Cash logistics has been one of the important segments of the logistics industry, serving an important business with massive risks. Running the fleet is a round-the-clock job and a requirement of any logistics business. However, a major concern for cash logistics has been the need for proper safety and security. Though the increasing digitalized solutions all over the world have unlocked an array of varied payment sources. But the cash is still the king of all and therefore, the demand for cash logistics and management services has been increasing significantly. With major advancements and developments in fully armoured cash-in-transit vehicles, other logistic solutions, and services, the logistics industry has gained a lot of success in the past few years.
The frequency of currency circulation has amplified in the past few decades. As a result, cash logistics has witness higher investments for advanced solutions and business expansion. According to a report published by Allied Market Research, the global cash logistics market is expected to garner $30.70 billion by 2025. Undeniably, the advent of the unprecedented pandemic has disrupted industries all across the world. And logistics industry is no exception. Changing restrictions and overall management systems have put the logistic service provider in a dilemma regarding the continuation of services in different fields. But at the same time, the demand for essentials as well as cash logistics has observed higher demand.
The logistics businesses are growing at a faster pace. And the market players are increasingly investing to introduce cutting-edge solutions and services. Along with this, the cash logistics companies are adopting different strategies to expand the market along with remaining competitive in the industry. Simultaneously, the industry is also witnessing a wide range of activities that are aiming to boost progress.
The surge in ATM replenishment is a dominant factor behind the growth of cash logistics. Along with this, a new trend of mobile ATMs is thriving in the cash logistics industry. The leading banks are investing in mobile ATMs to provide innovative services to customers along with helping them tackling the cash withdrawals during the covid crisis. For instance, recently, HDFC bank has installed mobile ATMs in around 50 cities in India. This was done with a view based on restrictions amid covid-19. Earlier, in 2020, the Indian Bank as well as launched mobile ATM services in Chennai. These initiatives are highly increasing the demand for logistics.
Along with cash logistics, the e-commerce segment as well, has witnessed higher demand during the initial phases of the crisis. Owing to which the companies are investing for business expansions. Offering an Omnichannel experience to the customers is growing as a prime focus for the companies. Followed by this, a leading logistic services provider FM logistics has recently announced its plans of expansion of operation by the end of 2023. The firm is aiming to set up its own warehouses in major consumption areas in India. The company has also been awarded new contracts in retail, omnichannel, e-commerce, FMCG, and pharmaceutical sectors.
The advent of new breakthrough solutions for industry 4.0 is further reinforcing the technology used in logistics. With the integration of Artificial Intelligence and advanced solutions, the industry is boosting the market furthermore. Recently, a cloud-native network software provider Mavenir has launched its hyper-converged solutions AI-on-5G. The launch was made in association with an American multinational technology company, Nvidia. The solution empowers various enterprises including logistics to implement AI-on-5G applications. Moreover, the advanced network technology meets the necessity of mission-critical applications by offering speed latency, as well as the quality of service.
Cash transportation and management is a sophisticated matter that runs by a huge number of precautions and protected measures. At the same time, the e-commerce sectors if growing at a higher pace owing to which the demand for logistic solutions is expected to rise even more in the coming time. Moreover, the cash logistics industry, over e-commerce, also suffers through an array of challenges. In the past few years, the rate of incidences of cash-in-transit vehicle robbery has majorly increased. This, in turn, has led the manufacturers to magnify the security and technology of cash-in-transit vehicles.
The rising banking services and online platforms are assisting in managing the transportation of cash in a safe manner. However, the amount of cash flow and circulation is still skyrocketing. This has proliferated the requirement of safe cash management services. At the same time, the disposition of ATMs is rising all over, which is leading to an increase in the need for cash logistics. Moreover, the advancement in technology to further strengthen the security and emergence of advanced solutions for logistics are some of the aspects that are expected to support cash management and logistics in a more improved and better way, thereby unlocking numerous opportunities for the industry in the coming future.
This article has been written by Akshita Pacholi, Researcher and Content Writer at Allied Market Research