Market Trends of Asia Pacific Access Control Software Industry
Commercial to Hold Significant Market Share
- The commercial sector is anticipated to remain among the prominent adopters of access control software solutions in the Asia Pacific. The solutions enable businesses and commercial facility operators to efficiently secure the premises by allowing access to critical locations or infrastructure only to authorized employees.
- Considering a higher population concentration, the region's public transportation sector is investing significantly in developing systems that can help authorities efficiently manage traffic across various transportation terminals, creating a favorable outlook for the market's growth in the region. For instance, the airlines and airports in China are working globally to automate the passenger journey, with 100% of airlines investing in upgrading their passenger management systems. According to SITA’s Air Transport Insights, airports are investing ambitiously in the biometric-powered journey, with about 86% planning to have self-boarding gates with the deployment of biometrics only by 2024 and 58% planning to adopt a secure single biometric token across all touchpoints.
- A similar trend has been observed across other commercial establishments. For instance, in 2023, Alibaba was planning to provide facial recognition for biometric check-ins for in-country travelers at two Marriott International hotels in China, as per reports from the hotel management industry. According to Marriott, traditional hotel check-ins take three minutes, even without a line. Thus, with the deployment, the self-check-in procedure, consisting of an ID document scan, personal information entry, and face recognition verification, can be completed in significantly less time.
- Furthermore, the region is also witnessing a notable growth in investment to develop commercial establishments. For instance, according to the Ministry of Land, Infrastructure, Transport and Tourism, in 2023, the estimated cost of office building construction starts in Japan stood at JPY 2.36 trillion (~USD 17.7 billion), compared to JPY 1.89 trillion (~USD 11.77 billion) in 2018.
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India to Witness Significant Growth
- The growing industrialization leads to a high demand for securing assets and data. Urbanization in the region is driving the need for access controls in residential and commercial areas owing to security concerns. The increasing number of IT offices in Indian cities, such as Hyderabad, Delhi, Chennai, Bangalore, and Mumbai, is increasing the adoption of technologically advanced, contactless access control systems for various applications.
- Due to the rapidly growing security concerns, India is witnessing increased adoption of access control systems and solutions in various sectors, including corporate offices, hotels, government institutions, and residential buildings. Several key players are developing devices per the Indian smart home requirements under the Government of India programs, such as Digital India and Make in India.
- The rising crime rates and the introduction of technologically sophisticated and contactless smart cards for various applications will create new opportunities for market participants over the coming years. Increasing mobile payment transactions, coupled with growing government and private corporation initiatives toward adopting biometric authentication software, are expected to drive the growth of the market in the country.
- The increasing number of IT companies in the country may provide significant opportunities for the market. For instance, according to the Ministry of Corporate Affairs, in 2023, India had about 1.62 million active companies. Organizations are increasingly investing in solutions to regulate access to buildings and digital platforms to track employee and customer attendance. Hence, the growing number of companies in the country will favor the growth of the market studied.
- Furthermore, in India, trends like digitization and intelligent cities have significantly enhanced the demand for smart home solutions, which are anticipated to impact the market's growth positively. For instance, according to the Ministry of Finance (India) and the Ministry of Housing and Urban Affairs (MoHUA), in FY 2023, expenditure on India's smart city mission stood at INR 68 billion (~USD 0.81 billion).
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