Access Control and Authentication Market Assessment, By Deployment [Software, Hardware], By Type [Mobile Access Control, Logical Access Control, Physical Access Control], By Technology [Smart Card, Biometrics, Others], By End-user [BFSI, Retail, Military

Access Control and Authentication Market Assessment, By Deployment [Software, Hardware], By Type [Mobile Access Control, Logical Access Control, Physical Access Control], By Technology [Smart Card, Biometrics, Others], By End-user [BFSI, Retail, Military & Defense, Healthcare, Manufacturing, Education, Others], By Region, Opportunities and Forecast, 2016-2030F

Global access control and authentication market size was valued at USD 13.2 billion in 2022, which is expected to reach USD 26.1 billion in 2030, with a CAGR of 8.9% for the forecasted period between 2023 and 2030.

Access control and authentication systems provide proper security measures in various sectors. They offer numerous benefits such as preventing unauthorized access, safeguarding sensitive data, and ensuring compliance with the regulations. Additionally, these systems enhance user convenience, streamline operations, and reduce security risks. Factors such as the increasing frequency of cyberattacks, the need for stringent security measures, and the growing adoption of cloud-based solutions drive market growth. Additionally, the emergence of IoT devices and the rise in remote work arrangements have further fueled the demand for the market.

Access control and authentication have played a crucial role in curbing cyberattacks by limiting unauthorized access to systems and data. With the help of measures, like strong passwords, biometrics, and multi-factor authentication, it verifies user identities and prevents malicious attacks, thereby reducing the risk of cyber breaches and data compromises.

In September 2023, Astra IT Inc. stated that 2023 will witness approximately 33 billion account breaches. While by now, almost 800k cyber-attacks have been recorded with hacking attacks at every 39th second on an average, across the world.

Utilization of Access Control Systems in Electronic Locks and Doors

The access control and authentication market are witnessing substantial growth due to integrating access control systems in electronic locks and doors. This integration enhances security and convenience across residential, commercial, and industrial applications. Electronic locks and doors have access control technology to provide efficient and secure access management solutions. As a result, the market is experiencing significant expansion, driven by the increasing demand for advanced security measures and streamlined access control in various sectors.

For example, Key fobs and card readers are electronic door access control systems that employ compact plastic devices as credentials. These cards and fobs utilize wireless technologies such as Bluetooth, radio frequencies, or RFID tags to communicate with the access reader .

Rise in Adoption of Number-Plate Identification Systems

The automotive sector within the access control and authentication market is experiencing accelerated growth due to the widespread adoption of number-plate identification systems. These systems enhance security by accurately identifying vehicles, managing parking access, and streamlining traffic flow. Moreover, it is crucial in applications like toll collection, parking management, and vehicle access control, leading to increased demand in the automotive industry, which in turn is augmenting the market growth.

For example, Sweden based Axis and Denmark based Milestone, partnered to provide an enhanced method for searching, retrieving, and sharing video evidence related to vehicles. The AXIS Optimizer forensic search for vehicles offer an efficient way to locate video evidence within Milestone XProtect, utilizing metadata from automatic license plate recognition (LPR) ACAPs from Axis and other suppliers. This camera-based, serverless solution is designed for various applications on and off the streets, allowing video management system operators to save costs.

The Emergence of Card-Based Access Systems

The rising adoption of card-based access systems is creating significant opportunities in the market. These systems offer convenience and security, leading to increased demand for access control solutions. As businesses and organizations prioritize enhanced security measures, the market is experiencing substantial growth, driven by the rise in usage of card-based access technology.

For example, in December 2022, M-Tech Innovations and Idex joined forces to introduce biometric payment cards in the Indian market. They aimed to collaborate on registration solutions customized for the unique needs of the Indian market. Moreover, India is regarded as one of the fastest-growing market for payment cards, with nearly 1 billion issued each year.

Asia-Pacific to comprehensively dominate the Market

Asia-Pacific has emerged as the most dominating region in the access control and authentication market. Access control and authentication has become a mandatory part in the Indian IT industry due to the sector's rapid growth and due to its role as a global technology hub. Robust access control measures help in the protection of valuable intellectual property, sensitive customer data, and proprietary software from cyber threats, which in turn safeguards a company's reputation and legal compliance. Additionally, with the rise in remote work and cloud computing, the control and authentication applications ensure secure access to systems and data which is essential for utmost productivity.

For example, in December 2022, India introduced the Digi Yatra initiative to implement facial recognition technology (FRT) for a hassle-free and touchless passenger experience at airports. The project envisions travelers navigating airport checkpoints without physical documents, relying on facial features to verify their identity, which can be linked to their boarding passes, ensuring a seamless and contactless process.

Government Initiatives to Align with the Market

Government initiatives are crucial in the access control and authentication market as they set the regulatory framework and standards for data protection. It provide guidelines that promote the adoption of advanced authentication technologies and access control measures to safeguard critical infrastructure, sensitive data, and citizens' information. Government support encourages research and development in the sector, fostering innovation, while ensuring compliance and ultimately enhancing national security and protection against cyber threats.

For example, The National Automated Fingerprint Identification System (NAFIS) launched by the Indian government in 2022, created a central database of fingerprints of criminals, which users from all States, Union Territories, and Central Agencies can access. Moreover, in August 2023, NAFIS established itself as a prime illustrator of effective governance, earning the prestigious gold award in Category-1 from the Department of Administrative Reforms and Public Grievances (DAPRG).

Impact of COVID-19

The COVID-19 pandemic significantly changed the access control and authentication market in the pre and post-COVID period. Before the pandemic, the focus was primarily on traditional access control methods such as key cards and PINs, with limited emphasis on remote work and touchless solutions. However, as the pandemic unfolded, remote work became necessary, driving a rapid shift towards advanced authentication methods like biometrics, smart cards, and multi-factor authentication to secure remote access to networks and data. The demand for touchless technologies like facial recognition and mobile-based authentication surged due to hygiene concerns. Post-COVID, the market continued to prioritize these advanced, adaptable, and secure authentication solutions, reflecting a long-term shift towards more flexible and digitally driven approach by accommodating the evolving needs of the workforce and enhancing overall cybersecurity efficacy.

Key Players Landscape and Outlook

The access control and authentication market is making significant progress, with prominent companies increasing their investments in biometric technologies to enhance their market presence and revenue. Additionally, firms are actively pursuing collaborations, acquisitions, and partnerships, reshaping the industry landscape and driving overall market growth at an accelerated pace.

In June 2023, Synaptics, a leading provider of human interface solutions for mobile computing, unveiled its Fingerprint TouchPad product for integration into notebook PCs. The module combines TouchPad interface with the AuthenTec EntrePad (TM) AES3500 fingerprint sensor. Moreover, it boasts distinctive software features like Omnipass Identity Management and Single Touch Preboot Authorization, ensuring a blend of security and convenience for users.