Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Market Insight- Global Electronic Cylinder Lock Credentials Market
Electronic keys refer to a digital encoded key that ensures high level of security. An electronic lock or electric lock is a locking device that operates by electric current. These locks are standalone devices with electronic assembly mounted directly to the lock. Moreover, these locks can be remotely monitored and controlled, to lock and unlock. An electronic fob is a type of smart security token with built-in authentication mechanism. Conventional fobs are developed using infrared technology and thus can be copied with help of programmable remote control. Therefore, it is less secure. Furthermore, access card is a plastic card that contains chip encrypted data that can be read by an electronic lock when passed over it. These cards find application in offices, hotels, hospitals, commercial building, airports, etc.
The global electronic cylinder lock credentials market was valued at US$ 473.86 Mn in 2019.
Market Dynamics- Drivers
- High growth of construction and real estate industries is expected to drive growth of the global electronic cylinder lock credentials market during the forecast period
Robust growth of real estate and construction sectors has increased the adoption of electronic cylinder lock significantly. Real estate developers are focused on providing high-end security solutions in buildings as their unique selling point, in order to attract potential customers. For instance, according to Coherent Market Insight’s analysis, the global construction market is expected to register a CAGR of 60% by 2020. This, in turn, is expected to boost the demand for electronic cylinder lock credentials and thereby boost the market growth in the near future.
- Increasing demand for enhanced security solutions in residential sector is expected to propel the global electronic cylinder lock credentials market growth over the forecast period
Increasing incidences of property crimes, burglaries, and home invasions in the recent past have increased the demand for advanced home security solutions. Moreover, growing awareness regarding enhanced security solutions and increasing concern regarding safety of their property and family have increased the adoption of high-end security solutions that are readily available in the market. Hence, increasing demand for enhanced security solutions is expected to support the market growth over the forecast period.
Europe region dominated the global electronic cylinder lock credentials market in 2019, accounted for 34.1% share in terms of value, followed by Asia Pacific, North America, respectively
Source: Coherent Market Insights
Market Dynamics- Restraints
- High initial installation cost of security systems is expected to restrain growth of the global electronic cylinder lock credentials market over the forecast period
Initial cost of electronic locks is significantly higher than mechanical locks. The global digital door lock systems market is dominated by a few established brands that offer reliable and better security assurance. These factors are expected to hinder its adoption and thereby restrain the global electronic cylinder lock credentials market growth over the forecast period.
- Low literacy of IT applications hampering large-scale adoption and is expected to hinder the global electronic cylinder locks credentials market growth over the forecast period
Although global awareness regarding benefits of electronic locks is increasing, they have little to no knowledge regarding latest equipment and reliable companies that offer satisfactory services. Low IT literacy among population in emerging economies is a major factor hindering adoption of electronic cylinder lock. IT literacy is essential in choosing best product according to need and available options. Furthermore, low proliferation of high-speed internet and limited IT interaction globally have resulted in limited awareness related to electronic locks, which in turn, is expected to hamper the market growth over the forecast period.
- Increasing expansion of IT and BFSI sector is expected to pose lucrative business opportunity
Growing expansion of BFSI and IT sector is expected to increase the adoption of digital door lock security solutions. This, in turn, will present lucrative business opportunities for market players, in order to capitalize on untapped market. Certain emerging regions such as Latin America has low adoption of electronic door lock systems. Consumers can offer novel and affordable products, in order to expand their revenue generation and gain competitive edge in the market.
- Increased expenditure capacity in developed regions is expected to present significant growth opportunity
Better living standards, high purchase parity, and a sense of awareness towards security and safety have increased the adoption of electronic cylinder locks. Consumers are demanding novel security solutions with incorporation high-end technology, which in turn, is expected to pose lucrative business opportunity for market players over the forecast period.
Source: Coherent Market Insights
RFID Key (Cards) sub-segment dominated the global electronic cylinder lock credentials market in 2019, accounted for 89.1 % share in terms of value, followed by Electronic Key (Contact based), and Key Fob & Badge sub-segment, respectively.
Source: Coherent Market Insights
- Advent of smart homes and gadgets is expected to boost the demand for electronic lock systems
Introduction of smart homes and gadgets in the recent past has increased the demand for electronic lock systems. This is owing to increasing use of smartphones and tablets. Residential security has become a major concern of people, thus they are adopting smart security solutions for their homes. Furthermore, smart home applications include electronic locks, sensors, security alarms, and cameras with other features such as extensive control over climate controls, self-powered lighting, fire alarms, and power management. Moreover, consumers are preferring advanced security features that can be integrated with smart home applications.
- Growing adoption of lavish and luxurious life>
High-end security solutions are a fundamental part of luxurious housing projects, which works as a selling point for project owners. Smart security and automation have become an important decision-making factor for purchasing any house or property by consumers. Furthermore, builders are focused on enhanced personalized security facilities for increasing their sales figures. However, such projects only target high-income group and hence accounts for a very small share of the overall population.
The European Federation of Associations of Lock and Builders Hardware Manufacturers (ARGE) have produced guidelines in 2011 in order to achieve uniform interpretation in European countries. According to the situation and type of risk to be prevented, the specifier makes the decision of choices. The guidelines cover building materials which are intended to be installed on doors and some are given below:
- EN 1154 Controlled doors and closing devices: BS EN 1154 classifies door closers using a 6 digit coding system. Each digit refers to a particular feature of the product measured against the standard's performance requirements.
- EN 1155 electrically powered hold open devices for swing doors: BS EN 1155 classifies electrically powered door closers under a six digit coding system
- CEN/TR15894 : Building hardware door fittings for use by children, elderly disabled people
EN14637: Electrically controlled hold-open systems for fire/smoke door assemblies – requirement, test methods, application and maintenance.
Value Chain Analysis
Key companies operating in the global electronic cylinder lock credentials market are iLOQ Limited, SimonsVoss Technologies GmbH, AIT Ltd. (Altman Integrated Technologies Limited), ASSA ABLOY, WFE Technology Corp., Salto Systems, S.L, CES Group, Legrand, and Kaba Group.
- Major market players are focused on partnerships and collaborations, in order to gain competitive edge in the market. For instance, in June 2017, SimonsVoss Technologies partnered with Axis Communications to introduce fully integrated, IP-based digital locking and access control system.
Key players in the market are focused on mergers and acquisitions, in order to enhance their market presence. For instance, in November 2018, Legrand, a provider of switches and sockets, acquired Netatmo, a France-based manufacturer of smart home devices.