The burgeoning number of cybersecurity and data breach incidences coupled with innovations in technology are driving the demand for access control systems.
With the advancing digital technologies, it has become increasingly challenging for enterprises to conduct their operations in an environment that is prone to various malware attacks. All modern enterprises need to protect their physical and IP assets along with the safety of their employees by controlling the movement of people with pre-defined rules. The burgeoning need for securing today’s business landscape is one of the major factors that are contributing to the growing demand for access control systems. With data being generated at a huge volume through various digital channels, it has become a valuable commodity and cybercriminals are keen to monetize this data to make money and commit fraudulent activities. This coupled with the growing strictness related to the data breach in European countries (GDPR) is further providing the necessary impetus to the access control market growth as such incidences cost a fortune to the enterprises. Phishing has emerged as the eminent cybersecurity trend in the past few years and about 32% of breaches and 78% of cyber-attacks have been carried out through phishing emails.
High Total Cost of Ownership may act as a barrier to the market growth in the short term.
One of the major challenges in adopting access control solutions is the high cost associated with it. The actual cost of owning and operating an integrated access control system involves a combination of costs that go well beyond initial costs. It basically includes hardware costs, software costs, maintenance costs, and latent costs. Among these, software costs, though representing only a fraction of initial investment, can significantly increase the total cost of ownership over the life of the access control system. This significantly restricts enterprises of smaller size to invest in access control systems.
Hardware segment accounts for more than 2/3rd of the market by product.
The hardware segment of the global access control market accounted for more than 80% market share in 2017 and is expected to continue to dominate the market. The software segment is expected to grow at a high CAGR over the forecast period. Growing need for better security and access control management in various industrial sectors, government institutions, and others, to control, allow, and restrict access to different entities is a major driving force behind the rising adoption of access control systems. Safeguarding employee and organizational data and assets is another major factor leading to the continuous growth of the access control market.
Rising adoption of access control systems and solutions among major end-users such as Government and healthcare.
Access control systems have become an essential part of any mid to large scale enterprises. A lot of emphasis have been put on the security of the assets due to growing attacks across domains. Wanna Cry Ransomware attack is one of the hot topics in the year 2019 that targeted government and enterprises in domains like information and technology, healthcare and others. According to a recent report from MalwarebytesLABS, the ransomware has made a huge comeback against business in the 1st quarter of 2019, with an increase of 195% in detections from quarter four 2018 to Q1 2019. Thus, governments across the globe are investing heavily in their security, thus driving the access control market growth.
In the BFSI domain, access control has become all more essential due to the sensitivity of the data. This has been one of the major contributing factors that have led to the rising demand for various access control solutions. The demand for access control systems is also spurring from the healthcare segment as part of patient security. A physical access control system is crucial for hospitals as it helps in implementing key policies and procedures that apply to staff and physicians as well as patients and visitors. Thus, the healthcare sector is anticipated to grow at a considerable rate on account of the growing adoption of connected healthcare in both developed and developing countries. In energy and utility sectors, the burgeoning adoption of automation is unlocking growth opportunities for logical access control system manufacturers to provide sophisticated access control systems for the complex computing environment.
Asia Pacific is projected to grow at a healthy Compound Annual Growth Rate (CAGR).
The Asia Pacific region holds a considerable share in the market and is poised to grow at a good CAGR during the forecast period. Globalization and rapid urbanization have led to a growing tertiary sector in the region, resulting in expanding the IT sector in many countries like India. As an increasing number of global IT products and services-based companies have opened their operations and offices in the region, the demand for access control solutions has spurred in the past few years. This has boosted the access control market growth. The demand is set to grow in the upcoming years owing to growing regulations from the European and North American regions related to data security which in turn is going to compel enterprises in this region to equip themselves with advanced access control systems.