Secure Logistics Market

Market Overview

The global secure logistics market size was valued at USD 69.57 billion in 2021. It is expected to reach USD 128.98 billion by 2030, growing at a CAGR of 7.10% during the forecast period (2022–2030).

Secure logistics was created to increase professionals’ confidence in the security system and on-time performance while fulfilling customer needs appropriately. In a world where products are expensive and time-sensitive, secure logistics thrive. The demand for secure logistics and management services for a currency has increased due to security concerns among businesses and banks. Therefore, it is thought that secure logistics is a crucial foundation for cash security. Cash-in-transit, cash processing, and automated teller machine (ATM) services are all included in the cash management segmentation. Due to changes in technological innovation in the financial sector, the banking industry is changing globally.

Market Dynamics

Global Secure Logistics Market Drivers

Emerging Economies' Expansion of Banking and Financial Institutions

The banking sector has undergone significant global change over the last few decades. This is attributed to the deregulation of financial services and technological innovation in banking procedures. Historically, banking was a very protected industry in emerging economies, with regulated deposits and entrance requirements for domestic and foreign investors. However, the regional players have been forced to open their markets to foreign competition due to macroeconomic pressures and technological advancements in the banking industry. Among the other emerging economies, the BRICS nations—Brazil, Russia, India, China, and South Africa—are anticipated to receive significant foreign direct investment (FDI). Some factors propelling the BFSI sector's expansion in these regions include an expanding skilled labor force, accelerating globalization, and a surge in young consumers.

Growing Cash-In-Transit Heists and Freight Theft

Over the past ten years, global logistics thefts and heists have exponentially increased. For instance, South Africa has had at least one Cash-In-Transit (CIT) heist up until February 2020. There have been 35 CIT heists reported nationwide, with Gauteng accounting for 21. In the area, cities like Cape Town and Boksburg are seeing an increase in on-road robberies. Customers from the banking, retail, precious metals, and other industries are increasingly dealing with theft problems while traveling.

Even though most of these companies conduct their specific logistics operations, they still experience theft losses for various reasons, including a lack of qualified security personnel and modern technology. As a result, the nation requires a dependable logistics service. Secure logistics companies offer numerous outsourcing services, including cross-border transport, armored vehicles, staffed security, ATM management, replenishment, secure storage, and cash-in-transit. As a result, companies are placing more emphasis on secure logistics services.

Global Secure Logistics Market Restraints

Growing Use of Mobile Payments

Due to the development of technologies like NFC, EMV chips, and other contactless devices, the payment process is changing. The elements, including enhanced data and payment infrastructure, offer mobile commerce a sizable window of opportunity. Online M-Commerce is becoming more and more well-liked thanks to an expanding consumer base. The market for mobile payments is anticipated to be driven by the emergence of mobile wallets like Apple Pay, Google Pay, and Samsung Pay. To further entice new users, point-of-sale systems are being adopted more frequently across the sector to accept mobile payments and incentives like loyalty programs and promotions. People are thus turning away from cash payments and digital ones, which is expected to hinder market growth over the forecast period.

Global Secure Logistics Market Opportunities

Development of Fully Automated Cash-In-Transit Vehicles and Technology Integration

Players in the secure logistics market consistently spend money on R&D to create cutting-edge products for their clients. Businesses now provide a greater variety of mobile secure logistics services. These services include armored transport, driverless secured cars, and robot or automated guarding in place of manned guarding. Logistics service providers also incorporate various technologies into their vehicles to enhance performance, safety, and reliability. These include power locks, cruise controls, automatic climate control, bulletproof glasses, and automated doors. The service providers construct a sophisticated and durable body shell for the vehicle using lightweight armoring materials and components. These features offer customers more security while facilitating the quick and easy movement of their cash or priceless items.

Regional Analysis

By region, the global secure logistics market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Europe Dominates the Global Market

Europe is the most significant shareholder in the global secure logistics market and is expected to grow at a CAGR of 5.59% during the forecast period. With a 42.9% market share, the Europe regional market dominated the global secure logistics industry in terms of revenue in 2021. Its substantial market share is due in part to the region's expanding manufacturing industry, large consumer base, and well-developed logistics infrastructure. Europe is renowned for its consumer and automotive markets. Over the forecast period, growing central bank initiatives to streamline the cash management process will likely impact market growth for secure logistics in Europe.

Additionally, regional development is anticipated to be boosted by the growing use of ATMs worldwide and in emerging economies. A wide range of secure logistics opportunities is made possible by the increased trade and cash flow among European nations. Future trade policies between nations and Brexit complications will significantly impact market shares. Several countries, including Italy, the Netherlands, and Spain, are focusing on limiting the number of ATMs and bank branches to lower their high operational costs and promote electronic payment systems, according to an article published by ATM marketplace in 2018.

Asia-Pacific is expected to grow at a CAGR of 9.91%, generating USD 34,071.54 million during the forecast period. Rapid industrialization and significant economic growth are the causes of the growth. The region's mobile-type segment is anticipated to grow due to China's rapidly expanding gold mining industry. Government-driven initiatives like "Make in India" are expected to strengthen India's manufacturing industry, increasing the need for secure logistics providers. Further, it is anticipated that India's expanding currency bill circulation will impact market growth over the forecast period. In April 2019, the Reserve Bank of India (RBI) released new guidelines for cash logistics businesses through the Cash Logistics Association. These rules will bring businesses up to par with international norms and practices, enhance the security of tax dollars, and boost employment in the industry.

North America is expected to grow significantly over the forecast period. The demand for gold is anticipated to be driven by the country's large consumer base and rising production. The rising threat of terrorism and criminal activity in the area is the main factor fueling the growth of the regional secure logistics market in the United States.

Segmental Analysis

The global secure logistics market is segmented by type and application.

Based on type, the global market is bifurcated into static and mobile.

The static segment is the highest contributor to the market and is expected to grow at a CAGR of 5.33% during the forecast period. Site-based security is included in the static type to safeguard resources and people. The associated service of the static type offers monitoring, security checks, and defense of commercial and industrial infrastructure. The number of organized players in the static-type market will likely increase due to strict regulations like minimum wages, insurance, and gratuities.

Armored vehicles with electronic countermeasures, satellite, and radio communications are included in the mobile type. The demand for mobile-type products is primarily driven by the rise in organized crime within organizations and the advancement of the transportation of valuable goods. The market is anticipated to grow rapidly as security services become more automated. The use of robots for loading, unloading, and delivery tasks in warehouses is on the rise, which will probably increase demand for mobile-type products.

Based on application, the global market is bifurcated into cash management, diamonds, jewelry and precious metals, and manufacturing.

The cash management segment owns the highest market share and is expected to grow at a CAGR of 5.71% during the forecast period. Due to the rising smartphone penetration is anticipated that the cash management application will grow slowly over the forecast period. However, the cash management application would experience significant growth in emerging economies with lower mobile payment penetration, such as India and Brazil.

Manufacturing companies outsource security and logistics services to outside providers to concentrate on their core business operations. In addition to the unpredictability of the economic challenges, numerous security issues and logistical difficulties are likely to impact how well the companies perform. The application for diamonds, jewelry, and precious metals is anticipated to expand significantly over the forecast period, closely followed by manufacturing. Massive precious metal availability and lax security governance in African nations will likely increase market demand.

Recent Developments

• October 2022- Brink acquired Note Machine for approximately USD 179 million in order to advance its ATM-managed services strategy.
• August 2022- Attenti Group, one of the top electronic monitoring companies in the world, was strategically acquired by Allied Universal, the leading global provider of security and facility services.