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INSIGHTS

Security 50 part 2: Access control companies make for robust growth

Security 50 part 2: Access control companies make for robust growth
Following the growth engine of major Chinese video surveillance companies that made the top 10 in the a&s Security 50 ranking, ASSA ABLOY and Safran Identity & Security both focused on access control and reported record growth this year.
Following the growth engine of major Chinese video surveillance companies that made the top 10 in the a&s Security 50 ranking, ASSA ABLOY and Safran Identity & Security both focused on access control and reported record growth this year. Their growth reflects the current fast-developing access control industry which is driven by end-user migration from mechanical to electronic access control devices/systems, and multiple new technical innovations for access control and identification.

IHS also shared similar findings, the global access control industry grew quite strongly by 6.6 percent in 2015 and is expected to grow 7.2 percent in 2016, much higher than the video surveillance market in 2015 and this year.

“This is a great time to be in the security market. After two decades of advances from simple visual ID badges to smart cards, standards-based access control systems and mobile ID solutions, the industry will now enter its next new chapter – connected identities that are used on a variety of devices for a growing range of existing and new applications in a connected environment,” shared Stefan Widing, President and CEO of HID Global.

For ASSA ABLOY’s EMEA division, their report commented, “Demand for electromechanical solutions increased very strongly during the year. A continuing focus on innovation and new products strengthened market presence on emerging markets, and continuous efficiencies contributed to EMEA’s continued good operating margin.”

The new spin-off company, Safran Identity & Security, also grew exponentially by 23.7 percent in sales revenue. According to the company’s report, Safran enjoyed the most revenue from the U.S., where the company supplies 85 percent of all driving licenses and is the prime contractor of biometrics technology for the FBI. Other national projects, such as those for ID cards, digital ID and passports, and border control contributed a lot to the company’s growth in 2015 and 2016. The company has now entered into negotiations with Advent International to look for more future opportunities in further expansion.

Trends of the access control industry
The trend for the access control industry is to combine multiple technologies in order to help customers solve more than one problem, according to Baudouin Genouville, Global Alliances Manager at Suprema. Suprema’s customers can be classified into three categories. Those buying pure access control systems represent 25 percent, while those buying pure time and attendance systems account for another 25 percent. The rest are customers who look for a unified access control and time and attendance solution.

“That means our customers not only open doors with our products, but also use it to manage the employee time and attendance and link this data to a workforce management software. They want their HR to save time and avoid making mistakes with managing paper and Excel files,” he said. “50 percent of our customers are looking for a unified system, and that’s why they want biometrics, it’s not just about security but it also serves their workforce management. Our customers, such as major fast food chains, like Burger King, and supermarkets, like Carrefour, around the world, choose Suprema because we have proven over time that using our solution provides return on investment.”

ASSA ABLOY talks about its success in 2016, especially in the EMEA region
Chris Bone, VP of Digital and Access Solutions, EMEA of ASSA ABLOY, commented “In commercial access control, we are seeing rapid growth in wireless solutions. We recently surveyed a large segment of the professional security market, seeking insights into how access control is changing. Comparing our data with similar research we commissioned in 2014 showed a clear trend towards wireless solutions. Our 2014 survey found 23 percent of commercial properties using a wireless or hybrid wired/wireless system. By 2016 that had risen to 29 percent, with 5 percent of premises already fully wireless. That’s a big leap in a short time. The energy- and cost-efficiency of wireless access control is a key factor in this shift, we believe.”

He continues, “In the residential sector, we already have the largest range of domestic smart door locks on the market — both stand-alone devices and those that connect with integrated smart-home systems. Many are sold internationally under our Yale brand, which has established trust over many decades selling to homeowners. We expect growth in the residential smart-home market to continue.”

The full report of Security 50, 2016 will be released on November 30.


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