Physical Access Control System (PACS) Market

Physical Access Control System (PACS) Market Study by Keypad-, Card-, and Biometric-based PACs for BFSI, Healthcare, Manufacturing, Media, Transport, Institutional, and Residential from 2024 to 2034

Analysis of Physical Access Control System (PACS) Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Physical Access Control System (PACS) Market Outlook (2024 to 2034)

The global physical access control system (PACS) market has been calculated at a value of US$ 9.8 billion in 2024 and is projected to register a CAGR of 9.8% to reach US$ 24.9 billion by 2034-end.

PACS is designed to restrict and allow physical entry to a particular area or building. Unlike traditional barriers such as fences and strategic landscaping, physical access control system restricts a person from entering a restricted area without having the proper credentials.

Physical access control system is useful where a higher level of security is required, as the product protects from vandalism, theft, and trespassing in a specific area. Day by day, as technology is getting advanced, there is a rising need for enhanced security systems to protect confidential information.

  • Short Term (2024 to 2027): Growing number of smart devices and high Internet penetration will positively influence adoption of PACS.
  • Medium Term (2027 to 2030): North America and Europe are expected to exhibit high PACS demand due to rising integration of smart gadgets in homes and offices.
  • Long Term (2030 to 2034): Integration of advanced technologies such as touchless solutions and electronic access control will open up new opportunities for industry players.

Most people working in any organization agree that access control systems play a key role in protecting the area from infringement and theft. The COVID-19 pandemic raised the popularity of touchless solutions that could be installed in the organization to reduce physical contact, creating a high demand for face recognition, voice recognition, and iris recognition solutions.

An additional revenue generation model for PACS is set to be through cloud computing or edge computing, which will also allow data gathering, analysis, and storage. The data that is gathered from digital door locks and the Internet of Things will be stored, screened, and processed, and can be applied to the near edge of the network. Also, by offering integrated software and services, market participants are expected to capture a significant share in the physical access control system market.

  • North America is anticipated to hold 24.3% of the global physical access control system market share by 2034.
  • The East Asian physical access control system market size is calculated at US$ 2.2 billion for 2024.
Report Attributes Details
Physical Access Control System Market Size (2024E) US$ 9.8 Billion
Forecasted Market Value (2034F) US$ 24.9 Billion
Global Market Growth Rate (2024 to 2034) 9.8% CAGR
South Korea Market Value (2034F) US$ 1.3 Billion
Key Companies Profiled
  • Johnson Controls International Plc.
  • Paxton Access
  • Secugen Corporation
  • Zvetco Biometrics LLC.
  • United Technologies Corporation (Raytheon Technologies)
  • Honeywell Security
  • Allegion
  • Brivo Systems LLC
  • 3M Cogent Incorporation (Gemalto Cogent, Inc.)
  • Acc-Time System Inc.
  • Dormakaba Holdings
  • BOSCH
  • Axis Communications
  • Cross Match Technology Inc.
  • NEC Corporation
  • Lumidigm, Inc. (Hid Global Corporation)

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Which Physical Access Control System Market Trends are Benefitting Leading Manufacturers?

“Increasing Sales of Semiconductor Products Creating Traction for Network Access Control Systems”

North America and Asia Pacific are leading regions for the sales of semiconductors owing to rapid technological advancements. With the integration of advanced technologies, the semiconductor market is expected to witness high growth. Companies’ expenses have seen a drastic rise in the smooth operation of the supply chain across regions. The semiconductor industry’s positive growth is expected to directly influence sales of PACS in the coming decade, as various chips and tags are needed for the production of access control systems.

“Surging Need for Privacy in Retail & Corporate Organizations”

The increasing need to secure confidential information and expensive products in the retail and corporate sectors is driving the demand for physical access control systems such as biometrics, keypad-based PACS, and others. The retail sector encompasses shopping malls, modern trade channels such as hypermarkets, supermarkets, and convenience stores, wherein, high adoption of PACS is observed. Also, to enhance security checks and avoid theft, end users in the retail sector are inclining towards the installation of PACS across their stores and facilities.

What’s Hampering Physical Access Control System Sales Growth to Some Extent?

“High Cost of PACS Lowering Adoption Rates”

Despite PACS being an integral part of the day-to-day operations of the corporate and retail sectors, the high cost of installation and maintenance of the product restricts its usage in some enterprises. High cost associated with the product, especially for biometrics, smart card-enabled access systems, and card-enabled access control is expected to hamper physical access control system market growth. However, manufacturers are constantly making their efforts to reduce these costs and increase the efficiency of their products.

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How Can New Companies Attract a Larger Consume Base?

“Focus on Innovations and Competitive Pricing”

New companies should focus on R&D efforts to boost features of their PACS. They should also work on competitive pricing tactic to increase the adoption of physical access control systems. Continuous innovations are expected to attract a wider consumer base.

  • Founded in 2020, Hakimo a United States-based start-up is focused on developing advanced physical safety programs for effective access control monitoring and with competitive pricing.
  • Goldilock Drawbridge a United Kingdom-based company established in 2020 offers advanced cybersecurity solutions to protect digital assets, networks, and devices.

Country-wise Analysis

North America and Europe are prime market for physical access control system manufacturers. The presence of target audience and increasing number of start-ups are expected to boost sales of PACS in these regions. Furthermore, digital transformation is generating ample opportunities for contactless technology providers in Asia Pacific.

Which Aspects are Driving Access Control System Sales in the United States?

“Digitalization and Introduction of Advanced Communication Technologies”

Attribute United States
Market Value (2024E) US$ 1 Billion
Growth Rate (2024 to 2034) 10.3% CAGR
Projected Value (2034F) US$ 2.8 Billion

Rising government spending to advance technologies such as 5G networks is expected to positively influence physical access control system sales the United States. Currently, the commercial and retail application areas for PACS are growing at a brisk pace in the country. The information technology industry is having a significant contribution to the PACS sales in America. Personal and professional lives are becoming more digital and automated, which is expected to increase the adoption of PACS in the country.

How is the Market for PACS Evolving in the United Kingdom?

“High Venture Capital Investments Creating Positive Environment for Tech-Companies”

The Western part of Europe remains a major contributor to the technology industry. The United Kingdom is one of the largest ecosystems having thousands of tech start-ups. Venture capital in the United Kingdom is third in the world after the United States and China. These factors are expected to boost access control system sales in the United Kingdom.

What is the Demand Outlook for Physical Access Control Systems in Japan?

“Physical Access Control System Manufacturers Focusing on Advancing their Portfolios”

Attribute Japan
Market Value (2024E) US$ 600 Million
Growth Rate (2024–2034) 10.3% CAGR
Projected Value (2034F) US$ 1.7 Billion

Access control systems are exhibiting increasing demand from the government and big enterprises in Japan. Japan is at the forefront of technological advancements. Companies operating in Japan concentrate on the development of advanced and touchless biometric access solutions.

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Category-wise Analysis

The growing demand to protect organizations from malicious activities is increasing the adoption of card-based PACS. According to Fact.MR, a market research and competitive intelligence provider, Card-based PACS is projected to hold 60% of the global market share by 2034.

What is the Demand Outlook for Card-based PACS?

“Technologically Advanced Card-based Physical Access Control Systems Gaining Traction among Businesses”

Attribute Card-Based PACS
Segment Value (2024E) US$ 6.3 Billion
Growth Rate (2024 to 2034) 8.9% CAGR
Projected Value (2034F) US$ 14.9 Billion

Security systems are widely used to give authorization to individuals based on their identity or requirements. The authentication system checks if the entry is genuine or not. These systems may be biometric, door contact, touchless, card-based, or keypad. Technological advancements such as the integration of the Internet of Things (IoT) and Machine Learning (ML) are further driving the use of card-based physical access control systems.

Which PAC Solution is Driving Market Growth?

“Integration of Digital Technologies Globally Increasing Need for Effective Physical Access Control System Services”

Attribute Services
Segment Value (2024E) US$ 4.2 Billion
Growth Rate (2024 to 2034) 9.5% CAGR
Projected Value (2034F) US$ 10.4 Billion

Access control systems are the most preferred way to allow authorization to visitors or employees in buildings or organizations. Commercial access control systems use advanced technologies such as RFID and biometrics, while residential uses keypads or card readers. Increasing digitalization across the globe in the commercial and residential sectors is driving the need for advanced control systems. This is further boosting the demand for effective PACS services.

Competitive Landscape

Key players in the physical access control system industry are focusing on the development of advanced solutions. The need for automated and intelligent PACS is also growing as a result of the shift towards increasing manufacturing volumes.

To increase their sales, companies manufacturing PACS are moving towards scalable and standardized solutions from individually customized prototypes. As such, this is expected to create high-profit opportunities for manufacturers of PACS.

  • Assa Abloy, in August 2021, acquired Omni-ID in the U.S., which is a leading manufacturer of RFID tags and industrial IoT hardware devices.
  • In July 2021, Brivo and Altronix announced a strategic partnership that will help in the expansion of Brivo’s Hardware Ecosystem.

Key Segments of Physical Access Control System Market Research

  • By Technology :

    • Keypads-based PACs
    • Card-based PACs
    • Biometric PACs
  • By Solution :

    • Hardware
    • Software
    • Services
  • By Sector :

    • BFSI
    • Healthcare
    • Manufacturing
    • Services, Communication & Media
    • Transportation & Utilities
    • Institution
    • Residential
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

How big is the physical access control system market?

The global physical access control system market is evaluated at US$ 9.8 billion in 2024.

What is the estimated CAGR for the PACS market?

Demand for physical access control systems is foreseen to increase at a CAGR of 9.8% from 2024 to 2034.

What are the anticipated sales of physical access control systems for 2034?

The PACS market is projected to reach US$ 24.9 billion by 2034.

What is the current size of the PACS market in South Korea?

Sales of physical access control systems in South Korea are estimated at US$ 500 million in 2024.

Which PACS solution is most widely demanded?

Demand for PACS services are expected to rise at a CAGR of 9.5% during the next 10 years.

Who are the prominent producers of physical access control systems?

Some of the leading companies are Honeywell Security, Allegion, and Dormakaba Holdings.

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Physical Access Control System (PACS) Market

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