Embed Size (px)
Citation preview
Global Banknote Market Report -----------------------------------------
2015
View Report Details
Executive SummaryBanknote is a promissory note which is issued by banks that is payable on demand to the bearer. The production and distribution of new banknotes and destruction of the unfit banknotes is the responsibility of the central bank of the respective countries. The demand for banknotes and substrate is fulfilled by state print works (SPW), state paper mills (SPM) and handful number of commercial print and paper manufacturers. SPWs and SPMs can also turn in to commercial providers to cater the unmet demand for banknotes.
As per the global banknote market, the demand for banknotes will continue to grow globally with varied demand growth across different countries as per their economic conditions. The production and issuance of banknotes are impacted by decisions of the central banks. Despite the increase in usage of electronic mode of payment, demand for holding cash remains strong. During the period of financial crisis, cash appear to be the only reliable source and the demand for cash at that point of time rises sharply due to the faith of people in real currency. The central banks, governments and commercial organizations depend on currency manufacturers and their products to deliver security and confidence to combat counterfeiting and illicit trade of banknotes. Hence, with latest banknote technology there lies a bright future for cash.
The key trends observed in the market include adoption of polymer banknotes, change in behavior of customers and color changing, as a dominant security feature in banknotes. But there are certain challenges too which include counterfeiting & security issues, overcapacity leading to pricing pressure and rise of digital or cashless payment among others. The market’s main growth drivers include financial instability of the economy, GDP of the economy and retirement of banknotes.
The report provides a comprehensive study of the global banknote market. The industry comprises few large players such as De La Rue, Geisecke & Devrient (G&D) and Fortress Paper. All these companies have been profiled in the present report highlighting their key financials and business strategies for growth.
View Report Details
Color changing feature, both in print and thread, is widely used in the banknotes.
Global print market by ‘overspill’ on the basis of order is … billion banknotes in 2014, increasing three-fold when compared to … billion banknotes in 2013 after experiencing a sharp decline in 2012. The volume of orders of banknotes from SPMs/SPWs overspill is estimated to reach … billion banknotes in 2015.
In the global banknote substrate market, SPM segment makes up the largest market share of ..% immediately followed by commercial paper market with ..% of market share in 2014. Overspill from SPMs and Polymer makes up …% and …% of the total market share respectively in 2014. Polymer adoption is on rise due its durability advantage over others.
In the global banknote print market, SPW segment makes up the largest market share of …% in 2014. Commercial paper market and overspill from SPWs makes up ..% and ..% of the total market share respectively in 2014.
Global Banknote Substrate Market by Segments (2014)
Global Print Market Overspill on Order Basis (2009-2015E)
Global Banknote Print Market by Segments (2014)
State paper mills (SPM) Commercial paper marketOverspill from SPMs Polymer
State print works (SPW) Commercial print market Overspill from SPWs
0
1
2
3
4
5
6
2009 2010 2011 2012 2013 2014 2015E
Billi
on N
otes
‘The Next Generation Banknote Program’, is planning to include a tactile feature in its currency for vision impaired community.
In 2014, the production volume of euro banknotes, shared by NCBs, grew by ..% to … billion notes in 2014 from .. billion notes in 2013. As of July, 2015 the production volume is … billion notes which will eventually increase by the year end.
In 2014, the Bureau printed and produced approximately .. billion notes in US, a decline of …% versus prior year. Each year, more than …% of the banknotes delivered by BEP are used to replace unfit banknotes present in or removed from circulation due to counterfeits.
By denomination, lowest denomination, US$1 accounted for largest production share of …% followed by US$20 with …% share in 2014. US$100, US$5 and US$10 collectively accounted for ….% of US currency production share.
Annual Production Volume of US Currency Notes (2000-2014)
Euro Banknotes Production Volume (2003-July, 2015)
Production Share of US Currency Notes by Denomination (2014)
-30%-20%-10%0%10%20%30%40%50%60%
0123456789
10
Billi
on N
otes
Annual Production Growth Rate (%)US$1 US$20 US$100 US$5 US$10 US$50 US$2
-60%-40%-20%0%20%40%60%80%100%120%140%
0
2
4
6
8
10
12
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 July,2015
Billi
on N
otes
Production Volume Growth (%)
The manufacturers in the banknote industry are faced with challenge of production of secured banknotes at every step.
The banknote substrate market is headed by two firms: Arjo Wiggins and G&D, each holding …% of the market share in 2014. De La Rue stood at third position with …% of market share, same as previous year. Other players like Crane, Goznak, and Lanquart holds ..%, ..% and …% of the market share respectively.
The global commercial banknote print market continues to be dominated by De La Rue with market share of …% in 2014. De La Rue’s technical expertise coupled with its long-standing customer relationships with central banks is the major success factor. G&D and FCO hold market share of ..% and ..% respectively.
The banknote industry is facing challenging market conditions related to overcapacity in both print and paper market, which is causing pricing pressure. In the 2014, …% of overcapacity in commercial paper market existed.
Global Commercial Banknote Print Market Share (2014)
Global Commercial Banknote Substrate Market Share (2014)
Overcapacity in Paper Market (2010-2017E)
Arjo G&D De La Rue Fabriano CraneGoznak Securency KOMSCO Landqart Other
De La Rue G&D FCO Goznak Crane Other18.0%
18.5%
19.0%
19.5%
20.0%
20.5%
21.0%
2010 2011 2012 2013 2014 2015E 2016E 2017E
Perc
enta
ge o
f Com
mer
cial
M
arke
t
The polymer banknotes in Australia uses bright colors, large and bold denominating numbers with different sizes of banknotes.
• The demand for banknotes will continue to grow globally with varied demand growth between different countries as a result of their respective economic conditions. This varying nature of demand for banknotes is the most common attribute of the industry with short term fluctuations in time and size of orders impacted by decisions of central banks. The demand for banknotes and substrate, a printing base for banknotes, is fulfilled by state print works (SPW), state paper mills (SPM) and handful number of commercial print and paper manufacturers. The global issuance of banknotes increased at a rate of ..% per annum from … billion notes in 2013 to … billion notes in 2014.
• Polymer banknotes offer more advantages than paper substrate; they are cleaner, secure and most importantly more durable. Polymer banknotes last for two-and-a-half times longer than paper substrate thus reducing the cost of cash overall. Overall cost reduction is estimated to be of worth US$... million per year in US. Moreover, they are equipped with more security features against counterfeiting thus increasing quality of notes in circulation. The banks also carry out awareness and publicity program for the introduction of new polymer banknotes to ensure that public, businesses and retailer are aware of their existence for smooth circulation of polymer notes. Australia was the first country to issue purely polymer banknotes followed by New Zealand, Mexico, Singapore, Fiji and Canada apart from UK. However, few countries are slow in adopting pure polymer banknotes due to the security gap between both types is closing.
Global Banknote Issuance (2009-2017E)
020406080
100120140160180200
2009 2010 2011 2012 2013 2014 2015E 2016E 2017E
Billi
on N
otes
Koncept AnalyticsCS-36, Second Floor, Ansal Plaza
Vaishali, Ghaziabad, U.P. – 201010
T. +91-120-4130959C: +91-9811715635
Contact Us:
www.konceptanalytics.com
Vikas GuptaBD Manager
These are abridged and sanitized sample pages from the comprehensive report on the “ Global Banknote Market ”. To know more about this report or for any customized research requirement, please contact the following:
View Report Details
