Physical Security and Access Control Systems for Buildings Market Returns to Growth in 2010

The commercial Physical Security and Access Control (PS-AC) systems for buildings market suffered like most other industries during the economic downturn, but it appears the market is on the path towards recovery.  Although business suffered in 2008 and 2009, supplier revenues began to rebound in 2010, and the global market outlook appears to be promising.

The PS-AC market is in the midst of a metamorphosis.  Historically, PS-AC systems were comprised of basic analog systems built with distributed architecture and control.  With advancements in microprocessor technology, the proliferation of intelligent hardware and software, and the advent of IP based systems; the design, structure, and capabilities of PS-AC systems are being reshaped by technology.

Adoption of these new intelligent PS-AC systems, however, is uneven across the different regions, and growth in this segment is strongly correlated with the health of new construction markets.  In mature economies — such as the US and Europe — intelligent systems are seeing lower growth rates because new construction markets are weak; and it does not appear they will recover anytime soon.  Conversely, new construction markets are strong in Asia and blossoming in Latin America.  The Middle East has recovered from its financial crisis and many ambitious projects in Dubai and Abu Dhabi have resumed.  These regions will be a strong source of growth for intelligent systems in upcoming years.

However, in the near term, suppliers in mature economies will rely heavily on retrofit projects, which can be more challenging than Greenfield projects.  “These users want to implement state-of-the-art systems, but they must navigate around the existing security or access control infrastructure in their facilities.  Therefore, these users will look for ways to modernize their existing systems by outfitting them with capabilities such as analytics, web-accessibility, and TCP/IP communication; while maintaining as much of the legacy investment as possible in efforts to lower the cost and invasive-ness of the investment,” according to ARC Research Analyst Joseph Gillespie, the principal author of ARC Advisory Group’s new study, “Physical Security and Access Control System for Buildings Worldwide Outlook”.

Digital and IP Based Architecture Are Paving the Way for Innovation
The maturation of digital system architecture is the main driver that allows more comprehensive PS-AC systems to be designed and facilitates every major market trend.  This maturation paves the way for bi-directional communication between systems via TCP/IP, allowing integration between systems and also provides intelligent software — such as video analytics, advanced alarm detection, and others — with better information more quickly and reliably, which drastically increases system capability.  It also enables the transition towards IP based systems that utilize the Internet — creating the opportunity for remotely hosted systems and remotely managed services.

Integrated Systems:  The Whole Is Greater than the Sum of the Parts
There is also a strong trend towards the integration of once disparate systems, such as video surveillance, access control, incidence response, and others, by progressive customers.  By integrating these systems, users can leverage the natural synergies that exist between them to create a more robust security and access control system.  Suppliers that develop all of these systems on one platform allow information to be exchanged seamlessly between the systems.  ARC firmly believes the market is headed in this direction and the more appropriate questions are, “how long will it take?” and “what can be done to most effectively leverage these changes?”

For more information on this study, please visit our Market Research section. ​