Access Control Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Type (DAC, MAC, RBAC), By Application (Homeland Security, Commercial, Residential, and Industrial), and Regional Forecast, 2020-2027

The global access control market size was USD 10.31 billion in 2019 and is projected to grow from USD 11.17 billion in 2020 to USD 20.02 billion in 2027, exhibiting a CAGR of 8.7% in the 2020-2027 period. Rising use of multimodal and multifactor authentication systems while accessing digital files will increase the adoption of access control solutions, boosting the market progress.

Based on our analysis, the global market will exhibit a lower growth of 8.3% in 2020 compared to the average year-on-year growth during 2016-2019. The global impact of COVID-19 has been unprecedented and staggering, with access control systems witnessing a slight negative impact on demand across all regions amid the pandemic. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The access control system has become one of the fundamental parts of the enterprise security departments for protecting the perimeter and high-level data and assets. Without any doubt, this system demand is progressive and evolving at a fast pace across the industries. Increased liability, a new source of threats, and mandatory compliance are the key factors that drive the system demand for enhancing security. It restricts unauthorized entities from entering or accessing the facilities.

The growing security concern amongst the private and public sectors has resulted in the high adoption of advanced technology. The automated systems offer 24/7 protection and access, which is driving the demand across residential and commercial areas. Also, access control as a service (ACaaS) offers combined benefits of on-premises devices and software as a service (SaaS). These solutions are gaining much traction as they provide secure and remote data storage and data backup ability. The capability to maintain permanent records of past accesses is escalating the demand for the ACaaS solution.

The rapidly transforming security industry with the arrival of cloud computing and wireless access facilities is likely to fuel the access control market demand. The increasing proliferation of smart homes, smart buildings, and smart infrastructure projects are other key factors that will drive the physical security demand. The rising deployment of wireless security systems, growing crime rates, and the increasing popularity of cloud computing platforms are building new opportunities for advanced technologies. 

COVID-19 IMPACT SCENARIOS

COVID-19 to be a Catalyst for Resilient Growth of Mobile Access Control Technologies

The COVID-19 pandemic has drastically transformed the corporate rulebooks worldwide by shifting the working of businesses. Almost every company has transformed the way of work, offices have become abandoned, and employees have started working from home. As per the ‘Work from Home After the COVID-19 Outbreak Report’, published in June 2020, in the United States, the workforce that entirely works from home has reached 35.2 percent in May 2020, up from 8.2 percent in February 2020. With the growing proliferation of remote work or working from the home trend, organizations have started adopting advanced, multifactor mobile access systems to keep corporate data and networks safe.  

The global IT industry is advancing its security approaches and capabilities faster, although the COVID-19 pandemic has proven to be the catalyst for accelerating this advancement. As working from home has resulted in incredible growth in cyberattacks and phishing attacks, the demand for advanced authentication and technology has escalated. It is set to be a tilting point for the extensive adoption of robust authentication options to secure assets and crucial information.

With the growing security concerns, the multifactor authentication system demand has risen incredibly during the pandemic period. The increasing usage of smartphones, laptops, and tablets for corporate work has further accelerated the demand for mobile access control technologies. Along with the authentication, user verification systems demand is also showcasing extraordinary growth. The high adoption of smartphones has shifted many users from multifactor authentication to user verification technology.

The demand for these solutions would further continue post-pandemic due to the rapid shift towards the digital identity management and verification system. Advanced digital infrastructure is bolstering the demand for multistep verification and authentication systems, which further boosts the access control market growth. Touchless modalities would grow at a fast pace while the touch-based solutions will be declining.      

LATEST TRENDS

Increasing Demand for Mobile Access Control Systems to Propel Market Growth

The growing usage of smartphones or mobile devices has shifted the corporate sector's focus on enterprise mobility practice. The drastic shift towards corporate mobility has escalated the demand for mobile technology. As per the HID Global survey in the year 2019, 54% of businesses will shift to the mobile access control system in the coming three years. Mobile credentials are one of the popular products in mobile-based solutions. Authentication cards are mostly unencrypted cards and can be cloned easily. Therefore, Seos technology-based credential ecosystem are gaining popularity across industries

According to the State of Physical Access Control: Impact on the Enterprise Survey, published by HID Global, 77% of candidates agreed that mobile credentials would improve their authentication system. Thus, mobile credentials-based systems will gain much popularity in the forthcoming years.

DRIVING FACTORS

Enterprise Reliance on Cloud Centered Applications to Drive Cloud-Based Systems Demand

Enterprises of all sizes prefer cloud-based solutions over traditional solutions due to their convenience and affordability. Today, most enterprise systems are running on the cloud, including email, sales CRMs, marketing tools, productivity tools, IT infrastructure, messaging, and website hosting. The growing proliferation of ACaaS applications that enable remote security management through the web has escalated considerable demand for the cloud-based system. Advantageous factors, including high security, flexibility, multi-site management, and operational improvement, further accelerate the demand for these solutions.

Cloud-based systems adoption has become an emergent trend due to managing multiple sites through a single system. This system can easily manage access across all sites. Persistently growing logical and physical security concerns in the manufacturing and industrial plants enhancing the demand for these solutions. Manufacturing and industrial plants, military and defense industries are increasingly looking for remote solutions to achieve centralized security. Moreover, real-time and remote revocation of access, constant data backups, zero downtime, fast production evolution, and continuous security updates are other vital aspects responsible for driving cloud-based system adoption.

Growing Proliferation of Multifactor and Multimodal Authentication to Transform Access Control System’s Landscape

The multifactor and multimodal authentication system is becoming a vital part of digital access. Multifactor authentication is gaining much attention with the growing security demands. Two-factor authentication system-based physical security is essential across various industries such as oil and gas, utility industries, power plants, and other critical infrastructure. The multifactor authentication system is gaining popularity among corporate customers who want an advanced level of security. With the arrival of multimodal readers that support pin-pad, mobile, biometrics and key cards all in one, the demand for a two-factor authentication system has increased. Along with the high security, the system simplifies network access.

Prominent companies focus on developing multifactor authentication systems, which validates the growing demand for the system. In May 2020, NEC Corporation developed a multimodal, precise, and touchless biometric authentication terminal.

RESTRAINING FACTORS

High Initial Setup Cost to Hinder Market Growth

Today, there are multiple access control technology options available with a variety of features and benefits. Systems like biometric, smart cards, keypads, and smartphone systems are likewise showcasing their pricing variance. Physical key-based lock systems may not have high charges. However, replacing or rekeying the locks may add significant charges. Also, adding extra security levels may further result in an increased cost of the overall system. These systems, including biometrics, card-based systems, intercom or buzzer systems, and others, have higher initial cost due to the extra level of security and features they offer. Thus, high costs of systems may affect the overall adoption. 

SEGMENTATION

By Component Analysis

Hardware Segment to Hold Major Share Owing to Significant Demand for Integrated Hardware Systems

Based on the component, the market has been segregated into hardware, software, and services.

The hardware segment is likely to hold the highest market share owing to the growing adoption of the hardware sales-driven business model. Today, organizations realizing the need for security are regulating access for visitors and employees. Integrated hardware systems such as encrypted door controllers, wireless lock systems, smart cards, biometric applications, and portable hand-held card readers strengthen security and protect property, assets, and people.

Biometric and card-based authentication systems are becoming an essential part of the advanced corporate environment. Facial recognition or fingerprint recognition technologies of biometric authentication systems are gaining much popularity in public security and safety operations. Developing smart infrastructure projects such as smart homes, smart cities, and smart agriculture stimulates the demand for touchscreen keypads and alarm systems to ensure security. Thus, the hardware segment is likely to propel significant growth of access control market.

The software segment captures sufficient access control market share as the software is an obligatory part of any advanced system. The growing popularity of cloud-based systems drives the demand for standalone software. This software offers flexibility for adding new users, revoking access using any web-based device, and automatic up-gradation. These advantageous features are responsible for enhancing the adoption of software. 

By services, the market has been classified into training and consulting, installation and integration, and maintenance and support services. Among these, maintenance and support services are expected to contribute a significant market share as these services play a vital role in augmenting and extending the lives of applications. Providing upgrades for physical access management software, solving software issues, and other essential functions drive significant maintenance and support services. Integration and installation services show adequate growth as these services are an integral part of physical access and identity management systems. 

By Type Analysis

Customizable and Cost-Effective Offerings to Drive the Demand for DAC Segment

Based on the type, the access control market has segmented into mandatory access control (MAC), discretionary access control (DAC), and role-based access control (RBAC).

The growth of this market is mainly driven by the adoption of a DAC system. The system is gaining much popularity across the market owing to its benefits such as data security, improved efficiency, fast authentication, and minimized cost. The availability of customizable DAC solutions is likely to fuel market growth.

MAC system is one of the most secure systems that holds sufficient market share. This system provides multilevel security to the applications. Thus, the MAC system is widely adopted in most critical applications such as military secrets and other privileged information.

RBAC would exhibit significant growth during the forecast period. An enhanced security model at a lower cost is the key feature to drive the RBAC system's demand. The increasing rate of cybercrimes is likely to result in RBAC's significant adoption due to its robust identity management and access management feature. RBAC systems are much popular across the IT industry, owing to their most flexible, robust, simple, and cost-effective model. Cost controls, user role, compliance management, efficiency, and security are the key aspects for thriving the RBAC market. 

By Application Analysis

Commercial Industry to Hold Significant Market Share Owing to Increasing Demand for High Level of Security

By application, the access control market has been classified into homeland security, commercial, residential, and industrial.

The commercial sector is expected to gain maximum market share and is likely to exhibit significant growth during the forecast period. This growth has been attributed to the high demand for off-the-shelf systems. Several governments, as well as commercial entities, have deployed standards such as Underwriters Laboratories (UL) for ballistic protection, National Institute of Justice (NIJ), and the General Services Administration (GSA) for explosion protection for ballistic or explosion protection. These types of standards would be likely to accelerate the access control system demand in the commercial sector.

The industrial and residential sectors are also expected to exhibit significant growth in the forthcoming years due to the increasing demand for monitoring and high-level surveillance systems.

Physical security is gaining much preference in modern society with a rising number of thefts. The growing security concerns at residential places would be likely to drive the adoption of the system for homeland security. The growing popularity of smart infrastructure projects such as smart buildings, smart homes, and smart cities would further bolster the growth of the segment.

REGIONAL INSIGHTS

Geographically, the market is studied for five major regions, namely North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America dominated the global market in 2019, with a revenue of USD 3.81 billion. This dominance is attributed to significant spending on wireless systems and security solutions. The developed surveillance infrastructure is accelerating the demand for wireless access management systems. The entire United States population uses smartphones, which stimulates the need for a mobile access management system. A comprehensive adoption of cloud computing and the internet of things (IoT) based systems are further driving the market growth. Besides, the presence of many major players such as Genetec Inc., Honeywell International Inc, and Identiv, Inc. in North America is anticipated to propel the market growth.

South America is likely to showcase sufficient contribution to the market owing to the significant demand for solutions. According to the HID Global Survey conducted in 2019, almost 75% of the authentication systems use the physical feature across Latin America. The organizations across South America are showcasing significant adoption of the card-based electronics system.

Europe is expected to hold a significant share in the market due to substantial demand for the physical system. The increasing adoption of mobile computing devices such as laptops, wearables, smartphones, and biometrics is likely to enhance the demand for mobile systems. The growing security concerns and significant technological advancements are likely to drive the demand for smart security solutions in several European countries. Industries such as healthcare, BFSI, or hospitality show a substantial demand for access control systems.

Asia Pacific access control market is likely to showcase considerable growth due to the increasing need for security solutions. The growing industrialization is leading to high demand for securing data and assets. Rapid urbanization drives the need for surveillance systems in residential areas owing to security concerns. The trend of digitalization and technological advancements are driving the demand for solutions across small and medium organizations. Apart from this, the cumulative adoption of smartphones and mobile computing devices is expected to drive system adoption across Asia-Pacific.     

The Middle East & Africa represents an excellent opportunity for education providers and investors looking for growth as the region has favorable investments. A supportable demand for IP surveillance systems would drive market growth across the region. The government across the region is also launching security strategies for providing integrated protection to the countries' cyberspace.

KEY INDUSTRY PLAYERS

New Product Launches to Help Key Companies Sustain Their Competence

Key Players in the access control market are continually focusing on evolving their existing product and service portfolios. Companies are launching industry-specific solutions by keeping the industry needs in mind. In September 2020, IDEMIA France launched the ultimate multi-application biometric tablet caller ID screen that supports advanced connectivity, along with biometric technologies such as facial recognition and fingerprint. Besides, strategic partnerships and collaboration help major players to expand their product and business portfolio.

For instance, in December 2017, ASSA ABLOY group and Star Asset Security partnered to develop an access control system for shared assets such as desks and lockers. Apart from this, several vendors adopt ultimate business strategies such as mergers and acquisitions to strengthen their market position.

LIST OF KEY COMPANIES PROFILED:

• Nedap N.V. (Netherlands)


• Genetec Inc. (Montreal, Canada)


• Honeywell International Inc (North Carolina, United States)


• Dots Info Systems (India) Pvt. Ltd., (Mumbai, India)


• Bosch Sicherheitssysteme GmbH (New York, United States)


• KISI Inc. (Brooklyn, NY, United States)


• HID Global Corporation (Texas, United States)


• Matrix Comsec Pvt. Ltd. (Gujrat, India)


• Enterprise Systems Corporation (Texas, United States)


• Perco (Saint Petersburg, Russia)


• Identiv, Inc. (California, United States)


• Centrify Corporation (California, United States)


• dormakaba Holding AG (Rümlang, Switzerland)


• Allegion plc (Ireland)


• Johnson Controls, Inc. (Cork, Ireland)


• ASSA ABLOY group (Stockholm, Sweden)


• Ekran System Inc. (California, United States)


• SolarWinds Worldwide, LLC. (Austin, Texas, United States)


• TED Systems, Lenexa, KS. (Lenexa, United States)


• Gemalto N.V. (Amsterdam, Netherlands)


• IMEDIA France (Courbevoie, France)


• Siemens Aktiengesellschaft (Munich, Germany)


• Mace Security International Inc. (Ohio, United States)

KEY INDUSTRY DEVELOPMENTS:

• February 2020 – ASSA ABLOY Group acquired the United Kingdom-based solution provider Biosite Systems Ltd. The acquisition will help the company to strengthen its current offering for access control solutions.


• July 2020 – Identiv, Inc. launched battery-less, frictionless, uTrust UHF Credentials for long-distance, touchless physical access control. This ultra-high-frequency technology supports extremely hygienic access for schools, government, hospitals, and commercial customers.

REPORT COVERAGE

The access control market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2016–2027
Base Year	2019
Forecast Period	2020–2027
Historical Period	2016– 2018
Unit	Value (USD billion)
Segmentation	Component; Type; Application; and Region
By Component	Hardware Authentication System Biometric Card-Based Touch Screen and Keypads Door Contacts Intruder Alarm System Detection System Motion Detector Glass Break Detector Door / Window Sensor Software Services Training and Consulting Installation and Integration Maintenance and Support
By Type	DAC MAC RBAC
By Application	Homeland Security Commercial Residential Industrial
By Region	North America (Component; Type; Application; and Country) The U.S. (By Application) Canada (By Application) Mexico (By Application) South America (Component; Type; Application; and Country) Brazil (By Application) Argentina (By Application) Rest of South Africa Europe (Component; Type; Application; and Country) The U.K. (By Application) Germany (By Application) France (By Application) Italy (By Application) Spain (By Application) Russia (By Application) Benelux (By Application) Nordics (By Application) Rest of Europe Middle East & Africa (Component; Type; Application; and Country) Turkey (By Application) Israel (By Application) GCC (By Application) North Africa (By Application) South Africa (By Application) Rest of MEA Asia Pacific (Component; Type; Application; and Country) China (By Application) India (By Application) Japan (By Application) South Korea (By Application) ASEAN (By Application) Oceania (By Application) Rest of Asia-Pacific