SMART LOCKS MARKET ANALYSIS

The Global Smart Locks Market accounted for US$ 2.33 Bn in terms of value in 2023 and is expected grow at a CAGR of 12.1% during the forecast period (2023-2030). A smart lock is an electromechanical locking system that opens wirelessly with authorized users’ authentication. A smart lock performs locking and unlocking operations on a door when it receives such instructions from an authorized user with a wireless protocol and cryptographic key to commence the authorization process. Smart locks are an integral part of smart homes, which allow homeowners to enter their home without requiring traditional key. As a connected device, smart locks are considered as a part of the Internet of Things (IoT). Many smart locks utilize mobile apps or websites allow homeowners to grant access to third parties by sending a virtual key. Some smart locks come with a camera, which provides a picture of individuals accessing the door.

Global Smart Locks Market: Regional Insights

North America region dominated the global smart locks market in 2023, accounting for 31.7% share in terms of value, followed by Europe and Asia-Pacific, respectively, and this is credited because of ascend in pattern for smart homes, expansion in entrance of IoT, and rise in real estate  and hospitality areas moreover, expansion in interest in the government and defence sector for security and access the board and technological advancements in the telecom industry is supposed to drive the smart locks market development during the conjecture time frame. Be that as it may, the Asia-Pacific region is supposed to observe most noteworthy development in the impending years. This is credited because of progressions in innovation, computerized reasoning, and accessibility of shrewd home gadgets, for example, smart locks, which have prompted expansion sought after for smart locks. What's more, the expansion being used of web, development in security worries in government workplaces and research canters, and increase in development activities in India are the main considerations answerable for the development in Asia-Pacific region.

Figure 1: Global Smart Locks Market Share (%), By Region, 2023

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Global Smart Locks Market Drivers:

Growing adoption of smart home technologies is expected to drive growth of the global smart locks market during the forecast period

The smart home locks an integral part of smart home ecosystems, providing automation and access capabilities to users via smartphones, tablets, and other devices. Exponential change in the lifestyle of urban households has increased the demand for smart electronic devices to monitor homes from a single platform. Some devices provide control of home systems using non-acoustic sensors. These are mechanical accelerometers that measure distinct vibrations on the surface and connect to Wi-Fi to convert them into programmable action. Moreover, smart home technologies are popular among investors for the potential they hold in the near future. Thus, these factors are expected to drive growth of the global smart locks market during the forecast period. For instance, Yale Home, a leader in smart home security, is releasing an update to make Wi-Fi connectivity for the Yale Assure Lever even more convenient, at a new lower price. The Yale Assure Lever has been adding smart lock benefits to doors without deadbolts.

Technological advancements making mobile communication cost-effective are expected to propel the global smart locks market growth over the forecast period

Smart locks are an integral part of the broader smart home ecosystem, offering enhanced security, convenience, and remote access control. The integration of mobile communication technology, such as Bluetooth, Wi-Fi, and cellular connectivity, into smart locks enables users to remotely monitor and control the locking and unlocking of doors through their smartphones or other connected devices. This level of convenience and control resonates with consumers' increasing demand for smarter, more efficient, and digitally integrated solutions for their homes. The convergence of cost-effective mobile communication technology and the growing interest in smart home solutions is expected to drive the growth of the global smart locks market. As technological advancements continue and consumer preferences evolve, the market is likely to witness increased adoption and innovation in the realm of smart locks.

Global Smart Locks Market Opportunities:

High adoption of smart locks in commercial sectors can provide lucrative growth opportunities

Smart locks have found major adoption in hotels since they change customer check-in and check-out experience. It allows them to gain quick access to the hotel rooms by just a touch of the finger, reducing the difficulty of front desk check-in, the time consuming and tedious task of carrying a hotel card key. For instance, In may 2021, Latch, Inc. today announced the expansion of its full-building enterprise software-as-a-service (SaaS) platform, LatchOS, into commercial offices, bringing Latch’s expertise in multifamily building management technology to the commercial office space for the first time.

Growing adoption of IoT-based security systems is expected to present excellent business opportunities

IoT (Internet of Things) technology has revolutionized the way smart devices interact and communicate, and smart locks are no exception. By integrating smart locks into the IoT ecosystem, they become more versatile, intelligent, and capable of providing enhanced security and convenience to consumers. One of the key advantages of IoT-based smart locks is their ability to connect and communicate with other smart devices, such as smartphones, security cameras, and home automation systems. This interconnectedness allows for seamless integration and synchronization of various security features, enabling users to control and monitor their locks remotely through dedicated mobile applications. The growing adoption of IoT-based security systems in the smart locks market presents excellent business opportunities for companies willing to invest in innovative and interconnected smart lock solutions. As the IoT ecosystem continues to expand, businesses that capitalize on this trend and deliver advanced, feature-rich smart locks are likely to gain a competitive edge and thrive in the evolving market landscape.

Covid-19 Impact Analysis:

The Global Smart Locks Market experienced significant impacts due to the COVID-19 pandemic. As the virus spread worldwide, governments implemented various lockdown measures and restrictions, leading to disruptions in the construction and real estate sectors. These industries are essential drivers for the adoption of smart locks, as they are often integrated into new housing developments and commercial buildings. The pandemic also caused a shift in consumer behavior, with a growing emphasis on contactless solutions to minimize the risk of transmission. While smart locks offer the convenience of remote access and touchless entry, the economic uncertainties and reduced purchasing power of consumers hindered the market's growth during the peak of the pandemic. Additionally, supply chain disruptions and manufacturing delays caused by global lockdowns affected the production and distribution of smart locks, leading to inventory shortages and increased prices. Many manufacturers faced challenges in procuring essential components, impacting their ability to meet market demands promptly

Restraints:

Concerns regarding system compromise and a threat from hacking are expected to restrain growth of the global smart locks market over the forecast period

According to a study by the University of Michigan concluded that they could attack and take over Samsung smart things platform that controls locks, thermostats, appliances and security systems. It is feasible to text smart locks’ pin code after retrieving from a hacker application, which can also be used to reset safety modes and triggering alarms. If Wired Equivalent Privacy (WEP) encryption is used on Wi-Fi on the network, an authorized user can track down the network password in a short time. It might be possible to launch a "man-in-the-middle attack" that would interrupt and then change messages neither being aware of the changes. In such cases, strong Bluetooth encryption cannot stop skilled hackers from setting a corrupted version of the app in the Google Play Store. Moreover, it cannot stop malware already on the phone from capturing the communication between the Bluetooth chip and the app. In fact, the system is extremely difficult to recover and expensive even after the discovery of the vulnerability.

Low awareness among customers is expected to hinder the global smart locks market growth over the forecast period

One of the primary reasons for low awareness is the relatively new and evolving nature of smart lock technology. Many potential customers may not be familiar with the concept or may have misconceptions about its complexity, reliability, and compatibility with existing security systems. The lack of awareness can create hesitancy among consumers, leading them to stick with traditional lock and key mechanisms that they are more familiar with. Moreover, the smart locks market encompasses a wide range of products with varying features, connectivity options, and price points. This diversity can further confuse customers, making it challenging for them to make informed decisions about which smart lock best suits their needs.Concerns related to data privacy and cybersecurity could dampen customer enthusiasm towards adopting smart lock technology. Customers may fear potential hacking incidents or unauthorized access to their homes through smart lock systems, leading them to opt for traditional lock systems instead. To address these challenges, key industry players must invest in comprehensive marketing strategies and awareness campaigns to educate consumers about the benefits of smart locks. These efforts should emphasize the convenience, enhanced security, and remote access features that smart locks offer. Additionally, manufacturers should work on simplifying the user experience and providing clear information about product specifications and compatibility to reduce confusion among potential buyers.

Global Smart Locks Market Trends:

Growing popularity of smart home-as-a-service and home automation

The smart locks market is witnessing a significant boost in demand and growth due to the growing popularity of smart home-as-a-service and home automation. Smart home-as-a-service, also known as SHaaS, is an innovative business model where customers subscribe to a package that offers a comprehensive range of smart home devices and services. This subscription-based approach allows users to access various smart home functionalities without the need for substantial upfront investments in individual devices. As part of these SHaaS packages, smart locks play a pivotal role in enhancing home security and automation. By integrating smart locks into the broader smart home ecosystem, users can enjoy seamless control and monitoring of their locks along with other connected devices through a unified platform or mobile app. This convenience and consolidation of services contribute to the growing popularity of SHaaS and smart home automation. As the trend towards smart homes continues to expand, smart lock manufacturers and providers of SHaaS are poised to enjoy remarkable business growth and increased consumer adoption in the coming years.

Advent of novel technologies

The smart locks market has witnessed the advent of novel technologies that have revolutionized the way we approach security and access control. One of the most significant advancements is the integration of biometric authentication in smart locks. Biometric technologies, such as fingerprint recognition and facial recognition, provide a highly secure and convenient way for users to access their homes or premises. These methods eliminate the need for traditional keys or PINs, reducing the risk of unauthorized access and enhancing user experience. Moreover, the rise of artificial intelligence (AI) and machine learning has enabled smart locks to become more intelligent and adaptive. AI-powered smart locks can analyze user behavior patterns, identify anomalies, and proactively enhance security measures. For instance, they can detect suspicious activities, such as multiple failed access attempts, and trigger alerts or temporary lockouts to protect against potential threats. The advent of novel technologies in the smart locks market has expanded the possibilities for home security and access control. Biometric authentication, AI-powered intelligence, mobile-based access, IoT integration, and blockchain security are just a few examples of the exciting developments that have transformed traditional locks into highly sophisticated and user-friendly smart lock solutions. As these technologies continue to evolve and become more accessible, the smart locks market is poised for further growth and innovation in the future.

Figure 2: Global Smart Locks Market Share (%), By Product Type, 2023

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Global Smart Locks Market Segmentation:

This report segments the global smart locks market on the basis of by product type, by unlocking mechanism, application and region. On the basis of product type, the global smart locks market is segmented into Deadbolt and Lever/Knob. On the basis of unlocking mechanism, global smart locks market is segmented into Keyboard, Touch Screen, App Based and Hybrid/Integrated. On the basis of application, global smart locks market is segmented into Government, Commercial, Industrial and Residential. On the basis of region, global smart locks market is segmented into North America, Latin America, Europe, APAC, Middle East and Africa.

Global Smart Locks Market: Key Developments

In November 2021, Dormakaba France is an one of the top three companies for access control and security solutions in the global market has completed the acquisition of Fermatic Group, a renowned provider for services for automatic doors and gates in France.

In September 2021, Dahua Technology Unveils Deep Hub Smart Interactive Whiteboard for Efficient and Collaborative Video Conferencing. an IFPD (Interactive Flat Panel Display) device designed for modern meeting rooms and remote communication demands.

In November 2021, SALTO introduces the new XS4 Original+, delivering breakthrough innovations, redefined design and a powerhouse chip with impressive smart access features.

Global Smart Locks Market: Key Companies Insights

Key players operating in the global smart locks market are Apigy Inc. (Lockitron), Schlage, Kwikset, Honeywell International Inc., Havenlock Inc., Panasonic Corporation, Samsung SDS Co., Ltd, Vivint, Inc., August Home Inc., and Assa Abloy Group.

*Definition: A smart lock is an electronic and mechanical locking device that opens wirelessly with an authorized users' authentication.