Access Control Faces Crossroads as Cloud and M&A Surge
Key Highlights
-
Cloud services, hybrid architectures and diverse credentials are redefining how integrators design, deliver and support access control systems.
-
AI-driven analytics are gaining traction for alert reduction, tailgating detection and faster investigations, as organizations seek more reliable enforcement of access policies.
-
Ongoing consolidation is reshaping the competitive landscape, increasing dependence on vertically integrated platforms and elevating the importance of long-term flexibility and portability.
Memoori Research’s new market study, “The Physical Access Control Business 2025 to 2030,” points to accelerating shifts in how security integrators deliver value as cloud services, IT convergence and diverse credential ecosystems become the norm.
Owen Kell, senior IoT and security research associate at Memoori Research, offered additional perspective on several of the report’s findings in comments to SecurityInfoWatch.
Cloud migration redefines integrator revenue models
Kell notes that the most significant forces shaping the integrator landscape stem from how multiple trends intersect rather than from any single technology. “The biggest shift for security integrators is not any single technology in isolation. It is the way cloud migration, IT convergence and credential diversification combine to change how value is created and captured,” he says.
As Access Control as a Service (ACaaS) gains traction, integrators are increasingly moving away from one-time hardware projects. Kell explains that cloud and ACaaS move recurring revenue away from on premises hardware and toward software, platforms and services, pushing firms to build more of their business around lifecycle support. A clear majority now offer some form of managed or hosted access control, and Kell says their daily work “increasingly resembles running a service, with SLAs, uptime responsibilities and patching, instead of just installing panels and walking away.”
IT departments are also influencing access control upgrades more directly. Integrators now need to speak fluently about network architecture, APIs, identity and access management and cybersecurity, while collaborating across IT, security and facilities teams.
Credential diversity compounds the shift. Most organizations run mixed fleets of legacy cards, smart credentials, mobile IDs and biometrics. Kell says customers expect integrators to manage the resulting policy and lifecycle complexity, driving the channel toward long-term partnerships and hybrid PACS environments.
Open standards advance amid hurdles
While the report documents steady progress toward more interoperable ecosystems, Kell says three obstacles still constrain widespread adoption of open standards.
“The first is legacy infrastructure,” he explains. “Wiegand wiring and proprietary controllers are still common, and upgrading often means costly rewiring rather than a straightforward shift to OSDP or IP.”
The credential layer represents the second challenge. “There is still no fully open, dominant standard,” and even widely used smart cards and mobile wallets “remain tied to proprietary key structures and ecosystems.”
5 Shifts Redefining Access Control
Memoori’s recent work points to several additional shifts that are influencing how access control is deployed, managed, and valued.
- The shift to next-generation credentials is a phased process, not an overnight replacement. Legacy prox cards continue to coexist with mobile IDs, high-assurance smart credentials and biometrics, creating a need for coherent multi-credential management.
- Cloud, ACaaS and hybrid by default architectures are becoming the norm in larger deployments. This changes how organizations think about resilience, vendor dependence, and the structure of service contracts.
- Access control is increasingly treated as a backbone identity layer for smart buildings. It links occupant identity to workplace apps, visitor systems and building automation, so PACS choices now have implications far beyond doors and turnstiles.
- Cybersecurity, privacy and emerging zero trust approaches are reshaping physical access design. They are pushing the industry toward secure by default devices, stronger credential protection and more disciplined patching and configuration practices.
- The economics of access control are shifting from up front hardware cost to lifecycle value and recurring software and service revenue. This is changing who captures margin in the value chain and pushing both manufacturers and integrators to rethink their pricing and go to market strategies.
The third barrier is uneven software integration. API maturity varies enough that many larger organizations still rely on PSIM tools or custom middleware to normalize events across PACS, PIAM and building systems.
As a result, Kell says end users are following a pragmatic middle path. Many embed support for open standards, open controller architectures and documented APIs into specifications, but still choose semi-proprietary platforms when those deliver stronger mobile capabilities, analytics and user experience. They do so as long as they can negotiate “credible exit options around credential migration, data portability, and future integrations,” he says.
AI for noise reduction and investigations
Memoori’s research also highlights emerging artificial intelligence (AI) use cases inside access control workflows. Kell stresses that the most meaningful advances address operational overload rather than complexity for its own sake.
“Our view is that the AI functions most likely to gain real traction in access control are those that relieve operational pressure rather than simply adding more ‘smart’ alarms,” he says. One key theme is alert reduction, where anomaly detection models learn baseline behavior across users and sites and surface only “out-of-pattern events.”
Kell says tailgating prevention is another growth area. At the intersection of access and video, AI analytics can count people per credential and flag “probable piggybacking events in real time,” which is especially important in regulated environments.
Interest is also growing in context-aware authentication that blends biometric checks, liveness detection and IT risk signals. On the investigative side, Kell notes that natural-language and pattern-based search tools show potential but remain in early stages, with momentum still “driven by vendor R&D and marketing rather than end-user pull.”
Across all use cases, he says end users want “specific reductions in alarm noise, quicker investigations, and more reliable enforcement of access policies, not AI for its own sake.”
Consolidation shifts market dynamics
Kell says recent M&A activity focuses on three critical segments in the access stack: controller platforms, credential technologies and cloud-based software. “Owning these control points allows larger groups to coordinate product roadmaps across locks, readers, controllers and software,” he says. “This can accelerate innovation in unified platforms, mobile identity and analytics, and give integrators clearer integration paths and support models.”
At the same time, he cautions that much of this innovation is now delivered through vertically integrated, subscription based ecosystems, which raises switching costs and concentrates pricing power. The market, he explains, is beginning to split as sophisticated buyers favor consolidated platforms with deep features and global support, while more price-sensitive customers turn to simpler hardware and lighter cloud services.
For integrators and enterprise buyers navigating this shift, Kell emphasizes the importance of understanding which companies now steer key elements of their access control architecture and tracking how post-acquisition changes may affect long-term interoperability and support.
“They should watch how post-acquisition product rationalization affects openness and support windows, and pay close attention to licensing terms, price escalators, and data and credential portability, so that today’s platform choice does not become tomorrow’s constraint.”
About the Author
Rodney Bosch
Editor-in-Chief/SecurityInfoWatch.com
Rodney Bosch is the Editor-in-Chief of SecurityInfoWatch.com. He has covered the security industry since 2006 for multiple major security publications. Reach him at [email protected].

