Access Control as a Service (ACaaS) Market by End-user, Type, and Geography - Forecast and Analysis 2023-2027

Access Control as a Service Market Size 2023-2027

The Access Control as a Service (ACaaS) market size is forecast to increase by USD 4.47 billion, at a CAGR of 22.39% between 2022 and 2027. The market's growth hinges on various factors. Firstly, there's a heightened awareness surrounding sophisticated data security threats, prompting organizations to prioritize robust security measures. Secondly, the widespread adoption and implementation of the mobility phenomenon, coupled with bring-your-own-device (BYOD) policies, are driving significant market expansion. Lastly, the increasing penetration of the Internet and wireless network infrastructure is facilitating seamless connectivity and enhancing accessibility to data, further fueling market growth. These factors collectively contribute to the market's upward trajectory, indicating a promising landscape for companies operating in data security, mobility solutions, and network infrastructure sectors.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by end-user (government, healthcare, transportation, retail, and others), type (managed service and hosted service), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics and Customer Landscape

Access Control as a Service (ACaaS) is a significant component of cloud computing platforms, particularly in the context of Internet of Things (IoT) applications. Cloud platforms provide enterprises with essential resources, including access control, which can be delivered via the internet to smart objects such as sensors in computer labs, data centers, parking garages, warehouses, and other facilities. The market is growing due to the increasing adoption of cloud-based solutions in various industries. Cloud-based access control offers several advantages, including centralized management, real-time monitoring, and improved security. However, it also presents new challenges, such as unauthorized entry through employee access or criminal activity. Access control hardware and software are crucial components of ACaaS. These solutions help prevent unauthorized access to hardware, software, and data centers. Access control hardware includes physical devices such as smart cards, biometric readers, and RFID tags. Access control software includes policies, rules, and protocols that govern access to cloud resources. In conclusion, the market is a critical segment of the cloud computing industry. It offers enterprises a cost-effective and efficient way to manage access to their cloud resources while ensuring security and compliance. The market is expected to continue growing as more organizations adopt cloud-based solutions for their IoT applications. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increased adoption and implementation of the mobility phenomenon and bring-your-own-device (BYOD) is notably driving the market growth. As employees increasingly bring their own devices into the workplace, the need for secure and seamless access to corporate resources is more important than ever. It provides organizations with a cost-effective and flexible solution for managing access control and security across multiple devices and locations. It enables organizations to centralize access control management and manage access policies, privileges, and user identities simply and efficiently.

Additionally, it provides real-time monitoring and reporting capabilities that enable organizations to quickly identify and respond to security threats. This is especially important for organizations with remote and mobile workers where traditional access control systems may not provide the required level of security. Overall, the increasing adoption of mobility and BYOD policies is increasing the need for secure and flexible access control solutions, which is expected to drive the growth of the ACaaS market during the forecast period.  

Significant Market Trends

The proliferation of cloud systems is the major trend in the market. The prevalence of the cloud phenomenon is a key trend impacting the adoption and proliferation of solution across all industries. Innovations in cloud security are making cloud deployment models more secure, reliable, and agile. It is also highly cost-effective, facilitating the adoption of this technology by SMEs in emerging markets. Midsize businesses tend to be more price sensitive and rely more on the cloud model.

Innovations in data security are expected to eventually lead to increased adoption of cloud solutions by large enterprises. The cloud model is an attractive proposition for its cost efficiency, advanced information management capabilities, and flexibility. While most organizations are expected to continue leveraging on-premises models for their critical data, hybrid, and cloud-native adoption is likely to increase during the forecast period. The  Suite can be easily integrated into different platforms and systems in different geographies, whether on-premises, in the cloud, or in hybrid deployment models. Given the constant demand for simple and intuitive user interfaces (UIs) and the need for reduced execution times and increased efficiency, cloud models are expected to gain traction during the forecast period. All these factors will positively influence the growth of the global ACaaS market.

Major Market Challenge

The lack of technological awareness may impede the market growth. Access control-as-a-service adoption rates were initially low worldwide, owing to a lack of industry and organizational awareness of advanced systems. This comprehensive deployment was more common in emerging markets. However, the global market scenario is expected to change for the better with increasing technological maturity during the forecast period.

Moreover, a common misconception is the cost of implementing and maintaining a dedicated risk management system. Most organizations may view this as an undesirable additional cost burden due to the limited functional use cases within their organizational structure. Additionally, many organizations grossly underestimate the potential threats in today's heightened cyber risk environment. Implementing and deploying the service has costs associated with operations and management. It requires a steep learning curve, which can lead to higher costs and less attractiveness of the overall solution. A lack of awareness of this technology is expected to hamper the implementation of this solution and the growth of the global ACaaS market during the forecast period. 

Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ASSA ABLOY AB: The company offers organizations with solutions for securing various types of entry points, including doors, cupboards, gates, elevators, and more.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• Brivo Inc.
• Broadcom Inc.
• Centrify Corp.
• Cisco Systems Inc.
• Cloudastructure Inc.
• Datawatch Systems Inc.
• Dormakaba Holding AG
• Feenics Inc.
• Honeywell International Inc.
• International Business Machines Corp.
• M3T Corp.
• Microsoft Corp.
• Motorola Solutions Inc.
• Okta Inc.
• Oracle Corp.
• Ping Identity Corp.
• SecureAuth Corp.
• Thales Group
• Vector Security Inc.

Qualitative and quantitative market research and growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market growth analysis, data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Market?

The market share growth by the government segment will be significant during the forecast period. Government organizations at local, state, and national levels utilize this service to secure facilities and regulate access to sensitive information. High-security measures are essential for defense, intelligence, and law enforcement agencies to protect classified information. It offers an affordable solution for these organizations. In addition, it is implemented in public buildings such as malls, courthouses, and municipal offices. The Internet and IoT enable mobile access, occupancy tracking, and self-screening using sensors and software. 

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The government segment showed a gradual increase in the market share of USD 362.97 million in 2017 and continued to grow until 2021. Public clouds, servers, and third-party applications offer additional resources and permissions. Safety concerns, security risks, and threats from intruders and theft require advanced access control systems. Temperature scanning and mask detection are essential in the current climate. Swipe cards, telecommunications towers, and inventory loss are other areas where it can be implemented. Role-based access and permissions ensure store profits and resource management. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Which are the Key Regions for the Market?

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North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America has become the dominant region, mainly due to the early adoption of technology. In addition, it is a world leader in terms of rapid growth and the use of advanced technology. The region is technologically mature and has a fully developed industrial sector. The rapid adoption of this technology and the general maturity of various industries has increased its use cases in the market.

Strong presence and penetration of top companies such as IBM, Microsoft and Oracle, as well as stringent compliance standards contribute to the growth of the overall market. Market growth is expected to eventually plateau as the market approaches saturation. However, North America is likely to remain one of the major revenue contributors in the access control-as-a-service market during the forecast period. Moreover, developed countries such as the US and Canada are expected to further drive the growth of the market in North America.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments

• End-user Outlook 
  • Government
  • Healthcare
  • Transportation
  • Retail
  • Others

• Type Outlook 
  • Managed service
  • Hosted service

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

The market is a significant segment in the security market, providing businesses with centralized management of user access to applications and systems. The demand for ACaaS is driven by the increasing adoption of cloud services and the need for secure remote work solutions. Companies are turning to ACaaS to ensure secure access to their digital assets, protect against cyber threats, and maintain compliance with regulations. The market is witnessing steady growth due to the benefits it offers, such as cost savings, scalability, and ease of implementation. The market is competitive, with several key players providing solutions that cater to various industries and use cases. The market landscape depends on IoT based security systems, Software as a service (SaaS), On premise access control devices, Cloud based solution. These solutions offer features like multi-factor authentication, role-based access control, and real-time reporting. Moreover, the integration of AI and machine learning technologies in ACaaS solutions is enhancing their capabilities, enabling advanced threat detection and behavioral analysis. The market is expected to continue its growth trajectory, driven by the increasing digitalization of businesses and the need for robust security solutions.

Moreover, it has emerged as a critical solution in today's digital landscape. The market growth is propelled by various factors, including access control mechanisms that ensure only authorized personnel can enter designated areas. Alarm systems integrated with ACaaS offer real-time alerts for enhanced security. Mobile apps enable convenient access management, allowing administrators to modify attributes and permissions remotely. The market landscape depends on Employee's access, Cloud based solutions, Conventional access control solutions, Storage facilities, Cloud computing platforms. Business continuity relies on comprehensive security systems offered by ACaaS providers, safeguarding against cyberattacks and data breaches. Cloud-based access control solutions ensure scalable and flexible deployment methods, reducing financial loss due to breaches. IoT-based security solutions enhance threat visibility, especially in urban areas and high-traffic zones like retail stores, hotels, and warehouse complexes.

Market Scope
Report Coverage	Details
Page number	177
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 22.39%
Market growth 2023-2027	USD 4.47 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	22.06
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 31%
Key countries	US, Canada, China, Germany, and Italy
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	ASSA ABLOY AB, Brivo Inc., Broadcom Inc., Centrify Corp., Cisco Systems Inc., Cloudastructure Inc., Datawatch Systems Inc., Dormakaba Holding AG, Feenics Inc., Honeywell International Inc., International Business Machines Corp., M3T Corp., Microsoft Corp., Motorola Solutions Inc., Okta Inc., Oracle Corp., Ping Identity Corp., SecureAuth Corp., Thales Group, and Vector Security Inc.
Market dynamics	Parent market analysis, Market forecasting, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market forecast analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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