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MICR Printings Market Overview
MICR Printings
Market size is expected to be valued at $182.24 million by the end of the year
2027 and is set to grow at a CAGR of 2.3% during
the forecast period from 2022-2027. The increase in incidents of counterfeiting
of bank documents is compelling banks and financial institutions to adopt MICR
printing technologies. Furthermore, the increase in the need for security and
safety in using bank instruments like cheques, demand draft forms and other
instruments is driving the need for magnetic coding technology and barcode
technologies. This is further driving the growth of character recognition
technology, which provides security in use of bank instruments. Banks and
financial institutions use character recognition technology to validate
documents and cheques which is majorly driving the growth of MICR printings
market.
COVID-19 impact
Amid the
Covid-19 pandemic, MICR printings market witnessed a steady decline in the
demand and growth due to the various economic and legal restrictions laid by
countries across the world. The various restrictions and ban on trade
activities, imports, exports and other activities further lead to the slowdown
of the operations of the MICR printings market. The covid-19 pandemic caused
losses to the MICR printings market in terms of production, sales and
distribution. Therefore, the MICR printings market was very dull and witnessed
a slow growth during the year 2020. The MICR printings market is however set to
improve and grow substantially during the end of the year 2021.
MICR Printings Market Report Coverage
The report: “MICR Printings Market – Forecast
(2022-2027)”, by IndustryARC, covers an in-depth analysis of the following
segments of the MICR Printings Industry.
By Technology: Reader Sorter, Laser Magnetic Ink Character Recognition Printings, Inkjet
Magnetic Ink Character Recognition Printings and Others.
By MICR
Toner: Monocomponent
Toner Systems and Dual Component Toner Systems.
By
Processing: Low
Speed, Medium Speed and High Speed.
By Application:
Manufacturing
Cheques and Issuing Cheques.
By End-Use
Industry: Banking,
Financial Services and Insurance (BFSI) Industry, Government Agencies, Business
Organizations and Others
By Geography: North America (USA, Canada, Mexico), Europe (Germany,
UK, France, Italy, France, Netherlands, Belgium Spain, Russia and Rest of
Europe), APAC (China, Japan India, South Korea, Australia, New Zealand,
Indonesia, Taiwan, Malaysia), South America (Brazil, Argentina, Colombia, Chile
and Rest of South America) and RoW (Middle East and Africa).
Key Takeaways
- Asia-Pacific market held the largest share in the MICR printings market owing to the increase in adoption of character recognition technology and barcode technologies for validating documents in the region.
- The increase in use of magnetic coding technology for printing cheques and other bank instruments is driving the MICR printings market.
- Amid the Covid-19 pandemic, the MICR printings market witnessed huge losses due to sudden halting of manufacturing and production owing to the various economic and legal restrictions imposed due to the pandemic.
MICR Printings Market Revenue, 2021-2027 (US$ Million)
MICR Printings Market Segment Analysis – By Technology
Laser Magnetic Ink Character
Recognition Printings segment held the largest share of
34% in the MICR printings market in the year 2021. Laser Magnetic Ink Character Recognition Printings is used in character recognition technology and magnetic coding technology which is used in
printing cheques. The increase in
manufacturing and issuing of cheques in the BFSI sector is widely increasing
the demand for MICR printings market. Magnetic Ink Character Recognition
Printings provides unique magnetic coding that cannot be counterfeited. This helps in reducing the risks of
fraudulent activities taking place in the BFSI sector. This is hugely driving
the Laser Magnetic Ink Character Recognition Printings
segment in the MICR printings market.
MICR Printings Market Segment Analysis – By MICR Toner
Dual Component Toner Systems segment held the largest share of 54% in the MICR printings market
in the year 2021. Dual Component Toner
Systems prints better quality cheques, has continuous tones and is
self-contained. Dual component technology also keeps up with high speed
printing technology. Dual component technology helps in bringing better
efficiency to keep up with the speed of high quality. Furthermore, dual component
systems are cost efficient as it only cost low per page due to a technology
called ‘electro photo graphic subsystem’ which does not have to be discarded when
the toner is utilized. The toner is replaceable. This is increasingly driving
the demand for dual component toner systems segment in the MICR
printings market.
MICR Printings Market Segment Analysis – By Processing
High speed processing
segment held the largest share of 46% in the MICR printings market in the year
2021. With the advance in technology in the recent days, there has been an
increase in demand for high speed processing technology to keep up with the
growing demand. Character recognition technology and barcode technologies are high speed processing technologies, which is widely used in
the banking sector and other end use industries like government agencies,
business organizations and others. The increase in banking activities coupled with
the fast phased banking functions, is highly driving the demand for high speed
processing segment in the magnetic ink characteristic recognition printings
market.
MICR Printings Market Segment Analysis – By Application
Manufacturing
of cheques segment held the largest share of 58% in the MICR
printings market in the year 2021. The increase in the adoption of cashless transactions is highly
driving the demand for cheques and other related bank instruments. The
increasing demand for such cashless transactions which provides more financial
security, ease in transactions and a record of the transaction is further
increasing the demand for manufacturing of cheques. Character
recognition technology and magnetic coding technology are majorly used in the production of
cheques for creating unique barcodes and characters which cannot be copied by
fraudulent entities. This is majorly driving the demand for the MICR printings
market.
MICR Printings Market Segment Analysis – By End-Use Industry
Banking,
Financial Services and Insurance (BFSI) Industry held
the largest share of 44% in the MICR printings market in the year 2021. The
increase in the growth of the Banking,
Financial Services and Insurance (BFSI) Industry in the recent days is one of
the major factors driving the demand for MICR printings in the Banking,
Financial Services and Insurance (BFSI) Industry. According to International
banking statistics, the total claims (foreign claims and domestic claims) of
all bank nationalities amounted to US$64,030.1 in the fourth quarter of the
year 2020, an increase of 3.23% from the total claims of US$62,023.8 billion
during the third quarter of the year 2020. This is driving the demand for MICR
printings market in the Banking,
Financial Services and Insurance (BFSI) Industry
MICR Printings Market Segment Analysis – By Geography
Asia-Pacific region held the largest share of 42% in the MICR printings market in the year 2021. The rapid growth in the population coupled with the development of the banking sector in the region is contributing to the growth of the MICR printings market. According to Indian Brand Equity Foundation (IBEF), the deposits in Indian banks grew by 13.93% to US$1.93 trillion in the year 2020 and the assets of the public sector banks of India stood at US$1.52 trillion in the year 2020. Furthermore according to International Banking Statistics, the total claims (foreign claims and domestic claims) of Asia amounted to US$14,155.5 billion in the fourth quarter of the year 2020, an increase of 8.945% from the total claims of US$12,993.2 billion during the fourth quarter of the year 2019. This is driving the demand for MICR printings market in the Asia Pacific region.
MICR Printings Market Drivers
Increasing Demand for Quick and Secure Document Processing Technology
Character recognition technology and barcode technologies are used in creating unique characters and barcodes on cheques and other bank instruments. This is done to eradicate fraudulent activities and counterfeiting of bank documents for facilitating a secure document processing. This is driving the demand for MICR printings market. The increase in demand for a safe and secure banking transactions is further increasing the demand for magnetic coding technology. Magnetic coding technology helps in identifying any overwritten characters on the bank instruments and therefore in avoiding fraudulent transactions. This is increasing the demand and growth of magnetic ink character recognition printings market.
Increasing Demand in BFSI services
The increase in the growth of Bank, Financial services and
Insurance sector is driving the demand for MICR printings market. The
advancement in technology, investments in new technologies and other factors is
highly contributing to the growth of BFSI sector. This is further driving the
demand for MICR printings market, since character recognition technology and barcode
technologies are majorly used in the BFSI sector. The growing bank sector is
increasing the demand for MICR printings market. According to International Banking
Statistics, the total claims (foreign claims and domestic claims) of all bank
nationalities amounted to US$64,030.1 in the fourth quarter of the year 2020,
an increase of 12.65% from the total claims of US$56,835.3 billion during the fourth
quarter of the year 2019. This is contributing to the demand for MICR printings
in the BFSI sector.
MICR Printings Market Challenges
Advancing payment methodologies
The advance payment methodologies such as mobile payments,
online bank transactions, E-wallets, UPI transfers and other methods is one of
the major challenge faced by the MICR printings market. The use of such
methodologies is increasing in the recent days owing to the ease in usage, fast
and secured transaction services provided by such payment platforms. The use of
E-wallet platforms due to reasons such as accessibility to bank accounts from
the tap of a mobile screen, two step security process and easy methods in using
these platform is increasing the demand for such advance payment methodologies.
This is one of the biggest challenge faced by the MICR printings as it has
reduced the usage of cheques.
MICR Printings Industry Outlook
Collaborations, partnerships, facility expansion, production expansion, investments, acquisitions and mergers are some of the key strategies adopted by players in the MICR Printings Market. Major players in the MICR Printings Market are
- Xerox Corporation
- Canon Inc.
- Epson America Inc.
- PT. Murni Solusindo Nusantara
- MagTek Inc.
- HP Development Company L.P.
- Rosetta Technologies Inc.
- Konica Minolta Inc.
- Ricoh
- PANINI S.P.A.
- ACOM Solutions
- Source Technologies
Recent Developments
Ø On
21 May 2020, Konica Minolta launched AccurioPress 6136P, a MICR Digital Press
for Financial Printing. Konica
Minolta also partnered with TROY Group to convert the AccurioPress 6136P to a
MICR version, combining TROY’s patented MICR Toner Secure with its own
proprietary developer bead.
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