Physical Identity And Access Management Market Size, Share & Trends Analysis Report By Offering (Software, Services), By Product, By Application, By Region, And Segment Forecasts, 2024 - 2030

PIAM Market Size & Trends

The global physical identity and access management market size was valued at USD 1.07 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 15.3% from 2024 to 2030. As companies expand their operations globally, they employ more efficient ways to manage physical access. Physical identity and access management solutions offer scalability, allowing organizations to manage access across multiple locations from a centralized platform. It reduces the complexity of managing access and lowers the cost of maintaining multiple systems.

Organizations increasingly pursue unified solutions that manage physical access to facilities and digital access to information systems. This integration allows for a more comprehensive security posture, enabling organizations to monitor and control access across all levels. Integrating physical identity and access management with IT security systems, such as cybersecurity frameworks and identity and access management tools, enhances the overall security architecture, protecting against potential threats and vulnerabilities.

Biometric systems such as fingerprint, facial recognition, and iris scanning offer higher accuracy and security. AI and machine learning algorithms are increasingly used to analyze access patterns, detect anomalies, and predict potential security breaches. The IoT also plays a significant role, as more connected devices and smart sensors are being used to monitor and manage physical access in real-time. These technological innovations enhance security and improve the efficiency and user experience of physical identity and access management systems. For instance, in February 2024, BioConnect introduced its "Trusted Identity Service" to revolutionize physical access security. This service features AI-based face authentication to secure physical access points. It leverages multiple authentication capabilities and options, including face, fingerprint, card, PIN, and mobile/digital authentication.

Offering Insights

The software segment accounted for the largest revenue share of 60.7% in 2023. Organizations have varying security needs based on size, industry, and risk profile. Physical identity and access management software customized to specific requirements and easily scaled as the organization grows or security needs evolve is highly valued. Scalable software solutions that adapt to these diverse needs without requiring significant maintenance. The flexibility to customize and scale physical identity and access management software solutions drives adoption across various sectors.

The services segment is expected to witness the fastest CAGR over the forecast period. As organizations adopt complex physical identity and access management systems, there is a corresponding demand for professional services to guide these solution's implementation, customization, and integration. Many organizations need more in-house expertise to effectively deploy and manage physical identity and access management systems, especially when these systems need to be customized to specific business needs or integrated with existing infrastructure. Professional services such as consulting, system design, and integration are essential for ensuring that physical identity and access management solutions are implemented correctly and deliver the expected security outcomes.

Product Insights

The backend database solutions segment accounted for the largest market revenue share in 2023. Backend database solutions integrated with advanced analytics and reporting tools enable organizations to analyze access patterns, monitor system performance, and identify potential security risks. These databases support complex queries and data mining operations, allowing organizations to generate detailed reports and dashboards that inform decision-making. Leveraging data for enhanced security and operational efficiency drives the adoption of advanced backend database solutions in the physical identity and access management market.

The visitor management segment is anticipated to register a significant CAGR over the forecast period. Modern visitor management solutions are increasingly integrated with existing access control and physical security systems, providing a more cohesive and comprehensive approach to facility security. By linking VMS with access control systems, organizations automate granting or restricting access to specific areas based on visitor credentials or pre-approved permissions. This integration allows for real-time monitoring and management of visitor access, enhancing overall security and reducing the risk of unauthorized entry.

Application Insights

The BFSI segment accounted for the largest market revenue share in 2023. The increasing number of threats, including identity theft, fraud, and unauthorized access to financial systems, has heightened the need for comprehensive security measures. Physical identity and access management solutions provide a unified platform to manage and monitor physical access to critical facilities, integrating with cybersecurity systems to create a security environment. This integration is essential for detecting and responding to security incidents in real time, reducing the risk of breaches and ensuring the safety of both digital and physical assets. The rising number of threats is driving the adoption of physical identity and access management solutions in the BFSI sector as organizations seek to enhance their security.

The industrial segment is anticipated to register the fastest CAGR over the forecast period. Industrial environments use operational technology systems to control and monitor production processes, equipment, and infrastructure. Physical identity and access management solutions that integrate seamlessly with OT systems enable organizations to manage access to these critical systems more effectively. Integration allows for a unified approach to security, where physical access is controlled with digital controls, reducing the risk of unauthorized access to physical and digital assets. This integration is essential for maintaining the security and integrity of complex industrial operations, driving the demand for advanced physical identity and access management solutions.

Regional Insights 

North America physical identity and access managementmarket accounted for the largest revenue share of 38.0% in 2023. The increasing frequency and complexity of security threats, including physical and cyber-attacks, have increased the need for strong security solutions. Organizations in North America focus on protecting their assets, employees, and intellectual property from internal and external threats. Physical identity and access management systems play a critical role in enhancing physical security by controlling access to sensitive areas and monitoring visitor activity, driving its development in the North America region.

The U.S. physical identity and access managementmarket accounted for the largest revenue share in 2023. Expanding critical infrastructure and data centers across the U.S. has increased the need for physical security measures. Data centers, which include vital IT infrastructure and sensitive information, require strong physical identity and access management solutions to control access, monitor activities, and ensure operational continuity. The growing number of data centers and critical infrastructure facilities in the U.S. necessitates advanced physical identity and access management systems that address the unique security challenges.

Asia Pacific Physical Identity And Access Management Market Trends

Asia Pacific physical identity and access management is anticipated to witness the fastest CAGR over the forecast period. The rise of remote work and flexible working arrangements has transformed organization's management of physical access. With employees working from various locations and accessing facilities as needed, physical identity and access management solutions support flexible and dynamic access management. Features such as remote access control, mobile check-in, and virtual badges are increasingly essential for managing remote and hybrid work environments. Adapting to changing work patterns drives the adoption of physical identity and access management solutions that offer flexibility and remote management capabilities.

China physical identity and access management market is expected to witness significant growth over the forecast period. Organizations in China pursue ways to enhance operational efficiency and reduce costs. Physical identity and access management solutions contribute to these objectives by automating access management processes, reducing manual interventions, and streamlining security operations. Automated visitor management systems replace manual sign-in processes, while integrated access controls minimize the need for physical security personnel. This improved efficiency and reduced operational costs drive the demand for physical identity and access management solutions.

Europe Physical Identity And Access Management Market Trends

Europe physical identity and access management market is expected to witness significant growth over the forecast period. Smart buildings utilize IoT sensors, automated lighting, and climate control systems to enhance operational efficiency and reduce energy consumption. Physical identity and access management solutions that integrate with these smart technologies offer more advanced access control features, such as automated access based on occupancy sensors or real-time adjustments to security protocols based on environmental conditions. The growth of smart building initiatives fuels the demand for physical identity and access management systems that support these advanced technologies.

The UK physical identity and access management market is expected to witness significant growth over the forecast period. Incidents, such as data and physical security breaches, have increased awareness of the need for comprehensive security solutions. Physical identity and access management systems mitigate these risks by controlling physical access to sensitive areas, integrating with cybersecurity measures, and providing real-time monitoring and incident response. The growing concern over security breaches and cyber threats drives the adoption of physical identity and access management solutions in the country.

Key Physical Identity And Access Management Company Insights

Some key companies in market include physical identity and access management include HID Global Corporation, Alert Enterprise, IBM Corporation, Nexus Group, and others.

• HID Global Corporation is a leading provider of secure identity solutions, specializing in access control, identity management, and physical and logical access technologies. It offers innovative products and services for various industries, including corporate, government, education, and healthcare.

• Alert Enterprise is a prominent provider of physical and cybersecurity solutions specializing in integrated risk management and security technologies. Their offerings include advanced solutions for managing identity and access, monitoring and responding to security incidents and ensuring regulatory compliance.

Recent Developments

• In May 2024, 1Password launched an Extended Access Management solution to secure the modern workforce. This solution allows businesses to secure sign-in to every application from every device. It is a unique security software category that closes the Access Trust Gap in mobile device management (MDM) and identity and access management (IAM). 

• In September 2023, iLobby announced SecurityOS, a Physical Identity and Access Management (PIAM) solution designed to enhance security measures for visitors, contractors, and temporary employees. This solution provides security administrators with flexible, policy-based access compliance software.

Physical Identity And Access Management Market Report Scope

Global Physical Identity And Access Management Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the physical identity and access management market report based on offering, product, application, and region:

• Offering Outlook (Revenue, USD Million, 2018 - 2030)

  • Software

  • Services

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Backend Database Solutions

  • Credential Management

  • Visitor Management

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • BFSI

  • Defense & Security

  • Airports

  • IT & Telecom

  • Government & Public Sector

  • Industrial

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East and Africa

    • UAE

    • South Arabia

    • South Africa