security technology market Growth market for electronic locks In 2015, IHS forecasts the global market for electronic locks will exceed $1 billion. IHS segments electronic locks into three categories: mechatronic, electromechanical and digital cylinder. Electronic locks have evolved significantly since the 1970s when they were used mostly in hospitality and relied upon holes that were drilled into the cards themselves. Three decades later, Blake Kozak, prinicipal analyst, Security & Building Technologies, at IHS, finds that electronic locks are now one of the fastest growing segments of the access control industry and have unmatched versatility. These lock types can be constant online wireless, semi-online wireless, data on card, Wifi or be Zigbee, Z-Wave or Bluetooth or NFC compatible. electromechanical locks dominate the market Of the three product categories, IHS expects that electromechanical locks will see the most uptake over the next 5-8 years, representing nearly 77% of the total electronic lock market globally in 2015. For electromechanical locks, IHS expects that the residential market in North America will be a driving factor over the next 3-5 years – as more multisystem operators (MSOs) and traditional monitoring providers look to offer electronic locks not only as an ad hoc option but as part of its existing packages. Mechatronic locks – the most growth Although electromechanical locks are by far the largest, the most growth will be associated with mechatronic over the next five years. Mechatronic locks are often used in remote and harsh locations where battery life can be threatened, so the battery is in the key and in some cases, these devices require no battery at all – only a special key to initiate an authorisation. Global unit shipments are expected to triple for mechatronic locks from 2014 through 2019. One reason for this forecast is the rate at which IHS expects utilities and telecommunications to adopt electronic security. Enhanced security, audit trails, compliance and efficiency are just a few of the reasons why these end-user industries are looking to electronic security. In remote environments, electronic locks can also be used to protect contractors and workers. If a door is propped open or a request to exit read does not occur after a predetermined amount of time, an alert can be generated. Important role in all access control Overall, IHS expects that electronic locks will continue to play an important role in all access control solutions moving forward. By 2019, IHS forecasts that electronic locks will exceed the revenue of both the readers and panels market, making it the largest segment for electronic door access control. Similar to other trends occurring in the access control industry such as TCP/IP (IT integration), logical access control and open standards, suppliers and channel partners that embrace wireless lock integration with traditional wall readers will gain the most over the next 5 years. Big changes ahead for access control market Following the recent reports on the Kaba and Dorma merger, and the Allegion plans to acquire Simonsvoss from HgCapital. Blake Kozak, Principal Analyst for Security and Building technologies at IHS, predicts that this latest merger may again reshape the access-control market in Europe, the Middle East and Africa (EMEA). Here is his view on the subject. The merger of Allegion and Simonsvoss would immediately create the second largest company in the EMEA region, after the market leader, Assa Abloy. The merged Kaba and Dorma would then rank third in the region. But it has to be pointed out that this most recent merger still requires approval, by the German Bundeskartellamt, which prohibited a planned merger of Assa Abloy and Simonsvoss back in 2008. A perfect match Simonsvoss, the world’s largest supplier of digital cylinder locks, currently has limited penetration in the Americas, so this move will certainly help the company enter this highly competitive region. Furthermore, the acquisition will help create a more well-rounded portfolio for both companies. IHS estimates that the majority of Simonsvoss revenues are generated from electronic locks and credentials, while Allegion has a more diverse portfolio that spans wall readers, panels, software and electronic locks. For the overall electronic access-control market, larger companies are starting to come together to provide seamless solutions, increase in-house expertise and expand the supply chain with a global focus. There have been many mergers in the past; however, most were regional and specific. We are now seeing many more high-value acquisitions that immediately affect market share rankings. A step backward from open standards If access-control companies continue to merge and expand in this manner, the move toward more open standards may take a step backward, because end-users will have wider product ranges and greater expertise from a single source. Even so, IHS expects these types of acquisitions will continue, as suppliers bolster their positions, not only on a regional basis, but also to take advantage of end-user growth (e.g., residential, utilities, healthcare) and services (e.g., ACaaS and VSaaS). IT expertise – increasingly important It remains to be seen if video and access control companies will cross over and provide a more fully integrated solution, or if companies will continue Blake Kozak. to enrich their current portfolios on a more linear path. One key acquisition strategy could be centred on capabilities and expertise across multiple disciplines. Today it is becoming increasingly crucial for companies to have IT, software and platform expertise, in addition to equipment. These acquisitions will increasingly focus on helping companies expand beyond components. Security News Every Day – www. securityworldhotel.com 14 • detektor i n te r n at i on al