Expansion of Banking and Financial Institutions and Infrastructure in Emerging Economies to Provide Growth Opportunities for Secure Logistics Market During 2021–2028
According to our latest market study on “Secure Logistics Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type and Application,” the market was valued at US$ 47.25 billion in 2021 and is projected to reach US$ 75.64 billion by 2028; it is expected to grow at a CAGR of 7.0% from 2021 to 2028.
In this age of globalization, many financial institutions must build strategic relationships to remain competitive and offer a varied range of services to consumers. India has a diverse financial sector that is rapidly expanding, both in terms of established financial services firms' robust growth and new entrants into the market. Commercial banks, insurance firms, non-banking financial companies, co-operatives, pension funds, mutual funds, and other smaller financial institutions make up the sector. New businesses, such as payment banks, have lately been allowed to be established by the banking regulator, expanding the types of entities that operate in the industry. However, India's financial sector is primarily a banking sector, with commercial banks accounting for more than 64% of the financial system's total assets. The Indian government has implemented several reforms to liberalize, regulate, and improve this business. The government and the Reserve Bank of India (RBI) have taken several steps to make it easier for micro, small, and medium enterprises (MSMEs) to obtain financing. These initiatives include establishing a Micro Units Development and Refinance Agency, establishing a Credit Guarantee Fund Scheme for MSMEs, releasing guidelines to banks about collateral requirements, and establishing a Credit Guarantee Fund Scheme for MSMEs (MUDRA). For instance, on November 11, 2020, the Cabinet Committee on Economic Affairs approved the continuation and revamping of the scheme for financial support to public-private partnerships (PPPs) in the "Infrastructure Viability Gap Funding (VGF) Scheme" until 2024–2025 with a total outlay of INR 8,100 crore (US$ 1.08 billion). In July 2021, Rajya Sabha approved the Factoring Regulation (Amendment) Bill in 2020, enabling ~9,000 NBFCs to participate in the factoring market. The bill also gives the central bank the authority to establish guidelines for improved oversight of the US$ 6 billion factoring sector. The expansion and development in banking and financial institutions is anticipated to continue over the years, which is expected to boost the demand for secure logistics in the coming years.
The secure logistics market is segmented on the basis of type, application, and geography. Based on type, the market is bifurcated into static and mobile. In 2020, the static segment led the market with a larger share. In terms of application, the market is segmented into cash management, jewellery and precious metals, manufacturing, and others. In 2020, the cash management segment accounted for the largest share in the market. Geographically, the secure logistics market is broadly segmented into North America, Europe, APAC (Asia Pacific), MEA (the Middle East & Africa), and SAM (South America). In 2020, North America accounted for the largest market share.
Impact of COVID-19 Pandemic on Secure Logistics Market
The COVID-19 pandemic has shaken several industries such as hospitality, manufacturing, transportation and logistics, retail, etc. The tremendous growth in the spread of the virus has urged governments worldwide to impose strict restrictions on the movement of vehicles and humans. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has adversely affected economies and countless industries in various countries. The lockdown imposition has resulted in a lesser production of commodities, goods, and services.
The manufacturing sector has witnessed severe losses due to the temporary shutdown of factories and low production volumes, which hindered the logistics sector globally. Additionally, the social or physical distancing measures imposed by governments have led the logistics service providers to limit their operations. Nonetheless, the lower volumes of production are limiting the full-fledged usage of the fleets, which is creating tremors on the logistics service providers' business, thereby leading to a slower growth of digitization in the logistics supply chain market.
In 2021, with the uplifting of lockdown and vaccination processes, the manufacturing and construction companies started working again. The logistics and supply-chain industry players are focusing on digital technologies to curb the negative effect of the pandemic on the logistics operations based on traditional logistics concepts. This is boosting the logistics supply chain. Further, the e-commerce business is growing and the banking and financial institutions are also working, which would slowly drive the growth of the global secure logistics market in the coming years.
A few key companies operating in the global secure logistics market are Allied Universal., BRINK'S INCORPORATED, G4S Limited, GardaWorld, SECURE LOGISTICS LLC., Parkmatic, Prosegur, SERCO GROUP PLC, Securitas AB., and SIS LIMITED.
Secure Logistics Market – by Geography, 2020 and 2028 (%)
Secure Logistics Market Size to 2028- Industry Forecast Report
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