Secure Logistics Market

In order to reduce risks connected with transportation, such as theft, damage, loss, or unauthorized access, secure logistics involves secure storage, transportation, and handling methods. The demand for security management services for cash movement is rising as a result of increased security concerns among businesses and institutions. The European Union has built a structure to get around obstacles and promote the mobility of production elements like labour, land, and money. With this system, the region's currencies and goods will be transported in a safe and secure atmosphere. The deregulation of financial services and changes in technological innovation are transforming the banking business globally.

In emerging economies, banking has historically been a highly protected sector with regulated deposits and entrance requirements for both domestic and foreign investors. Nonetheless, as a result of macroeconomic pressures and technical developments, the banking sector is opening the market to overseas competition. It is anticipated that a significant amount of foreign direct investment will come into the BRICS nations and other emerging economies (FDIs).

The expansion of the banking sector in these areas has been fueled by the expansion of the skilled labor force, increasing internationalization, and an increase in the proportion of young consumers. Furthermore, it is anticipated that the growth of the banking industry in emerging nations will be influenced by the rising number of High Net-worth Individuals (HNIs) and the increasing need for wealth management services.

Market Drivers

The recent liberalization of financial services and improvements in technology have had a substantial impact on the global banking industry. In emerging nations, banking has historically been a very protected sector with regulated deposits and stringent entry standards for both domestic and foreign investors. But as macroeconomic constraints and technological advancements in the banking sector increased, regional players were compelled to make their markets more accessible to outside competition.

There are high expectations for significant foreign direct investment in the BRICS countries, which include Brazil, Russia, India, China, and South Africa (FDI). A number of variables, including an increase in the number of young consumers, a growing skilled labor force, and increased globalization, are responsible for the BFSI sector's success in emerging nations.

Market Challenges

The payment process is being transformed by technological advancements such as NFC, EMV chips, and other contactless devices. Because of the improved data and payment infrastructure, this shift presents a significant opportunity for mobile commerce. With an increasing consumer base, online mobile commerce is getting popular.

The emergence of mobile wallets such as Apple Pay, Google Pay, and Samsung Pay is expected to drive the mobile payments market. Point-of-sale systems that accept mobile payments, as well as incentives such as loyalty programmes and promotions, are widely used to attract new users.

Market Opportunities

Over the last decade, global logistics thefts and heists have been on the rise. For example, until February 2020, South Africa had at least one Cash-In-Transit (CIT) heist, with 35 such heists reported nationwide and 21 in Gauteng alone. Cities such as Cape Town and Boksburg are seeing an increase in on-road robberies, raising theft concerns among customers from various industries such as banking, retail, and precious metals while travelling.

Despite running their logistics operations, these companies are losing money due to theft, which is often caused by insufficient security personnel and outdated technology. As a result, there is an increasing demand for dependable logistics services to address these security concerns. Secure logistics companies provide a variety of outsourcing services, such as armoured vehicles, cross-border transport, manned security, ATM management, secure storage, cash-in-transit, and replenishment.

As a result, businesses are increasingly focusing on secure logistics services to reduce the risks of theft and other security breaches while transporting and handling goods and assets.

Regional Analysis

The European market has emerged as the most dominant market in 2022. The growth of ATMs in emerging economies and their increasing penetration are expected to drive regional growth, along with the rise in cash circulation and trade investments between European countries, which presents a range of secure logistics opportunities.

Trade policies and Brexit-related issues will have an impact on future market shares. Because of the development of financial institutions in these countries, emerging markets such as Brazil, Nigeria, and Iran are expected to have a high demand for new ATMs. The theft of high-risk, high-value products is estimated to cost the European Union more than 8.2 billion Euros per year.

During the forecast period, the Asia Pacific market will grow at the fastest CAGR. The region's growth is being driven by factors such as increased demand for ATMs, the expansion of financial institutions, and rising freight theft. Because of consumers, preference for cash transactions and payment modes, the North American market is expected to have a significant market share in 2022. The North American market, on the other hand, suffered significant economic losses in the first two quarters of 2020 as a result of the high number of COVID-19 cases, particularly in the US, which impacted the logistics supply chain. Participants in the logistics and supply chain industries are focusing on digital technologies to reduce losses and maintain commercial operations. Several logistics companies are investing in digital technologies and focusing on job opportunities.

Competitor analysis

Competitor analysis in the secure logistics market involves identifying and evaluating the strengths and weaknesses of other companies in the same industry. Here are some of the top competitors in the secure logistics market.

Key Market Players

• Brinks

• G4S

• Loomis

• Securitas

• Garda World

• Prosegur

• Allied Universal

• CMS

• Knoxshield Security Logistics

• Zegmax Logistics

• Cash Logistik Security

• Rodoban

• Armaguard

• Global Security Logistics