Cash-in-Transit Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Cash-in-Transit Services Category Overview

The cash-in-transit (CIT) services category is expected to grow at a CAGR of 7.9% from 2023 to 2030. APAC region holds the largest share in this category. The cash-in-transit service category is driven by a number of factors which includes the increasing number of totally automated cash-in-transit machines in developing countries, the rise in acceptance of virtual money, the large risk of demolition of banknotes due to physical damage, the increasing flow of cash in the vault for cash management, the rising deployment of ATMs, the increasing cash demand from emerging economies, and the increasing income of the population. These factors are expected to boost the growth of the category in the forecast period.

Mobile ATMs are a new trend in the CIT service category. These ATMs can be moved from location to location. This makes them ideal for meeting consumer demand in areas where there are no traditional ATMs. Major companies operating in this category are focused on introducing mobile ATMs. For instance, in May 2021, HDFC Bank, an Indian banking company, deployed mobile ATMs to provide innovative services to its customers. The mobile ATMs eliminate the need for people to withdraw cash in limited or sealed locations. Thus, customers can complete more than 15 different types of transactions using the mobile ATM.

The cash-in-transit (CIT) industry is highly competitive, with the top five suppliers constituting to more than 50 percent of the global market. Brink's is the leading supplier, followed by Prosegur, Loomis, Garda World, and G4S. More than 500 regional or local suppliers occupy the other 44 percent of the market. This supply landscape makes it favorable for mergers and further industry consolidation. The undifferentiated nature of services in the CIT industry forces suppliers to reduce prices to beat the competition. For instance,

• In July 2022, Prosegur Cash and Armaguard Group have agreed to merge in order to form a sustainable and secure cash-in-transit business in Australia.

The largest cost components in the CIT services industry are labor, vehicles, insurance, and technology. These costs are incurred due to the need for highly trained and experienced personnel, specialized vehicles, and specialized technology to safely transport cash. The cost of labor is the largest cost component, accounting for an estimated 60-70% of total costs. This is due to the need for highly trained and experienced personnel to safely transport cash. The cost of vehicles is the second largest cost component due to the need for specialized vehicles that are designed to safely transport cash. The cost of armored vehicles varies between USD 25,000 to 80,000 depending on the size, capacity, and other particular specifications of the vehicle.

Cash handling and transaction services can be outsourced to specialists who can provide these services with precision and security. This is because specialist service providers can continuously implement new technologies, such as the CIT Tracker, which is a covert device that alerts security personnel when theft occurs. The CIT Tracker also supports in recovering assets and apprehending criminals. Both India and China have a large workforce and a low cost of labor. This means that the cost of cash-in-transit services in these countries is relatively low. Additionally, there are many local manufacturers of armored vehicles in both countries, which further lowers the cost of vehicles. The cost of insurance is also relatively low in both countries. For sourcing CIT services, in addition to doing research and getting quotes, organizations can also get recommendations from peers, look for providers accredited by industry associations, and ask about contingency plans in case of incidents such as thefts. These are all good ways to ensure that a cash-in-transit provider meets high standards and can protect cash in the event of an emergency. 

Cash-in-Transit Services Procurement Intelligence Report Scope