues are directly correlated to
price of fuel, number of trips for replenishing ATMs and number of ATMs.
Cash
Replenishment is related to number of trips to an
ATM, value and volume of ATM withdrawals. Retail
Cash Solutions include transportation of cash, receipts, checks to and from
retail locations and bank branches.
Other
Services include services such as cash vaulting,
cash forecasting by cash logistics companies for ATMs, balance reconciliation,
sorting, packing and checking of currency tender for fitness.
Global Cash Logistics Market
Competition Scenario
The
competition in the global cash logistics market is moderately fragmented among ~
players to the extent of ~%. The market was observed to have more than ~
players operating; with just ~ companies operating globally. While companies
compete on the 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. Consolidation is driven to enter new markets, increase market share
in existing markets, and diversify product and service portfolios to
accommodate technology based offerings.
Cash
in Transit revenues are directly correlated to
price of fuel, number of trips for replenishing ATMs and number of ATMs.
Cash Replenishment is related to number of trips to an ATM, value and volume of ATM withdrawals.
Retail
Cash Solutions include transportation of cash, receipts, checks to and from
retail locations and bank branches.
Other
Services include services such as cash vaulting,
cash forecasting by cash logistics companies for ATMs, balance reconciliation,
sorting, packing and checking of currency tender for fitness.
The
competition in the global cash logistics market is moderately fragmented among ~
players to the extent of ~%. The market was observed to have more than ~
players operating; with just ~ companies operating globally. While companies
compete on the 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. Consolidation is driven to enter new markets, increase market share
in existing markets, and diversify product and service portfolios to
accommodate technology based offerings.
Companies compete on the basis of factors such as length of Cash
Replenishment cycle, adoption of technology based services, Fleet of ATMs and
Retail points catered to and other Value Added Services such as security
services, monitoring systems and customer care services.
Global Cash Logistics Market
Future Outlook And Projections, 2019f-2023f
The future
projections in the Global Cash Logistics market is forecasted to grow from USD ~
Million in 2018 to nearly USD ~ Million by 2023, at a CAGR of ~%. The growth is
expected to be driven by the shift from traditional CIT services to 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.
Country Profile Of United
States Cash Logistics Market, 2013-2023
Market
Overview and Size, 2018-2023
The United States cash logistics market size is the
second largest market size in world after China. The region’s market size grew
from USD ~ Million in 2015 to USD ~ Million in 2018, at a CAGR of ~%.
The region is dominated by international companies
such as Loomis and Brinks, as well as regional players such as Canada’s
Gardaworld and Dunbar. For CIT and Cash Management services, nearly ~ of the
market is concentrated between Loomis, Brinks and Garda. Brinks became the
market leader in 2018 with the acquisition of Dunbar.
Independent ATM operators own and operate nearly ~% of
the ATMs in USA while the remaining is bank owned.
United
States Cash Logistics Market Segmentation, 2013-2018
The market for cash logistics includes Cash in Transit
and Cash Replenishment for Banking end users, Cash Solutions for Retail end
users and other cash solutions.
The banking services end user includes CIT and Cash
Replenishment, holds nearly ~% of the services segment, while the retail
segment accounts for ~%. The level of ATM outsourcing by banks and financial
institutions in United States is at an advanced stage.
Other service segments include end users requiring
transportation of valuables and precious items such as gold, art items among
others. This service segment accounts
for nearly ~% of the market.
United
States Cash Logistics Market Competition Scenario
The
competition landscape in United States is concentrated, with nearly ~% market
by revenue held by ~ companies for the period 2015-18.
Loomis has been the
single largest company operating in United States with an average market share
of ~% for the period 2015-2018. Brinks overtook Loomis after its acquisition of
Dunbar in 2018 to become the market leader with nearly ~% market share.
Gardaworld
is the third largest company in terms of total revenue for the period
2013-2018. The company has held an average market share of nearly ~% during the
period.
United
States Cash Logistics Market Future Outlook and Projections, 2019F-2023F
Banks have been closing
down branches as services are increasingly available through digital channels.
Branches have dropped from nearly ~ in 2014 to about ~ in 2018. Although, this
has resulted in shutting down of ATMs in those locations, Independent ATM Deployers
have the opportunity to serve customers of these banks.
Banks
and Financial institutions in the US have established surcharge free ATM networks for their cardholders to increase
customer touch points. Retailers such as Couche-Tard, N26 have partnered with
Cardtronics to provide these surcharge free ATMs at their retail locations.
Retail Cash Management
with emphasis on cash automation have a market penetration of less than ~%,
according to Loomis. As CIT costs increase, retail end users are expected to
switch to cash automation services that would improve their cash cycles while
increasing profitability of Cash logistics companies due to fewer trips.
For more information on the research
report, refer to below link:
Global
Cash Logistics Industry
Related reports
Global
Cash Logistics Market Analysis 2013-2018 and Forecast 2019-2024
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