Market Challenges And Opportunities

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.

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.