The access control market is estimated at US$6.637 billion for the year 2020, growing at a CAGR of 7.52% to reach a market size of US$11.029 billion by 2027. Access control is a security technique that regulates who or what is allowed entrance to a system, environment, or facility. Limiting access to a system or to physical or virtual resources is done by using access control. Access control in computing is the method by which users are given permission to access systems, resources, or data as well as certain rights. These control systems perform identification authentication and authorization of users by evaluating login credentials that include passwords, personal identification numbers, biometric scans, security tokens, and others. The key purpose is to grant entrance to a system or building only to authorized personnel.
The burgeoning number of cybersecurity and data breach incidences, coupled with innovations in technology, is driving the demand for access control systems.
With the development of digital technology, it has become more difficult for businesses to operate in a setting vulnerable to 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 is 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 data breaches in European countries (GDPR) is further providing the necessary impetus to the access control market’s growth as such incidences cost a fortune to 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.
The high total cost of ownership may act as a barrier to the market’s growth in the short term.
The high cost of access control technologies is one of the main obstacles to adoption. An integrated access control system's true ownership and operation costs include a variety of expenses that go much beyond the initial outlay. Essentially, it comprises the price of the hardware, the software, the maintenance, and any latent expenses. Among these, software costs, though representing only a fraction of the initial investment, can significantly increase the total cost of ownership over the life of the access control system. This significantly restricts enterprises of smaller sizes from investing in access control systems.
The 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% of the 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. The 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 contributing to the continuous growth of the access control market.
There is rising adoption of access control systems and solutions among major end-users such as the government and healthcare.
Access control systems have become an essential part of any mid to large-scale enterprise. A lot of emphases has been put on the security of the assets due to growing attacks across domains. Wanna Cry Ransomware attacks are one of the hot topics in the year 2019 that targets governments and enterprises in domains like information and technology, healthcare, and others. According to a recent report from MalwarebytesLABS, ransomware has made a huge comeback against business in the 1st quarter of 2019, with an increase of 195% in detections from quarter four of 2018 to Q1 2019. Thus, governments across the globe are investing heavily in their security, thus driving the access control market’s 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 being driven by 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 the 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 the expansion of 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 been spurred in the past few years. This has boosted the access control market’s 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.
COVID-19 dealt a severe blow to the industry, causing both supply and demand to collapse simultaneously. Over the past few years, access control solutions for various verticals have been driving the market. Despite this, the market experienced a decline due to the pandemic. After end-user industries recovered from the effects of the pandemic, the market resumed its growth momentum. Ever since the pandemic happened, cyber and malware attacks have increased in all regions, and several governments and security agencies had to enhance their security features through the deployment of RFID and biometric technologies in their transactions. This is contributing to the growth of the access control market. The growth of biometric readers is affected from time to time due to irregular lockdowns and social distancing norms set up by the government to control the spread of COVID. Due to increased competition in the market, the market experienced unprecedented growth during the past decade. As a result, contactless biometrics and smart card solutions became increasingly popular for environmental security and hence, the market is anticipated to grow in the forecasted period.
|Market Size Value in 2020||US$6.637 billion|
|Market Size Value in 2027||US$11.029 billion|
|Growth Rate||CAGR of 7.52% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Product, Service, Deployment, End User Industry, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Vanderbilt Industries, Gemalto NV, Honeywell International Inc, IDEMIA, Matrix Comsec Pvt. Ltd., Brady Corporation, Tyco International, Protection One, a division of ADT LLC, NEC Corporation, Siemens, Hangzhou Hikvision Digital Technology Co., Ltd., HID Global Corporation, an ASSA ABLOY Group|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the access control market size by 2027?
A1. The access control market is expected to reach the market size of US$11.029 billion by 2027.
Q2. What are the growth prospects for access control market?
A2. The global access control market is expected to grow at a CAGR of 7.52% during the forecast period.
Q3. What is the size of global access control market?
A3. Access Control Market was valued at US$6.637 billion in 2020.
Q4. What factors are anticipated to drive the access control market growth?
A4. The burgeoning number of cybersecurity and data breach incidences coupled with innovations in technology are driving the demand for access control systems.
Q5. Which region holds the largest market share in the access control market?
A5. The Asia Pacific region holds a considerable share in the access control market and is poised to grow at a good CAGR during the forecast period.
Honeywell International Inc
Matrix Comsec Pvt. Ltd.
Protection One, a division of ADT LLC
Hangzhou Hikvision Digital Technology Co., Ltd.
HID Global Corporation, an ASSA ABLOY Group
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