The global security paper market size is expected to reach USD 24.33 billion by 2025, according to a new study conducted by Grand View Research, Inc. It is anticipated to expand at a CAGR of 7.0% over the forecast period. Growing demand for anti-counterfeit technologies in applications such as currency printing and printing bank checks is expected to be the key growth driver. Security paper protects critical document against alteration and forgery by using multiple security technologies such as watermark, hologram, and Ultraviolet (UV) fiber and threads.
Over the last few years, the rapid proliferation of advanced printing technologies has led to an increase in the circulation of fake notes, passports, visas, and certificates, among others. There has also been a significant increase in the number of fraud cases reported worldwide. In order to overcome these issues, the security paper manufacturing industry is focusing on the development and application of advanced security features such as hologram and magnetic microwires. These security features are anticipated to offer improved document security to prevent counterfeiting in comparison to that of the traditional methods mentioned above.
Currency notes and bank documents are the major applications of security paper. Printing of currency notes is a continuous process to ensure effective circulation in the economy. However, emergence of blockchain technology and growing digitalization is restraining the growth of the Security Paper Market as more business and consumers are shifting towards online payment options due to enhanced convenience and security.
Asia Pacific (APAC) is expected to drive the demand for security papers over the forecast period owing to various government initiatives and regulations and rapid expansion of BFSI infrastructure. Recent demonetization and Unique Identification numbers (UID) initiative by the Government of India (GoI) is expected to propel the demand. The Pradhan Mantri Jan Dhan Yojana, a financial inclusion program by the GoI, which aims to provide affordable access to financial services to rural population is also expected to be the major growth driver for the product adoption in the regional BFSI sector.
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Further key findings from the report suggest:
- Government initiatives such as China’s Plan for Advancing the Development of Financial Inclusion (2016–2020), Government of India’s “Pradhan Mantri Jan Dhan Yojana” and Unique Identification Number (UID) initiative have a positive influence on the adoption of security paper in APAC
- Hybrid paper is anticipated to emerge as the fastest growing segment over the forecast period owing to the increased adoption of the product for government application in North America and Europe
- Currency notes application segment is anticipated to lead the security paper market over the forecast period due to government initiatives such as demonetization (India) and re-printing of currency notes
- The key market players include Security Paper Mill, Inc.; China Banknote Printing and Minting Corporation; Document Security Systems, Inc.; Ciotola S.R.L.; Security Paper Limited; Sequana Group; Giesecke & Devrient; Fedrigoni Group; Goznak; and Security Printing and Minting Corporation of India Limited (SPMCIL)