Secure Logistics Market Expected to Reach $191.9 Billion by 2032

According to a new report published by Allied Market Research, titled, “Secure Logistics Market," The secure logistics market size was valued at $87.1 billion in 2022, and is estimated to reach $191.9 billion by 2032, growing at a CAGR of 8.4% from 2023 to 2032.

The secure logistics market is witnessing suitable growth in recent years, owing to the increase in contracts and increase in the demand for outsourcing branch and ATM service across the globe. Moreover, the key players operating in the industry have been inclined towards developing superior quality software and systems that can be used in the safe and secure transactions between the businesses and consumers. For instance, in March 2023, the Brink's Company has announced the availability of its BLUbeem digital cash payment solution through Clover from Fiserv, a leading point-of-sale (POS) and business management system that enables the success of small and mid-sized businesses (SMBs). Clover retailers may simply collect cash profits through advance credit to their bank accounts the following day using this innovative strategy. Similarly, in May 2023, SISnet, the insurance core of Prosegur AVOS, has released its 13th edition, with the goal of giving the user more control in setting the platform's features via the Zero Code paradigm. Furthermore, technologies like as machine learning are used to discover anomalies in the processes monitored by the program. Such developments create a wider scope for the growth of the market across the globe.

Secure logistics is the handling, storage and transportation of any product, information, asset and any goods from its source of origin to its final destination. Advanced security measures are used to protect the package and information from tampering, theft, and any unauthorized access. There are various industries which rely on the services of secure logistics including banking and financial institutions. The banking and financial institutions such as The Reserve Bank of India (RBI) recently published specific guidelines for banks, non-banking financial companies (NBFCs), and other regulatory financial institutions to strictly adhere to the guidelines and norms when outsourcing IT services to ensure the confidentiality of the clients' data and to safeguard any commitments and responsibilities made to the clients.

These standards are developed in the context of regulated entities' (REs') existing practice of heavily leveraging IT and IT-enabled services (ITES) to facilitate the company's structure as well as the products and services provided to clients. Outsourcing of branch services such as cash management and ATM services in which many firms offer ATM monitoring solutions with SLA management, increases the demand for the secure logistics market.

In addition, cyber security is protecting data, networks, and servers from any unauthorized access, malicious attacks, and cyber threats. Cyber security has become crucial for private and public sector as it defends digital assets from data breaches, phishing, and malware and involves best practices to safeguard digital assets from cyber threats. For instance, in February 2022, Expeditors International of Washington a logistics company noticed that hackers have penetrated the company’s network which leads to the total shut down of the company’s operating and accounting systems to protect company’s data as well as of its clients. The integration of enhanced cyber security systems is required, thus creating demand for new and improved cyber security systems in the secure logistics market.

Moreover, the factors such as increase in the demand for outsourcing branch and ATM service, and increase in the demand for product integrity. However, increase in the usage of electronic payment and high cost involved in service hamper the growth of the market. On the contrary, securing last mile delivery and integration of cyber security in secure logistics to foster growth are the major factors that are expected to provide lucrative opportunities for the market growth during the forecast period.

COVID-19 Impact Analysis:

Major industries around the world were affected, including automobile, electronics, pharmaceuticals, medical equipment and supplies, and consumer goods. In the first months of 2020, total container volumes handled at Chinese ports fell by 10.1 percent. According to Agility Logistics, ocean freight has encountered significant constraints around the world, affecting both key exporters such as Brazil, China, India, and Mexico, as well as importers such as the European Union. The restriction imposed all around the world impacted the growth of the market.

KEY FINDINGS OF THE STUDY

• By application, the jewelry and precious metal segment is projected to dominate the global market in terms of growth rate.
• By type, the mobile segment is projected to dominate the global secure logistics market in terms of growth rate.
• By mode of transport, the railways segment is projected to dominate the global market in terms of growth rate.

The key players operating in the secure logistics market are Allied Universal, Brink's incorporated, CargoGuard, CMS Info Systems, PlanITROI, Inc., GardaWorld, Lemuir Group, Prosegur, Securitas AB, and Secure Logistics LLC.