Smart Lock Market Size, Share, Trends, Market Research and Industry Forecast Report 2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Smart Lock Market


The global smart lock market size was valued at USD 1.2 billion in 2019 and is expected to register a CAGR of 18.5% from 2020 to 2027. More than 7.0 million units of smart locks were sold in 2019. The growing trend of Internet of Things (IoT), along with rising security and privacy concerns, has propelled the penetration of smart home security devices globally. Rising consumer awareness regarding the benefits of advanced security solutions is expected to positively influence product sales. Additionally, increase in the number of smartphone users globally has resulted in growing deployment of smart locks over the past few years owing to benefits such as convenience and easy user interface.

Companies such as August Home and Danalock International ApS have introduced location-based locks, wherein the devices detect the users arrival and unlock the door when the user enters the GPS geofence. Several companies across the marketplace are focusing on the implementation of latest technologies, such as the touch-to-unlock model for automatic unlocking mechanism and incorporation of capacitive touch sensors in their products. Key companies are collaborating with smart ecosystem providers such as Samsung, Google, and Amazon for the integration of these novel technologies with their proprietary smart solutions like Alexa, Google Assistant, Siri, Samsung SmartThings, and Apple Homekit.

Awareness regarding smart locks is greater among consumers in higher-income segments and urban areas. Developed countries such as U.S. are the prominent revenue generators as the regional population is increasingly aware of the connected ecosystem and are willing and able to pay a premium for comfort, luxury, and convenience. Additionally, low entry barriers such as open-source technologies are encouraging small scale vendors to innovate their products and offer enhanced solutions to their consumers.

Increasing number of new construction and renovation activities across North America and Asia Pacific are presumed to garner immense market potential over the forecast period. Increasing raw material costs, along with the growing presence of low-cost Asian suppliers across international markets, are expected to pose an off-setting impact on the average selling price of smart locks over the short-term. However, this trend is anticipated to result in a steep increase in price competition with the stabilization of material costs.

Smart locks are expected to witness tremendous growth prospects, especially in cloud-based locking management solutions, owing to the introduction of innovative locking/unlocking mechanisms through smartphones, tablets, key fobs, and other portable devices. Continuous development and deployment of sophisticated technologies, including Z-wave/ZigBee, Near Field Communication (NFC), and Bluetooth Low Energy (BLE), to easily access locking functions is expected to attract a potential customer base, thereby accelerating product sales over the forecast period.

Type Insights of Smart Lock Market

The market for smart locks has been segmented into deadbolts, padlocks, lever handles, and others. The deadbolt segment accounted for the largest revenue share in 2019 and is expected to retain its dominance over the forecast period. Segment growth can be attributed to their rising usage across the residential sector due to benefits such as ease of use as well as durability. The padlock segment is expected to grow at a considerable rate in the near future. These locks are weatherproof as they are made from non-erosive materials. As a result, smart padlocks are increasingly being considered to be a better substitute to conventional locks.

The lever handles segment is expected to exhibit the highest revenue-based CAGR of more than 20.0% over the forecast period owing to substantial growth in hotel construction activities. The growing trend of modernization across the hospitality sector, to cater to the rising demand from tourists, is expected to foster segment growth. Additionally, smart lever handles are being increasingly preferred for inner doors in commercial settings.  Lever handles are comparatively easier to open than their counterparts since they possess a push-down style handle instead of a knob that requires grasping and turning.

Application Insights of Smart Lock Market

The residential segment dominated the smart lock market in 2019, accounting for over 65.0% of the revenue that year, and is expected to retain its dominance over the forecast years. Rising number of smart homes globally has significantly contributed to the increased revenue generation. Advanced security tools, including remote door locking, window and door opening sensors, and motion detectors, are now affordable for homeowners, which in turn is expected to drive the adoption of smart locks in residential applications. These locks are compatible with Z-Wave, ZigBee, and BLE technologies and are developed explicitly for mass-market residential purposes, thereby attracting customers.

The hospitality segment is expected to register the highest CAGR of over 23.0% from 2020 to 2027. Factors such as increased in-room security measures in hotels are presumed to bolster the adoption of smart locks in the hospitality sector. Hotels across the globe are increasingly implementing wireless protocol-based advanced locks in their rooms to cater to the safety needs of international customers. The adoption of these locks also leads to increase in a hotels brand value.

Regional Insights of Smart Lock Market

The North America market for smart locks is anticipated to emerge as the highest revenue generating region, surpassing USD 1.6 billion by 2027. U.S. is the most significant contributor to the regional market owing to the presence of tech-savvy customers complimented by their high spending capacity. Moreover, the region has been witnessing increasing security concerns, especially across residential and critical infrastructure applications, which has resulted in increased adoption of smart locks. Increasing investments by key IoT providers are expected to pave opportunistic ways for industry participants over the forecast period.

Asia Pacific is expected to witness substantial growth over the coming years, registering a CAGR of more than 22.0% over the forecast period. This can be attributed to rise in the number of residential and commercial projects as well as smart city initiatives across the region. In addition, the region has been witnessing an increase in smart home penetration, which in turn is playing a vital role in spreading awareness regarding intelligent devices and technologies for home safety, such as smart locks.

Market Share Insights of Smart Lock Market

Key market participants are undergoing various strategic initiatives, such as partnerships and acquisitions, to gain access to a larger market. In November 2018, Schlage, a manufacturer of innovative door hardware and smart locks, partnered with Amazon for delivering integrated intelligent home solutions to its customers. In addition, the company launched the Schlage Connect Smart Deadbolt, integrating advanced access control into Zigbee-certified home automation system, including Amazon Key.

The market for smart locks has been gradually moving toward consolidation over the past few years, with prominent companies striving to acquire the dominant market share. The industry is witnessing continuous innovations along with increasing dominance of well-established locking companies in recent years. Yale, Schlage, August Home, and Kwikset are some of the market incumbents. They are known for developing innovative products that can be integrated seamlessly into smart home solutions. Other key market participants include SentriLock; Weiser; UniKey Technologies Inc.; SDS Smart Locks; Mul-T-Lock; Okidokeys; Haven; Aventsecurity; and Cansec System.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Smart Lock Market Research Report
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global smart lock market report on the basis of type, application, and region:

Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2019 - 2030)

  
Deadbolt
  
Lever Handles
  
Padlock
  
Others

Application Outlook (Volume, Thousand Units; Revenue, USD Million, 2019 - 2030)

  
Residential
  
Hospitality
  
Enterprise
  
Critical Infrastructure
  
Others