New report highlights rise in demand for biometrics solutions
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Growing demand for physical access control systems (PACS), including biometrics, from fast-evolving industries such as banking, financial services and insurance (BFSI); healthcare; retail; and others is offering lucrative growth opportunities for PACS equipment manufacturers across regions. The Government of the United States has defined PACS as a system to grant access to employees and contractors who work at or visit a site by electronically authenticating their PIV credentials.
According to a report published by the European Banking Federation in 2020, banking and related financial services activities make a significant contribution to the EU’s economy. As per its report, around one in every 100 jobs in the EU continued to be a banking job in 2019, while the average number of bank staff has been rising each year since 2008, with 28% increase in total. PACS, being an integral part in the BFSI sector, is expected to experience further rise in demand through 2031.
A new report on the global physical access control system market opines that this industry will grow at an impressive 9% CAGR through 2031.
- Rise in demand for biometrics solutions, such as fingerprint recognition, face recognition, voice recognition and others is expected to fuel the sales of PACS equipment, allowing this segment to hold a 40% market share over the coming years.
- Growing demand from the services, communication and media sector is set to catalyze market growth; this sector will contribute a share of over 32% through 2031.
- The PACS market grew at around 7.5% over the past five years and the outlook continues to remain strong for the next ten years (expected CAGR of over 9% from 2021 to 2031).
- The United States, Mexico and Canada are set to remain lucrative regions for stakeholders throughout the forecast period.
- The US holds around 85% share in the North American market and its outlook remains positive.
- Germany and France progress will be stable. Japan and Korea will continue to be a bright spot in this market.
Rise in demand for biometrics
PACS, being highly required in the services, communication and media industry, will witness exponential growth in these sectors. According to the European Association of Communication Agencies (EACA), the online advertising sector grew steadily to reach nearly EUR 19 billion in 2016 and is projected to exhibit further growth in the near future. As stated by the Select USA Government, the United States media and entertainment industry is highly progressive, with the box office receipts surpassing US$11 billion in 2019. According to the India Brand Equity Foundation (IBEF), the National Digital Communications Policy 2018 envisaged attracting investment worth US$100 billion in the telecommunication sector by 2022. The Media Landscapes Organisation stated that public-service media in Germany is expanding fast and currently around 24,000 people are working on PSM, while 13,600 are working in commercial TV and over 4,000 in commercial radio. These figures represent ample opportunities that are on the way for PACS equipment manufacturers.
Who is winning?
The global physical access control system market is highly competitive in nature and is thriving on key players. In order to remain in key positions, top companies are diversifying their product offerings.
These insights are based on a report on the Physical Access Control System (PACS) Market by Fact.MR.