The electronic access control (EAC) system is an approach of using electromechanical hardware to allow access to private premises. EAC system offers protection against terrorist attacks, violence, and vandalism in public areas such as educational institutions and city centers. Need for better security systems to tackle fraudulence, illegal immigration, and criminal activities has propelled governments to invest in EAC systems.
The global electronic access control systems market is estimated to be valued at US$ 40,354.0 million in 2021 and is expected to exhibit a CAGR of 10.4% over the forecast period (2021-2028).
Recent Developments:
Asia Pacific held dominant position in the global electronic access control systems market in 2020, accounting for more than 30% share in terms of value, followed by North America and Europe, respectively, owing to the fact that the region is continuously focusing on making efforts to enhance their expertise and develop innovative access control systems and services.
Figure 1. Global Electronic Access Control Systems Market Value (US$ Mn), by Region, 2020
Global Electronic Access Control Systems Market: Drivers
Increasing crime rate and terrorist activities are expected to drive growth of the global electronic access control systems market during the forecast period
Security issues remain a major threat to government authorities. As a result of this, many organizations such as financial institutes, international organizations, and residential buildings are adopting electronic access control systems. These systems provide numerous advantages such as convenience, high accuracy, and time efficiency. In the recent past, criminal activities such as illegal immigration, fraudulence, and others have increased. According to the Federal Bureau of Investigation, in 2012, violent crime rose by 3.7%, including 12.5% increase in murder rates in the U.S. Similarly, other developed nations such as the U.K. are also experiencing high crime rate. EAC system helps in containing these crimes. Thus, these factors are expected to drive growth of the global electronic access control systems market during the forecast period.
Stringent government policies mandating increased security levels is expected to propel the global electronic access control systems market growth over the forecast period
It has become absolutely necessary for government enterprises to protect the country from fraudulence, criminal activities, and illegal immigration. As a result of this, these enterprises are increasingly investing in high-end security systems, in order to enhance security levels. Local and national governments have instructed private sectors to invest in security systems to protect the population and property. According to the Department of Infrastructure and Regional Development, the Australian Government has implemented a maritime security regime to help safeguard Australia's maritime transport system and offshore facilities from terrorism and unlawful interference. Thus, these factors are expected to propel the market growth over the forecast period.
Global Electronic Access Control Systems Market: Opportunities
Rising demand for biometric-enabled smartphones can present lucrative growth opportunities
Technological development in smartphones has led to the incorporation of biometrics systems. Since consumers are seeking more and more compact solutions, a security system-enabled phone offers a great opportunity. For instance, in 2013, Apple released the iPhone 5s, which included a fingerprint reader, with the hope of bolstering security and improving usability.
Constant research and development activities to pose excellent business opportunities
Key players in the market are focused on research and development activities, in order to innovate novel products and gain a competitive edge in the market. For instance, in February 2014, NEC Corporation launched the world’s first virtualized Mobile Virtual Network Operator Solution (vMVNO-SL), which helps in achieving Network Function Virtualization. In 2013, Bosch Security Systems launched IP power supplies, MIC series 550, and MIC series 612 zoom camera, which offer advanced systems such as edge recording and intelligent video analysis up to 32 gigabytes in SD cards.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2020 | Market Size in 2021: | US$ 40,354.0 Mn |
| Historical Data for: | 2017 to 2020 | Forecast Period: | 2021 to 2028 |
| Forecast Period 2021 to 2028 CAGR: | 10.4% | 2028 Value Projection: | US$ 108,266.8 Mn |
| Geographies covered: |
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| Companies covered: |
NEC Corporation, United Technologies Corporation, Bosch Security Systems, Tyco International Ltd., Godrej Consumer Product Limited, Hitachi, Ltd., Honeywell International Inc., Cisco Systems, Inc., and Johnson Controls, Inc. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Trends:
The card-based system is a major trend
Cards are being increasingly used to authenticate user identity or gain access. There are different types of access control cards available including proximity, magnetic stripe, and smart card readers. These cards are more reliable than biometric readers or electronic locks. Increasing demand for smart and proximity cards to monitor and record employee activities has led to an increase in demand for card-based systems.
Rising need for security solutions is another trend
Commercial vertical segment holds a dominant position in the global electronic access control systems market. In this vertical, commercial organizations such as retail stores, data centers, hotels, malls, and banks are adopting EAC systems. The demand for access control systems is increase as they reduce the need for manned security substantially.
Figure 2. Global Electronic Access Control Systems Market Share, By Authentication Systems, 2020
Key Takeaways of the Graph:
Global Electronic Access Control Systems Market: Restraints
High initial cost and lack of adequate infrastructure is expected to restrain growth of the global electronic access control systems market during the forecast period
Increase in population in cities has led to increased requirements of basic facilities such as educational institutes, healthcare, and enhanced security systems. This requires a significant amount of investment. High installation costs associated with EAC systems will act as a major challenge in emerging economies. Criminal cases in these countries are much higher than developing or developed countries. Thus, these factors are expected to restrain growth of the market during the forecast period.
Low awareness regarding technological advancements is expected to hinder the global electronic access control systems market growth over the forecast period
Rural population, especially in emerging economies is unaware of the latest technologies available and their advantages in the market. As a result of this, the adoption of EAC systems is very low. Furthermore, their low-income levels as compared to their urban counterparts further decrease their ability to install EAC systems. Therefore, these factors are expected to hinder the global electronic access control systems market growth in the near future.
Global Electronic Access Control Systems Market: Competitive Landscape
Key players operating in the global electronic access control systems market are NEC Corporation, United Technologies Corporation, Bosch Security Systems, Tyco International Ltd., Godrej Consumer Product Limited, Hitachi, Ltd., Honeywell International Inc., Cisco Systems, Inc., and Johnson Controls, Inc.
Key Developments
Key players in the market are focused on product launches, in order to enhance the product portfolio. For instance, in November 2019, NEC Corporation introduced digital finance solutions at SFF x Switch event in Singapore.
Major market players are involved in product development, in order to gain a competitive edge in the market. For instance, in November 2019, Bosch Security Systems introduced Access Management System 2.0
Electronic access control systems have become increasingly more popular over the last decade. For companies and government agencies that need to protect against unauthorized entry, or to keep equipment and personnel safe while they are in operation, electronic access control is a must.
Electronic access control systems differ from other security measures in many ways: they require a minimum amount of physical access to pass through, they can be operated by a single person or a team of personnel, they are extremely sensitive, and they have changed significantly over the years as technology has improved. Most electronic access control systems are hard to learn on your own and even more difficult to master because of all the complexities involved with doors, overhead hardware, magnetic cards, and electric locks. The best systems use smart cards, biometric readers, proximity readers, magnetic cards, proximity readers with voice recognition, or other biometric solutions that make access control easy and intuitive. There are many new and emerging industries that focus primarily on developing and refining these systems for use in both commercial and government applications.
Market Dynamics:
Launch of new products is expected to propel growth of the global electronic access control systems market over the forecast period. For instance, in June 2021, SALTO Systems launched the SALTO Neoxx electronic padlock, a locking and access control solution.
Major players operating in the global electronic access control systems market are focused on adopting M&A strategies to expand their product portfolio. For instance, in July 2021, dormakaba Holding AG, a security group, acquired Solus Security Systems Pvt. Ltd, an integrated electronic access and data solutions provider in India.
Key features of the study:
Detailed Segmentation:
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