ELECTRONIC ACCESS CONTROL SYSTEMS MARKET ANALYSIS

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:

• 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.
• In June 2021, SALTO Systems launched the SALTO Neoxx electronic padlock, a locking and access control solution.
• In March 2020, Johnson Controls released Tyco Software House C•CURE Visit Verified Identity solution to ensure improved visitor management process, thereby eliminating the risks and overheads associated with visitor’s data collection and storage on site.

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

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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.

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

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Key Takeaways of the Graph:

• Among Authentication Systems, the Biometric Systems held dominant position in the market and accounted for 63.7% share in the global electronic access control systems market in 2020. The segment is expected to reach US$ 59,739.7 million in 2028. Supported by key features of Biometric technology which is fastest-growing technologies used to secure perimeters. This technology enables identifying a person’s physical characteristics to provide controlled physical access to infrastructure. This technology is being increasingly used in government facilities, manufacturing units, power stations, defense establishments, and enterprises.
• Among Biometric System, the Fingerprint and Livescan collectively held dominant position in the market and accounted for more than 50% market share in the global electronic access control systems market in 2020. The Fingerprint and Livescan segment is expected to reach US$ 16,010.2 million and US$ 16,488.2 million in 2028. As these system are used in starting from commercial sector to all over healthcare sector owing to the fact that it is capable of acquiring forensic quality exemplar prints including individual rolled fingerprints as well as plain thumb and four finger flat slap prints for law enforcement applications.

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