Physical Access Control System (PACS) Market, Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2021 to 2031

Published on : Jan-2021 | List of Tables : 57 | List of Figures : 92 | No. of Pages : 170 | Report Code : FACT1854MR |

About the Report

In this era of digital and technical advancements, maintaining security is of utmost importance, and hence, popularity of physical access control systems (PACS) has grown widely over the past years. While rise in demand from services, communication & media, institutions, BFSI, and others is fuelling sales of PACS equipment manufacturers, increase in investments in research & development (R&D) activities by manufacturers is forecast to change the market outlook substantially over the coming years.

Despite suffering a downfall due to the outbreak of COVID-19, exponential growth of key end-use industries such as BFSI, communications, retail, and others has helped, and the market is forecast to exhibit impressive growth in the near future. The latest study by Fact.MR offers a thorough analysis of the global physical access control system (PACS) market, along with its growth, scope, and potential during the forecast period for the years 2021 to 2031.

What do Historical and Future Outlooks of the PACS Market Signify?

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 raised demand for PACS substantially. According to Fact.MR, the global PACS market grew at over 7.5% CAGR (value) during the last 5 years (2016 and 2020).

As key end-use industries continue exhibiting impressive growth, PACS equipment manufacturers will witness higher sales over the coming years. While high demand for biometric and card-based physical access control systems are set to fuel sales for suppliers and manufacturers, increase in investments on research & development (R&D) activities and technical innovations are projected to further push the demand-supply curve upward. As stated by Fact.MR, the global physical access control system market is anticipated to expand at over 9% CAGR through 2031.

Will Requirements Rise 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 last decade, it remains a lucrative end-use industry for PACS equipment manufacturers and service providers. According to the International Media Support, in China, commercialization of the well-developed media industry is taking place at a rapid pace. As per its report, high potential of the media industry is to grow further in the near future.

According to the Select USA Government, the United States film entertainment sector enjoyed a trade surplus of US$ 10.3 billion in 2016, which was roughly 4% of the total U.S. private sector services surplus that year. As stated in the report, the U.S. gaming industry accounts for a significant amount of the M&E (media & entertainment) industry, with a revenue of approximately US$ 26 billion in 2019. Data published in the report also revealed that, electronic sports or e-sports has grown to US$ 281 billion in 2019, which is double of its size in 2016.

These statistics reveal the significant contribution of this sector in boosting the growth of PACS service providers across the world.

How is Increase in Demand from Retail & Corporate Sector Spurring Growth?

Fast-paced growth of the retail & corporate sector has substantially increased demand for various physical access control systems, such as biometrics, card-based access, and others. According to the National Retail Federation United States, in 2017, retail sales increased by 3.9%, and e-Commerce sales increased by 13% in the same period. The report stated that, in 2017, Foreign Direct Investment (FDI) in the U.S. retail industry reached US$ 88.6 billion.

According to the International Trade Administration, the U.S. retail industry is highly progressive, and employs approximately 1 out of 5 Americans. A report published by the European Commission (EC) in 2015 stated that, the European commerce sector comprises 5.5 million companies, while representing 11% of the EU’s Gross Domestic Product (GDP). As per this report, estimated value added by this sector to other sectors such as finance, real estate, ICT, transport, manufacturing, and agriculture is nearly EUR 1 trillion. This definitely indicates high demand for PACS from this sector. 

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.

Also, the COVID-19 pandemic has impacted the manufacturing of PACS equipment due to various factors such as non-operational manufacturing units during lockdowns, scarcity of raw materials, shortage of labor, disrupting logistics sectors, and others. Furthermore, most IT offices have started ‘work from home’ since the past year, which has substantially declined demand for PACS around the world.

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.

physical access control system market

Country-Wise Analysis

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

The United States, being the epicenter of the world’s largest physical access control system market North America, is highly lucrative for manufacturers. Steady growth of institutions, residential, communication, and other industries, coupled with rise in investments in technical innovation, is aiding growth in the U.S. According to the Bureau of Economic Analysis (BEA), in the United States, high-tech companies contributed US$ 8.3 trillion of economic value, accounting for nearly 23% of the U.S. GDP. As per its report, 46% of the total FDI was used in supporting innovations and growth of the high-tech industry in the U.S. in 2018.

According to a report published by the United States Trade Government in February 2020, United States high-tech companies employ approximately 20 million U.S. 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 catalyzing the growth of PACS equipment suppliers. These figures signify the rising rate of requirement for PACS solutions from these sectors.

Why is Canada a Heavyweight for PACS Equipment Manufacturers?

Canada has emerged as another lucrative market in North America. Rising demand for various PACS services and solutions by the information, communication, retail, IT, and other sectors is fuelling sales in the country. According to a report published by the Government of Canada, in 2019, the Canada ICT (Information and Communications Technology) sector saw growth of 2.1% as compared to an overall economy (0.0%) which was flat, while more than 666,500 employees were working in the ICT sector, accounting for 3.6% of Canada’s total employment. The report also stated that, the software and computer services share of employment has increased from 59.9% to 67.6% over the time period.

According to the Government of Canada, revenue in the ICT sector has been growing exponentially to reach at US$ 8.8 billion in 2019, while there are over 43,200 companies in the Canadian Information and Communication Technologies (ICT). As such, it comes as no surprise that PACS manufacturers are targeting this country in order to raise their market value.

What’s Keeping Germany’s PACS Market at the Forefront?

Germany is a dominant market for physical access control systems in Europe. Rapidly evolving IT, retail, media, communication, and other sectors, and increase in business investments, are propelling growth in Germany. According to a report titled “Economic Survey of Germany” published by the Organization for Economic Co-operation and Development (OECD) in December, 2020, economic growth in Germany is majorly driven by business investments, private consumption, and exports, and is set to rise to 2.8% by the end of 2021 and 3.3% by 2022.

According to the Media Landscapes Organization, Germany’s media industry is comprised of around 100 million people in Europe, while consumption patterns of media users are spiraling upwards with an average media use of 9.5 hours per day. As stated by the Germany Trade & Invest (GTAI), with a population of 82.5 million (almost 16% of the EU-28 population), Germany is the largest consumer and retail market in Europe in terms of both, population size and purchasing power. Its report stated that, Germany has the highest GDP in Europe, with one of the highest total purchasing power (EUR 1,893 billion).

Why is the United Kingdom PACS Market in the Limelight?

The United Kingdom PACS market is highly sought-after by manufacturers due to its high potential, driven by growing end-use industries such as services, communication, healthcare, IT, and others. According to the Department for International Trade for U.K. Business, the United Kingdom has one of the world’s largest technology ecosystems, with thousands of tech start-ups built around a strong entrepreneurial culture, ranking as the 5th most innovative place in the world. As per its report published in 2018, digital technology turnover reached at EUR 184 billion, while nearly US$ 13.2 billion was raised for tech start-ups in 2019.

As stated by the Department for International Trade, there are over 1,000 Artificial Intelligence (AI) companies, 600 investors, 80 influencers, and 35 tech hubs and research institutes in the U.K, while EUR 28 billion was invested in U.K. tech between 2011 and 2016. This, in turn, has been boosting the growth of the physical access control system market in the U.K.

Will Mexico be a Good Destination for PACS Equipment Manufacturers?

Backed by fast-paced growth of media, communication, corporate, retail, and other industries, and advanced manufacturing infrastructure, Mexico PACS market is highly progressive in nature. According to the Organization for Economic Co-operation and Development (OECD), Mexico developed into a manufacturing hub by deepening its integration into global value chains, and exports’ share of GDP climbed from 19% of GDP in 1990 to 38% of GDP in 2017. According to the report, the banking and financial sector remains sound and well-capitalized, while large non-financial corporations are set to grow further.

As stated in the Global Banking Report, published in December, 2018, Mexico corporate and investment banking is exhibiting robust growth, and is set to grow at 10% in terms of revenue through 2031. No doubt this will have a positive impact on the sales of PACS equipment.

How will Japan PACS Market Sustain its Position?

Japan PACS market has recorded exponential growth in the past years, and is expected to grow further over the coming years. Surge in demand for biometric, card-based, and keypad-based physical access control systems and solutions from a broad range of end-use industries such as healthcare, BFSI, IT, corporate and others, has made Japan highly lucrative for PACS equipment manufacturers. According to the Government of Japan, the country’s healthcare industry is the second-largest in the world, with nearly 200,000 medical facilities such as hospitals, clinics, and others.

According to the Economic Intelligence Unit (EIU), Japan is expected to face an economic contraction in the first quarter of 2021, as a new state of emergency has been declared in Japan’s capital area. However, high demand for PACS will persist in the long run, paving new paths for market players.

Which Key Industries are Responsible for China’s Rising PACS Market?

Highly advanced end-use industries such as BFSI, retail, institutes, and others is catering to high growth of PACS suppliers and manufacturers in China. According to the Ministry of Commerce (MOFCOM), China is the world’s second-largest retail market, with total retail sales of consumer goods worth more than 25 trillion yuan in 2015.

As stated by the Fung Business Intelligence Centre, China’s retail industry growth is fast-paced, with more than 85% of total retail sales driven by the urban population. According to the China Internet Network Information Centre (CNCIC), China’s Internet population stood at nearly 635 million in 2015, with a penetration rate of over 45%, which is projected to grow further over the coming years. Factors such as these are anticipated to increase revenue of PACS service providers in China.

Category-wise Insights

Which Technology of PACS is Set to Exhibit Hegemony?

Presently, card-based PACS is the leading segment in terms of technology, due to ease of installation, handling, and maintenance. Also, this type of PACS is less time-consuming, reliable, and suitable for medium to large organizations with a lot of employees or staff.

Biometric-based PACS such as fingerprint recognition, face recognition, palm recognition, iris recognition, and others are mostly required for higher level of security in sectors such as banking, finance, and others.

Keypad-based physical access system is another key segment, and is expected remain in a good position over the coming years.

Will the Services, Communication, and Media Sector Maintain its Lead in the PACS Landscape?

Currently, the services, communication, and media industry has the most potential in increasing sales of PACS manufacturers. This industry, being comprised of a huge number of employees, has high requirement for various type of PACS solutions such as biometric-based, card-based, and keypad-based.

Other key end-use industries projected to increase sales are BFSI, healthcare, manufacturing, retail & other corporate, transportation & utilities, institutions, and residential.

How Important will Physical Access Control Systems Be?

In terms of solution, PACS services are mostly demanded by various end-use industries, starting from IT to healthcare. This type of solution is highly efficient in providing hassle-free security, while handling is also less complex. Furthermore, this type of PACS can be customized by the service provider on the basis of specific requirements.

Hardware and software PACS solutions are other lucrative segments in this category.

Competitive Landscape    

The global physical access control system market 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 of more diverse category of products.

For instance,

  • 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.

Some of the key players operating in the global PACS market are-

  • Honeywell Security
  • Bosch Security
  • Safran Security
  • Assa Abloy
  • Tyco
  • Axis
  • Allegion
  • Aiphone
  • TKH Group
  • Avigilon

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report

Report Scope

 Attribute

Details

 Forecast Period

2021-2031

 Historical Data Available for

2016-2020

 Market Analysis

USD Million for Value

 Key Regions Covered

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

 Key Countries Covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Vietnam
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

 Key Segments Covered

  • Technology
  • End User
  • Solution
  • Region

 Key Companies Profiled

  • Honeywell Security
  • Bosch Security
  • Safran Security
  • Assa Abloy
  • Tyco
  • Axis
  • Allegion
  • Aiphone
  • TKH Group
  • Avigilon

 Report Coverage

  • Market Forecasts
  • Brand Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

 Customization & Pricing

 Available upon Request

Physical Access Control System Market Segmentation by Category

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

End User

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

Solution

  • Hardware
  • Software
  • Services

Region

  • North America
  • Latin America
  • Europe
  • Middle East and Africa (MEA)
  • East Asia
  • South Asia
  • Oceania

Key Questions Answered in Report

  • At what CAGR is the global PACS market expected to expand?

According to Fact.MR, the global PACS market is expected to progress at over 9% CAGR (value) during the forecast period of 2021 to 2031.

  • Which are the top companies operating in the PACS market?

Some of the top companies competing in the global physical access control system market are Honeywell Security, Bosch Security, Safran Security, Assa Abloy, and others.

  • Which PACS technology accounts for higher sales?

Presently, card-based PACS technology is accounting for higher sales, and is expected sustain its position over the coming years.

  • Which are some of the lucrative markets for PACS?

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

  • Which segment of solution is bolstering growth of the PACS market?

Currently, the service segment is the leading PACS solution, and is set to maintain the lead through 2031.

Enquiry before Buying

Is this research conducted by Fact.MR?

Yes, the research has been conducted by expert analysts of Fact.MR, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

What research methodology is followed by Fact.MR?

Fact.MR follows a methodology that encompasses demand-side assessment of the market, and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

Who are the respondents for primary research?

Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

What are the sources of secondary research?

Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

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Physical Access Control System (PACS) Market – Report Scope

A recent study by Fact.MR on the physical access control system (PACS) market offers a 10-year forecast from 2021 to 2031. The study analyzes crucial trends that are currently determining market growth. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders and emerging players associated with the PACS industry. The study also provides the dynamics that are responsible for influencing the future status of the physical access control system market over the forecast period.

A detailed assessment of the PACS value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the physical access control system market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Report Summary

The study offers comprehensive analysis on diverse features, including demand, product development, revenue generation, and sales in the physical access control system market across the globe.

A comprehensive estimate on the market has been provided through an optimistic as well as a conservative scenario, taking into account sales during the forecast period. Price point comparison by region with global average price is also considered in the study.

Segmentation

Fact.MR’s research study assesses the global physical access control system market in terms of technology, end user, solution, and region. This report presents extensive market dynamics and trends associated with these different segments of the market, and their influence on the growth prospects of the market for the coming years.

Technology

  • Keypad-based Physical Access Control Systems
  • Card-based Physical Access Control Systems
  • Biometric-based Physical Access Control Systems (Finger Recognition, Face Recognition, Voice Recognition, Palm Recognition, Iris Recognition)

End User

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

Solution

  • Hardware
  • Software
  • Services

Region

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

Key Questions Answered in Report

  • Which are the most lucrative markets for physical access control systems?
  • Which factors will have the most impact the growth of the PACS market?
  • How will changing trends impact the strategy of market players operating in this sector?
  • How can market players capture the low-hanging opportunities across regions?
  • Which companies are leading the global PACS market?
  • What are the winning strategies of stakeholders in the physical access control system market?

Inspected Assessment on Regional Segments

Key sections have been elaborated in the physical access control system market report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the market during the forecast period of 2021 to 2031.

Country-specific valuation on demand for PACS has been offered for each regional market, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the research report.

Detailed breakup in terms of value for emerging countries has also been included in the report.

Research Methodology

In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the physical access control system market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.

Secondary resources referred to by analysts during the preparation of this market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the PACS market report as a primary resource.

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Physical Access Control System (PACS) Market, Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2021 to 2031