Security Paper Market Analysis Report By Type, By Application And Segment Forecasts From 2019 To 2025

Industry Insights

The global security paper market size was accounted for USD 15.26 billion in 2018 and projected to grow at 7.0% CAGR over the forecast period, from 2019 to 2025. Security paper is mostly used for validating an original document and it is majorly preferred for the prevention of forgery, alteration, counterfeiting, and other frauds related to the document. Thus, a wide application of security papers for printing currency, government documents, and legal documents are projected to drive market growth.

Counterfeiting of bank/currency notes and documents leads to high losses to companies, individuals, and governments across the globe. Growing demand for anti-counterfeit technologies in currency printing and bank checks is projected to drive market growth over the forecast period.

Many currency note paper manufacturers are concentrating on exploring new opportunities for business growth and developing their product portfolio to expand their business across the globe. These leading players are engaged in developing new technologies such as holograms and microwaves, as it is an integral part of their development plan.

The growing adoption of security papers has enabled individuals, regulatory agencies, and companies to restrict the misuse of important documents. The manufacturers also engaged in developing customized papers for companies with various features such as UV fibers& thread, watermark, holograms, and others.

Security paper used in the BFSI sector should comply with the global Clearing Bank Standard (CBS). It is a specification paper defined by banks to confirm that printed form is processed through automatic document feeders. Technological advancements like hybrid paper are a key factor for market growth. Leading manufacturers are engaged in developing safe highly secure technologies and integrating them into their product offerings. However, the adoption of blockchain technology and growing digitalization are some factors expected to hinder the market growth, as several individuals and businesses prefer online and digital payment to reduce data security concerns.

Type Insights

Based on type, the security paper market is fragmented into watermark, thread and UV fiber, hologram, hybrid paper, and others. In 2018, the hybrid paper segment accounted for the largest market share due to increasing adoption in the BFSI sector such as passport & visas, currency notes, legal documents, and others. The hologram segment is projected to grow with significant CAGR owing to rising adoption by government, education, transportation &logistic and corporate sectors.

In recent years, the industry has witnessed high investment in research and development activities and the adoption of advanced technologies such as UV Fiber and magnetic microwires in order to reduce counterfeits and enhanced document security. Such developments are emerging as a key growth factor for the market.

Application Insights

On the basis of application, the market is segmented into identity cards, currency notes, passport & visa, legal and government, certificate, bank documents, medical reports & prescription, transportation & logistics, and others. The currency notes segment is projected to lead the market due to the reprinting of banknotes, circulation, and constant printing coupled with a growing incidence of counterfeit notes.

The legal & government document is anticipated to emerge as the fastest-growing segment during the forecast period. This growth is attributed to several initiatives taken by the government including Unique Identification Number (UID) and PradhanMantri Jan DhanYojana. In the Asia Pacific, China has taken initiative for Advancing the Development of Financial Inclusion (2016-2020) which is also expected to drive the segment growth in this region. The majority of companies and institutes have a strong data security solution to secure digital data. However, some companies are facing changes to curb data leaks through convectional-based files.

Currency notes printing is an incessant process to ensure active circulation in the economy. On the other hand, the adoption of blockchain technology and growing digitalization are expected to witness a negative impact on several businesses and people are shifting towards online and digital payment options for enhancing security & convenience. 

Regional Insights

Asia Pacific dominates the global security paper market due to a high preference for cash transactions coupled with several initiatives taken by the government for the development of the BFSI sector in developing economies. Most of the individuals in this region are migrating to foreign countries for higher studies and jobs. Therefore, the growing demand for visa applications and passports is projected to drive market growth in the next few years.

Growing digitalization in the private and government sector along with higher penetration of plastic money is expected to drive considerable growth in North America and Europe. Sweden is expected to be the world’s first cashless country by shifting towards digital currency. The demand for security papers is gaining traction due to increasing spending on legal services like litigation, licensing, and documentation.

Impact of COVID-19

The outbreak of COVID-19 across the globe has mandated travelers to carry medical reports along with visas and travel documents, as travelers may spread infection during traveling. Thus, security paper is expected to gain traction in medical reports and visa applications. Certainly, there are travelers stranded in foreign countries with expiring or expired visas and travel documents including passports. In addition, the post-COVID-19 crisis may result in a robust surge in passport or visa applications, which is expected to exhibit market growth.

Security Paper Market Share Insights

The major players include in this market are Security Paper Mill, Inc.; Document Security Systems, Inc.; China Banknote Printing & Minting Corporation; Sequana; Security Paper Limited; Ciotola S.R.L.; Fedrigoni Group; Giesecke+Devrient GmbH; Security Printing and Minting Corporation of India Limited (SPMCIL), and Goznak.

Market players are investing in R&D activities and developing new technologies like a hologram and magnetic micros wires. China Banknote Printing &Minting Corporation works with People's Bank of China that has formed its own research department for developing printing technology, especially for banknotes.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global security paper market report based on type, application, and region:

• Type Outlook (Revenue, USD Billion, 2014 - 2025)
    • Hybrid Paper
    • Watermark
    • Hologram
    • Thread & UV Fiber
    • Others

• Application Outlook (Revenue, USD Billion, 2014 - 2025)
    • Currency Notes/Bank Notes
    • Passport & Visa
    • Identity Card
    • Legal & Government Documents
    • Certificate
    • Bank Documents
    • Medical Report & Prescription
    • Transportation & Logistics
    • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
    • Europe
        • The U.K.
        • Germany
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa