Mobile credentials readers to see substantial growth: study
Source: William Pao, a&s International
More and more, end user organizations are deploying mobile credential technology
as a means for access control. This has in the process driven up demands for related hardware components, including mobile credential readers.
According to a recent study
by 6Wresearch, the global mobile credential reader market is expected to grow at a compound annual growth rate of 29.2 percent during the 2019-2025 period.
“The global mobile credential reader market is anticipated to register substantial growth primarily due to improving economic performance as a result of increasing foreign direct investment (FDI) and government spending,” the research firm said. “Flourishing tourism sector in countries, rising security concerns, and increased IT spending are expected to further propel the demand for mobile credential readers during the forecast period.”
By market, Americas and the European regions captured majority of the market revenues due to rise in security and surveillance spending among organizations and institutions in 2018, the report finds. However, the study adds the Middle East and Africa are expected to record key growth over the coming years due to growing security concerns and rising awareness of access control solutions across the region.
“Globally, the commercial sector and education sector are expected to capture majority of the market revenues over the coming years on the back of government spending in education sector along with growing commercialization. Meanwhile, higher number of smartphone users in the Asia Pacific region is likely to emerge as a major growth driver of mobile credential readers in the region,” said Richa Sood, Research Associate for Research and Consulting at 6Wresearch.
By technology, near field communication (NFC)-enabled mobile credential reader market is expected to cross $150 million by 2025, the study said, adding NFC-supported credential solution is majorly dominated in Americas as consumer adoption is leaned towards NFC enabled smartphones in the territory.
“Near Field Communication (NFC) acquired majority of the market revenues in 2018 due to its easy compatibility with smartphones. However, over the coming years, combination of NFC and Bluetooth Low Energy
(BLE)-enabled mobile credential reader devices are expected to capture majority of the market revenues, covering ideal attributes of both communication types and low ownership cost when compared to installation of stand-alone devices, said Anuj Mehrotra, Assistant Manager for Research and Consulting at 6Wresearch.
Benefits of mobile credentials
Access control credentials are the “what you have factor” for authentication, along with the “what you know” and the “what you are” factors, which are represented by passwords and biometrics, respectively. Traditionally, credentials are in the forms of cards or keyfobs. However, more and more, mobile credentials – those that are stored in the user’s mobile device
– have become a popular option.
Benefits of mobile credentials
abound. For starters, mobile phones are carried by users most of the time: While people may misplace, lose or forget to bring cards or keyfobs, with mobile phone this is less likely to occur. Secondly, a mobile device already has several security features built in, for example fingerprint and passcodes. These features render mobile devices more secure than traditional badges or cards, which can be easily copied or cloned.
Finally, mobile credentials can help end user entities save more money, as the cost associated with printing badges or issuing cards can be eliminated. A recent study by costowl.com suggests it costs an average of US$3 to $5 per keycard; for an enterprise with 300 or more employees, this can be significant.