Banknotes Market Size - By Material, By Denomination, By Security Features, By Printing Technology, By End Use, Growth Forecast, 2025 – 2034

Banknotes Market Size

The global banknotes market size was valued at USD 14.9 billion in 2024 and is estimated to register a CAGR of 5.5% between 2025 and 2034.
 

High-security banknotes represent a primary growth factor in the market because they fight against counterfeiting and fraud. Government alongside central banks commit financial support toward developing superior security elements which include holograms together with microprinting technology as well as color-shifting inks and polymer substrates to combat counterfeits.
 

Japan introduced banknotes with hologram portraits during July 2024 to prevent counterfeiting activities. Japanese capitalism leaders and representatives from educational and medical fields appear on the newly released banknotes. New currency bills will stay in circulation alongside the pending industry-wide adoption of payment machines that support the new money by various businesses. These measures appeared at a time when Japan experiences economic development and digital transformation of their payment system, yet cash still accounts for a substantial portion of transactions. Special holographic features exist in the new money along with plans to issue 7.5 billion banknotes throughout the fiscal period.
 

The upgrades implemented into banknotes achieve dual purposes by creating strong trustworthiness and making counterfeiting difficult, which supports the maintenance of public faith in cash systems. Many nations are modernizing their currencies through advanced anti-counterfeiting elements which increases the market need for creative banknote printing systems.
 

Market expansion is supported by the growing use of polymer banknotes since these notes exhibit extended lifespan along with built-in security measures and durability against normal use. Polymer banknotes are already in use across London along with Canada and Australia making the rest of the world observe their transition. To increase the endurance of banknotes and lower government production costs the currency system becomes more secure due to this transition. Due to this demand increase for high-security banknotes the global banknote printing sector alongside its security segment experiences continuing expansion.
 

Banknotes Market Trends

• The banknote industry currently experiences a major transition because countries replace their conventional paper currency systems with innovative polymer banknotes. As polymer banknotes have higher durability than paper as they decrease central bank expenses on note replacements because they last longer. These security advancements include transparent windows alongside holograms and color-shifting elements which make it challenging for counterfeiters to replicate the bills.
   
• Countries such as the United Kingdom besides Canada and Australia have stopped using paper money and moved entirely to polymer banknotes as India alongside the Philippines proceed toward adopting this currency system.
   
• The Bank of Mauritius initiated its program to launch polymer Rs1000 banknotes that entered circulation during December 2024. The Dodo bird emblem inside transparent glass accompanies field 'SPARK Flow PRIME' as a main feature. The Bank of Mauritius plans to release polymer banknotes worth Rs100 and Rs200 in the year 2025. The national bank has authorized the coexistence of polymer notes with existing paper notes since they maintain parallel legal tender status. The bank maintains collaboration with financial institutions to bring smooth delivery of new banknotes to the market.
   
• The industry transition toward utilizing polymer banknotes happens because these materials stand up better to wear and tear and can be recycled to minimize destructive waste. The increasing number of countries that appreciate the advantages of polymer money will drive the industry toward fast expansion which will reshape the strategies of note manufacturers and security technology providers.
   
• The banknote market exhibits ongoing advancement of security elements that fight counterfeiting efforts as another primary market trend. Central banks together with banknote manufacturers keep investing in modern banknote security technologies including color-shifting inks and 3D holograms and ultraviolet (UV) features as well as embedded micro-optics to combat counterfeiters who become increasingly technologically advanced. The security features enhance banknote authenticity by providing easy detection methods which also protect the notes against replication attempts.
   
• A major advancement in note design includes micro-lenses with dynamic color effects that produce motion effects or visual depth effects when banknotes are tilted. The search for improved banknote authentication led central banks to adopt RFID and nanotechnology-based security technologies which can track and verify banknote authenticity. A growing demand for high-tech banknotes that resist counterfeits will drive industrial changes due to digital counterfeiting technology advancements.
   

Banknotes Market Analysis

Based on material, the banknote market is divided into paper, polymer and hybrid banknotes. The paper segment held a market share of over 50% and is expected to cross USD 9 billion by 2034.  
 

• The paper banknote segment leads the global banknotes market in 2024 because nations rely on it for its extensive adoption together with established production systems and central bank approval. Almost every nation depends on cotton-based banknotes because these have remained the primary currency type for several years owing to their widespread use alongside low initial manufacturing costs and well-developed printing methods.
   
• At present several developing nations with high cash circulation maintain their preference for paper banknotes because they can easily produce them with accessible supplier bases in their regions. Financial organizations together with governments prefer to handle paper note printing instead of building an entirely different material-based system.
   
• The polymer segment of banknotes is showing rapid market growth because governments worldwide select it as a longer-lasting alternative to paper notes. The extended lifespan of polymer banknotes reaches up to 2.5 to 4 times that of paper notes while setting them ahead financially since their manufacturing expenses exceed paper banknotes costs. The secure elements embedded within polymer banknotes such as transparent windows with holograms and color-shifting features make these notes very difficult to duplicate.
   
• Today the United Kingdom and Australia along with Canada have adopted polymer notes as their exclusive currency yet India and China and the Philippines are implementing polymer currencies in their lower banknote denominations. The adoption of polymer banknotes happens due to dual requirements for better counterfeiting prevention strategies and economical life cycle management.
   
• More governments and central banks now appreciate how polymer banknotes deliver long-term benefit so they plan to advance their adoption during upcoming years. The dominance of paper banknotes as the primary currency through worldwide framework and public recognition maintains its top position yet countries adopt polymer banknotes because they address both environmental sustainability and material resilience needs.
   
• New polymer printing technology developments combined with broadening global production potential are decreasing expenses, so these banknotes are becoming suitable for developing markets. The polymer segment will likely replace paper as the preferred choice for banknotes while remaining the secondary material in 2024.
   

Based on denomination, the banknotes market is divided into low-denomination and high-denomination banknotes. The low-denomination segment dominated the market accounting for 67% market share.
 

• Banknotes with low value dominate the market because they serve the majority of daily commercial transactions within developed economies and developing nations. The lower-value banknotes serve crucial purposes in small transactions and transportation as well as informal sector activities because the populace continues to rely on cash payments for these uses, so they need banknotes which are easy to handle.
   
• The financial activities of people in most emerging markets continue to depend on cash because a substantial number of citizens remain without bank access. The absence of digital payment infrastructure together with the role of cash payments maintains high market demand for low-denomination currency notes.
   
• The business of conducting everyday financial exchange causes low-denomination banknotes to deteriorate due to high usage. Since people mainly store or save higher-value banknotes, central banks must replace low-denomination banknotes at a much faster rate due to their extensive use in daily transactions. The large volume of banknote production occurs because frequent responsibilities to replace worn notes increase segment demand which consequently becomes the largest segment in the banknote industry.
   
• Governments prioritize maintaining sufficient small-sized banknotes for market stability as this reinforces their overall dominance within the paper money industry.
   

Based on end use, the banknote market is categorized into central banks, government agencies and commercial banks. The central banks segment held a market share above 50% in 2024.
 

• Central banks control the entire banknote production because they maintain the power to create currency throughout their national territories. Government institutions maintain control over money supply while following economic stability targets and inflation objectives as well as monetary policy requirements. The exclusive government oversight which central banks operate under grants authority to decide banknote features and production amounts while establishing the currency denominations. Through their total power in currency issuance central banks become the leading market players who control all aspects of money circulation.
   
• The central banks maintain their market leadership through their authority in banknote development as well as advanced security measures. Central banks determine all functional aspects of printing production including materials selection and security attributes while choosing printing techniques for protecting paper value and combating counterfeiting activities.
   
• Central banks maintain their market position through ongoing investments toward new security features that use items like holograms and polymer substrates and advanced printing capabilities such as color-shifting inks and microtexts. Their leadership in the market depends on working with security printing specialists who maintain currency security through tamper-proof banking instruments that are simple to verify.
   
• The distribution process of banknotes as well as their lifecycle management falls under central bank authority to ensure continuous cash movement in economic markets. The central banks perform tasks involving printing banknotes and note storage functions while providing replacement services for worn or damaged notes to preserve currency circulation conditions.
   
• Central banks lead collaboration with commercial banks and financial institutions to supervise both cash demand and supply dynamics across different geographical areas. The centralized cash distribution and replenishment management gives them complete dominion within the market as they function as its primary operational catalysts.
   

Based on security features, the banknotes market is divided into watermarks, security threads, holograms, color-shifting ink, microprinting and UV features. The watermarks segment held a market share above 20% in 2024.
 

• Banknotes mostly use watermarks because they excel as one of the most trusted security features to prevent counterfeiting. Production of watermarks occurs throughout the paper-making process which makes them difficult to duplicate through standard printing method, so they function as exceptional authentication tools.
   
• Security elements found in watermarks exist inside banknote structures because they display themselves under light without modifying the paper texture. The distinctive property of watermarks makes banks worldwide choose them to enhance public confidence in the authenticity of their banknotes.
   
• The use of watermarks in banknotes dates back many decades which has established them as an accepted security element by the public. The incorporation of watermarks into conventional cotton-based banknotes happens without production changes so traditional banks can easily adopt them while alternative security measures might need expensive modifications.
   
• The affordability of watermarks makes them a compelling choice among security features since they provide dependable counterfeiting protection at a price lower than that of modern digital and micro-optic security systems. Watermarks persist as the primary security element in banknotes because they guarantee long-term reliability and easy detection alongside reasonable pricing.
   

Asia Pacific dominates the global banknotes market with a share of around 33% and China leads the market in the region generating revenue of USD 3 billion in 2024.
 

• China dominates the banknote market as it possesses leading printing technology and extensive production capability and worldwide influence in currency production. State-of-the-art security printing facilities which China immensely invested in allow the country to manufacture banknotes of superior quality which incorporate complex counterfeiting resistance elements.
   
• The currency notes printing and minting enterprise China Banknote Printing and Minting Corporation (CBPMC) both supplies banknotes and security printing services to domestic clients as well as several Asian African and Latin American national entities. The export strategy of Chinese legal banknotes has established the country as a leading player in worldwide banknote markets.
   
• Cash continues to dominate production in China's economy because its population numbers are large and because of economic policies the nation follows. The Chinese government maintains comprehensive currency control that enables continuous innovation of banknote security features together with efficient distribution managed by the People’s Bank of China (PBOC). China's position in the market has become stronger through its leadership role in developing both hybrid and polymer banknotes. High domestic requirements together with technological progress and international power establish China as a leading force in world banknote production.
   

The banknotes market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• The European banknotes market depends heavily on Germany because the nation possesses a robust banking infrastructure alongside extensive cash usage in specific sectors alongside state-of-the-art security printing technology. The rising popularity of digital payments has not diminished the important position that cash maintains because it remains essential for small purchases and for unmodernized businesses together with isolated areas. The Deutsche Bundesbank has authority to control banknote production to provide constant supply of safe secure euro banknotes. Germany maintains a position as the leading industrial producer of banknotes by enabling European banknote production through its security printing industries.
   
• Germany leads the market in banknote security advancements because it prioritizes advanced counterfeiting prevention features in its banknotes. The nation backs the development of improved security components like holograms together with micro-optics and color-shifting inks which protect euro banknotes through enhanced trust and economic stability. European consumers depend on physical cash transactions on a regular basis which ensures that banknotes continue to have market demand despite increasing digital payment utilization. The German financial system and technological knowledge base maintains Germany a dominant force in defining the European banks of the future.
   

The banknotes market in U.S. is expected to experience significant and promising growth from 2025 to 2034.
 

• The United States holds a dominant position in world banknote production alongside being a leading market force because the U.S. dollar maintains its role as the global reserve currency. The Bureau of Engraving and Printing (BEP) operates as a division of the U.S. Department of the Treasury that is responsible for manufacturing banknotes which the department ensures safe through durability and acceptance worldwide.
   
• Thus, cash continues its popularity as people use it extensively for small sales along with informal transactions and monetary savings despite the rising use of digital and touchless payment methods. The extensive use of U.S. dollars during international trades and in foreign reserves extends the demand for banknotes across domestic markets and worldwide locations.
   
• Banknote security continues to advance in the United States with multiple defensive features including ink that changes color, 3D security fibers, watermarks and textured printing elements against counterfeiting. Banknotes serve as a priority for the Federal Reserve because it leads the efforts to replace worn-out bills through efficient withdrawal procedures.
   
• The U.S. dollar continues to grow powerful in the banknote market because it dominates global offshore banking operations as well as international monetary transactions and worldwide remittances. The growing use of digital payments does not diminish the dollar's position in worldwide financial activities and the widespread usage of cash throughout different commercial sectors, so the U.S. market maintains its importance.
   

Banknotes Market Share

Top 7 companies leading the banknotes industry in 2024 are De La Rue, Giesecke+Devrient (G+D), Crane Currency, Oberthur Fiduciaire, Canadian Bank Note Company, Security Printing and Minting Corporation of India Limited (SPMCIL), and Royal Joh. Enschedé. Together, they hold around 6% market share in the market. 
 

• The banknote market receives direction from three leading companies: Giesecke+Devrient (G+D), Crane Currency and Security Printing and Minting Corporation of India Limited (SPMCIL) who bring innovative security features to improve banknote durability and counterfeit prevention. The security solutions developed by G+D comprise high-tech security features of micro-optics together with hybrid substrates and color-shifting elements which protect banknotes from counterfeiting.
   
• Crane Currency uses its strategic focus on security paper printing to create new security threads which detect motion movement while infusing polymers into banknotes to enhance cash transaction reliability. As India's leading banknote printing entity SPMCIL adapts regional security measures to protect Indian Rupee currency through international banknote standards.
   
• Various firms active in the banknote sector now focus on sustainability and durability by developing environmental-friendly long-lasting money solutions. G+D introduced Green Banknote Initiative to provide sustainable manufacturing methods supporting banknote materials designed for recycling. Crane Currency advances the acceptance of their polymer and hybrid substrates because these materials increase banknote lifetime and deliver environmental benefits.
   
• The Indian branch of SPMCIL dedicates its efforts to minimizing manufacturing wastes by optimizing its banknote ink components while advancing physical durability and sustainable banknote standards. The companies use sustainable materials combined with advanced manufacturing processes to create market-demanding central bank solutions that reduce operational expenses.
   
• The production and worldwide distribution of banknotes for diverse central banks depends on these vital companies working in the supply chain. G+D operates throughout multiple countries where they provide technologic solutions and security features for banknotes to governments across the world. Crane Currency leads the market by supplying specialized security paper for U.S. dollars as well as top-tier banknotes that positions it as the market dominance leader.
   
• In addition to serving Indian banking requirements SPMCIL extends its services through international collaborations that provide security printing solutions to central banks outside its own borders. The company boost market leadership through enhanced supply chain operations and global distribution of high-tech banknotes which leads to better technological development.
   
• These companies adjust their banknote offerings because digital payment methods have been growing steadily in demand across the financial market. The company G+D develops smart banknotes infused with digital functionality which includes machine-readable characteristics and support for digital payment systems. Thanks to its research, Crane Currency produces banknotes that combine enhanced durability with strong anti-counterfeit security which keeps cash valuable despite growing digital payment systems.
   

Banknotes Market Companies

Major players operating in the Banknotes industry include:

• Bundesdruckerei
• Canadian Bank Note Company
• China Banknote Printing and Minting Corporation
• Crane Currency
• De La Rue
• Giesecke+Devrient (G+D)
• Oberthur Fiduciaire
• Royal Joh. Enschedé
• Security Printing and Minting Corporation of India Limited (SPMCIL)
   
• The competitive banknote market exists globally as key players perform continuous innovation to develop protective features and maintain material longevity while improving economic aspects. Giesecke+Devrient (G+D) along with Crane Currency and De La Rue and Oberthur Fiduciaire dominate the market by creating advanced security measures and polymer materials and high-resolution printing technology to stop counterfeiting.
   
• Companies provide customized solutions to central banks which fulfill banknotes requirements regarding security needs and durability standards as well as design specifications. The banknote market features leadership roles for Security Printing and Minting Corporation of India Limited (SPMCIL) and China Banknote Printing and Minting Corporation (CBPMC) in their home territories and various emerging regions. Technological innovation has transformed the competitive environment as numerous banking institutions work on hybrid banknote development which integrates paper materials with polymer components to extend their lifespan.
   
• Central banks regulate the banknote market through strict currency production control methods because commercial sector industries lack such oversight. State-units manage their own mint and printing operations which enables less dependency on outside suppliers alongside the competition from private security printing firms vying for government contracts. A two-tier market competition exists because private security printers work to win government contracts while state-run printing facilities maintain independence from private sources.
   
• The transition towards polymer and hybrid banknotes created an intensified market competition due to companies which started investing in sustainable manufacturing materials combined with improved security features for central banks' ongoing needs. The rising usage of digital payments does not diminish the competitive marketplace for banknotes because customers demand secure durable and cost-effective banknotes which promote industrial technological progress and strategic business agreements.
   

Banknotes Industry News

• The Bank of Mauritius announced that it is introducing new polymer banknotes for the Rs1000 denomination, which started circulating in December 2024. These notes feature a Dodo bird within a transparent window and a ‘SPARK Flow PRIME’ feature. The Rs100 and Rs200 polymer denominations would be issued in 2025. The new polymer notes will circulate alongside the existing paper notes, both remaining legal tender. The bank is working with financial institutions to ensure a smooth transition to the new banknotes.
   
• In July 2024, Japan launched new banknotes featuring hologram portraits to combat counterfeiting. The new notes depict prominent figures in Japanese capitalism, women's education, and medical science. Existing bills will remain in circulation, but many businesses are upgrading payment machines to accommodate the new currency. The move coincides with Japan's economic growth phase and efforts to digitize the economy, though cash remains a significant payment method. The new notes use unique holographic technology, and authorities plan to print 7.5 billion of them by the end of the fiscal year.
   
• In April 2024, G+D announced that it is partnering with the Central Bank of Mauritania to design and introduce a potential Central Bank Digital Currency (CBDC) to advance the country's digital transformation and promote financial inclusion. The collaboration aims to explore how a digital Ouguiya could benefit society and the economy, with G+D providing technical solutions for initial testing. G+D's expertise in digital currency development will support Mauritania's efforts to enhance economic stability and growth through digital means. Founded in 1852, G+D employs over 14,000 people and operates in 40 countries, contributing to global security and innovation.
   
• In June 2022, Crane Currency introduced MOTION SURFACE for all banknote substrates, including polymer, enhancing security features for banknotes. This technology allows the public to authenticate banknotes quickly and easily, even without specialized training. The Pinball Note, Crane’s first polymer house note, shows this innovation. MOTION SURFACE addresses the challenge of limited security features for polymer banknotes and uses gamification to improve public education on banknote authentication. The new micro-optic stripe on the Pinball Note provides strong visual effects and high-speed movement, making it easier for the public to verify authenticity.
   

The banknotes market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Material

• Paper
• Polymer
• Hybrid

Market, By Denomination

• Low-denomination
• High-denomination

Market, By Security Features

• Watermarks
• Security threads
• Holograms
• Color-shifting ink
• Microprinting
• UV features

Market, By Printing Technology

• Offset printing
• Intaglio printing
• Letterpress printing
• Screen printing
• Digital printing

Market, By End Use

• Central banks
• Government agencies
• Commercial banks

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia