What Drives The Top 3 Access Control Vertical Markets?
Security professionals discuss what is driving growth in access control among end users in healthcare, education, and small/medium businesses, suggesting systems and technologies that address their pain points.

Healthcare, education and SMB were the top three access control vertical markets identified by security manufacturers interviewed for this article. Bplanet / Creatas Video via Getty Images
We interviewed several manufacturers about which market segments they consider to be the top three major users of access control products and systems. While they named many segments, the ones most frequently cited were healthcare, education (both K-12 and higher education), and small-/medium-sized businesses. In addition to these, the manufacturers also cited government, utilities, commercial real estate, data centers and multi-family markets.
The specialists examined the factors that are driving demand for access control in each individual market. They looked at the end users’ pain points, and suggested solutions to address their security issues. Finally, some of the manufacturers offered recommendations to security integrators serving these markets, emphasizing how their proposed solutions need to begin with a clear understanding of the clients’ requirements.
“It goes without saying that all legal and life-safety obligations must be met with the proposed solutions,” says Gareth O’Hara, chief sales officer, Paxton Access, Greenville, S.C. “After that it comes down to how the client wants to utilize the building on a day-to-day basis. What really works is when clients work with an integrator to show what a normal day in the life of a building user looks like.
“Other special considerations would be to decide what systems would be beneficial to integrate together to deliver the most efficient, user-friendly experience to the system user,” he adds. “For example, the utilization of access control and video management on a single platform is far more effective than having these technologies on separate systems that do not communicate back and forth. Other benefits from integrated technologies are lower cost of implementation, vendor management and after-sales support.”
The Healthcare Market
Three factors driving demand for access control in the healthcare market are compliance with regulations, such as privacy standards; securing medical devices and medications from theft; and preparing for the threat of an active shooting or violent crime, similar to threats that schools also face.
The Health Insurance Portability and Accountability Act (HIPAA) establishes federal standards that protect sensitive health information from disclosure without a patient’s consent. To avoid a data breach, a heightened security presence is needed at healthcare sites to ensure that only authorized people have access to areas where data is stored. So, which technologies are being implemented to mitigate these and other risks?
Healthcare facilities are seeking robust access control systems to manage access to restricted areas such as data storage locations, as well as other off-limits areas such as operating rooms, pharmacies and labs, describes Jennifer Powell, product owner, INFINIAS Access Control, 3xLOGIC, Fishers, Ind. These systems must provide seamless integration with existing infrastructure, detailed audit trails for compliance, and features such as scheduled access for staff shifts, Powell says. “[Healthcare facilities] value solutions that support remote management and minimize disruption in their 24/7, high-traffic environments,” she says.
“For audit purposes, having electronic access control systems to ensure the right people are coming and going when they should and accessing the right places is important for compliance,” adds James Segil, corporate vice president, marketing and inside sales — video security & access, Motorola Solutions, Chicago.
Jonathan Dupont, national account manager, AMAG, Hawthorne, Calif., describes this as more of an operational use of the technology. “You’re seeing a lot more file rooms, walkways and areas throughout a hospital or healthcare facility get access control. Now, not only do we know who went in and pulled that file, but what was their route after that?”
In addition to the risk of data theft, hospitals are at risk for theft of drugs, supplies and other items. “As a result, hospitals are becoming more stringent with where the public is allowed to access without any sort of verification prior to accessing that point,” Dupont says. He explains that while a system should allow employees to be able to freely navigate the building, it also should restrict someone from coming off the street to either cold-call on an employee or steal medication that got left out.
Smart cards are the most secure physical credentials accessible for use in healthcare settings. However, momentum is currently veering towards NFC-based digital wallet credentials, which reside on a user’s smartphone, Dupont and others say.
Segil says that because of the increased familiarity with using a mobile phone for everything — from accessing your home to storing tickets and even paying for purchases — people are expecting to not have to carry IDs/credentials, keys and wallets. “Access control systems are now expected to support mobile credentials and to do so conveniently and efficiently,” he says.
And the technology is highly secure. The access control industry has gained from the investments that tech giants like Apple, Google and Samsung have made in securing NFC and wallet applications, Dupont says.
“We’re seeing huge adoption for the wallet credential because it’s the most secure credential you can get on the market right now,” he says.
In addition, a preferred solution for the regulated healthcare industry is multi-factor authentication. It could be a card reader along with a PIN or a biometric such as a fingerprint reader, facial recognition if permissible, or an iris scanner, he says.
“You’re seeing a lot of highly regulated industries require this dual-factor authentication — or even tri-factor authentication from time to time — on their access control systems,” Dupont says. “It makes the way they operate more secure, more regulated, and they can verify that it was this individual, not just somebody with this individual’s card.”
He also has observed more conversations among decision-makers about identity management. Physical identity and access management (PIAM) tools are becoming more common because they automate the life-cycle of a cardholder throughout their journey with an organization, Dupont says.
“At a highly regulated facility such as a hospital, a data center or a utility company, if there isn’t a process in place and no clear guidelines for the onboarding process and it’s being done in a manual way without a tool like a PIAM, then I’m relying on whoever I sit down with my first day at the organization to give me the access I need and to do it in accordance with our organizational policies, standards and procedures,” Dupont explains.
They know that money is out there. They know they need to make these security advancements; they know they need to harden the school walls; they know they need to safeguard the children — how do they do that? They know there’s money and they just need to be able to identify it.
With a PIAM solution, an end user can execute settings like least privileged access, whereby access is automatically assigned to someone based on their location, their manager, their job title or job function. This takes away the risk of human error and ensures that access levels are assigned in accordance with the organization’s standards and compliance requirements.
Dupont also has seen a substantial uptick in visitor management systems being installed at healthcare facilities and in other regulated market segments. He says 70 percent of the market today uses clipboards for tracking visitors, which are “one spilled cup of coffee away from never knowing who came in to visit my site.”
An electronic system simplifies pre-registration of visitors, verifies their identities once they’re on site, and matches them with an authorized cardholder. For life-safety applications, an electronic visitor management system gives hospitals a means to account for people in the event of an emergency.
Segil says it’s important in healthcare environments to integrate the access control system with the visitor management system. It enables a patient’s visitors to be tracked and given limited permissions to access only the areas affiliated with that patient.
In fact, the access control should be tightly integrated not only with visitor management, but also with the video and intrusion systems, he says, “So that users have a seamless and frictionless experience coming and going from a building.”
Some other suggested solutions are two-way intercoms for doors and other access points. Segil says intercoms have become the standard for how an unguarded door is managed. And access control readers with built-in cameras offer an additional vantage point to end users for monitoring who is coming and going, Segil says.
And finally, because healthcare sites experience the same security threats as schools do of active shooters and violence, there is a need to lock down facilities. “Lockdown capabilities have become of critical importance for access control systems, as they can be the difference between life and death,” Segil describes. “Having flexible lockdown controls that allow one to lock down all or some doors with panic buttons and mobile apps are in high demand.”
The Education Market
The education sector is broad and varied. It includes the two general segments of K-12 (including public and private schools, boarding schools, charter schools) and higher education (public and private universities, private colleges, community colleges). While these segments have some commonalities, most of their needs and solutions differ and some security integrators only assist one group or the other.
In a general sense, schools and universities prioritize physical security for its ability to safeguard students, staff and property, explains Mike Taylor, vice president, global sales and marketing at Hirsch, Santa Ana, Calif.
“Rising concerns about school safety and funding for security initiatives contribute to steady growth in this sector,” Taylor says. He adds that the current climate of school breaches also drives growth.
“The ongoing security threat of active-shooter events plaguing our nation is creating a need to secure access to any school location and enable/disable lockdowns,” Segil of Motorola Solutions says.
Aaron Black, vice president of sales for Napco Security Technologies’ Napco Access Pro division, Amityville, N.Y., believes the demand for access control in the education sector is being driven by these shootings, many of which have led to regulations enacted by the county or state to enforce security measures.
The K-12 segment, however, has been “very reactionary in making any progress in security advancements until recently,” describes Stephenie Haldane, vice president business development – End User Team, PACS at HID in Austin, Texas. “So recently, you’ll see a lot of grant money being funded towards security enhancements.”
And that leads to one of the greatest security issues that schools have, which is identifying the proper grants, Haldane notes. “We’re helping them weave through compliance and once they get this funding, being able to help them make the next steps, the roadmap to security advancements.”
Because smaller public schools typically don’t have full-time grant writers on staff and therefore don’t necessarily know which grants they may qualify for, there has been a push in recent years to give schools more exposure to grant information, Haldane says.
“They know that money is out there. They know they need to make these security advancements; they know they need to harden the school walls; they know they need to safeguard the children — how do they do that? They know there’s money and they just need to be able to identify it,” she says.
Black acknowledges that while funding is still difficult to obtain for K-12 in general, he has seen increases in certain locations. Beyond that, schools are tasked with choosing which solutions would be best for their needs. Their decisions revolve around whether a cloud-based or on-premises solution would be best, and if they should consider any additional specialized solutions such as gunshot detection and dedicated lockdown systems, thereby increasing the cost, Black says.
“What will work for one K-12 campus might not work for another and that could increase cost significantly. The pain point becomes all the options that are now available to K-12 and universities,” he emphasizes.
The higher education segment is less reactionary than K-12 in its approach to implementing access control, Haldane finds. Universities are motivated to provide peace of mind for parents and the surrounding community, as well as convenience for students, as they move towards implementing an access control solution with mobile credentialing. Not only do mobile credentials make it easy for students to navigate their lives on campus, they also promote student engagement, which universities like to leverage to stimulate enrollment.
In the K-12 school environment, security integrators may find they’re starting from the ground up as most schools are still on a brass key system. Haldane says. “And that’s not sustainable,” she says.
She references a school that experienced a shooting on campus and contacted her company to learn about security solutions available to them. “Going back to that reactionary thought process, they didn’t know where to start, so they didn’t start. And they didn’t know how to get proper funding, so they didn’t. Instead of contacting us or even a competitor — anyone — to start this process, they wait until something happens.”
A rich resource that can help security integrators help their school customers is Partner Alliance for Safer Schools (PASS). The organization publishes PASS Safety and Security Guidelines for K-12 Schools, now in its sixth edition. The guidelines detail how to implement a layered and tiered approach to securing and enhancing the safety of school environments.
Some of the aspects that schools should focus on are hardening security around the perimeter of their property and building. For example, gates that can only be opened by an access credential, updated security cameras throughout the site, and intercoms at doors.
Haldane has seen schools install duress buttons in every classroom, as well as provide them to each individual teacher and staff member. Many schools install electronic locks or readers at every classroom door, as well as on every perimeter door. “That is costly, but that is something we are seeing and it makes sense to have access control on each and every door,” she says.
One of the most important aspects is specifying an open-architecture access control head end. It means the head end can work in plug-and-play fashion with different solutions, for example when replacements in readers and door hardware are made over time. “Because if they’re going to make a huge investment — remember, they don’t even have the money to make this huge investment — don’t put things on the wall that are going to either be outdated or … tied into one company. It’s really about being able to work with different vendors. If they want to continue to make advancements, it needs to start with a head end that is open,” Haldane says.
Taylor at Hirsch emphasizes that integrated solutions are a must for combining door access, perimeter control, and video surveillance. They also must be scalable and cost-effective, he says.
Cloud-based access control solutions, which Black says the education sector is shifting to, are easier to maintain and in most cases allow greater flexibility and ability to scale, he says. Schools also have to consider enhancements to access control, such as gunshot detection and threat-avoidance solutions, he says.
The current technology trend at universities is shifting from a one-card plastic credential that students use throughout a campus ecosystem, to an app-based or digital-wallet-based credential housed on the user’s phone, such as Apple Wallet or Google Wallet. A digital wallet credential works across the university, such as to access a dorm room, make purchases at the cafeteria or bookstore, or borrow books from a library.
“It’s ease and convenience; it’s safety and peace of mind,” Haldane says. “Some of these we’ve even written into mass transit, so if they have a bus system it can be used. The sky’s the limit.”
She says only about one-third of the schools she works with have actually deployed mobile wallet today: “It’s still early adopters.”
And Powell at 3xLOGIC points to a benefit of integrated access control systems that allows for centralized management of multiple buildings and entry points. “They prioritize features like real-time lockdown capabilities, automated scheduling for doors, and audit trails to monitor access activities,” Powell says.
As campuses grow, they should be able to scale their systems and easily integrate with existing infrastructure, she says.
“Customers are looking for down-to-earth features that make their lives easier; new technologies are always evolving to help with those goals,” Powell says. “Video integration using AI to detect anomalies or automate responses in educational and commercial settings and mobile applications with mobile credentials are a growing trend across all sectors for remote and user-friendly access.”
The Small/Medium Business Market
Gareth O’Hara at Paxton Access counts small- and medium-sized businesses among his top three markets buying access control. He says his company’s products are aimed at that market and strong demand is coming from the hospitality, leisure, education and commercial sectors.
Driving growth in access control purchases among small/medium business is the need for affordable, scalable, and user-friendly access control solutions with minimal IT overhead, says Powell at 3xLOGIC. She points to offices, retail stores and start-ups in every industry.
“Small- to medium-sized businesses often face budget constraints and lack in-house IT expertise, making it challenging to implement and maintain sophisticated access control systems, Powell says. They need scalable solutions that can grow with their business while staying affordable and easy to use.
She says small- and medium-sized businesses often look for solutions that support mobile access, secure data storage, and remote management to minimize downtime and enhance security on a limited budget.
“Integrators should focus on recommending plug-and-play systems that are both affordable and scalable,” Powell says. “Solutions with cloud-based management are ideal, as they simplify installation and enable remote monitoring and adjustments. Ensure the system is intuitive, with minimal ongoing maintenance required, and provide training to the SMB team so they can manage security without heavy reliance on external support.”
O’Hara believes that the best access control solutions are those that the customer doesn’t know are there. “They want to secure and monitor their premises, but not let that become an inconvenience to those using the system.”
For example, wireless technologies such as Bluetooth and its prevalence in access control devices fulfills this concept and has helped increase the demand for smart credentials over the past few years, he says.
“Transparency and honesty in pricing are also important, helping to reassure customers on the longer-term cost of their systems and helping to avoid surprises,” O’Hara says.
In what markets are you seeing growth in sales of access control and related systems? Share your opinion with SDM.
More Top Markets for Access Control Solutions
In addition to the top three sectors of healthcare, education and small/medium businesses, specialists in access control technology solutions cited several other markets that are active in purchasing access control solutions, and things that are unique to each one:
Utilities — Power/electric, gas, water, and other critical infrastructure services including network communications and internet, are typically highly regulated. Among their commonalities is the need to be in compliance with standards such as NERC SIP, which are reliability requirements for planning, operating, and protecting the North American bulk power supply system.
AMAG’s Jonathan Dupont says the industry sees a lot of adaptability and custom solutions in this segment. “People look at the same standard and based on the way their organization operates, it changes what they need to put in place on the access control side to meet those standards because of their business practices,” he describes.
Commercial real estate — Commercial real estate buildings are currently campaigning to help individual tenants return back to office spaces, which they left during the pandemic. One of the tools they’re utilizing to help tenants with employee recruitment and retention is a mobile credential that supports a hybrid work environment, explains Stephenie Haldane at HID.
“In this space, it’s more of an app-based experience that is making it engaging for the employee and also visitors that come into the building,” Haldane says. The mobile credential could be used not only for accessing main doors and interior spaces, but for reserving rooms, using the cafeteria, and other functions. Employers can use it to communicate messages to employees, manage visitors to the site, and maintain safety by turning off credentials immediately.
Haldane says integrators need to be extremely technically apt to successfully create an app-based ecosystem like this. “It’s not just about the install anymore. It’s about really making sure that they’re working with partners that would be building out an entire experience for employees. They might not build it, but they have to work with partners and make sure they’re well-versed in it to be able to speak to it to the end user,” she says.
Data Centers — The result of more companies centrally storing more data in the cloud is the growth of the data center industry. These companies, some of which act like data warehouses renting space to different entities, is spurring growth in access control systems.
Another reason access control is needed in data centers is for overall compliance, Dupont says. “When you’re storing data, you’re not just storing it for data companies; you’re storing it for healthcare companies; you’re storing it for tech companies. You have regulations that come into play based on the type of data being stored there, which changes the access that folks have to it. When you store data for different companies, you also have to have a way for more people from various organizations to get on site to access the equipment that they need,” he describes.
The result is the need for more access control to regulate more areas as data centers grow. Without it, they are exposed to risks such as potential compliance violations, fines, or ultimately going out of business because they can’t keep the data secure, Dupont says.
Multi-family — Multi-family residential customers have a need for access control for multiple family members coming and going at different times, for package delivery in common areas, and for temporary access for house cleaners and repair people, says James Segil at Motorola Solutions. All of this can be more easily managed with an access control system instead of copying physical keys, he says.
Segil points out that because the next generation expects to be able to use their phones for everything, having access credentials on their mobile devices is important.
“Making the issuance of these credentials easy and fast is critical to the success of any access control system deployed at a multi-family apartment building,” Segil says. “It’s critically important that property managers and their tenants are trained on how to use their access control system, set up units and issue credentials.”
Government — In the federal government segment, agencies typically demand high-security solutions to protect their sensitive data, classified information and critical infrastructure, says Mike Taylor of Hirsch. These agencies have a need for compliance with strict regulations such as FIPS 201 and NIST standards, he says, which further drives their security investments. They also face rising cyber-physical threats, and have a desire to move to the cloud via FedRamp, he says.
Taylor says some of their pain points are: integrating legacy systems with modern solutions; balancing security with operational efficiency; and building enterprise systems within fixed budgets.
Aaron Black at Napco Security Technologies concurs that dealing with legacy systems is challenging for government entities. “Government pain points relate to the cost of replacement and updating older locations/facilities to new standards,” Black says. In addition, they seek visitor management solutions that are able to clear visitors in a timely manner.
As far as access control technologies, “PIV class cards/readers for government personnel is still the standard solution,” Black says. Another is biometrics using AI for better enrollment of visitors or employees, he, says. “But concerns about AI are out there.”
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!