Secure Logistics Market

• Rising demand for outsourcing branch and ATM services will boost the market growth

The handling, storing, and moving of any commodity, information, or product from its point of origin to its destination is known as secure logistics. The information and package are shielded from theft, tampering, and unwanted access with the use of advanced security measures. Financial institutions and the banking sector are among the many industries that depend on safe logistics services.

In order to protect client confidentiality and fulfill obligations, banking and financial institutions, including The Reserve Bank of India (RBI), have released particular guidelines that banks, non-banking financial companies (NBFCs), and other regulatory financial institutions must strictly abide by when outsourcing IT services. The current practice of regulated organizations (REs) largely relies on IT and IT-enabled services (ITES) to support the organization's operations, and the goods and services offered to customers are the basis for the development of these standards.

Thus, the demand for the secure logistics market CAGR rises with the outsourcing of branch services like cash management and ATM services, where many companies provide ATM monitoring solutions with SLA management.

The market for secure logistics is anticipated to develop in the future due to organizations' growing worries about security. Issues about the safety, protection, and integrity of different assets, systems, or environments are referred to as security issues. These worries might also be hazards or possible threats. The use of various methods and practices aimed at reducing risks and guaranteeing the safe and secure transportation, storage, and handling of valuable or sensitive products is how secure logistics tackles security concerns.

For instance, CargoNet AS, a logistics security and intelligence organization based in Norway, thoroughly documented 692 instances related to strategic cargo theft in the United States and Canada in 2023. Moreover, this amount is a noteworthy 59% rise from 2022. Thus, the growing market for safe logistics is being propelled by organizations' growing worries about security.

To offer dependable services to clients, major players in the secure logistics market are creating cutting-edge platforms like secure journey management services. A comprehensive and integrated system created to improve people's or assets' safety and security while they are traveling from one place to another is known as a secure journey management platform. Logistics operators can keep an eye on the whereabouts and progress of shipments, cars, or assets at all times due to the platform's real-time tracking and visibility features.

For instance, Delhivery, a supply chain and logistics firm based in India introduced LocateOne, a location intelligence solution, in September 2023. With the help of APls, this location intelligence stack provides a number of capabilities that improve address data accuracy. Businesses in a variety of industries, such as retail, e-commerce, fintech, consumer packaged goods (CPG), banking, and financial services, benefit from its increased rooftop accuracy and decreased address fraud. Thus, driving the secure logistics market revenue.

The Global Secure Logistics Market Industry experiences a notable increase in demand for secure transportation solutions. This demand is driven by the growing need for safeguarding high-value goods, particularly in sectors such as pharmaceuticals and electronics. As organizations prioritize the protection of their assets, the market is projected to reach 100.9 USD Billion in 2024. Companies are increasingly investing in advanced tracking technologies and secure packaging methods to mitigate risks associated with theft and damage during transit. This trend indicates a shift towards more robust logistics frameworks that emphasize security, thereby enhancing the overall integrity of supply chains.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American secure logistics market area will dominate this market, propelled by various factors such as more stringent regulations, expansion of e-commerce and retail sectors, and a rising demand for cash management services. Furthermore, due to the rapid growth of North America's retail and e-commerce industries, there is an increased demand for safe delivery and transportation services.

Safe logistic providers are vital for online businesses as they ensure the timely and secure transportation of valuable products to customers, leading to the growth of the market.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: SECURE LOGISTICS MARKET SHARE BY REGION 2023 (USD Billion) Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe secure logistics market accounts for the second-largest market share. The advancements in the manufacturing sector and industrial growth greatly boosted Europe's potential for expansion in the secured transportation services market. The increasing speed of trade investments and cash flow between European countries creates many opportunities for secure logistics. Further, the German secure logistics market held the largest market share, and the UK secure logistics market was the fastest growing market in the European region.

The Asia-Pacific Secure Logistics Market is expected to grow at the fastest CAGR from 2024 to 2032 due to elements including the growth of financial institutions, the need for ATMs, and the rise in freight theft. Additionally, there is a rising need for safe transportation and storage services for precious assets and goods as this region experiences economic expansion, urbanization, and higher consumer expenditure. Moreover, China’s secure logistics market held the largest market share, and the Indian secure logistics market was the fastest growing market in the Asia-Pacific region.