Smart Locks Market

Smart Locks Market Overview

The smart locks market was worth US$ 2.3 Bn in 2020 and is predicted to expand at a CAGR of 18% during the forecast period to reach a valuation of US$ 14.9 Bn by 2030.

Sales of smart locks are expected to surge as residential owners have been attracted by the elimination of the need to carry mechanical keys around.

Smart home architecture, which includes features such as remote access, voice control, and seamless connectivity, is accelerating the demand for smart locks around the world.

Wi-Fi, Z-Wave, ZigBee, Thread, and Propriety are examples of communication technologies that are propelling the demand for smart locks and all of these technologies are sometimes combined into a single device.

Factors such as the ability to track the security of the premises and secure and easy management of various entry points through remote access have aided the overall sales of smart locks in these spaces.

The same ability is prompting various stakeholders to invest significant sums, in turn enlarging the smart locks market share.

As various hotels are planning to replace RFID locks accessible by IC cards with Bluetooth or Wi-Fi enabled locks as part of the process to improve the security of their premises, the demand for smart locks increases further.

Sales of smart locks are projected to move forward as the new smart lock, which is aimed at businesses, and office spaces, has a lot of room for growth and as many people need access to the same place.

The management has been forced to simplify the door unlocking process for authorised users due to the need for increased safety thereby pushing the sales of smart locks forward.

For example, U-tec is expected to release a new biometric smart lock designed specifically for use in office doors which likely spikes the demand for smart locks.

The Internet of Things (IoT) is the networking of smart electronic devices or things to exchange data signals without the need for human intervention which is considered to be another major force augmenting the sales of smart locks.

Demand for smart locks is amplified as the market for IoT-enabled smart locks has a lot of room to grow and makes real-time data and remote monitoring more accessible.

What Causes Fluctuations in the Smart Locks Market?

The key drivers accelerating the demand for smart locks are increased popularity of smart home services coupled with smartphone penetration, which is expected to reach saturation points in the next two to three years.

Moreover, declining costs of ubiquitous mobile broadband and cloud infrastructure have also aided in higher sales of smart locks by allowing users to easily remotely monitor and control any device, be it a smart lock or a smart thermostat.

Some of the other factors impacting the demand for smart locks includes its various advantages such as allowing users to grant others access to their locks directly from their phones.

Growing sales of smart locks can also be attributed to the convenience offered by smart locks to be able to walk up to a door and have it automatically unlocked without having to reach for one’s keys and many others.

One of the major challenges for global smart locks market is the issue of one’s phone potentially dying. In such a scenario, a physical key still works which is expected to impede the demand for smart locks.

Furthermore, concerns regarding hacking of phones and back-end clouds negatively impacts the sales of smart locks, hence there remains a real and perceived security risk related to smart locks.

Also, companies tend to struggle to increase their smart locks market share as it will be critical for start-ups to invest in security since the headline and publicity risk is the largest in the early market which also results in less demand for smart locks.

The augmentation of demand for smart locks can be credited to the ubiquity of smartphones and low power communication protocols, along with improved technologies primarily related to geo-locating an individual.

Sneha Verghese

Principal Consultant

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Which Region Holds Dominance in the Smart Locks Market?

Currently North America is expected to be the largest global smart locks market.

Customers' high spending power in the region combined with growing security concerns, particularly in critical infrastructure and residential applications, has resulted in a favourable regulatory environment for sales of smart locks.

The expansion of key players in the U.S. smart locks market to other regions, particularly in European countries, and strategies adopted by them to enlarge the smart locks market share is also expected to boost sales of smart locks.

The smart locks market is anticipated to observe the maximum growth in the Asia-Pacific region, especially in countries such as India, China and Japan.

The significant increase in demand for smart locks in Asia-Pacific can be attributed to a rise in the number of residential and commercial projects, as well as ongoing smart city initiatives in developing countries like India.

Furthermore, smart home penetration has increased significantly across the region, is playing an important role in raising awareness about advanced gadgets and technologies in Asia-Pacific smart locks market.

Smart locks market is predicted to expand at a stable rate in other regions of the world as a result of a decelerating worldwide economy in these regions.

Who are the Major Players in the Smart Locks Market?

Some of the participants in the global smart locks market are AT&T Intellectual Property, Comcast, Lowe’s Companies, Inc., Staples, Inc., UniKey Technologies, Inc., Yale Real Living, MIWA Lock Co. and HAVEN among many others.

The smart locks market is consolidated as it is still in its infancy, with few adoptions around the world and companies trying to expand their smart locks market share.

Due to the growing demand for home and building security, the smart locks market offers smart lock providers a variety of growth opportunities.

As a result, smart locks market players are constantly innovating in order to provide new products in the market in order to gain maximum smart locks market share.

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