Market Trends of MEA Card-based Access Control Industry
Smart Card (Contact and Contactless) Segment Witness Significant Growth
- Smart cards are like typical plastic cards. However, they contain an embedded computer chip, either a microprocessor or memory type. The data stored and transmitted through these chips pertains to either value, information, or a combination of both. The card data is transmitted via a reader, the outward-facing component of the smart card access control system. Nowadays, several systems across a broad range of commercial sectors, like banking, finance, healthcare, entertainment, and media, are using smart card security systems in their applications.
- Furthermore, in commercial setups, like hotels, smart cards are often installed as this system identifies the card's code linked to a specific room reservation and grants access when the guest simply brings the card near the lock. No physical key insertion is necessary, as the card effectively replaces the traditional key.
- While smart card credentials and readers can grant or restrict access, their potential is maximized when integrated with a physical access management platform. These platforms not only monitor movements but also offer the flexibility to adjust access parameters for specific users or timeframes.
- The demand for smart cards in the MEA region is increasing as customers actively seek total security solutions and flexible door environments using convenient digital and mobile technology. This is possible due to various advancements and usage in authentication methods like biometrics and RFIDs.
- Additionally, the reduction and prevention of theft is a significant advantage that is taken into account when transitioning from traditional locks and keys to an electronic locking system. Smart card access control systems are known to offer higher reliability and durability compared to mechanical locks and metal keys.
- Moreover, the increasing crime rate in the region is creating a favorable outlook for the market. For instance, according to the ENACT and Institute of Security Studies, in 2023, the Democratic Republic of the Congo had Africa's highest organized crime index in Africa, scoring 7.35 points. Nigeria ranked second with a total of 7.28 points. Other African countries with significant criminality levels were South Africa, Kenya, Libya, and the Central African Republic.
United Arab Emirates Expected to Hold Significant Market Share
- Rapid urbanization and ongoing infrastructure development in the United Arab Emirates are fueling the growth of the card-based access control market. With cities expanding and new constructions emerging, the need for access control systems to secure buildings, residential complexes, and smart cities has skyrocketed. These systems provide not just security but also enhance convenience and operational efficiency, making them indispensable in modern urban planning and development.
- Moreover, card-based access control systems are often deployed in offices as they help reduce security risks. They help prevent trespassing, theft, and vandalism, as well as online hacking. Access control systems also make it easier for business owners and admins to monitor access to their building or computer network.
- For instance, in June 2024, the construction of DIFC Square, a significant commercial project comprising three linked buildings, was initiated by the Dubai International Financial Centre. It will include office spaces and retail units, enhancing the center's property holdings and meeting the increasing need for Grade A offices in Dubai's financial hub. Such expansion of commercial buildings in the country is expected to support the market’s growth during the projected timeline.
- According to EPRA, by the end of 2023, UAE's commercial real estate market boasted a valuation exceeding USD 266.5 billion, reflecting significant growth and investment in the sector.
- Moreover, the UAE government is looking into implementing access control solutions to improve its current security systems. The government is facing growing demands to enhance the implementation of physical security management systems in order to safeguard citizens from a range of attacks.
- For the local government, security is a top priority. Government buildings are subjected to homeland security regulations, which may mean restricting entry. Card-based access control systems can verify employees and limit access to departments and confidential information while maintaining public access to other areas.
- Access control systems in government buildings generally start with a security checkpoint at the entry points. However, there are many other systems that can limit authorized personnel access to certain areas. They are also installed in elevators that only stop at certain floors when a particular person is in them by using biometric readers or magnetic stripe cards.
- Furthermore, in August 2023, the UAE Finance Ministry declared the integration of digital identity into all service systems as a component of the nation's drive to advance digitalization. The UAE Pass, the country's initial national digital identity solution, will enable seamless access to over 6,000 services offered by more than 130 entities from local and federal governments as well as the private sector. Crafted to adhere to the most stringent security, privacy, and precision criteria, the UAE Pass is anticipated to enhance user satisfaction by expediting service procedures.