The security holograms market size is expected to be worth USD 5,233.2 million in 2023, according to FMI’s latest study. The sales of security holograms are expected to surpass USD 8,633.6 million by 2033, growing at a CAGR of 5.1% during the forecast period.
In response to the surging demand for security holograms, competition registered in the market is expected to grow. FMI has projected the top 7 providers to hold 25% of the global security holograms industry in 2022.
Newly released data from security holograms market analysis shows that global consumption of overall security holograms is forecast to increase at a year-on-year (YoY) growth of 3.1% in 2023.
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The increasing demand for anti-counterfeiting devices to tackle the threat of counterfeiting is the sale of security holograms. According to The International Hologram Manufacturers Association (IHMA), hair care and cosmetic brands are hit harder due to the increase in counterfeit products.
Counterfeit products have increased by 56% in 2022 across 700 brands that are sold online. Moreover, skin care device companies have experienced an increased sale of counterfeit products by 40%.
An increase in online sales of fake products is fueling the demand for security holograms. The sales of fake products affect the brand image and sale of the original products. The availability of counterfeit products not only hampers the name and value of the company, but also causes harm to unsuspecting buyers.
Fake products are also sold at lower prices, which creates a pricing issue among original product manufacturers. On the back of these factors, end-use industries are using security holograms to protect their products.
Also, a high level of counterfeiting leads to a decrease in foreign investment, which generates demand for anti-counterfeiting devices such as security holograms. The players operating in holographic products are ramping up their investment in technologies to offer the best solution to brands and companies to protect their products against counterfeiting, which is also driving the security holograms industry.
The University Grants Commission (UGC) has requested all universities in India to provide security features, such as security holograms and QR codes, to the degree certificates, to provide proper verification and to curb duplications. This is also likely to help to bring uniformity across the overall education system.
The order from the UGC to provide security holograms to mark sheets and certificates among all the different courses is likely to propel the demand for security holograms. This is also likely to help to create a personal identity for a student, which can be used in other universities due to its uniformity. Every year, several students pass the course and receive certificates, which is predicted to create hefty demand for security holograms.
Various programs by a university, and this variety of courses, enrolling several students, are predicted to augment the sale of security holograms. An increase in the number of courses and students results in higher demand for security holograms.
| Attributes | Details |
|---|---|
| Security Holograms Market CAGR (2023 to 2033) | 5.1% |
| Security Holograms Market Size (2023) | USD 5,233.2 million |
| Security Holograms Market Size (2033) | USD 8,633.6 million |
The increasing usage of counterfeit products, such as auto parts and accessories, in vehicles has severely affected the automobile market. Also, counterfeiting vehicle parts might pose a risk to the safety of passengers at large, and it causes huge revenue loss for companies. Counterfeit auto parts also hamper brand credibility and do not meet the criteria of genuine manufacturing processes, which puts the passenger at risk.
On 8th June 2021, a digital campaign was launched by Hyundai Mobis on the anti-counterfeit day to create awareness among the customers to use genuine parts and accessories. The campaign was named Safety Mein Zero Compromise.
Many companies ensured that customers use only genuine parts and accessories by providing an MRP label with a five-step security feature, which includes a hologram. The use of security features, such as security holograms, is predicted to help to avoid the use of non-genuine parts and accessories, saving companies from losses and passengers from risk.
Awareness created among customers is likely to encourage the use of genuine products, which ultimately is likely to increase the demand for security holograms, as this hologram is used on the MRP label to identify the genuine product. Overall, the awareness among the customers for using genuine products is predicted to offer growth opportunities for the security hologram market.
According to the International Hologram Manufacturers Association (IHMA), the new edible hologram helps in boosting food safety, along with preventing food fraud. Some of the leading players operating in the security hologram market are trying to develop edible security holograms, which is trending in the food industry as it provides security against counterfeit products, along with ensuring food safety.
The edible security hologram offers a safe and cost-effective way to print important messages on food packaging. Also, this works as food labeling. The edible security hologram adds value, as it is considered a new approach adopted by manufacturers and producers.
Edible security holograms are predicted to work as a security measure to prove food authenticity, and are anticipated to help easily identify fake products. Also, an edible security hologram is anticipated to offer a financial benefit to the company and is anticipated to create brand enhancement.
Thus, the edible security hologram offers dual benefits, such as security against fake products and ensuring food safety, which attracts the food industry. Therefore, edible security holograms are trending in the food industry.
The increasing government initiatives and regulations mandating the use of security holograms in various applications are also driving the growth of the security holograms market. Governments across the globe are introducing regulations and policies to combat counterfeiting and fraud, which is increasing the demand for security holograms.
Driven by the rising demand for safety and authentication among end users to avoid counterfeiting across the globe, the global security holograms industry is anticipated to rise at 5.1% CAGR from 2023 to 2033, in comparison to the 3.0% CAGR registered during the forecast period.
| Particulars | Details |
|---|---|
| Jan - Jun (H1), 2021 (A) | 3.2% |
| Jan - Jun (H1), 2022 Projected (P) | 3.4% |
| Jan - Jun (H1), 2022 Outlook (O) | 3.7% |
| BPS: H1,2022 (O) - H1,2021 (A) | 50 |
| BPS: H1,2022 (O) - H1,2021 (A) | 30 |
Short term (2022 to 2025): The increasing need for secure identification and authentication in various industries, such as government, finance, and healthcare, is driving the growth of the security holograms industry. With the increasing number of fraudulent activities, organizations are looking for advanced security measures to protect their valuable assets and personal information. Security holograms provide an added layer of security, making them an attractive option for organizations looking to protect their assets.
Medium term (2025 to 2028): Advancements in holographic technology are driving the growth of the security holograms industry. Holographic technology has become more sophisticated and cost-effective, making it more accessible for organizations to use in their security systems. The ability to create high-resolution, multi-layered, and tamper-proof holograms has increased the demand for security holograms.
Long term (2028 to 2032): The growing e-commerce industry is anticipated to drive the growth of the security holograms industry. As more and more consumers are turning to online platforms for their shopping needs, the demand for secure packaging and labeling solutions is increasing. Security holograms provide an added layer of security to online transactions and help protect against counterfeit products, which is why they are increasingly being used in the e-commerce industry.
The United States is expected to remain the top region for the global security holograms industry, and it is estimated to hold a share of 23.9% in 2022. According to the study, the USA market is projected to be worth USD 1,210.9 million in 2022.
The United States is projected to be the most attractive security holograms industry, due to the increasing need for anti-counterfeit devices to prevent the sales of fake medicines and other products.
According to the Organization for Economic Co-operation and Development (OECD), the USA Customs and Border Protection (USA CBP) reported fake COVID-19 tests, facemasks & hand sanitizers. The rising number of fake medicines and medical equipment fuels the demand for security holograms in the United States.
Germany holds a 5.5% share of the security holograms industry in Europe. Germany is anticipated to account for around 1/5th of sales in the Europe market, along with offering an incremental opportunity of USD 277.7 million during the forecast period.
The demand for packaging security and authentication devices is rising in Germany to ensure the quality of products by checking the smuggling and distribution of illicit products. Products without security holograms can be seized and destroyed to save the anti-counterfeit products. Overall, the increasing need for anti-counterfeit packaging is fueling the demand for security holograms in Germany.
The security holograms industry in China is expected to expand at a CAGR of 7.27% from 2023 to 2033. China's security holograms industry is estimated to be worth USD 1,037.6 million in 2023.
Stringent regulations implemented by governments and the war on counterfeiting by the national government are anticipated to fuel the demand for security holograms in China. Security holograms are predicted to be preferred as a part of protecting the brand from counterfeiting and tackling the problems & challenges faced by the brands selling anti-counterfeit products.
In South Asia, India's security holograms industry is anticipated to be valued at USD 622.8 million in 2023, rising at a CAGR of 8.07% during the forecast period. The increasing demand for security features for certificates issued by the University Grand Commission is anticipated to create growth opportunities for the security holograms market in India.
The University Grants Commission (UGC), ordered all the universities and higher education institutes to add the security features, such as security holograms and QR codes to all degree certificates and mark sheets, to provide unique identification to each individual and to maintain uniformity across the overall higher education system in India. This factor is anticipated to create a market growth opportunity for security holograms in India.
Based on the product type, the 2D/3D segment followed by the electron-beam segment holds the leading share in the market. The targeted segments are anticipated to hold a 32.1% share of the market in 2023.
Both segments collectively are projected to offer an incremental opportunity of USD 2.5 million during the forecast period. The 2D/3D segment and electron-beam segment are estimated to expand at a CAGR of 5.8% and 6.8% respectively from 2023 to 2033. The reason behind this same is the rising demand for technologically advanced products, along with a focus on offering visually attractive products.
Prices for security holograms differ based on different types. The price of the electron-beam segment is the highest among the other types, as it is made using advanced technology. Also, the prices vary based on the availability and prices of raw materials, along with the cost of production.
The cost of security holograms is highest in Europe, whereas North America stands in the second position in terms of high prices. Latin America has the third-highest price for security holograms globally. Besides this, South Asia has the lowest price for security holograms due to the easy availability of raw materials, as well as the low production & labor cost.
In terms of end-user, the document segments followed by passport and packaging segments are anticipated to hold more than 45.5% of the market during the forecast period. The reason behind the same is the rising need for curbing duplication certification, along with providing proper modes of authentication to facilitate easy verification.
These segments are estimated to create incremental opportunities of USD 2.8 million from 2023 to 2033. The document segment, passport segment, and packaging segment are projected to expand at a CAGR of 6.3%, 5.1%, and 5.8% respectively during the forecast period.
The polypropylene (PP) segment is expected to be the most preferred material among security hologram manufacturers, due to its multiple advantages. The segment is anticipated to hold a significant share of around 45.5% in the security holograms industry during the forecast period. One of the key factors that contribute to the preference for PP among security hologram manufacturers is its durability. PP is a strong and sturdy material that is resistant to wear and tear, making it ideal for use in security holograms that must withstand frequent handling and use.
In addition, PP is a relatively inexpensive material compared to other options, making it a cost-effective choice for manufacturers. Furthermore, PP is a versatile material that can be used in a wide range of applications, including the production of security holograms. Its ability to be easily molded and shaped into different forms allows manufacturers to create unique and customized security holograms that cater to the specific needs of different industries and customers.
The key players manufacturing security holograms are trying to focus on innovation. Considering this, there is a high focus on new product launches and the adoption of technological advancements to cater to the demand from various industries. Also, the players are expanding their production capacity to meet the demand for security holograms across the globe.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2017 to 2022 |
| Market Analysis | USD million for Value and million Units for Volume |
| Key Regions Covered | North America; Latin America; Europe; South Asia; East Asia; Oceania; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Germany, Italy, France, UK, Spain, Russia, Turkey, South Africa, GCC, China, Japan, South Korea, India, and Australia |
| Key Segments Covered | Product Type, Material, End Use and Region |
| Key Companies Profiled | UPM Raflatac, Inc.; The Griff Network; De La Rue plc; Mega Fortris Group Europe; Crown Roll Leaf, Inc.; Andrews & Wykeham Ltd; BEP HOLOGRAM AS; Nova Vision Inc.; Security Hologram, LLC.; Opsec Security; Demax Holograms plc; HV Hologram Europe; Diavy Srl; Kimoha Entrepreneur FZCO; K Laser Technology (USA) Co., Ltd.; Holoflex Limited; Uflex Ltd.; Packtica Sdn. Bhd.; Lasersec Technologies Pvt. Ltd.; Hira Holovision; Matrix Technologies; SK Hologram Co. Ltd.; AFC Technology Co., Ltd. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The security holograms market is worth USD 5,233.2 million in 2023.
The security holograms market size is expected to reach USD 8,633.6 million by 2033.
India, China, and the United States exhibit significant demand for security holograms in 2023.
Industries adopting security holograms include packaging, apparel, currency, passport, and documents.
Emerging trends in the security holograms market include advancements in nano-optics and blockchain-backed authentication methods.
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Security Holograms Market
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