Access Control Market

Key Points Covered in Access Control Market Study

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Access Control Market and how to Navigate
• Recommendation on Key Winning Strategies

2016-2020 Access Control Demand Outlook Compared to 2021-2031 Forecast

The global security industry has rapidly transformed with the advent of cloud computing and wireless access facilities, which is likely to fuel demand for access control solutions in the coming years. Access control sales are estimated to rise at a 12.6% CAGR between 2021 and 2031 in comparison to the 8.1% CAGR registered during 2016-2020.

With rapid development in cloud computing and access control, the security and controls market has transformed, in comparison to the previous decade. Emerging cloud-based technologies provide web- and cloud-based solutions for cost-effectiveness, real-time analytics, easy access to data, integration with other systems and software, sharing of data internally and externally, scalability, and flexibility.

Initiatives undertaken by companies worldwide, coupled with awareness about cybercrime and security for data have been gaining ground in recent years. Companies are taking steps to secure enterprise information from various internal and external threats. Increasing awareness about cyber-crimes and data security is expected to drive the sales of access control systems during the forecast period.

Furthermore, the digitization of workloads is growing steadily in countries, such as India, China, the U.S., France, Germany, and Japan, and enterprises are adopting advanced access control technologies including biometrics and access control solutions.

While this exposes new endpoints to cyber-attacks and digital frauds, it also provides significant opportunities for the adoption of such solutions. A survey conducted on SMEs by Zurich, a cyber-attack insurance provider, revealed that in Asia Pacific, SMEs consider cybercrime as one of their top concerns.

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How are Surging Applications of Contactless Biometric Technology Affecting Growth?

Traditionally, contactless biometrics was used for applications predominantly initiated by military access control, civil, or criminal identification under a tightly regulated technical and legal framework. But nowadays, all industrial sectors including BFSI, healthcare, education, military and defense, and many others have started adopting contactless biometrics.

Most importantly, acceptance and awareness about this technology has increased among the industrial users in the past few years. This increasing ubiquity of biometric authentication using a range of different identification methods makes mobile biometrics more accessible in the industrial workplace.

Moreover, facial recognition technology is also being used by companies to identify their employees as soon as they enter into the organization.

What is the Impact of the COVID-19 Crisis on the Demand for Access Control Solutions?

The COVID-19 pandemic has impacted a wide range of end use verticals and social distancing norms are transforming digitalization processes to ensure asset safety. The demand for access control has risen during the pandemic owing to increased awareness regarding smart solutions for enhancing security processes.

The adoption of contactless biometrics has increased in the pandemic due the social distancing norms. Consequently, the access control market is estimated to grow from 7.6% to 10.8% Y-o-Y from 2019 to 2021.

The demand for access control is increasing in healthcare industry as well to restrict the entry to data and assets only for authorized personnel.

Country-wise Insights

How Large is the Opportunity for Access Control Sales in the U.S.?

North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, the U.S. is expected to account for close to 79% of the North America market through 2031.

In Feb 2021, Honeywell entered into strategic alliance with IDEMIA, to create and cultivate an intelligent building ecosystem that provides a seamless and enhanced experience for operators and occupants alike. The alliance integrated Honeywell’s security and building management systems with IDEMIA’s biometric-based access control systems to create frictionless, safer, and efficient buildings.

Why is Demand for Access Control Increasing in China?

Demand in the China access control market is expected to rise at a CAGR of nearly 12% over the forecast period. Increasing government investments in infrastructural development projects such as the construction and expansion of the Beijing International Airport, and the China-Pakistan Economic Corridor (CPEC), is anticipated to spur the demand for access control solutions.

Increased terror threats and growing government spending to enhance security are some of the key factors driving the sales of access control solutions in China. In addition, the growing economy of China creates a significant requirement for security systems.

As per the report, China is recognized as a primary market, and it holds a major revenue share of 43.3% in 2021.

How is India Contributing Towards the Access Control Sales?

In 2031, the demand for access control solutions in India is estimated account for a total value of US$ 751.7 Mn. Several government and private entities have been investing in advanced security systems for workplace solutions and data protection. Factors such as rapid deployment of access control systems across defense and commercial sectors, are driving the demand in India.

The introduction of technologically enriched, contactless smart cards for diversified applications, is expected to propel the access control demand. The urbanized areas of the country, including Chennai, Hyderabad, Mumbai, Delhi-NCR, and Bangalore have made remarkable progress in advancing security systems, pertaining to IT hubs, commercial spaces, and government buildings.   

Additionally, escalating criminal activities in the country, are driving IT companies to install access control systems for recording employee entry and exit timings to protect personnel and minimize data breaches.

Category-wise Insights

Which Component of Access Control Systems is High in Demand?

In terms of access control components, hardware will hold the lead accounting for nearly 62% of the market in 2021. Fingerprint scanners are being used extensively in online transactions and smartphone applications.

In addition, the mass adoption of fingerprint scanners in cloud computing along with their extensive use in smartphones are likely to boost the demand in the near future. Moreover, the introduction of single sign-in systems which eliminate the need for login IDs or passwords is estimated to further amplify the demand for enhanced security purposes.

Why are Iris Recognition Access Control Systems Highly Sought-after?

Iris recognition access control systems are estimated to account for a growth of 16.2% CAGR through 2031. Iris recognition technologies blend with statistical inferences, computer vision, pattern recognition, and optics.

Although, iris recognition is most commonly used in physical access control systems in private and government enterprises, the versatility of the technology is widening its scope of use in other sectors of the economy, namely national identification programs, healthcare, and transportation.

Furthermore, face and iris recognition have emerged as ‘zero touch’ and frictionless forms of access control that suit COVID-19 restrictions. Future projections will merge biometric solutions with implantable devices.

As iris recognition technology is accurate and secure, government security and law enforcement divisions are investing heavily into this segment to deal with large volumes of public data.

Why Does the IT & Telecom Industry Hold Major Share in Global Access Control Demand?

The IT & Telecom sector is expected to contribute a maximum revenue share of 23% in 2021. The world of cloud, SaaS, and subscription-based models has upended the conventional premise-based legacy systems.

Physical security is seeing a strong shift towards cloud-based access control due to huge benefits in terms of operational improvements, higher security and easy multi-site management.

In addition, access credentials can easily be granted or revoked from any device or location. User authorization, access points, and data trends are centralized in a single database that is remotely accessible. This is an important advancement in the physical security industry as it eliminates the need of an on-site IT professional to manage the system.

Another key benefit that has helped fuel the growing popularity of cloud access control in the IT & telecom industry is scalability. Managers who manage security at multiple sites can easily operate databases from one location, boosting the adoption of access control solutions in this sector.

Competitive Landscape

Key vendors of access control solutions are focusing on evolving their existing product and service portfolio. Companies are launching industry-specific solutions in order to meet industry specific needs.

• For instance, In Feb 2021, Honeywell announced the expansion of capabilities of its MAXPRO Cloud portfolio with the launch of MPA1 and MPA2, access control panels that offer cloud, web-based, or on-premise hosting options.
• In April 2021, NEC Corporation announced the provision of an electronic customs procedure system utilizing facial recognition at the customs inspection areas of Naha Airport, the busiest airport in Okinawa, Japan.
• Nedap’s AEOS physical access control system received CPNI certification, making it suitable for the U.K.’s technical authority standards.

Scope of Report

Key Questions Answered in the Report

• Which countries are key producers of access control systems?

  The U.S., Japan, India, Germany, and the U.K. are leading producers of access control systems.

• What is the global access control market growth outlook between 2020 and 2021?

  The global access control market is projected to grow 10.8% y-o-y between 2020 and 2021.

• Which are some of the leading companies offering access control solutions?

  Some of the leading companies in this landscape are Identiv, Honeywell International Inc., NEC Corporation, Johnson Controls, and Bosch Security and Safety Systems. As per Future Market Insights, nearly 60% of the market share is currently covered by the top 15 players.

• At what rate will the access control market grow in Europe? 

  The Europe access control market is set to rise at a 11.5% CAGR through the end of the assessment period in 2031.

• How much is the global access control demand worth?

  The access control market size will reach ~US$ 15.3 Bn in 2021, and is estimated to grow at an exceptional pace of over 12% CAGR.

• What will be the demand outlook for access control solutions?

  The sales of access control systems are expected to total ~US$ 15.4 Bn by the end of 2021 and are likely to reach ~US$ 50.5 Bn by 2031.

• What was the last 5-year market CAGR?

  The access control market in the last 5 years (2016 – 2020) grew by a CAGR of 8.1%.

• What are the key trends shaping growth in access control market?

  Key trends in the access control market include cloud-based access control systems perceiving high adoption in midsize and large enterprises, remote management playing an essential role in security, and increasing demand for mobile access control systems.

• What factors are driving demand for access control?

  The rising deployment of wireless security systems, growing crime rates, and the increasing popularity of cloud computing platforms are building new opportunities for advanced access control systems.

• What are the top 5 countries driving demand?

  Top 5 countries driving demand for access control include the U.S., Brazil, Germany, China, and U.K.

• What is the North America market Outlook?

  North America is predicted to remain one of the most attractive markets during the forecast period. According to the FMI study, the U.S. is expected to account for close to 79% of the North America market through 2031.

• What are the key market statistics in South Korea and Japan?

  The demand for access control in Japan and South Korea was valued at US$ 948.6 Mn and US$ 527.0 Mn in 2020, respectively and is projected to register CAGR of 16.9% and 13.9% respectively between 2021 and 2031.

Access Control Outlook by Category

By Component:

• Hardware
  • Fingerprint Scanners
  • Facial Recognition Devices
  • Iris Scanners
  • Smart Cards
  • Others
• Software
  • Integrated Access Control Software
  • Standalone Software/Middleware
  • Facial Recognition Software
  • Iris Recognition Software
  • Others
• Services
  • Professional Services
    • System Integration & Installation
    • Security Consulting
    • Support & Maintenance
  • Managed Services

By System Type:

• Fingerprint Access Control Systems
• Face Recognition Access Control Systems
• Iris Recognition Access Control Systems
• Card-Based Access Control Systems
• Others

By Industry:

• IT & Telecom
• BFSI
• Military & Defense
• Manufacturing
• Healthcare
• Transportation & Logistics
• Government
• Education
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• India
• Middle East and Africa (MEA)