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Jim Dearing

ACaaS and mobile access adoption growing

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Wednesday, August 15, 2018

Access-control-as-a-service (ACaaS) market revenues will increase to $950 million by 2022, and global mobile credential downloads are forecast to increase at a compound annual growth rate (CAGR) exceeding 100 percent from 2017 to 2022, according to recent findings from IHS Markit.

The London-based research firm found that small and medium-sized businesses are the leading adopters of ACaaS solutions, accounting for 21 percent of market revenues in 2017, with around 20 percent of the current installed base of access control readers will be mobile capable by 2022.

“Demand for ACaaS has grown rapidly over the past five years, and this growth is expected to continue,” Jim Dearing, senior analyst, security and building technology, IHS Markit, said in the announcement of the findings. “While there have been relatively few attempts to combine ACaaS solutions with mobile access, despite their apparent synergies, this type of integration will become more common over the next five years.”

Dearing pointed to following key benefits of integrating ACaaS and mobile access:

•    A significant segment of ACaaS end users opt for fully managed solutions. Providers of managed solutions would benefit from the ability to issue and decommission credentials remotely, allowing them to lower management costs.

•    Both mobile access and ACaaS are typically sold via subscription, or using recurring fee-based pricing models. Adding mobile credentials to an ACaaS contract would not be an issue for an integrator, and as mobile access becomes more popular in the traditional access control market, end users and installers are likely to become more familiar with the recurring-fee pricing model, which should generate additional interest in ACaaS.

•    Like ACaaS solutions, the majority of access control solutions are cloud-based. As both become more popular, end users are likely to become more comfortable deploying cloud-based security solutions.

•    ACaaS is increasing the penetration of access control systems in buildings, and many end users are owners of small and medium-sized businesses who have never owned an access control system before. This situation poses an excellent opportunity for mobile access, as providers can ensure that mobile-capable readers are installed from the outset.

In terms of overall adoption, Dearing said that, so far, early adopters of each solution are based in different industries. “Mobile access has seen its strongest adoption in the education and hospitality sectors, while ACaaS is gaining traction with small and medium-sized businesses and the property management segment,” he explained. “Due to the large number of smaller projects, a significant portion of ACaaS end users value affordability over advanced feature sets and functionality. ACaaS providers may struggle to convince end users to install readers that are mobile-capable but also more expensive.”

Despite both solutions typically being billed on a monthly or annual basis, the pricing models vary slightly, Dearing said. “ACaaS solutions are priced according to the number of doors, while mobile access is priced according to the number of credentials or users,” he noted. “Creating an intuitive but optimal pricing model for the combined solution could prove tricky for suppliers. If both original metrics are kept, suppliers are likely to encounter difficulty as end users scale their solutions.”
 

TechSec 2018 educational program announced

IHS Markit’s Jim Dearing to kick off the conference as the first keynote speaker
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12/13/2017

DELRAY BEACH, Fla.—For years, Security Systems News’ TechSec Solutions conference has been the industry’s premier event to delve into the most current trends in the security industry and look toward future tech. SSN is proud to announce the lineup of speaker and educational sessions for the 2018 conference, held here Feb. 26 and 27.

IHS Markit looks at the rising number of security start-ups

OEMs play a factor in increased entrants, according to IHS Markit analyst Jim Dearing
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11/13/2017

LONDON—According to IHS Markit, a research firm based here, there have been more start-up companies for consumer grade cameras, DIY systems and smart home solutions. The company detailed the nature of these start-ups and contributing factors to their increased numbers in a report, “Security Start-Up Numbers Soar – Have the Barriers to Entry Ever Been So Low?”

New research: MSOs turn to security for better equipment

Resi industry to see 5 percent CAGR over next few years
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06/29/2016

ENGLEWOOD, Colo.—New findings by market research firm IHS reveal that MSOs are falling short of their goals for penetration within the residential security industry, partly because of their reliance on inferior security products. This is good news for domestic security manufacturers because MSOs are now starting to turn to them for equipment, according to IHS. Research also forecasts a 5 percent CAGR for the security industry over the next few years.

Intruder alarm market positive for Americas

IHS: Market to be stable, growing
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02/17/2016

ENGLEWOOD, Colo.—The intrusion alarm market in the Americas will see steady growth to 2019, according to a recent IHS report.