The Access Control market was valued at US$6.637 billion in 2020 and is expected to grow at a CAGR of 7.52% to reach a market size of US$11.029 billion in 2027. Access control is a method for improving the security of any computing system by preventing unauthorised users from accessing certain resources. Both physical and logical access are included. Physical access control restricts access to physical IT assets, buildings, and campuses, whereas logical access control links with system files, data, and computer networks. The solution offered by access control entails confirming a person's identification using biometrics or access cards and confirming this with any commercial companies to authorise access. Numerous businesses, including commercial, military & defense, government, industrial & manufacturing, transportation, and others, use it extensively. They are divided into three categories: services, software, and hardware, depending on the component.
The market for access control is expanding as people become more inclined to use it as a result of various forms of cost-effective security systems. Additionally, it is anticipated that the preference towards wireless and IoT-based security systems in a variety of applications as well as rising urbanisation will boost the expansion of the access control market in the coming years. The key factors driving the market's expansion are the rising demand for data security and the penetration of cyber threats. The increasing use of electronic gadgets and wireless technology is another factor boosting industry expansion. Additionally, owing to technical advancements, the introduction of blockchain technology, cloud computing, and the internet of things for connected devices all help to impose a favourable picture on the industry. However, the market's expansion may be hampered by a number of restrictions and difficulties. Market constraints are likely to be caused by things like a lack of knowledge about security solutions and their high costs.
The demand for access control systems is being driven by the rise in cyber security and data breach incidents as well as supportive government regulations.
Businesses now find it more challenging to function in an environment susceptible to malware attacks as a result of the advancement of digital technologies. All contemporary businesses must manage employee movement according to pre-established standards in order to safeguard their employees' safety, their physical assets, and their intellectual property. One of the main causes of the rising demand for access control systems is the growing necessity for security in the modern business environment. Data has become a valuable commodity due to the massive volume of digital channels via which it is produced, and hackers are eager to monetize this data in order to make money and engage in fraudulent activities. For instance, in May 2020, the data of 9 million easyJet customers was exposed through a cyberattack. Email addresses and the full credit card information of 2,208 users were among the data exposed during the attack. Owing to the theft of consumer credit card information, Easyjet allegedly violated the General Data Protection Regulation.
Several governments and security agencies are forced to improve security mechanisms in their transactions through the implementation of RFID and biometric technologies as a result of the rising number of cyber and malware attacks. As a result, this is assisting in the market for access control's overall expansion. This, along with increased regulations like GDPR (The General Data Protection Regulation) and the tightening of laws relating to data breaches in European nations, is further providing the required momentum for the expansion of the access control market because such occurrences result in enormous financial losses for businesses. These factors are expected to provide an impetus to the market's growth.
Key market developments
Increased partnerships and collaborations, government projects, expansion activities, mergers and acquisitions, research and development, and market investments, will thereby increase the demand for access control systems. For instance,
The Asia-Pacific region is expected to hold a significant share of the market in the coming years.
The market is expected to grow at a strong CAGR in the Asia-Pacific region, which currently holds a significant portion of the market. The tertiary sector is expanding in the area as a result of rising urbanisation and globalisation, which has also caused the IT sector to rise in many nations, including India. The demand for access control solutions has increased over the past few years as more regional operations and offices of multinational IT products and services firms have been established. This has accelerated the expansion of the access control market.