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Physical Access Control System (PACS) Market

Physical Access Control System (PACS) Market By Technology (Keypad-based PACs, Card-based PACs, Biometric PACs), By Solution (Hardware, Software, Services), By Sector (BFSI, Healthcare, Manufacturing, Services & Other) & By Region - Global Market Insights 2022 to 2032

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 (2022-2032)

The global physical access control system (PACS) market has reached a valuation of US$ 8.1 billion in 2022 and is forecasted to surge ahead at a CAGR of 10.3% to end up at US$ 21.66 billion by the end of 2032.

Sales of physical access control systems accounted for around 43% share of the global access control systems market in 2021.

Report Attributes

Details

Physical Access Control System Market Size (2021A)

US$ 7.38 Billion

Estimated Market Value (2022E)

US$ 8.1 Billion

Forecasted Market Value (2032F)

US$ 21.66 Billion

Global Market Growth Rate (2022-2032)

10.3% CAGR

North America Market Share (2022)

~21%

North America Market Value (2022)

US$ 1.7 Billion

Europe Market Growth Rate (2022)

~25.2% CAGR

Europe Market Value (2022)

US$ 2.04 Billion

China Market Share (2022)

~12.6% CAGR

China Market Value (2022)

US$ 1.02 Billion

Market Share of Top 3 Country

~37.8%

Key Companies Profiled

  • United Technologies Corporation (Raytheon Technologies)
  • Honeywell Security
  • Allegion
  • Dormakaba Holdings
  • BOSCH
  • Johnson Controls International Plc
  • Paxton Access
  • Avigilon Corporation (Motorola Solutions)
  • Axis Communications
  • Assa Abloy
  • Brivo Systems LLC
  • Aiphone Co. Ltd.
  • 3M Cogent Incorporation (Gemalto Cogent, Inc)
  • Acc-Time System Inc.
  • Iris Id, Inc
  • Cross Match Technology Inc.
  • Lumidigm, Inc (Hid Global Corporation
  • NEC Corporation
  • Secugen Corporation
  • Zvetco Biometrics LLC.

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Sales Analysis of Physical Access Control Systems (2017-2021) Vs. Market Predictions (2022-2032)

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

PACS is useful where a higher level of security is required, as the product protects from vandalism, theft, and trespassing in a specific area. The outlook for the PACS market is bullish as the product is associated with IP networking. Day by day, as technology is getting advanced, there is a rising need for enhanced security systems to protect confidential information. As per this survey by Fact.MR, 45% of people working in an organization agreed access control systems play a key role in protecting the area from infringement and theft.

Due to COVID-19 when lockdowns happened, the demand for biometric PACS went down as offices were closed. However, after things opened up, offices started demanding 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 will be through cloud computing or edge computing, which will also allow data gathering, analysis, and storage model. The data that will be gathered from smart 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 can capture a significant market share.

  • Short Term (2022 2025): Growing number of smart devices and high Internet penetration market to positively impact PACS market growth.
  • Medium Term (2025-2028): North America and Europe are expected to witness higher PACS demand due to increased penetration of smart gadgets in homes and offices.
  • Long Term (2028-2032): Integration of advanced technologies such as touchless solutions and mobile-based access control will open up new opportunities for industry players.

The global market for PACS expanded at a CAGR of 6% from 2017 to 2021. Fact.MR, which is a market research and competitive intelligence provider, says that the market will exhibit high-value growth at 10.3% CAGR through 2032.

Physical access control system market forecast by Fact.MR

Market share analysis of PACS based on solution and region. Under the solution segment, the service-based sub-segment leads with 53.2% market share in 2022.

Physical Access Control System (PACS) Market

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What’s Driving High Demand for Physical Access Control Systems across Regions?

“Increasing Sales of Semiconductor Products Creating Traction for PACS”

During quarter 2 of 2022, worldwide sales of semiconductor products totaled US$ 152.2 billion, with recorded 13.3% growth, as per the World Semiconductor Trade Statistics (WSTS) Organization. The U.S. is the leading country for the sales of semiconductors owing to rapid technological advancements.

With the integration of advanced technology in end-use industries, semiconductor technology has also changed. Companies’ expenses have seen a drastic rise in the smooth operation of the supply chain across regions. The semiconductor industry is expected to show a positive response in the market, which will also be responsible for the growth of PACS in the future. To this, the semiconductor industry will act as a driver for the growth of the physical access control system market.

“Surging Need for Privacy in Retail & Corporate Sectors”

The increasing need to secure confidential information and expensive products in the retail and corporate sectors is the key reason 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 convinces stores, wherein, higher adoption of PACS is in progress. 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.

In 2021, the global retail sale sector witnessed growth of around 13% after bouncing back from pandemic to pre-pandemic levels. Owing to this, demand for PACS is expected to rise across the retail and other corporate sectors at 7.4% CAGR over the forecast period.

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How Can PACS Market Growth Be Hampered to Some Extent?

“High Cost of Manufacturing PACS”

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 for many enterprises. Over 40% of customers responded as the cost being the primary reason for not installing PACS.

The high cost associated with the product, especially for biometrics, smart card-enabled access systems, and card-enabled access control are hampering the demand growth for PACS. However, manufacturers are constantly making their efforts to reduce these costs and increase the efficiency of their products.

Country-wise Insights

Will Increasing Use of Access Control Systems in the U.S. Drive PACS Demand?

Rising government spending to advance technologies such as 5G networks is a key factor that will positively impact the United States PACS market. Currently, the commercial and retail application areas for PACS are growing at a brisk pace in the country.

The global information technology industry was worth US$ 5.2 trillion in 2020, which has a significant contribution from the American geography. Personal and professional lives are becoming more digital and automated. The U.S. tech market is the largest in the world, contributing 32% of revenue to the global tech industry. The United States accounts for nearly 17% share of devices and infrastructure.

Owing to this optimistic market condition, the United States PACS market is expected to reach US$ 3.81 billion by 2032.

Why is the United Kingdom Physical Access Control System Market Highly Lucrative?

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. Tech investments were 17% in the U.K. in 2020. London ranked fourth among tech venture capital investments.

This factor will enable the high growth of the United Kingdom PACS market and generate an absolute dollar opportunity of US$ 523.7 million over the decade.

Category-wise Insights

Why is Retail and Other Corporate a Popular Driver for PACS?

Numerous businesses have modified their work environments and practices as a result of the business environment's rapid changes. Information gathering and sharing are now more convenient than ever before thanks to remote work and mobile devices. Anyone can easily hack a user ID and password. This is why security measures such as multifactor authentication (MFA), PIN and password, biometrics, etc., were developed to deal with the problem of hacking.

Daily collaboration results in accident access problems. Too many documents have public links, former vendors still have access to documents they shouldn't, and documents are shared with personal accounts.

Owing to these factors, the retail & other commercial sub-segment is predicted to expand 1.8X over the next ten years.

How is Market Growth Being Led by Software for PACS?

According to this Fact.MR study, demand for Internet services is increasing at around 40% annually. Internet penetration among the global population was around 63%, which totalled nearly 5 billion Internet users as of April 2022.

Physical access control systems will play a significant role in 5G networks. It will be possible to transmit and route high volumes of data traffic through 5G networks at lower costs. Also, research is being carried out on access control systems for low-cost and optimized technology.

Furthermore, integrated access control systems might be able to assist with some radio system operations needed to advance towards 5G mobile networks. As such, the PACS software market is expected to grow more than 2.3X over the decade.

Competitive Landscape

Prominent physical access control system manufacturers are United Technologies Corporation (Raytheon Technologies), Honeywell Security, Allegion, Dormakaba Holdings, BOSCH, Johnson Controls International Plc, Paxton Access, Avigilon Corporation (Motorola Solutions), Axis Communications, Assa Abloy, Brivo Systems LLC, Aiphone Co. Ltd., 3M Cogent Incorporation (Gemalto Cogent, Inc), Acc-Time System Inc., Iris Id, Inc, Cross Match Technology Inc., Lumidigm, Inc (Hid Global Corporation), NEC Corporation, Secugen Corporation, and Zvetco Biometrics LLC.

The production of competitive PACS equipment is likely to experience a considerable bottleneck because of the slow pace and high cost of semiconductor material. Large multinational businesses are entering the PACS category as key market participants attempt to introduce new equipment into the market. 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 will create higher profit margins 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.

Fact.MR has provided detailed information about the price points of key manufacturers of physical access control systems positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

PACS Industry Research Segmentation

  • By Technology :

    • Keypads-based PACs
    • Card-based PACs
    • Biometric PACs
      • Fingerprint Recognition
      • Face Recognition
      • Voice Recognition
      • Palm Recognition
      • Iris Recognition
  • By Solution :

    • Hardware
    • Software
    • Services
  • By Sector :

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

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

- Premium Report Details -

Physical Access Control System (PACS) Market
  • FACT1854MR
  • Sep-2022
  • Technology
  • 170 Pages
  • 80 Tables
  • 166 Figures

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The global physical access control system market has reached a valuation of US$ 8.1 billion in 2022.

Revenue from physical access control systems is anticipated to reach US$ 21.66 billion by 2032.

Sales of physical access control systems increased at 6% CAGR between 2017 and 2021.

Europe accounts for a leading market share of 25% in 2022.

Card-based PACs led with 42.3% share of the global market in 2021.

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