Safe Deposit Box Services Market Size, Share & Growth [2030]

Report Description

Safe Deposit Box Services Market Outlook

The global safe deposit box services market was valued at USD 9,402.4 Million in 2021 and is projected to reach USD 11,758.2 Million by 2030, expanding at a CAGR of 2.3% during the forecast period.

A safe deposit box is a bank locker or secured container usually made up of metal and is mainly maintained by banks, credit unions, retail & commercial, and other special safe deposit service providers. Safe Deposit Box Services providers provide storage facilities that allow customers to rent out safe deposit boxes to take care of personal or corporate belongings.

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Safe Deposit Box Services Market Macro-Economic Factors

GDP

Gross domestic product or GDP refers to the value of goods and services produced in a country over a specific time period. Revenue generated from Safe deposit box services contributes to the GDP of a country. GDP growth is generally associated with economic expansion, increased wealth and higher disposable income. As the economy grows individuals and businesses has greater capacity to accumulate their assets.

Inflation

Cash stored in a safe deposit box is not protected by the Federal Deposit Insurance Corporation (FDIC). It is unable to beat inflation, and customers lose value when they store money in the safe deposit box. Inflation has a negative impact on Safe Deposit Box Services, as idle cash loses buying power over time due to the effects of inflation.

Government Regulations

Favorable government regulations such as a strong security system for safe deposit boxes increase the demand for Safe Deposit Box Services globally. Customers choose to keep their belongings in safe deposit boxes for safety reasons and government security, which is contributing to the growth of the Safe Deposit Box Services market globally.

Price

Prices of safe deposit boxes vary, depending on the bank and the location of the box. Each bank has a different way of calculating the rental fee of a safe deposit box. Banks have different pricing structures to cover their overhead costs. Safe deposit boxes generate revenue, which increases their usage in banks.

Safe Deposit Box Services Market Dynamics

Drivers

Rising demand for robust security

Rising demand for robust security is expected to fuel the demand for safe deposit boxes in the coming years. Financial organizations such as banks and credit unions are offering customers/ members a safe deposit locker for storing valuable items. Customers across the globe prefer using safe deposit boxes to store valuables, due to the rising crime rates.

According to the report published by the US Department of Justice, the rate of trespassing & robbery increased from 4.1 to 5.1 per 1,000 households. Banks and credit unions are registering high growth, due to the rising number of customers. The banking sector is continuously evolving. Banks are focused on providing advanced security for the bank vaults that are guarded by video cameras and burglar alarms.

Safe deposit boxes are designed to safeguard the valuables of customers and gain their confidence. Demand for safe deposit boxes is increasing among customers who are not comfortable storing items in the digital environment. Safe deposit boxes are placed deep inside the building with innovative structures for maximum security. Safe deposit boxes in financial organizations are much safer than home safes.

Increasing Availability of Insurance

Availability of insurance for safe deposit boxes is increasing. Financial organizations such as banks offer Safe Deposit Box Services; however, they do not offer insurance for the items stored in the box, due to various regulations. A safe deposit box is an ideal solution for storing valuable items; however, they are not immune to disasters such as tornadoes, hurricanes, flood events, and theft.

Every year, millions of dollars’ worth of valuable documents and property stored in safe deposit boxes are destroyed, due to unforeseen circumstances or theft. On the other hand, nowadays several insurance companies such as Safe Deposit Box Insurance Coverage, LLC. covers loss related to safe deposit boxes.

The insurance cover is a complete all-risk policy and covers losses regardless of any circumstances. It covers silver, gold, other precious metals, jewelry, precious stones, currency, securities, bonds, numismatic collections, stamp collections, and any other item of value or documents. Thus, increasing availability of insurance is expected to boost the market in the forecast period.

Restraint

High Cost Related to Infrastructure

Infrastructure required to build safe deposit boxes is placed deep inside the bank, and the area is highly secured by cameras, sensors, and other security equipment. High costs related to the infrastructure required to secure safe deposit boxes pose major concerns. Moreover, the operating cost is not profitable, thus several banks and credit unions are discontinuing the safe deposit box facility for consumers, which is expected to hamper the market growth in the coming years.

Opportunity

Technological Advancements

Technological advancements in safe deposit boxes are continuously being undertaken. In recent times, technological advancements, such as a keyless system, biometrics, and access cards, have been introduced in safe deposit box systems for security purposes. Robotized self-service safe deposit locker systems have been introduced and are in use.

Many financial institutions are adopting this technology, as it carries safe deposit boxes from the vault to a terminal in a secure room. Customers identify themselves through the detecting terminal and open the box using a personal key. Then, the box is returned to the vault by the robot. Highly secure facilities are built to the most stringent security standards and are securely monitored 24/7.

Additionally, investments are made in security measures to achieve sophistication in protecting assets and valuables. Advancement of safe deposit boxes, in terms of the internet of things (IoT), automation, and detection, are creating opportunities for market players.

Scope of Safe Deposit Box Services Market Report

The report on the global Safe Deposit Box Services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Safe Deposit Box Services Market Segment Insights

The global Safe Deposit Box Services market is segmented on the basis of by Payment Type, Box Size, and Application.

Based on Payment Type, the global Safe Deposit Box Services market is divided into Monthly, Quarterly, Bi-Annually, and Annually. The Annual Payment Type segment is anticipated to dominate the market.

The growth of the market is attributed to the rising adoption of annual plans where the need for storing belongings whether it is personal or commercial documents or accessories and not regularly used and there is no proper security storage facilities at homes and commercial places available. These are some of the major reasons for the adoption of annual payment plans.

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Based on Box Size the global Safe Deposit Box Services market is fragmented into Small, Medium, and Large. The Small Box segment is anticipated to dominate the global market during the forecast period. 

The growth of the market is attributed to the growing income among people and rising security concerns such as data leakage or breaches and theft of personal or corporate belongings are rising day-to-day and usage of small-sized Safe Deposit Box Services when the belongings are less to store. Small Box Safe deposit box service offers more customization to cater individual needs. This allows user to optimize their space and pay for specific size.

By Application, the Safe Deposit Box Services market is segmented into Personal and Commercial. The Personal Application segment is projected to dominate the market during the forecast period. The growth of the market is attributed to the rising security concerns related to the risk of theft of personal belongings such as house documents, personal stock details, and jewelry.

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Regional Analysis

Asia Pacific region is expected to dominate the market during the forecast period, owing to increasing demand for safe deposit box services in order to keep belongings safe among older people is one of the factors fuelling the market.

In emerging countries such as China and India-based banking firms have been frequently providing heavily discount safe deposit boxes to their consumers. Agreements for renting safe deposit boxes may specify what will happen if the tenant dies or declares bankruptcy.

For instance, if it's necessary to get important documents, like a will or property deeds after the person passes away, the bank may permit other persons access to the box. This typically calls for formal court documentation and might only be available to the executor or trustee of the decedent.

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