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Physical Access Control System (PACS) Market

Physical Access Control System (PACS) Market

Physical Access Control System (PACS) Market Size, Share Analysis By Solution (Hardware, Software, Services), By Technology (Keypad-based Physical Access Control Systems, Card-based Physical Access Control Systems), By Sector & Regional Forecast, 2021-2031

Physical Access Control System (PACS) Market
FACT1854MR
  • Dec-2021
  • List of Tables : 57
  • List of Figures : 92
  • 170 Pages
  • Technology

Physical Access Control System (PACS) Market Outlook

Physical access control system (PACS) market analysis shows that global demand enjoyed year-on-year (YoY) growth of over 10% in 2021, to total 2.2 Mn units. Demand for biometric PACS is poised to grow 9% to total 850 ‘000 units, while demand for card-based PACS will be up 12.5% to 960 ‘000 units in 2021.

The global access control system market is estimated to reach a valuation of around US$ 15.3 Bn, wherein, PACS will contribute nearly 45% of total value generation in 2021.

Close to 45% employees working in offices have determined that access control systems are a vital element for digital security and smart lock. In 2019, 54% of businesses upgraded to physical access control systems, and will upgrade to a mobile access control system in the next 3 years. The mega trend of contactless biometrics has leveraged the pandemic effect and is expected to grow at double digits over the forecast period.

That opens the window for access control data gathering, analysis, and storage models to prevail in the future. Around 40% of data generated through digital door locks and internet of things will be stored, screened, processed, and applied to near edge of networks.

For governments and national securities bodies, access control through facial recognition has been vital for perimeter security. The Department of Homeland Security’s Customs and Border Protection of the U.S. said that more than 40 Mn individuals had been screened at border crossings, cruise ships, and elsewhere in the past year. Access control equipment has aided in stopping more than 250 people from using fake or other passports for border crossing.

Market Size Value in 2020 US$ 6.7 Bn
Market Forecast for 2031 US$ 19.6 Bn
Global Growth Rate (2021 to 2031) 10.3%
Share of Top 5 Companies 60%

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Revenue of Physical Access Control Systems from 2016 to 2020 Compared to Demand Outlook for 2021 to 2031

As per research by Fact.MR, a market research and competitive intelligence provider, historically, from 2016 to 2020, market value of physical access control systems showcased a steady run at around 6% CAGR, as end-use sectors such as institutes, manufacturing, services, and communication & media have significantly adopted these systems.

The market for PACS is expected to expand at a high CAGR of over 10% through 2031, as these are considered as one of the reliable technologies for safety and security along with integration of framework on hustle-free tracking of moments of individuals across vivid domains.

  • Global physical access control system market projected to create an absolute $ opportunity of US$ 12.7 Bn during forecast period 2021 – 2031.
  • Global PACS market projected to grow 2.7X by 2031.
  • BFSI sector accounted for little over 5% and healthcare sector accounted for more than 4% of global demand for PACS in 2020.
  • PACS cards and readers will create absolute $ opportunity of US$ 5.3 Bn during assessment period.
  • Europe projected to create highest absolute $ opportunity in terms of value - US$ 3.1 Bn – by 2031.
  • Service as a solution is project to progress at CAGR of 10.5% and account for more than 50% market share by 2031, gaining 66 BPS.

Due to unlimited benefits such as keeping track of entry & exit of employees / staff, protection against unwanted visitors, protection from data breaches, reducing theft & accidents, ease of access, and others, PACS has gained fast traction over the past years. Being an integral part of industries such as services, communications, media, retail, BFSI, and others, steady growth of these sectors had substantially raised demand for PACS.

Physical access control system pacs market analysis by solution by Fact.MR

Why is Requirement for PACS Rising from Services, Communication, and Media Industry?

PACS is highly sought-after in the communication and media industry in order to establish a highly-secure environment with no unwanted entry. As growth in this sector has been prominent since the past decade, it remains a lucrative end-use industry for PACS equipment manufacturers and service providers. Commercialization of the well-developed media industry is taking place at a rapid pace, opening up new avenues for revenue generation for PACS providers.

As this sector holds a dominate revenue share, the market is expected to reach a valuation of around US$ 5 Bn through services, communication and media, experiencing a promising growth rate of 9.5% over the decade.

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How is Increased Demand for PACS from Retail & Corporate Sector Spurring Market Growth?

Fast-paced growth of the retail & corporate sector has substantially increased demand for various physical access control systems such as biometrics, keypad-based PACS, and others. Retail is the largest private-sector employer, contributing more to US$ 3.5 trillion to annual GDP and aiding one out of four U.S. jobs accounting to about 50 Mn working Americans. It is estimated that, 2021 retail sales will grow between 10% and 13% over 2020.

The European commerce sector comprises 5.5 Mn companies, while representing 11% of EU’s Gross Domestic Product (GDP). As the retail sector rises, adoption of PACS is optimistic for the near future, and the market is expected to create an absolute dollar opportunity of US$ 650 Mn by 2031.

How is the Semiconductor Industry Providing a Thrust to PACS Sales?

The semiconductor industry has showed positive growth in terms of revenue after recovering from the pandemic effect. Worldwide sales of semiconductors were around US$ 45.4 Bn in July 2021. This is an increase of over 29% over July 2020. The industry is expected to increase at a rate 6.2% in 2021, according to WSTS Organisation.

Because of rapid development of new products and process technologies for application in end-use industries, semiconductor technology has changed swiftly. These electronics manufacturing clusters are also dependent on new verticals for revenue generation, in turn, driving the demand for PACS systems in electronics circuits for enterprises.

There has been drastic rise in company expenses for making the supply chain suited to widespread geographic regions in an attempt to be better-equipped for future unforeseen events. As the future of the semiconductor industry showcases an optimistic scenario, the market for PACS is expected to flourish over the coming years.

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What are the Key Challenges Faced by PACS Equipment Manufacturers?

While PACS has become an integral part in various sectors such as retail, IT, industrial, and others, high costs for implementation and maintenance often restrict its usage for many enterprises.

More than 40% of respondents state cost to be the prominent barrier to upgrading physical access control solutions. However, damage caused by a security breach often has a far greater cost, measured in dollars, loss of brand reputation, or life. 20% state that lack of compelling return on investment (ROI) was their main obstacle to upgrading their infrastructure.

However, manufacturers are actively trying to develop more cost-effective, premium solutions for a diverse range of industries, including small to medium ones, in order to increase their sales footprint gradually.

Country-wise Analysis

How is Innovation Playing a Key Role in the U.S. PACS Market?

The U.S., being the epicentre of the physical access control system market, is highly lucrative for PACS providers. Steady growth of institutions, residential, communication, and other industries, coupled with rise in investments in technical innovation, is aiding growth of the U.S. market.

United States’ high-tech companies employ approximately 20 million workers, while it has exhibited a growth of 57.9% from 2013 to 2018. Furthermore, the U.S retail industry, being the largest in the world, is further catalysing the growth of PACS equipment suppliers. These figures signify the rising rate of requirement for PACS solutions from these sectors.

Adoption of PACS in the U.S. is expected to create a valuation of around US$ 3.5 Bn by 2031 increasing at a CAGR of close to 9.5%. Players operating in the country have higher operating margins as compared to those in other countries.

Why is Canada a Lucrative Pocket for PACS Equipment Manufacturers?

Revenue in the ICT sector has been growing exponentially to reach at US$ 8.8 Bn in 2019, while there are over 43,200 companies in the Canadian Information and Communication Technologies (ICT) sector. As such, it comes as no surprise that PACS providers are targeting this country in order to raise their market value. Development of software through leveraging in-house capabilities for data storage and its utilization and generating additional revenue through software and service is being witnessed.

Canada will emerge as another lucrative market in North America. Rising demand for various PACS services and solutions from information, communication, retail, IT, and other sectors is fuelling sales in the country. The market is expected to grow 2X by 2031, creating U$ 165 Mn absolute dollar opportunity.

How is the United Kingdom PACS Market Faring?

The United Kingdom has a robust ecosystem with more than thousands of tech start-ups built around a promising entrepreneurial culture. In 2018, digital technology turnover reached US$ 200 Bn, while nearly US$ 13 Bn was raised by tech start-ups in 2019.

There are over 1,000 artificial intelligence (AI) companies, more than 500 investors, close to 100 influencers, and around 30 tech hubs and research institutes in the U.K.

As the technology ecosystem in the country is robust and self-reliant, PACS manufacturers are expanding their geographical reach in U.K. This, in turn, has been boosting demand for physical access control system deployment, and will generate a value of little over US$ 835 Mn by the end of 2031.

Category-wise Insights

Which PACS Solution is Set to Exhibit Hegemony?

PACS service includes the business of all intangible services delivered to the customer. The services in PACS include maintenance, security, data base management, firewall, consulting, and also customer support.

As the market for service accounts for more than 50% of revenue generation, PACS providers have ample opportunity. The subscription-based model for offering consultation and expertise to their customers is considered to be the prime driver for growth in profits of PACS vendors.

Why is Biometric-based PACS An Emerging Type?

Biometric PACS is the most emerging type of hardware. Biometric-based PACS is further classified as top-notch technologies such as fingerprint recognition, face recognition, voice recognition, palm recognition, and iris recognition.

The biometrics segment has captured the market at a much higher pace, expanding at CAGR of 10.5%, and is poised to create an absolute dollar opportunity of US$ 5 Bn, owing to its significant characteristics and operational efficiency.

Physical access control system pacs market competition analysis by Fact.MR

Competitive Landscape

According to this market research analysis, 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 are identified as key players providing physical access control systems.

As key end-use industries continue exhibiting impressive growth, PACS equipment manufacturers are tailoring their offerings as per specific requirements. With high demand for biometric- and card-based physical access control systems, suppliers and manufacturers are increasing investments on research & development (R&D) activities and technical innovations to further push the demand-supply curve upward.

Global physical access control system revenue distribution is fragmented in nature, and has been flourishing on the back of top companies since the past decade. In order to leverage the high potential of the market, key players are emphasizing on launching more diverse category of products while using the cost differentiation strategy to develop core competence.

Some of the key developments are:

  • Assa Abloy, in August 2021 acquired Omni-ID in the U.S., is a leading manufacturer of RFID tags and industrial IoT hardware devices.
  • In July 2021, Brivo and Altronix announced a strategic partnership, which will help in the expansion of Brivo’s hardware ecosystem and provide customers with more flexibility.
  • Honeywell Security launched its new extensive range of physical access control systems, such as WIN-PAK CS 4.7 Managed Access Control Solution, Honeywell’s Smart Edge Single Door Controller MPA1, and others, in 2020.
  • Tyco launched its new range of PACS solutions, such as Tyco CEM Systems, Tyco Innometriks, Tyko Kantech, and others, in 2020.
  • Axis launched its new range of PACS solutions, such as Security Center Synergis, Axis Visitors Access, Axis Card Readers, and others, in 2020.

Similarly, recent developments related to companies offering physical access control systems have been tracked by the team at Fact.MR, which are available in the full report.

PACS Industry Report Scope

Attribute Details
Forecast Period 2021-2031
Historical Data Available for 2016-2020
Market Analysis ‘000 Units for Volume and US$ Mn for Value
Key Regions Covered
  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa
Key Countries Covered
  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • China
  • Japan
  • South Korea
  • India
  • Indonesia
  • Malaysia
  • Singapore
  • Australia
  • New Zealand
  • Turkey
  • South Africa
  • GCC Countries
Key Market Segments Covered
  • Solution
  • Technology
  • Sector
  • Region
Key Companies Profiled
  • Assa Abloy
  • Johnson Controls
  • Honeywell International
  • Allegion
  • Avigilon
  • Axis Communication
  • Bosch
  • Paxton
Pricing Available upon Request

Main Segments Covered in Physical Access Control System Industry Survey

  • By Solution

    • Hardware
    • Software
    • Services
  • By Technology

    • Keypad-based Physical Access Control Systems
    • Card-based Physical Access Control Systems
    • Biometric-based Physical Access Control Systems
      • Fingerprint Recognition
      • Face Recognition
      • Voice Recognition
      • Palm Recognition
      • Iris Recognition
  • By Sector

    • BFSI
    • Healthcare
    • Manufacturing
    • Services, Communication, and Media
    • Retail & Other Corporate
    • Transportation & Utilities
    • Institutions
    • Residential

- FAQs -

The United States, China, Germany, the United Kingdom, Canada, and Mexico are lucrative markets for PACS.

Sales of physical access control systems is expected to generate revenue of US$ 7.3 Bn in 2021.

Sales of PACS are projected to increase at a CAGR of over 10% during 2021 – 2031.

Analysis showcases an absolute dollar opportunity of US$ 13 Bn during the forecast period of 2021 to 2031.

Declining prices of fingerprint biometric systems and penetration of PACS across healthcare and education sectors are key trends being witnessed in this space.

Elimination of dependence on keys and demand for enhanced end-user experience are majorly driving market growth.

Top 5 players of physical access control systems account for around 60% share in the market.

South Asia & Oceania accounted for over 15% global PACS demand in 2020.

The European market for physical access control systems is projected to expand at a CAGR of close to 10% during 2021 – 2031.

The Japan market is slated to expand at over 7.5% CAGR, accounting for more than 30% share in the East Asia market.

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