Banknote Printing Machine Market Research, 2031
The global banknote printing machine market was valued at $11.3 billion in 2021, and is projected to reach $29.7 billion by 2031, growing at a CAGR of 10.4% from 2022 to 2031.
The banknote printing machines are important things for the economic development and community’s well-being on account of their security feature in currency printing, resulting in economic growth. In addition, central banks and government embrace the machinery and technologies that allow banknotes to be issued on more durable substrates and have more sophisticated security features to protect against counterfeit attacks. This can be a witness to the increasing take-up of technologies to improve the lifespan of banknotes, such as polymer and polymer-composite substrates, as well as varnishes as a protective banknote overcoat.
Rise in instances of currency counterfeiting, terrorist funding, and surge in government regulations & policies regarding clean banknote policies drive the growth of banknote printing machine market outlook. Moreover, surge in number of security breaches in banknote circulation and adoption of durable solution in banknote productions boost the banknote printing machine market size. However, the rise in acceptance and initiatives of digital money & cashless transactions coupled with issues in outsourcing of banknote production restrict the banknote printing machine market growth. On the contrary, the emergence of big data analytics in banknote printing machine is expected to offer numerous Banknote Printing Machine Market Opportunity during the forecast period.
The banknote printing machine market is segmented into Component, Production Process and End User.
The banknote printing machine market is segmented on the basis of component, production process, application, and region. On the basis of component, the market is bifurcated into solutions and service. On the basis of production process, the market is classified into offset printing, intaglio printing, letterpress printing, and silk screen printing. By end-user, it is classified into central banks and government authorities & private enterprises. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the banknote printing machine market are Barry-Wehmiller Companies, Bobst Group SA, Cash Processing Solutions (CPS), Crane Holdings, Co., Flint Group, Focus Technology Co., Ltd., Goebel Capital GmbH, Heidelberger Druckmaschinen AG, Koenig & Bauer AG, Komori Corporation, Konica Minolta, Inc., Oumolat Security Printing LLC, Pasaban S.A., Security Printing & Minting Corporation of India Ltd., Shenzhen CBPM-KEXIN Banking Technology Co., Ltd, SPS TechnoScreen GmbH, and Tangem AG. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
In terms of component, the solution segment holds the largest banknote printing machine market share owing to high demand for cost savings, increasing adoption of polymer & hybrid substrate banknotes, and increased delivery speed & quality to improve & strengthen the existing banknote printing infrastructure. However, the service segment is expected to grow at the highest rate during the forecast period owing to high demand for design and consulting of new banknote printing machine as part of sophisticated advancements and growth in collaborative efforts by certified network of banknote material and service providers.
Region wise, the banknote printing machine market share was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to technological advancements in the banknote printing solutions and rise in initiatives to prevent tampering and forgery of banknotes is positively impacting the growth of banknote printing machine industry. However, Asia-Pacific is expected to witness significant growth during the forecast period, due to increase in government investments for improving the existing banknote printing infrastructure to tackle terrorism funding and circulation of forged currency is anticipated to drive the market growth.
COVID-19 Impact Analysis
Key players operating in the banknote printing machine industry are facing the negative impact of the COVID-19 outbreak and are experiencing a downturn in their revenue generation. Several vendors have reported a reduction in their industrial profit during the second quarter of 2020. For instance, Koenig & Bauer faced extreme complexities during the COVID-19 crisis, due to issues such as lack of customer support, absences, and a difference in working patterns, and short-term orders for low volumes, as well as the ability to react to short delivery times. However, major players in the banknote printing machine industry are introducing new strategies to increase their market value as well as increase their banknote printing machine market share. These include collaboration, partnership, acquisition, product launch, and business expansion to remain competitive in the market and provide advanced solutions. For instance, in January 2022, the Security Printing and Minting Corporation of India Limited (SPMCIL) set up a new banknote printing line under its modernization initiatives in Dewas and Nashik. In addition, the company is expected to continue to invest and add more offerings under the banknote solutions, which notably contribute to the currency notes printing machine market growth during the forecast period.
Top Impacting Factors
Implementation of central bank policies for clean banknotes
The implementation and strict supervision of central bank policies for clean banknotes are considered key factors for driving growth in the banknote printing machine market. Globally, central banks ensure that banknotes in circulation are clean and of high quality in the economy, hereby undertaking the clean banknote policy. The clean banknote policies enunciated consequently by the banks involve a range of diverse currency management activities geared toward the efficient circulation of premium quality banknotes and withdrawal of unfit/soiled banknotes. Though, certain soiled and mutilated notes remain to exist on account of the negligence and careless approach of several intermediaries such as deposit money banks, microfinance banks, merchant banks, cash processing companies, bank customers, market associations, and government agencies, and the general public. Thus, various central banks have implemented policies and are undertaking measures to prevent currency inflow that is unfit for circulation. For instance, In India, the RBI has taken the initiative of the Clean Note Policy to keep the banknotes clean and usable in circulation in the economy. Similarly, the Central Bank of Nigeria (CBN), as part of its statutory obligations, introduced a Clean Banknote Policy to provide an adequate supply of clean banknotes to facilitate seamless payment and transaction settlement by the general public, banks, and governments. This is expected to strengthen the need for reprinting banknotes and currencies time to replace the discarded banknotes, which eventually contributes to the growth of the market.
Surge in adoption of durable solutions for printing currency
Rise in the adoption of durable printing solutions for the production of banknotes to improve efficiency in processing and effectiveness of security features is acting as another major factor supporting the market growth. Central banks and other currency printing authorities are transitioning toward the use of solutions with sophisticated durability for printing currencies. A few notable solutions include hybrid substrates, pure polymer substrates, paper/polymer composites, and superior varnishes and coatings instead of paper notes. In response, the durable solutions or substrate has increased the lifecycle of banknotes; making them more tear-resistant, water resistant, and more impervious to contamination owing to folding, soiling, and microorganisms. For instance, in February 2019, De La Rue, in cooperation with Hydro Industries Ltd., introduced a technical solution to reduce the environmental impact of banknote printing by eliminating waste and conserving clean water. With a dedicated sustainability policy, De La Rue recognizes the importance of environmental conservation. Similarly, Giesecke+Devrient (G+D) developed a “Green Banknote” in May 2022, which acts as a blueprint for using ecological, resource-saving material for banknotes. Coupled with sustainable and state-of-the-art security features, it makes a decisive contribution to a durable and efficient cash cycle. Therefore, the banknote industry is determined to act on its responsibilities for the environment-friendly and sustainable development of the economy, which paved the way for higher banknote production.
Furthermore, banknotes printed with polymer substrates cannot be forged easily as they are generally equipped with high-security features like a see-through window, serialized numbers, and a quill. This transition toward enhanced substrates is anticipated to boost banknote printing, which is projected to augment the global market growth.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides an in-depth analysis of the global banknote printing machine market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global banknote printing machine market trends is provided in the report.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The banknote printing machine market analysis from 2021 to 2031 is provided to determine the market potential.
Banknote Printing Machine Market Report Highlights
By Production Process
By End User
Key Market Players
Shenzhen CBPM-KEXIN Banking Technology Co., Ltd., SPS TechnoScreen GmbH, Crane Holdings, Co., Oumolat Security Printing LLC, Cash Processing Solutions (CPS), Tangem AG, Pasaban S.A., Koenig & Bauer AG, Focus Technology Co., Ltd., Konica Minolta, Inc., Bobst Group SA, Goebel Capital GmbH, Security Printing & Minting Corporation of India Ltd., Komori Corporation, Heidelberger Druckmaschinen AG, Barry-Wehmiller Companies, Flint Group
Banknote printing machines are geared toward the protection against forged and tampered banknotes. These machines integrate window security thread, color-raised printing, serial numbers, holographic stripes, latent images, and certain special symbols. This adds security feature to banknotes, and make note secure to prevent the circulation of false currency in the economy. Moreover, the high-speed banknote printing machines have helped end-users to gain reliability, efficiency, and security in every single step ranging from cutting to counting banknotes to evaluate the quality and reduce the chances of error.
The global banknote printing machine market is expected to register high growth due to rise in instances of terrorist funding and surge in government regulations & policies regarding clean banknotes. Moreover, with rise in number of criminal cases of forged note circulation in the economic system and need for error-free & manual labor-free appropriate monitoring at the broad level drive the growth of the banknote printing machine market. With the growth in requirement for banknote printing machines, various companies have established business expansion strategies to increase their capabilities. For instance, in January 2022, the Security Printing and Minting Corporation of India Limited (SPMCIL) set up a new banknote printing line in Dewas and Nashik as a part of its modernization initiatives. In addition, the company is expected to continue to invest and add more offerings under the banknote solutions, which notably contribute to the market growth during the forecast period.
In addition, with further growth in investment across the world and the rise in demand for banknote printing machines, various companies have expanded their current product portfolio with increased diversification among customers. For instance, in February 2019, De La Rue, in cooperation with Hydro Industries Ltd., introduced a technical solution to reduce the environmental impact of banknote printing by eliminating waste and conserving clean water. Similarly, in October 2021, the Central Bank of the Bahamas unveiled its new $100 banknote, finalizing the roll-out of its Counterfeit Resistant Integrated Security Product (CRISP) Evolution series that began back in 2016. These factors are set to accelerate the market growth toward banknote printing machines in the coming time.
Moreover, with the surge in competition, major market players have started new product launches to expand their market penetration and reach. For instance, in May 2022, Giesecke+Devrient (G+D) developed a “Green Banknote,” which acts as a blueprint for using ecological, resource-saving material for banknotes, and integrating state-of-the-art security features to improve the cash cycle.