Cash in Transit Services Category Intelligence
- Global CIT Industry Trends
- Regional Market Outlook- North America, Europe, Latin America, Middle East & Africa
- Technological Trends in CIT Industry
Market Size North America
Market Size Europe
Market Size Asia Pacific
Market Size Middle East - Asia
$ 1.65 Bn
Cash in Transit Market Overview
The global CIT service market was valued at $18.12 billion in 2018. The market is forecasted to grow at a CAGR of 7–9 percent by 2025, with a valuation of $30.7 billion. The highest growth in the APAC region at 8-10 percent, followed by the Middle East and Africa where the market is expected to grow at a rate of 5-7 percent. The CIT growth in emerging markets is expected to grow at a rate three times higher than the growth rate in Europe and North America. China and India are the fastest growing markets for CIT services driven by the growth of the ATM market at a CAGR of 20-25 percent until 2020.
The report provides a comprehensive analysis of the global CIT market, with an industry overview, market outlook, and regional market analysis. The report evaluates the global drivers and constraints for the CIT market, identifying top sourcing models, pricing models, negotiation levers and the best practices. The report examines the cost structure for cash in transit services in developed markets and emerging markets and cash in transit cost-saving strategies. Porter's Five Forces Analysis is provided in the report and the technological trends in the industry are highlighted. The report also includes a supplier analysis and profiling with a SWOT analysis of the top suppliers
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Cash in Transit Market Trends
Category Intelligence on Cash in Transit covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Table of Contents
- Cash - in - Transit Executive Summary
- Executive Summary
- Global Cash - in - Transit Industry Outlook
- Supply Chain For Cash - in - Transit Services
- Global Cash - in - Transit Market Overview
- Cash - in - Transit Market Analysis
- Global Drivers and Constraints
- Market Analysis by Regions
- Porter's Five Forces Analysis
- Technological Trends in CIT Industry
- Cash - in - Transit Supplier Analysis
- Market Share of Key Global Suppliers
- Key Suppliers Service Capabilities
- Cash - in - Transit Services Offerings from Tier - I Suppliers
- Key Supplier Profiling & SWOT
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Industry Outlook & Drivers
CIT Cash-in Transit Services Market Analysis and
- The global CIT service market was valued at $18.12 billion in 2018. The market is forecasted to grow at a CAGR of 7–9 percent by 2025, with a valuation of $30.7 billion.
- Cash in transit industry growth in emerging markets expected to outperform global market growth, expected to grow at three times more than in Europe and North America
- Factors such as increasing ATM installations, stringent banking regulations and increasing crime rates drive the need for CIT services across the globe
Global Cash-in-Transit Industry trends
- The major driver for the CIT industry is the growing number of ATM's across the globe. In 2017, it is estimated that there were around 3.7 million ATMs globally, and the total number of withdrawals from these ATMs were close to 10.6 billion. This in turn would fuel the growth of CIT market during the forecasted period
- China and India are the fastest growing markets for CIT services where the ATM market is expected to grow at a CAGR of 20-25 percent during 2018–2020. However, this is well established in developed markets like South Korea, Japan and Australia.
- Around 80–85 percent of consumer transactions across the globe are still performed through cash. Banks, financial institutions, large retailers, governments are the major buyers of CIT services
Global Cash-in-Transit market analysis
Increasing Crime Rate
- Increase in crime rates has driven the outsourcing of cash handling services to specialist service providers, who can perform the transaction in a more secured process
- One of the other major reasons to outsource the operation to a specialist service provider is continuous technology implementation
–For Example: “CIT Tracker” is a device, which is hidden covertly during cash transit process, which supports by alerting the security personnel during an act of theft. It also supports in asset recovery and criminal apprehension
Increasing ATM Service Expansion
- Rapidly increasing ATM installations in the developing regions is a major driver of the cash-in-transit service. For instance, only in the APAC region, the installation rate is expected to grow at a CAGR of 10–11 percent by 2025.
Laws and Regulations
- Complying with laws and regulations, related to cash-in-transit, has driven the outsourcing of these services to specialist service providers.
- Stringent regulations from bank authorities in moving cash from one place to another will give more impetus for cash-in-transit service Source
Increasing Cashless Payment in Developed Regions
- It is estimated that cashless payments will account for about 45 percent of the total transactions in the North America and Europe
- The non-cash transactions were estimated to accelerate at a CAGR of 12.7 percent globally, with developing/emerging markets growing at 21 percent by
Highly Competitive Market
- The CIT industry is highly competitive with competition, primarily based on pricing
- The undifferentiated nature of services force the suppliers to reduce prices to beat competition
Supplier Analysis: Market Share of Key Global Suppliers
- The global CIT market is highly consolidated with the top five suppliers constituting to more than 50 percent of the market
- Brink's, being the pioneer in the CIT industry, is estimated to be leading, in terms of global supplier market share, with 17 percent, followed by Prosegur Cash and Loomis, each with 13 percent and 11 percent, respectively
- GardaWorld and G4S are the other major players, who hold 9 percent and 4 percent, respectively
- The remaining 46 percent of the market is crowded with more than 500 players, who are mostly regional or local suppliers
- Such supply landscape with a few big players and large number of small players makes it favorable for further industry consolidation
Global Cash-in-Transit Pricing Models Cash in transit companies use different pricing models:
Fixed Cost Pricing Model
- Under the fixed price contract, the buyer is entitled to pay the service provider a fixed fee for the contracted specifications, based on the number of locations to be catered, frequency of the service provided, and the contract period. The buyer is charged a fixed fee for a specific value of transaction.
- The fixed fee pricing model is the widely adopted model in the cash collection services market
Unit Pricing Model
- A unit price contract can be used when there is a clear understanding on the frequency on the service is needed. This type ofcontract is in place only where the frequency of the service required is minimal
- In a unit price contract, the volume of job to be completed is estimated by the buyer and the service provider quotes a rate forlabor and equipment by the unit of work (for e.g., price for weekly collection per location)
Value Based Pricing Model
- The service providers charge the buyers on a tiered manner, based on the value of cash that is being collected from the collection points.
- The value based pricing is one of the pricing strategies whose adoption levels are steadily increasing in the recent past for cash collection service
Performance Based Pricing Model
- The performance based pricing model is used when there are certain lists of KPIs in place, measuring the performance levels agreed with the service provider. This model is not widely adopted because it increases the workload of the buyer and the supplier.
- The payment for the service provider is directly linked to the performance standards as decided in the contract agreement. The service provider may be fined upon not meeting agreed performance levels.
Cash in Transit Market Frequently Asked Questions
- What is the expected cash in transit industry growth by 2025?
- According to Beroe’s cash in transit industry analysis reports, the global CIT service market was worth $18.12 billion in 2018. By 2025, the cash in transit market is forecasted to grow at a CAGR of 7-9 percent to reach a market value of $30.7 billion by 2025. The market growth in emerging markets is also expected to grow three times more than the markets in Europe and North America.
- What factors are driving the demand for CIT services across the globe?
- Increasing ATM installations, stringent banking regulations, and increasing crime rates are the factors driving the demand for CIT services across the globe.
- What was the cash in transit industry size in 2017?
- From Beroe’s cash in transit industry research and intelligence report, the global market size of CIT services was at $17.35 billion.
- What are the different pricing models in the CIT services market?
- The pricing models in CIT services are – fixed pricing, unit pricing, value-based pricing, and performance-based pricing.
- What is the market share of the top service providers in the cash in transit industry?
- The top global service providers in the cash-in-transit industry are Brinks with 17 percent of the market share, Prosegur Cash at 13 percent, Loomis at 11 percent, G4S at 9 percent, GardaWorld at 4 percent. The remaining 46 percent of the market is crowded with hundreds of players who are mostly regional and local suppliers. Such market scenarios with few big players and several small players make it more suitable for further industry consolidation.
- What are the key KPIs in the CIT services market?
- The key KPIs in the CIT services market are – report audition and relevance, frequency of banking, emergency collection, ATM faults reporting, and discrepancies accounting.
- In which regions can high and medium market maturity can be seen?
- The high market maturity regions are North America and Western Europe, while the medium market maturity regions are India, China, NZ, Eastern Europe, Latin America, and South Africa.
- What are the key takeaways from the cash in transit industry trends?
- The following are the key takeaways from the cash in transit industry trends. · There were around 3.7 million ATMs in the world in 2017, and users made about 10.6 billion withdrawals from these ATMs. · The ATM market in India and China is anticipated to continue growing at a CAGR of 20-25 percent through 2020. · Cash remains the preferred way of transaction among 80-85 percent of consumers across the globe. Banks, financial institutions, large retailers, and governments are the major buyers of CIT services.
- What are the market constraints for the cash in transit industry?
- The cash in transit industry faces constraints from the following factors. · Increasing cashless payment in developed regions · The CIT industry is highly competitive primarily based on pricing. Due to the undifferentiated nature of services, suppliers are forced to reduce prices to beat the competition.