Title: Global Banknote Market Report: 2015 Edition - New Report by Koncept Analytics
1Global Banknote Market Report
----------------------------------------- 2015
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2View Report Details
- Executive Summary
- Banknote 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 markets
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 (GD) and Fortress Paper. All these
companies have been profiled in the present
report highlighting their key financials and
business strategies for growth.
3Color changing feature, both in print and thread,
is widely used in the banknotes.
Global Print Market Overspill on Order Basis
(2009-2015E)
- 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 Print Market by Segments (2014)
Global Banknote Substrate Market by Segments
(2014)
4The Next Generation Banknote Program, is
planning to include a tactile feature in its
currency for vision impaired community.
Euro Banknotes Production Volume (2003-July, 2015)
- 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, US1
accounted for largest production share of
followed by US20 with share in 2014. US100,
US5 and US10 collectively accounted for . of
US currency production share.
Annual Production Volume of US Currency Notes
(2000-2014)
Production Share of US Currency Notes by
Denomination (2014)
5The 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 GD, 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 Rues technical
expertise coupled with its long-standing customer
relationships with central banks is the major
success factor. GD 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 Substrate Market Share
(2014)
Global Commercial Banknote Print Market Share
(2014)
Overcapacity in Paper Market (2010-2017E)
6The polymer banknotes in Australia uses bright
colors, large and bold denominating numbers with
different sizes of banknotes.
Global Banknote Issuance (2009-2017E)
- 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.
7Contact Us
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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
Koncept Analytics CS-36, Second Floor, Ansal
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91-120-4130959 C 91-9811715635
vikas_at_konceptanalytics.com
Vikas Gupta BD Manager
www.konceptanalytics.com