The ACaaS market size is expected to propel at a CAGR of 15.70% during 2022–2030, to reach USD 3,239 million by 2030.
The major growth factors for the market are the rising adoption of IoT-based security systems, proliferation in cloud usage, growing setup of smart infrastructure, increasing adoption of electronic security products, and surging awareness of data security threats.
By allowing a company's management to control which areas of the premises employees are permitted access to, based on their position within the organization, an access control system prevents unauthorized entry. The software as a service (SaaS) technology is applied to the onsite access control devices in ACaaS. In this model, the access control hardware remains on site, but the software and servers are moved to data centers, for safe and secure data storage. For example, based on the existing access and behavioral data, access control systems may include a feature that can predict and prevent potential incidents by identifying abnormal movements and behavior.
Within the deployment segment, the public cloud category dominated the ACaaS market in 2022, as many small, medium, and large businesses are adopting public cloud platforms. The scalability and adaptability of the public cloud are particularly appealing to small and medium-sized businesses, which lack the resources to set up on-premises IT infrastructure. These companies can keep up with the larger rivals at a lower cost and gain access to cutting-edge technology by using the public cloud. Public cloud usage growth rates are also driven by the rising demand for data analysis services from businesses of all sizes. Moreover, it allows companies to experience cutting-edge technology and enjoy access to new tools and enhancements from an ecosystem of vendors and developers supporting the public cloud.
For instance, 19 of the 20 largest banks in the U.S. have already announced plans to implement public cloud services. Additionally, smaller BFSI and fintech institutions have implemented core banking platforms and other mission-critical systems on the public cloud.
The internet of things (IoT) underpins the growth in the usage of modern digital technologies. Enterprises are adopting IoT at scale to create smart ecosystems, launching entirely new business models, and focusing on expansion. Small businesses can look to the IoT as a kind of industrial revolution because 83% of the businesses have seen an increase in productivity since implementing it. Smart sensors and devices enable faster, cheaper, and more-accurate data collection and transformation into actionable business insights.
Thus, IoT-based security systems are likely to see significant growth in adoption in the coming years as consumers become more concerned about the privacy and safety of their IoT devices and the data collected and shared by such systems. IoT devices are protected from viruses, phishing, and hacking by hardware firewalls.
Additionally, there has been a meteoric rise in the number of smart homes in recent years. For instance, the World Economic Forum projects that over the next five years, 335 million smart speakers will be installed in as many as 130 million households. A home IoT network requires a new level of security, thus opening up new opportunities in the security industry.
To improve their positions in the market, companies are adopting merger and acquisition strategies. For instance, in January 2022, Access Control Systems (ACS) announced that it has acquired Access Control Technologies (ACT), a key installer of automated gate systems in Florida.
Similarly, in April 2022, Johnson Controls Inc. acquired SES to extend access control to critical infrastructure, including telecommunication towers.
The biggest market players are AMAG Technology Inc., ASSA ABLOY, Bosch Sicherheitssysteme GmbH, Brivo Inc., Honeywell International Inc., and Dormakaba Group.