Global 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:
https://www.kenresearch.ae/banking-financial-services-and-insurance/banking/global-cash-logistics-market-outlook/293370-93.html
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