Access Control as a Service (ACaaS) Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Access Control as a Service Market Market Size

ACaaS Market Trends & Drivers

Rising Adoption of BYOD in IT Enterprises

The BYOD culture is gaining popularity, and BaaS providers have invested a significant amount of money to promote this trend. BYOD initiatives allow employees working on their own devices at the workplace access to corporate emails and all kinds of documents through phones and tablets. Organizations all over the world are producing more data as a result of this culture.

Employers are increasingly adopting the BYOD model for a variety of reasons, including increased productivity, higher job satisfaction, and more employee retention. This can be a result of the increased comfort and speed of work employees experience on their own devices and the incorporation of cutting-edge technologies into the workplace without significant investments in hardware, software licensing, or device maintenance.

In a recent survey, 61% of the Gen Y people and 50% of the workers over 30 years old said that the technology tools they use in their personal lives are more productive and effective than those they use at work. In addition, the COVID-19 pandemic helped spread the BYOD popularity, by enforcing the WFH culture.

Growing Awareness about Sophisticated Data Security Threats

Technological advancements have significantly increased the risks to data privacy and security, one of which is system outages due to data breaches. System downtime is not an option in the modern world because it could be disastrous for brands. In addition, after a data breach, the costs associated with legal actions and cyber insurance claims rise. Regulatory issues, such as failing to protect information under the General Data Protection Regulation (GDRP), can further lead to massive fines. According to the Data Breach Investigations Report, over 90% of the cyberattacks are caused by human error, which can both lead to and heighten the risk of cybercrime and the harm posed to enterprises.

Creating a culture of risk awareness in the workplace, which begins with the awareness of cybersecurity, is the most-effective strategy for corporations to combat this threat. Keeping systems safe and the data secure is a significant challenge for enterprises. Hence, the increasing concerns about data security are driving the demand for ACaaS.

Access Control as a Service Market Analysis

Hosted Service Category Holds Largest Share

Among all the service types in the access control as a service market, the hosted category held the largest share in 2022. Hosted ACaaS software runs on remote hardware maintained by the owner of the server; therefore, users need not pay for their maintenance.

Additionally, monitoring and managing all access control activities save time and money when a third party can update users' access rights. It means that users only have to pay for the services they choose. In addition, the commercial, residential, government, and healthcare sectors are increasingly demanding hosted services.

The hybrid service category would witness the second-highest growth rate during the forecast period. Hybrid services help in improving threat visibility and immediately responding to attacks, thus also ensuring compliance with the government standards. Most of the small and big entities are deploying hybrid solutions as they allow users to work between two interconnected networks of the public and private clouds. Moreover, hybrid platforms can be customized to serve specific needs and help companies smoothen their operations.

Commercial Category Dominates End User Segment

In 2022, the commercial category held the largest market share, and it is expected to grow at a CAGR of more than 19% during the forecast period, attributed to an increase in the count of robberies and thefts at commercial buildings. In order to safeguard business assets, property owners are purchasing security systems via the ACaaS approach for remote monitoring. Companies already spend millions of dollars on security, to make their facilities safer, keep people safe, and solve problems in security.

Moreover, due to the rising demand for high-level surveillance and monitoring systems, the residential sector is expected to experience significant growth in the coming years, along with the commercial sector.

Moreover, the retail sector is expected to grow with the second-highest CAGR in the future. In the retail sector, ensuring workplace safety, preventing business interruptions, and reducing final losses play an important role. The boom of the population and growth in the urbanization rate are fueling the development of malls, thus driving the overall retail sector. Moreover, governments are taking initiatives to develop the retail sector in their respective countries.

For instance, the central government of India has allowed 100% FDI in the online retail of products and services via the automatic route. Investing in access control as a service is necessary for long-term benefits, such as the maximization of store profits and reduction of losses. As retail stores and malls are prone to burglaries and robberies, access control services are being availed of to make them secure.

Geographical Analysis

Due to the growing demand for effective access control services to improve security systems in various commercial spaces, North America dominates the market for ACaaS with a market share of around 44%. In this regard, the rapid expansion of the regional market is driven by the rising rates of crimes, such as burglaries and B&Es.

The high expenditure on wireless security solutions is also attributed for this dominance. The preference for wireless access management systems is being propelled by the developed surveillance infrastructure in the region. A mobile-based access management system is needed because smartphones are used by everyone in the U.S. The market is also expanding as a result of the widespread use of IoT-based systems and cloud computing. As cloud computing enables organizations to become more flexible, resilient, and agile, it is becoming the norm for businesses in the continent, to deliver business value regardless of application or workload.

The majority of the businesses in North America use hybrid or multi-cloud solutions, which account for 94% and 87% of all the cloud deployments, respectively.

Due to the growing demand for security solutions, the Asia-Pacific region holds the second-largest share, and it will experience significant market expansion. Data and asset security are in high demand as industrialization quickens. Similarly, security concerns drive the need for surveillance systems in residential areas, as a result of the rapid urbanization. For instance, the People’s Government has chosen 200 cities for smart city projects, including Beijing, Shanghai, Guangzhou, and Hangzhou. In the same way, a greenfield smart city project in South Korea, named Songdo International Business District, is being developed close to Incheon.

Report Breakdown

Based on Access Control Models

• Mandatory Access Control (MAC)
• Role-Based Access Control (RBAC)
• Discretionary Access Control (DAC)
• Rule-Based Access Control (RBAC or RB-RBAC)
• Attribute Based Access Control
• Risk Adaptive Access Control
• Identity Based Access Control

Based on Service Type

• Managed Services
• Hosted Service
• Hybrid Service

Based on Deployment

• Public Cloud
• Private Cloud
• Hybrid Cloud

Based on End User

• Pharmaceuticals
• Commercial
• Education
• Government
• Health care
• Hospitality
• Industrial
• Manufacturing
• Retail
• Transportation

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Access Control as a Service Providers