Volume 61 | July 2, 2024
Welcome to Brief 61, titled My Take on the The 2024 State of Physical Access Trend Report by IFSEC Insider and HID. Putting aside the shock of realizing IFSEC was still in business, after reviewing the report, I see several key trends regarding the physical access control market. I summarized them below and also added "my take."
You can find the report here.
After a getaway with my family, Hilary and I are now deep into finalizing the rest of 2024 plans and planning for 2025. You have started to see some of the engagements and partnerships we have been working on as we are starting to announce them. Over the past two weeks, we announced two exciting global show partnerships: first with The Security Event in Birmingham and Singapore, and second with Intersec Dubai and Saudi Arabia. We have a third coming with ISC West and ISC East. More details on that soon.
Hopefully, you can see our strategy here. We want to (1) work globally, so we have partnered with premier industry shows, (2) create spaces at each of these shows for industry-wide thought leadership, and (3) activate these shows before, during, and after via LinkedIn, where we believe we can drive a more engaged community and make these shows omnichannel and more valuable to the companies that engage with us.
As Access Control Executive Brief members, you are at the front of the line for all these shows. You just need to reach out and let me know you're interested in participating. Once you do that, I will put you in touch with the show managers, handle all the commercials, and then we can work together. I recognize this is all new. We are used to working in silos, activating singularly at our own booths, and doing most of it in person with limited online presence. We want to change that. There is a broader market that is discovering, converging, and ultimately buying via a collective industry point of view and in digital communities. We can do it too. Let's do it together. If you plan to be at or want to be at Intersec Saudi Arabia, Intersec Dubai, The Security Event Birmingham, The Security Event Singapore, ISC West, or ISC East, reach out. Let's work together to make your investment in these shows exponential.
Alright, back to the Brief. I appreciate reports like these. They are great content pieces. Every company should do them either in partnership or on their own. What most of them lack, though, is a comprehensive go-to-market strategy. That is an entirely different Brief, but for now, I will get into the summary and my quick take on what the trends highlighted mean to me.
We look forward to sharing this news with you. And much more!
As always, your feedback is invaluable to us. Please let me know if there's any area where we can better meet your expectations.
Thank you!
PS: I am sure some of you may forward this, but please do so sparingly and encourage others to sign up here. Thank you!
My Take on the The 2024 State of Physical Access Trend Report by IFSEC Insider and HID
In the report, I see several trends that we have been discussing regarding the physical access control market. Here is a summary of those trends and also 'My Take', on them, aimed at attaching them to whats happening now in the market.
Trend 1: Mobile Access and Digital ID
Mobile access and digital ID adoption are accelerating rapidly. Nearly 40% of organizations now actively use mobile identities for access control, up from 32% in 2022. Industry projections suggest that 80-94% of organizations will deploy mobile IDs within the next five years. This shift is driven primarily by user convenience and improved credential management.
My take: The two most significant (now) value creations regarding mobile are (1) user experience to consumers/end users and (2) the ability to send credentials in real-time. What's interesting about this? Companies will take much work to upsell user experience to consumers/end users, as most companies in our industry need that muscle. We've never had to worry about the consumer/end user. We do now. It's an opening for new entrants. It's also a first-mover advantage for legacy providers who shift resources to become experts.
Trend 2: Sustainability
Sustainability is becoming a significant factor in access control decisions. Nearly two-thirds of organizations now consult sustainability teams when upgrading systems. Key drivers include reducing plastic waste from physical cards and optimizing building energy usage through occupancy data.
My take: Some will look at this and turn their head. Why? Because you are in North America. Outside of North America, I hear this more and more being a key driver (also see battery-less locks). What's the issue? North American needs drive most roadmaps, and most integrators look right past this as a critical differentiation story. Why? Because their North American end users need to ask for it. It does not mean it's not important; it is and will become even more.
[I Refuse to Call it a Trend]: Physical and Cyber Security
Integration of physical and cyber security is growing. About 58% of organizations report that their IT and physical security teams collaborate on best practices. This convergence is crucial as access control systems become more networked and IP-based.
My take: We should move our mindset to 100% now. It will inevitably get there, so why wouldn't we assume the position and act as if? This is not just a matter of individual companies with the $100B mindset, but a collective responsibility. It would be in the best interest of everyone if we collectively started acting as if and stopped treating cyber security and IT convergence as a trend. It's not a trend. It is a matter of fact.
Trend 4: Biometrics
Biometric adoption, especially contactless solutions, is on the rise. About 39% of organizations now use biometrics like facial or fingerprint recognition for access control. The global biometrics market is projected to reach $136 billion by 2031.
My take: Some will look at this and turn their head. Why? Because you are in North America again. This also is an area where, when you travel, the first or second question is, "What are your views on biometrics?" The problem we have as an industry is that we allow dystopia and bad actors to drive the narrative and utopia, and the ethical biometric community cannot coalesce and tell a collective story (in other words, do marketing and communications). Once they doā€¦ look out because a global market is waiting to be served.
Trend 5: Standards and Interoperability
Open standards and interoperability are increasingly important. Technologies like OSDP enable better integration of access control with other building systems, such as HVAC and space management. This allows for more efficient and "smart" building operations.
My take: The elephant in the room. "Increasingly important?" No, it is essential to the broader end market but wildly skeptical by the manufacturers. Why? Because the business side of legacy business models has yet to be realized. Once companies can figure out how to make money in the new world where interoperability and standards exist, our industry will magically support widespread open standards and interoperability. What we have now is no different from open standards or interoperability. We now have a bunch of talks, excellent meetings in incredible locations (note: we will hold InterOpCon, an ACS Event on interoperability and standards in Krakow, Poland, in 2025), and more integration. We will have those for a whileā€¦ till we don't. Fix the business side of open standards and interoperability, and we will fix the adoption of open standards and interoperability.
In Summary:
The modern electronic access control market (the $100B market) is evolving rapidly to meet greater convenience, sustainability, and integration demands. Our customers seek flexible, future-proof solutions that adapt to changing work patterns and emerging technologies. The emphasis is shifting from simply keeping bad people out to letting the right people in and doing it with a secure experience across physical and digital environments.
As I've said, there is no better time than now to be in the modern electronic access control industry.
