Increased Demand for Access Control in BFSI Predicted to Propel the Global Access Control Solutions Market Through 2020, Says Technavio

LONDON--()--According to the latest research study released by Technavio, the global access control solutions market is expected to reach over USD 24.68 billion by 2020.

This research report titled ‘Global Access Control Solutions Market 2016-2020’, provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments, including biometrics, smartcards, contactless card-based access, and contact card-based access.

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“A rise in the number of online transactions is leading to an increase in the cases of identity theft, data theft, card-related fraud, and insurance claim fraud. These factors drive the demand for access control in this sector. As a result of the continuous advances in technology, the BFSI sector is shifting to the adoption of access control to strengthen its antifraud strategies,” said Amrita Choudhury, one of Technavio’s lead analysts for automatic identification systems.

“Many large financial institutions are replacing outdated solutions and are investing heavily in access control to reform their workflows and reduce financial fraud. Access control such as smartcards and biometrics protect against security threats that range from misuse of user passwords to sophisticated system hacks. The cost of managing password resets for banking enterprises is very high, making access control a cost-effective solution,” added Amrita.

Share of smartcards and biometrics in global access control solutions market 2015-2020 (% share)

  • Biometrics
  • Smartcards
  • Contactless card-based access
  • Contact card-based access

Share of biometrics in global access control solutions market

In 2015, biometric access control accounted for a share of 50.87% of the global access control market, and it will reach 57.56% by 2020. The market share for biometric access control will increase by the end of 2020 because governments are investing heavily in the security of large infrastructure projects and upcoming events such as the World Expo 2020.

In 2015, smartcards accounted for a share of 49.13% of the global access control market, and it will reach 42.44% by 2020. Smartcards are increasing adopted in the BFSI, government, and transportation sectors to improve security. The increase in the number of fraudulent activities and terrorist activities has compelled organizations to implement the use of smartcards to provide authorized access to employees on secured premises. The adoption rate of smartcards will decline during the forecast period because of the mass adoption of smartcards in the early stage of its introduction.

Global smartcard access control market

In 2015, the global smartcard access control market was valued at USD 6.43 billion. The growing awareness of the benefits of smartcards for access and identity security in the BFSI, government, telecommunication, and healthcare sectors has been a major driving factor for the growth of the market. Smartcards enable the storage and processing of information. They are highly efficient and are preferred over magnetic tapes. Smartcards are tamper-resistant, which makes them secure against loss or misuse of personal data. With the impact of security threats becoming evident among users, smartcards are gaining prominence. End-users are becoming more aware of smartcards to mitigate such threats, leading to a stronger demand for smartcards.

Global contactless card-based access control market

In 2015, the global contactless card-based access control market was valued at close to USD 651.3 million. The rate of adoption of contactless card-based access control is increasing in government organizations with the growing need for security. Contactless smartcards use radio frequency (RF) technology for communication between a contactless smartcard and the card reader. Thus, for data and information transfer between contactless smartcards and card readers, it is important for contactless smartcards to be in proximity to an antenna.

Contactless cards use inductors to capture the incident RF interrogation signal that is rectified and used to power the cards' electronics. The cards can store data, which can only be accessed with a PIN code. This PIN is difficult to forge. Advances in technology have resulted in the integration of biometric technologies, such as facial recognition, in smartcards. With a rise in international travel and terrorism, there is an increasing adoption of contactless smartcards. The use of contactless smartcards will grow by 2020 as they provide data security for financial applications while providing access to payments and other applications, such as securing an individual’s identity.

Global contact card-based access control market

In 2015, the global contact card-based access control market was valued at USD 5.78 billion. Contact-based smartcards are being used in different industries to provide physical access to facilities, logical access, and access to personalized data and network. Contact-based smartcards are gaining prominence in the BFSI, transportation, government, and healthcare sectors for access control. Contact-based smartcards consist of multiple gold-plated contact pads, each having a contact area of one square centimeter. The contact pads provide electrical connectivity when inserted into a card reader that acts as a communication medium between the point-of-sale system or computer and the smartcard. They help transfer data stored in the card into the system, enabling monetary transactions or information transfer through the card.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com

Release Summary

According to the latest research study released by Technavio, the global access control solutions market is expected to reach over USD 24.68 billion by 2020.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com