Smart Lock Market Analysis, Share, Industry & Revenue [2031]

Report Description

The global smart lock market was valued at USD 1.38 billion in 2020 and is projected to expand at a CAGR of 21% during the forecast period, 2021-2028. Using a wireless protocol, a smart lock locks and unlocks doors from a mobile device. A smartphone or special key fob can be used to unlock doors, and a virtual key can be used to give access to a third party. Some smart locks include built-in Wi-Fi connections and monitoring capabilities.

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Market Trends, Drivers, Restraints, and Opportunities:

• Rising awareness among consumers regarding the benefits and convenience offered by smart home security solutions and surging adoption of connected devices are primarily driving the industry growth.
• Growing deployment of smart locks in the hospitality sector on a large-scale is one of the factors spurring the growth of the market.
• Increasing adoption of connected devices and rising adoption smart homes are major factors driving the growth of the global smart locks market.
• Declining cost of Internet services, growing implementation of technologies such as ZigBee and near field communication (NFC), and rapid development in cloud infrastructure have propelled the demand for the smart locks in the global market.
• The integration of technical features such as electronic key, ability to remotely monitor and control the device, and dynamic unlocking mechanism are some other factors fueling the growth of the global smart locks market.
• Safety risk related to the hacking of mobile phone or back-end cloud server remains a restraining factor for the growth of the global smart lock market.
• High R&D cost, and software security are some of the challenges faced by the global smart lock market. Increasing penetration of Internet of Things (IoT) and rising disposable income of individual in developing economies is expected to open opportunities for smart lock market.

Scope of the report:

The report on smart locks market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Smart Lock Market Segment Insights :

Lever handles are expected to expand at a robust CAGR

In terms of lock types, the market can be divided into deadbolts, lever handles, padlocks, footplate locks, rim latch, wall mounted locks technology (Wi-Fi, Bluetooth, and others). The deadbolt segment accounted for over 45% market share in 2020 and is expected to continue  to dominate during the forecast period. The high revenue generation can be attributed to its rising deployment across the residential sector owing to numerous benefits such as ease of use as well as a durable locking mechanism. Additionally, prominent companies in the market are integrating advanced deadbolts with built-in features such as low battery warning, one-touch locking, and customizable user codes into their portfolio, ultimately attracting a vast user base.

The lever handles segment is expected to expand at a CAGR of 23% during the forecast period owing to substantial growth in the construction sector. Modernization activities across the hospitality sector to fulfil the security requirements of tourists fostering the growth of the segment. Smart lever handles are being extensively used in inner doors across commercial settings. They possess easy locking/unlocking procedures compared to their counterparts due to the push-down style handle instead of a knob, which requires grasping and turning. The padlock segment is also expected to expand at a considerable CAGR in the forthcoming years due to benefits such as high-end security along with user activity management, convenience, and smartphone compatibility, which has resulted in its widespread use worldwide. Apart from the residential sector, smart padlocks are increasingly used while traveling to ensure the overall security of the luggage.

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Hospitality segment is expected to expand at the fastest CAGR

Based on end-users, the market  can be fragmented into commercial, residential sectors, enterprises, government institutions, research Labs, and others. The residential segment dominated the smart lock market in 2020, capturing over 65% of the revenue share. It is expected to retain its dominance over the next seven years. Its high revenue generation can primarily be attributed to the rising global smart home penetration as well as an increasing number of new and renovation projects across the sector over the past few years. Additionally, increased affordability of advanced security tools, including door and window opening sensors, motion detectors, and remote door locking/unlocking, are driving the adoption of these devices. The development of locks compatible with technologies such as ZigBee, Z-Wave, and BLE technologies, specifically for mass-market residential purposes, is at the forefront, thereby attracting a large customer base.

The hospitality segment is anticipated to expand at a  CAGR of  25% during the forecast period. The industry has been aggressively deploying smart locks to address customers' growing security concerns during their stays. The need to increase in-room security measures at hotels is presumed to bolster the adoption of these keyless access devices in the future as well. Leading market players are offering innovative solutions for the hospitality industry. For instance, in October 2018, Hoomvip, an app-based service for accessing rental properties, implemented ENTR smart door lock by TESA, one of the brands of Assa Abloy, to enhance security and ensure hassle-free access to rental properties. The adoption of these locks also lead to an increase in the hotel’s brand value, which further drives their adoption across the sector.

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Asia Pacific is anticipated to emerge as the fastest-growing region

In terms of regions, the global smart lock market can be segregated into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.North America captured over 40% of the market share in 2020 and is expected to maintain its dominance during the forecast period. This is primarily attributed to the high technology adoption and rising penetration of smart homes across the US. The high spending capacity of customers and rising security concerns, especially across the critical infrastructure and residential applications, have led to a favorable regulatory scenario for their adoption in the region.

Asia Pacific is anticipated to exhibit a CAGR of 23% during the forecast period. The substantial growth can be attributed to a significant increase in the number of residential and commercial projects as well as ongoing smart city initiatives in developing countries such as India and China. Moreover, smart home penetration across the region is playing a crucial role in spreading awareness regarding advanced gadgets and technologies. However, norms laid down by government bodies in countries such as Australia require additional product enhancement and modification, which is expected to act as a challenging factor for the market growth.

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