The Security Printing Market is estimated to reach a market size of US$45.027 billion by the end of 2026. The market was worth US$31.319 billion in 2019 and is anticipated to grow at CAGR 5.32%.
Security printing is the branch of the printing industry which deals with the printing of banknotes, cheques, passport, stock certificates postage stamps and identity cards among others. Key end-market applications include Banking and financial service, tickets, Personal ID, and brand protection services. The primary intent behind using security printing measures is to prevent forgery, tampering or counterfeiting of any official documents or government-issued notes.
Accordingly, growing cases of tampering, forgery and counterfeiting crimes are the major driving factors for growth in the security printing market. For instance, in February 2021 RBI found 32,000 worth of fake currency in 100 denominations from several nationalised banks. To tackle and identify such currency counterfeit problems, Interpol has introduced several web-based tools such as I-24/7. Moreover, Interpol aims at educating law enforcement communities, financial institutions and other related parties with knowledge, skills and most beneficial practices to identify counterfeited currency notes.
More recently, these newer methods have become widely feasible to commercial providers allowing them to utilise these techniques to protect their high-value documents. The application of these techniques has not been confined to the protection of high-value documents; businesses are now using these techniques for protecting their lesser value documents such as transcripts, coupons by incorporating security printing features to ensure utmost protection to their documents.
Notable players in the market are 3M, ABCorp, Gemalto, Giesecke + Devrient, Thomas Greg & Sons Ltd, and De La Rue Supply Chain Bolton
Brand Protection and Tickets to Dominate the Market
The security printing market can be segmented as Brand protection and tickets. Brand protection involves protecting intellectual property such as patents, copyrights, trademarks and their associated brands against counterfeiters and infringers’. Main aim of brand protection is to safeguard the company's image, overall value and prevent brand abuse. Whereas, Tickets are vouchers that indicate an individual’s admission to an event or establishment. The market for brand protection and tickets is estimated to dominate over the forecasted period. The fundamental reason for increasing adaptation security printing solution in the brand protection and tickets segment is due to the surging availability of pirated products on both offline and online channels along with a drastic effect on company operations and brand name.
Increasing Adaption of Security Printing of Currency Is Estimated to Significantly Contribute to the Growth of the Security Printing Market
The key factor driving demand growth in the market is rising technological advancement along with the adoption of currency printing for better governance and regulation. Printing of fake currency severely affects the economy as it increases the quantum of currency which furthers devalues the currency on an international level against a foreign currency, thus affecting the economy. Furthermore, the circulation of fake currency in the economy increases inflation, thus affecting the prices of daily commodities in the market. For instance, the Indian government demonetized its currency in 2016 intending to reduce terror funding, circulation of black money and fake currencies in the economy. The government banned the circulation of 500 and 1000rupee notes intending to prevent counterfeiting of notes for illegal purposes. According to NRCB data, Post demonetization, Delhi had the highest collection of fake notes valued around Rs.3.01 crore. However, its quantum was far less than that of the Rs 1000 note. Hence governments around the world are adopting various measures to curb the use of fake currencies in the economy.
Moreover, companies are heavily investing in the research and development of efficient technological solutions for the prime security of financial documents and currency. Additionally, governments are adopting these innovative technological solutions to reduce economic losses arising out of counterfeiting and tampering. The use of hybrid printing papers and technology in the printing of currency is anticipated to reduce money counterfeit, money laundering and corruption, hence driving the market. For instance, the European central bank has introduced new Euro 100 ad Euro 200 notes that are denominated with bold design and satellite hologram and have bold shades to monitor circulation in the region.
Moreover in India, NRCB has developed a national level database and instilled a web-enabled software for online recording and reporting of fake Indian currencies. Additionally, RBI uses a technique of picture preparation that depends upon the extraction of highlights on Indian Banknotes. Predominantly used Security highlights by RBI are watermarks, Idle strings, Security strings and optically factor ink. Similarly in the US, a three-step digital technological process is used in counterfeiting.
The Asia Pacific Region Is Predicted to Hold a Notable Share of the Market
The Security printing market is fragmented in nature; companies have various departments of security printing for products such as currencies, passports, visas to prevent counterfeiting of products. Key market players around the world have adopted various business strategies to sustain, grow and develop in the Security Printing market. Various business strategies that have been employed by organizations around the world are partnerships, acquisitions, mergers and other related commercial agreements which have assisted conglomerates to develop and provide services to a large group of people worldwide. Through such collaborative agreements between market players and governments and other allied government agencies in the North American region have resulted in significant development of the market on the whole.
The North American region holds a significant market share and is projected to grow at a decent CAGR over the forecasted period. The major driving factor is the rising scrutiny and investment in combating counterfeiting currency and documentation, along with stringent government rules and regulations. For instance, according to the Bureau of Engraving and Printing, manufacturing of United States currency or altering genuine currency is a violation of title 18, section 471 of the United States code. However, the Asia Pacific region is estimated to hold a remarkable share and is projected to grow at an exponential rate owing to rapid technological advancements in countries like Nepal, China and India. Moreover, rising concerns over corruption, terror funding and fake currency are estimated to augment the demand in the market. Besides, advancement in technology and the growing use of digital methods for banking and financial services will further boost the market in the region.