News
Physical Access Control Market: Same Customer Value Equation, New Dynamics
March 2011 by Brad Jarvis, Vice-President, Product Marketing HID Global
The physical access control market has long been characterized by what HID Global has called the “customer value equation” — a balancing act between cost, security and convenience that influences customer buying criteria and decision-making tradeoffs. Validated by a recent AVISIAN research study, this “balancing act” will continue over the coming years. However, there are new market dynamics that influence and change the interrelationship between the customer value equation factors, and new areas of consideration that present trade-offs with potentially compelling advantages.
At the heart of the data supporting these findings is the 2010 AVISIAN Physical Access Control Market Research Study. Additionally, HID Global hosted an industry focus group of long-time integrators and senior consultants to capture real-world examples of what industry veterans find important. Finally, our findings also were informed by the 2009 IMS PAC Research study, which provided additional insights.
According to the research, there are a number of dynamics influencing the physical access control market, including:
• New technologies and accelerated adoption rates, including the move to contactless technologies
• Growing importance of security-level requirements
Following is a summary of these market drivers.
New Technologies, Faster Adoption Rates
The migration to new technology has significant implications. According to the IMS study, IP-enabled controller revenues are expected to surpass those of serial controllers and account for 42.7 percent of the market by 2013. Driving this trend are low installation costs, reduced cabling, the desire for intelligent readers at the door, and demand for increased functionality and application convergence.
The AVISIAN research identified three reader technologies that users value most highly. The first was upgradeable readers and credentials, including the ability to download reader/credential security upgrades to proactively manage threats (viewed as highly desirable by 79 percent of the respondents). The second most valued technology was upgradeable, programmable readers that would simultaneously support three or more card technologies (viewed as important by 71 percent of the respondents). The third most highly valued technology was expanded programming and configuration options, including a universal programmer and reader configuration tool for controlling credential formats and securities through a supplier licensing agreement (desired by nearly two-thirds of respondents).
The AVISIAN study respondents also said they would like a credential or identity generator to assist in defining and securing card data (this was desired by almost 60 percent of the respondents) and the ability to have additional credential form factors such as phones, keyfobs, stickers or tokens. Over 70 percent of the end user community and 80 percent of industry respondents felt the latter capability was important, and both groups acknowledged inadequate user options today.
Even as users wait for these technologies, smart card use continues to grow – with a 13.5 percent CAGR from 2009-2013 according to IMS research, compared to a 2.4 percent CAGR for proximity technology in the same period. IMS believes the number of smart card installations will approach that of proximity installations by 2013.
Increased Card-to-Reader Security
Today’s cards carry more information that must be protected, they are used for more applications, they require more privacy protections, and they must be able to validate and secure identities. This has created demand for multiple layers of card security including two-factor authentication to validate identity, and biometric templates that must be stored on the card. Over 85 percent of the user community felt that this was a very important factor and over one?third felt that they did not have adequate support in this area from the vendor community.
The feature that respondents said they wanted most is hardware that updates the card’s security technology if the current technology were to be hacked. This was deemed important by 91 percent of user respondents, and over 52 percent were dissatisfied with today’s options. The second most desired feature was software upgrades to address new security threats as they emerge, with 92 percent of respondents saying this was important and almost 40 percent saying they were dissatisfied in this area.
Looking Ahead: Balancing the Equation
Despite important new market dynamics, the three core elements of the customer value equation - cost, security and convenience – continue to fuel drivers for change in the physical access control space as increased convenience, lower total cost of ownership and achieving higher levels of security continue to dictate market development. At the same time, new dynamics are creating new opportunities to better serve customers’ very clear and specific needs, as we help them balance their value equation for physical access control solutions.
HID Global is exhibiting at Infosecurity Europe 2011, the No. 1 industry event in Europe held on 19th – 21st April at the prestigious venue of Earl’s Court, London. The event provides an unrivalled free education programme, exhibitors showcasing new and emerging technologies and offering practical and professional expertise. For further information please visit www.infosec.co.uk
