In 2018, the global market for security printing technologies is in a flux as new challenges reorder the landscape in several key end-use applications.
Exclusive information from Smithers Pira, shows that this industry will have a total value of $28.46 billion the market is set to grow at a compound annual growth rate (CAGR) of 4.8% in 2017-22, accelerating from the 3.4% rate experienced in 2012-17. This will take the market value from $22.9 billion in 2012 to $34.3 billion in 2022.
Growth is driven by a few particular areas of the wide-ranging security print market – principally, high growth in the brand protection and tax stamp end-use segments, and the higher prices commanded for novel security features.
Regional security print markets, by value 2017,2022
Source: The Future of Global Security Printing to 2022 (Smithers Pira, 2017)
The security printing market broadly breaks down into the following end-use segments:
In terms of market share, the largest in security printing is banknotes, which is responsible for more than a third of the total. Personal ID is second with less than a third, and then stamps (postage and tax) is third, with a little over 10%.
The banknotes market will see just 3.1% CAGR in the 2017-22 period, although this compares favorably to the 1.9% growth seen in 2012-17. This increase reflects higher prices commanded by durable banknotes, including polymer; as well as by advanced security features; offsetting somewhat the lower demand due to longer life and alternative payment methods. Meanwhile, brand protection and tax stamps are due to enjoy high growth because of various global, US and EU mandates.
Personal ID growth will slow, as there are fewer national ID projects expected in 2017-22, and e-passport programmes have moved to “maintenance mode”. The industry is adjusting to new challenges including the increasing importance of online electronic and mobile identity platforms.
The global market for security printing retains some resistance to the economic cycles and is heavily reliant on demographic factors, like rising population and greater financial inclusion especially for transition economies.
Consequently, Asia is the largest regional market for security printing, with almost 50% of global revenues in 2018. The remaining world regions –Africa, North America, Western Europe, Eastern Europe, South and Central America – have shares of roughly 10%.
North America’s security printing is worth $2.66 billion in 2018, with strong growth payment cards contrasting with a strong decline in checks. The other two key market banknotes and personal ID are forecast for moderate – if unspectacular growth across the next five years.
Africa will have leapfrogged North America and Western Europe by 2022 to become the second-largest market for security printing, with a market share of 11%. North America, Western Europe, Eastern Europe, South and Central America will all have fallen below 9%.
This report was brought to you by Smithers Pira, a partner of the Anti-Counterfeit & Currency Expo 2018.
To find out more about Smithers Pira, visit their website online.