Access Control Reader Market Size?

I'm looking for help to back into the number of EAC readers sold WW & U.S. And of the total number of readers, what percent of that market is comprised of edge readers?

It's well documented the 2013 WW EAC market is measured at about $15B, but I'm having trouble breaking that down to the reader number of units, and average reader price.

Thanks for any light you may be able to put on this.


well documented the 2013 WW EAC market is measured at about $15B

Where is this well documented? Just curious. Sounds too high.

Source: http://www.persistencemarketresearch.com/mediarelease/electronic-access-control-systems-market.asp

  • Published On : Jul 31, 2014
Persistence Market Research Released New Market Report on “Global Market Study on Electronic Access Control (EAC) Systems: Biometric Systems to Witness Highest Growth by 2019,” the global Electronic Access Control systems marketwas valued at USD 15,406.1 million in 2013 and is expected to grow at a CAGR of 12.6% from 2014 to 2019, to reach an estimated value of USD 31,187.8 million in 2019.

It's a source but not a good one.

'Persistence Market Research' is quite clearly another one of these Indian boiler room operations. Their contact us section hides this but their whois lookup and LinkedIn employees listing show that quite clearly.

The approach is googling / cut and pasting / making guesses, etc., packaging it up, sell it online. Another one of these, better known / bigger, is Markets and Markets (see their glassdoor reviews).

Though I recently criticized IHS, they are way better than those companies. IHS puts the global access control market at ~$6 billion and video at around ~$15 billion. It's obviously hard to figure it out fully but IHS does a lot closer research onto numbers than 'Persistence' etc.

Thanks John. I agree that $6B is more accurate. Are you willing to hazard a guess at what product sales of PACS readers rolls up to be of that $6B?

I'm assuming the $6B is product revenue and does not include professional services, etc....

Most market research numbers are product only and from what the manufacturer sells, not markup. As a manufacturer yourself, that's more accurate / appropriate.

As for PACS readers, if you say each door has a reader, locking equipment, door accessories, port / part of a panel, license / server, I would guess 20% (to the nearest ten percent) of the $6 billion goes to readers. @brhodes, what do you think?

John, I agree on the fact that IHS report is a reliable source of information. Major players in Access Control or Video security industry shall at least subscribe to their report once in their life (and repeat the process yearly if happy).

But for the Card reader industry as well as Door controllers, I still feel that some major and medium players are missing in IHS. There is some work to do.

The reason that I find to this is that unfortunately not all manufacturers understand the interest of cooperating with IHS. There is also an old school way of thinking "I don't want to give my numbers because I want to be an hidden champion" (result is often that these ones stay hidden for life, but don't become champions).

In a nutshell:

- IHS is according to me the best source of information regarding Security market (manufacturers)

- Numbers provided have still to be taken as guidelines and shall be material for interpretation

Baudouin,

Good feedback.

It's hard to get everyone, so there certainly could be players missing. There is also the opposite to consider, which is inflation of numbers. I know a number of the video manufacturers were way overinflated in past reports. I am not sure if it was because IHS had to guess because the manufacturer did not give them a number or because the manufacturer exaggerated. Either way, it is a hard thing to get right.

My bigger point was to avoid the chop shop 'research' places at all cost.

Completely agree on the inflation / deflation of numbers of some manufacturers (sometimes you know the market and it does not fit the numbers given) => report IHS in that case!

Another one is OEM/ODM. It is not always clear what is the applied rule:

- Shall the OEM customer accounts for the numbers?

- Or shall it be the OEM manufacturer that accounts for the numbers instead?

- Are they both providing their figures to IHS which results in 2x inflation in numbers?

This is why I say: "IHS as a mandatory guideline but to be interpreted: YES for sure"

Good point about OEM/ODM. I've asked this of them in the past and IHS / IMS said it is only branded sales. So if I am CamCam and I do $100 million in total camera sales but $50 million are for my CamCam brand but the other $50 is sold to Honeywell and branded Honeywell, CamCam should only be listed as $50 with the other $50 going to Honeywell.

Of course, IHS regularly fails to account for that properly. For example, Milestone's numbers which for years lists their whole revenue as their VMS number when they clearly have substantial portion being OEMed to OnSSI (obviously before last year's split).

Not to beat a dead horse, but even just talking about 'PACS readers' includes a pretty broad cost range. Based on our 2014 survey Favorite Access Control Credentials, more than 85% prefer to use non-biometric contactless cards.

Those reader types typically cost $50 - $400 per device. Based on a notional $2000/door cost to outfit access control, at the high end, that's 20%. At the low end, readers could reasonably be as little as 3% of the total PACS hardware cost.

Also, the vast majority of doors are installed using one reader on the unsecured side, I would guess 90%+ based on member feedback and access class conversations. Two reader applications (or read-in/read-out) are not common in commercial access designs.

a notional $2000/door cost

Is your cost the cost for the end user or the cost of products sold from the manufacturer? I am pretty sure that's the all-in for the end user while I / most market research firms base it on the cost of what the manufacturer sells.