The value of the access control and authentication market is estimated to be USD 15.6 billion in 2025. According to FMI's analysis, the industrywill expand at a CAGR of 7.6% and reach USD 32.45 billion by 2035.
The FMI study revealed that in 2024, there was significant progress in access authentication and control due to increasing cybersecurity risks, the growth of smart infrastructure, and stricter regulations.Biometric authentication saw significant growth, particularly within financial services and government sectors, as organizations shifted from passwords to multi-factor authentication. Access management solutions based on AI gained popularity, supporting real-time threat detection and security automation.
FMI projects that 2025 will see an increase in the adoption of cloud-based identity authentication and decentralized access control. Organizations will invest in blockchain-based authentication and behavioural biometrics to enhance security. With the growth of IoT ecosystems, smooth multi-device access management will be a priority. North American and European regulatory frameworks will drive standardization and interoperability.
After 2025, AI-powered security measures and adaptive authentication will determine future developments. According to FMI analysis, demand for biometric-as-a-service will increase, particularly for healthcare and banking sectors. Quantum-resistant encryption is expected to revolutionize authentication models by 2035, bolstering security against the most recent cyberthreats.
Industry Forecast Table:
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 15.6 billion |
| Industry Value (2035F) | USD 32.45 billion |
| CAGR (2025 to 2035) | 7.6% |
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The access control also known as access management and authentication industry is expected to experience consistent growth, driven by a rise in cybersecurity threats, compliance with regulatory standards, and a shift toward biometric and AI-enabled security solutions.
Organizations that prioritize cloud-based identity authentication and decentralized authentication are expected to outperform, whereas those that rely on legacy password-based solutions may face increased security risks. Providers of scalable, adaptive authentication technology will thrive as verticals like finance, healthcare, and government push for more digital security.
Prioritize AI-Driven and Biometric Authentication
However, executives need to invest in AI-driven authentication platforms and biometric security solutions to enhance access control effectiveness and prevent fraud. By implementing adaptive security protocols, identity management systems become future-proof as they evolve with the shifting threat landscape.
Align with Cloud and Decentralized Identity Trends
Companies should transition to using cloud-based authentication systems and explore decentralized identity systems to strengthen security resilience. The application of blockchain-backed verification and zero-trust architectures will help in maintaining compliance with the evolving regulatory framework.
Expand Partnerships for Security Ecosystem Integration
Companies must build strategic partnerships with cybersecurity vendors and firms/trade associations as well as IoT and compliance technology vendors so agencies can build seamless, interoperable security systems. Investments in quantum-resistant cryptography and behavioural biometrics will strengthen long-term competitiveness.
| Risk | Probability & Impact |
|---|---|
| Rising Cybersecurity Threats | High probability and s evere impact |
| Regulatory Compliance Challenges | Moderate probability and h igh impact |
| Slow Adoption of Advanced Authentication | Moderate probability and m oderate impact |
| Priority | Immediate Action |
|---|---|
| Enhance AI-Driven Security Measures | Deploy AI-based anomaly detection in access management systems |
| Strengthen Compliance Readiness | Conduct internal audits to align with evolving global regulations |
| Expand Biometric Authentication Adoption | Pilot biometric-as-a-service solutions in high-security sectors |
To stay ahead companies must start investing more in AI-powered and biometric-based authentication to be ahead of new security risks and compliance challenges. Realizing this means making a big change from old systems to cloud identity footprints that are combined with decoupled access management. This is a journey that needs a strategic pivot right away.
Leadership should prioritize strategic integration partnerships with cyber thought leaders and regulators for compliance readiness. Long-term competitive advantage will depend on how well authentication systems can work with both behavioural biometrics and quantum-resistant cryptography. Delaying modernization poses a risk of operational inefficiencies, compliance gaps, and increased susceptibility to cyberattacks.
Adoption of multi-factor authentication (MFA) is leading the way as a "critical’ priority for 84% of global stakeholders, and at the top of the list were biometrics and behavioural analytics. 79% of enterprises had cloud-based identity management ranked as a top priority and the replacement of aging on-premise access solutions.
Regional Variation:
FMI believes AI access management was pervasive, but there was a significant disparity in the levels of deployment across the geographies.
Hence, from an analysis of 150,000+ cyberattacks, the latest FMI studies revealed that credential-based cyberattacks are the greatest threat, whereas 88% of stakeholders identified phishing and identity theft as growing concerns.
Budgetary constraints drove the uptake of technology in some regions, but there was a divide in premium-spending capability.
According to FMI, automation and AI-based security technology will monopolize the investment in the future.
According to FMI research, compliance mandates are driving authentication planning, although regions are seeing varying effects.
Regional adaptation is the key
A lot of these results matched what people around the world said in the FMI study about how important it is for AI-based authentication, MFA adoption, and cybersecurity resilience. That leaves a regional approach to compliance, budget sensitivity, and technology preparedness, with account-specific security responses.
North America leads in automation innovation, Europe prioritizes compliance-driven security, and Asia-Pacific offers cost-effective mobile authentication. Therefore, there won't be a universal security solution; authentication providers will need to customize their solutions to speed up adoption and penetrate regional industries.
| Country | Regulatory Impact & Mandatory Certifications |
|---|---|
| United States | Federal agencies must comply with tight cybersecurity regulations, like CISA's Zero Trust Strategy and NIST 800-63, which mandate multi-factor authentication. Financial institutions must comply with FFIEC authentication procedures. CCPA is very stringent when it comes to data security. |
| United Kingdom | In UK GDPR, strong access control practices are required to protect data. - Cyber Essentials Certification is essential for securing government contracts, while financial organizations must comply with FCA's Strong Customer Authentication (SCA) standards. |
| France | ANSSI (Agence nationale de la sécurité des systèmes d'information) enforces cybersecurity best practices. GDPR and eIDAS regulations impose stringent identity verification and authentication controls. |
| Germany | Cybersecurity compliance requires BSI IT-Grundschutz certification. Financial transactions require stringent authentication, as mandated by the BaFin regulation. Authentication policies are based on GDPR and eIDAS 2.0. |
| Italy | The Italian Data Protection Authority (Garante per la protezione dei dati personali) regulates GDPR compliance. SPID (Sistema Pubblico di Identità Digitale Dynamic) for digital identification is required by government institutions. |
| South Korea | The Personal Information Protection Act (PIPA) mandates encryption and restricted access for compliance . Institutions fall under the Financial Security Institute (FSI) authentication compliance. |
| Japan | Data security - Act on the Protection of Personal Information (APPI) Multi-factor authentication is mandatory for banking, governed by the FSA. Cloud Security Compliance requires ISMAP Certification. |
| China | Cybersecurity Law (CSL) and MLPS 2.0 (Multi-Level Protection Scheme) require strict access permissions control. The Personal Information Protection Law (PIPL) of China mandates biometric recognition in high-risk industries. |
| Australia & New Zealand | Australia's Essential Eight Security Model requires strong authentication for organizations handling sensitive data. In New Zealand, access controls are a privacy requirement under the Privacy Act 2020 for safeguarding personal data. |
| India | The Personal Data Protection Bill (PDPB), among other regulations, imposes security requirements for businesses. As per the Reserve Bank of India (RBI) guidelines, all financial transactions need two-factor authentication. Government services require Aadhaar-based authentication. |
Government andenterprise markets' increased use of biometric authentication makes it the largest industry in terms of access management due to its security. Smartphones, banks, and corporate personnel security systems widely use fingerprint recognition, which holds the largest industry share among biometrics. Governments are investing heavily in AI-powered surveillance, leading to the widespread adoption of face recognition in airports, law enforcement, and smart city initiatives.
The biometrics segment is projected to witness a CAGR of 7.5% from 2025 to 2035. IRIS and voice recognition are more specialized but are growing quickly, as they provide high accuracy in highly secure environments such as military and defence. Legacy access and control systems remain dominated by smart cards, with proximitycards with smart cards being the most widely used in corporate offices and schools.
Growing adoption of electronic doors and locks, especially in hospitality and residential security, is driven by the increasing trend of integrated smart homes and availability of IoT-based incursion control. Due to their security vulnerabilities, magnetic stripe cards are declining in low-security applications.
The hardware segment is expected to dominate due to rising demand for access control readers, integrated solutions, and sophisticated IP-based access controllers. Biometric and RFID-based devices are also among the early readers as organizations transition toward frictionless authentication.
Serial access controllers remain prevalent in legacy systems, while IP access controllers are gaining traction due to their seamless cloud integration. AI-powered security analytics, behavioural authentication, and cloud-based IAM systems are among the popular software trends driving high growth in this segment.
The services, particularly installation and integration, are the heart of the industry, as the businesses are seeking a simple deployment for multi-layered authentication. Another major segment is support and maintenance services, which companies use to maintain their access management systems against increasing cyber threats.
National security programs, border security upgrades, and smart city projects drive biometric authentication adoption, making the government and public sector the dominant industry segment. The residential & commercial segment is estimated to register a CAGR of 7.4% in the forecast period.
Due to stringent compliance requirements such as PSD2, PCI-DSS, and FFIEC guidelines to ensure safe digital transactions and avoid fraud, BFSI is a household name when it comes to next-generation authentication adoption. IT and telecom providers are pouring investments into zero-trust security models, fueling the adoption of anti-phishing, multi-factor authentication techniques, and AI-driven threat detection.
The retail sector is on the rise, with solutions for supply chain security, loss prevention, and customer authentication now all woven into access control. Healthcare is increasingly adopting biometric authentication to secure patient data and prevent identity theft. Biometric and AI-based authentication solutions are unavoidable when it comes to defence and military use, which requires maximum security.
The USA industry will grow at a CAGR of 8.1% between 2025 and 2035. According to research by FMI, the USA will see a significant rise in authentication and access management as a result of strict new federal cybersecurity rules and the use of AI-powered authentication tools by businesses. Multi-factor authentication (MFA) and biometric access systems are in demand, driven by the requirement of zero-trust security adoption and enforced by the Cybersecurity and Infrastructure Security Agency (CISA).
Federal financial regulatory institutions are required to adhere to FFIEC authentication guidelines, thereby generating a demand for secure digital identity solutions. Unanticipated investments in cloud security and the adoption of behavioural biometrics in healthcare and fintech will drive industry growth.
The UK industry is expected to grow at a value CAGR of 7.9% during the forecast period. According to FMI, this is due to the implementation of, as well as compliance with, GDPR and a high focus on digital identity protection. Both the UK GDPR and the PSD2 require levels of strong customer authentication for businesses that process personal data and financial transactions, respectively.
The UK government is also encouraging investment in biometric and decentralized identity systems, securing the authentication of fintech and public services. Businesses are adopting Cyber Essentials Certification, and it's supporting cloud-based identity management services.
The industry in France will register a 7.6% CAGR during the forecast period. The Agence nationale de la sécurité des systèmes d'information (ANSSI) implements stringent cybersecurity regulations that make businesses adopt MFA and identity verification technologies. The country is also leading the world in biometric security, investing heavily in facial recognition and fingerprint authentication as secure identity verification methods for banking applications and border control.
German businesses are looking toward password-less authentication, A.I.-based security analytics, and decentralized identity architectures as their three top priorities to mitigate cyber attacks. Germany’s authentication and permission control industry is benefiting from government support for cybersecurity innovations and is expected to grow at a 7.8% CAGR between 2025 and 2035.
Regulations for digital identities and increased use of cloud-based authentication, according to FMI's analysis, will drive the growth of the Italian industry. The Italian Data Protection Authority is enforcing GDPR-compliant access control policies and is bringing this to business industries investing in MFA (multi-factor authentication).
Moreover, adoption of SPID (Sistema Pubblico di Identità Digitale), the governmental program to provide a secure digital identity verification system for all public services and financial services. In Italy, the banking sector has begun adopting AI-based authentication and behavioural biometrics for fraud prevention. The industry in Italy is expected to record a CAGR of 7.4% during the forecast period.
According to FMI, South Korea's industry will grow based on increased cyber threats, stringent personal data protection regulations, and mass use of mobile authentication. The Personal Information Protection Act (PIPA) requires robust access control processes, especially within the banking and telecommunications sectors.
Financial institutions follow Financial Security Institute (FSI) standards for safe authentication, propelling adoption of mobile biometric authentication and blockchain-based digital identity solutions. South Korea also dominates automated facial recognition for smart city use, enhancing growth in AI-driven authentication. The industry in South Korea will grow at a CAGR of 7.2% from 2025 to 2035.
The analysis projects a CAGR of 6.9% for the Japan access control and authentication industry between 2025 and 2035. Theindustry is moderately growing,with privacy-oriented authentication methods and mandates from regulating authorities propelling demand. The Act on the Protection of Personal Information (APPI) mandates businesses to implement access control, but widespread use of legacy authentication methods hampersthe adoption of biometrics.
In financial services, Japan's FSA enforces multi-factor authentication, driving financial institutions toward AI-based fraud detective systems. The ISMAP certification for cloud-based authentication solutions has become important, and as a result, businesses are investing more in ISMAP-certified cloud-based authentication solutions to tackle regulations on security.
The industry in China will grow a CAGR of 8.4% between 2025 to 2035. This is because China has strict cybersecurity laws, a lot of people use biometrics, and the government pushes for digitization. There are strict identity verification standards for companies under the Cybersecurity Law (CSL) and Multi-Level Protection Scheme (MLPS 2.0). China’s Personal Information Protection Law (PIPL) mandates rigorous authentication based on biometrics, MFA, and AI-based behavioural authentication.
The country leads the world in facial recognition technology, with widespread adoption in financial services, smart cities, and e-government applications. The annual growth rate for China's access management and authentication industry is projected to rise steadily since access control and authentication will play an indispensable role in future smart cities as well as smart buildings, supporting the local economy and promoting the rapid development of the urban economy.
FMI anticipates that the industry in India will grow heavily on account of government-driven digital identity programs and increasing cybersecurity risks. The Personal Data Protection Bill (PDPB) introduces stringent authentication measures for businesses that deal with personal data.
The Reserve Bank of India (RBI) directives require two-factor authentication (2FA) in financial transactions, driving MFA growth. India's Aadhaar-based authentication mechanism is a major force behind biometric security, with extensive applications in banking, healthcare, and e-governance. India is expected to expand at an 8.2% CAGR between 2025 and 2035.
Leading players in permission control and authentication compete on pricing, product development, partnerships, and global expansion. The vendors spend a significant amount on research and development (R&D) to provide AI-backed biometric authentication and cloud security solutions. Companies are expanding rapidly through government and enterprise deals, as well as acquisitions that enhance technological capabilities.
Pricing continues to be a competitive factor, with companies striving to strike a balance between affordability and features. Most of this growth is occurring in emerging industries, particularly in the Middle East and Asia-Pacific. Companies also focus on the integration of cybersecurity solutions, compliance with changing regulations, and improving convenience with mobile-based authentication.
ASSA ABLOY
Industry Share: ~25-30%
ASSA ABLOY is the worldwide leader in access management solutions with a comprehensive portfolio of advanced electronic and mechanical locks, smart access systems, and cloud solutions.
Johnson Controls (formerly part of Tyco Security Products)
Industry Share: ~20-25%
Top player with a strong presence in integrated security systems, including access control, video surveillance, and intrusion detection. Johnson Controls acquired Tyco Security Products in 2016, strengthening its presence in integrated security systems
Honeywell International
Industry Share: 15-20%
With its advanced permission control and building automation solutions, Honeywell is focusing on cybersecurity and cloud integration.
Dormakaba Group
Industry Share: ~10-15%
The company specializes in high-end access solutions such as automated doors, electro-mechanical locks, and mobile access technologies.
Allegion plc
Industry Share: ~ 10-12%
Known for well-known but also well-respected brands like Schlage and Von Duprin, Allegion covers a wide range of the access management industry, focusing on both mechanical and electronic solutions across commercial and residential applications.
Identiv, Inc.
Industry Share: ~5-8%
A newer entrant in the RFID and IoT-based access control space, Identiv has made advancements in physical and logical access solutions.
Nedap NV
Industry Share: ~5-7%
The company specializes in long-range ID and vehicle access systems for both parking and secure facilities.
ASSA ABLOY extended its smart lock portfolio with the introduction of the Electronic permission Control (EAC) system, featuring Bluetooth and mobile credentials for frictionless entry. ASSA ABLOY also acquired Spectrum Brands' Hardware and Home Improvement division, which includes Kwikset and Baldwin, thereby bolstering its residential access control presence (Source: ASSA ABLOY Press Release, January 2024).
The sales of the industry are driven by increasing cybersecurity threats, the adoption of biometric solutions, and the growing demand for secure, efficient identity management systems.
The industry is expected to grow steadily in the coming years, driven by increasing security concerns, the rise of remote work, and the adoption of advanced technologies like biometrics and multifactor authentication.
The leading companies in the landscape include Bosch Security and Safety Systems, Panasonic Corporation, Thales, Honeywell Commercial Security, Axis Communications AB, Genetec Inc., Identiv, Inc., Suprema, Inc., NEC Corporation, ASSA ABLOY, AMAG Technology, Inc., Johnson Controls International Plc, Sensory, Inc.
The residential & commercial segment is estimated to register a CAGR of 7.4% in the forecast period.
The market is expected to garner a value of USD 32.45 billion by 2035.
The industry is segmented into biometrics (fingerprint recognition, face recognition, IRIS recognition, voice recognition and others), smart card (contact card, proximity card), electronics locks and doors and magnetic stripe.
It is segmented into hardware (readers, serial access controllers, IP access controllers & integrated solutions), software, and services (support & maintenance and installation & integration).
It is fragmented into residential & commercial, government & public sector, BFSI, IT & telecom, retail, healthcare, military & defence, manufacturing, hospitality, education and others.
The industry is fragmented among North America, Latin America, Europe, Asia Pacific, Middle East and Africa.
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Access Control and Authentication Market
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