Fact.MR is expecting to see modest growth in the physical access control system (PACS) market in the next few years. The firm specifically predicts that the market will display a CAGR of nine percent for the ten-year period between 2021 and 2031, thanks in large part to the increased use of the technology in sectors like retail and financial services.
Biometric PACS solutions are expected to be particularly popular, and will account for two out of every five sales in the market moving forward. Services will be the largest segment, though software will also represent a large share of the market in select industries. The services, communication, and media segment is expected to generate much of the actual revenue.
“Burgeoning instances of identity theft and compromise of confidential data are compelling corporate entities to invest in advanced security solutions, especially in the financial domain, leading to an increase in the availability of security solutions for banking and financial institutions,” said a Fact.MR analyst.
Looking at the different regions, the United States will be responsible for the vast majority (80 percent) of the revenue in North America, while Germany, France, and the UK will exhibit stable growth in Europe. Japan and China will act as the two major development hubs in Asia.
Fact.MR identified Honeywell, Safran (now IDEMIA), Allegion, and Assa Abloy as some of the key players in the PACS space, and even highlighted individual products like Safran’s biometric authentication software for smart cards. Assa Abloy, meanwhile, is the parent company of HID Global.
The new report echoes a similar report from MarketsandMarkets that predicted that biometric readers would drive a $12.8 billion access control market. That report placed the CAGR at 8.2 percent leading up to 2025. For its part, Fact.MR has observed that biometric identification systems will be much more common in the current generation of smart vehicles.
January 28, 2021 – by Eric Weiss