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  • Published On : Mar 2020
  • Code : CMI3610
  • Industry : Smart Technologies
  • Pages : 140
  • Formats :

Market Insight- Global Smart Locks Market

Market Overview

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.

The global smart locks market was valued for US$ 434.4Mn in 2019 is expected to exhibit a CAGR of 18.8% during the forecast period.

Market Dynamics- Drivers

  1. 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.

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

Growing adoption of smartphones and the internet has offered excellent growth potential for smart locks since they are interconnected. Smart locks such as August are incorporating with Apple’s platform Apple Homekit. These interconnected devices can be commanded by Siri’s voice control capabilities for locking and unlocking needs. Schlage Home sense BlueTooth lock also can be operated and monitored from the iOS platform. Unikey lock systems for hospitality developed a supporting mobile app and hardware electronics that enable an electronic passkey generation on a compatible smartphone to allow access to the hotel rooms using Bluetooth technology. The hotel sector and chains will be able to incorporate this functionality into their own app and management systems. Therefore, advancements in technology are expected to boost the market growth over the forecast period.

North America region dominated the global smart locks market in 2019, accounting for 36.0% share in terms of value, followed by Europe and Asia-Pacific, respectively

Smart Locks  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. 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.

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

Despite its lucrative benefits and advantages, the adoption of smart locks among customers is extremely low. Generally, smart locks are used in lavish apartments where smart home concept is implemented. Thus, a very small portion of the population is familiar with the benefits of these systems, thereby hindering their adoption. Moreover, high cost of implementation and unwillingness in some consumers is expected to hinder the global smart locks market growth over the forecast period.

Market Opportunities

  1. 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 2014, Hilton and Starwood owner of Sheraton, Westin, W, upgraded 30,000 room locks in 150 hotels to smart locks accessed through apps. Hilton has enabled guests to use this feature in 60,000 rooms and had started its project on 10 properties in the U.S. Moreover, in 2014, OKIDOKEYS a part of OpenWays Group, announced its line of smart locks and keys at the Consumer Electronics Show.

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

Internet of Things (IoT)-based security systems use four sensors namely smoke, temperature, LPG, and IR sensors. The data collected from these sensors is sent over the Wi-Fi module for connecting microcontrollers to the Wi-Fi network and send data. The integration of an IoT-based security system provides the user with total control over the security system and enhances the overall security measures.

Smart Locks  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

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

Growing smartphone proliferation is the major factor driving growth of the global smart locks market. Many service providers are focused on offering smart home-as-a-service and home automation, which in turn, increases the adoption of smart locks. Moreover, growth in wireless communication technologies is a leading factor boosting the advancement of the home automation market, thereby compelling the overall growth of global smart locks market.

  1. Advent of novel technologies

Newly introduced Wi-Fi and Bluetooth-controlled locks are gaining extensive popularity in the market. Customers can open their doors with digital keys without the requirement of the whole-home automation system network. Since companies are focused on novel technology, products such as Haven smart lock and Lockitron are being introduced in the global smart locks market. For instance, Havenlock Inc. introduced a door-mounted smart lock which is said to be 10x stronger than a regular deadbolt lock.

Segment Information:

In global smart locks market, by product type segment, deadbolt sub-segment dominated the global market in 2019, accounting for 63.5% share in terms of value.

Smart Locks  | Coherent Market Insights

Source: Coherent Market Insights

Competitive Section

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.

Key Developments

  1. Key players in the market are focused on product launches, in order to expand the product portfolio. For instance, in January 2017, Kwikset launched its latest smart lock named Obsidian which is the lowest profile smart lock, with a sleek and dark touchscreen that enhances the boundaries of design in the touchscreen and touchpad lock category.
  2. Key companies in the market are involved in collaborations and partnerships, in order to enhance the market presence. For instance, in January 2017, August Home Inc. collaborated with Logitech, enabling smart locks to be controlled by a POP recipe and home switch. Doors can be locked from living or bedroom by a single tap on the Logitech Home Switch or any third-party POP-enabled device.

A smart lock is an electrical and mechanical lock system that performs locking and unlocking function when receive instructions from the authorized user. These instructions are transferred from smartphones, wearable devices and tablets using Wi-Fi or Bluetooth connection. Smart locks are used to provide notifications through SMS and e-mail and also provide image of the person at the door. Smart locks are an integral part of smart homes, which allow homeowners to enter their home without requiring traditional key. Many smart locks uses 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.

 Market Dynamics

Growing adoption of smart home technologies is the factor driving  growth of the global smart locks market during the forecast period. The smart home locks provides automation and access capabilities to users from smartphones, tablets, and other devices. Rise in lifestyle of urban households has increased the demand for smart locks devices to monitor homes. Smart locks are also providing security due to rising number of threats along with the development of smart cities in the residential and urban sectors. For instance, According to the Office of National Statistics, in 2019, there were around 687 domestic burglaries and 633 household thefts per 1,000 population in U.K. According to the same source, there was around a 7% increase in the number of police-recorded offenses involving knives and sharp objects. Thus, these factors are expected to drive growth of the global smart locks market during the forecast period.

Moreover, Owing to rising urbanization, disposable income and growth of IoT technology people are accepting smart based technologies for daily life functioning. Implementation of smart technology  such as cloud based locking and unlocking allow the user to access locks through virtual device which in turn increases the demand of global smart locks market. For instance, companies such as August Home and Danalock International ApS are focusing on implementing latest technologies such as automatic unlocking mechanism and touch sensors in their products. .Therefore, advancements in technology are expected to boost the market growth over the forecast period.

Market Taxonomy

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 Keypad, 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.

Key features of the study:

  • This report provides an in-depth analysis of the global smart locks market and provides market size (US$ million) and compound annual growth rate (CAGR %) for the forecast period (2019-2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global smart locks market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the global smart locks market includes
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology upgradation, market expansion, and marketing tactics
  • The global smart locks market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global smart locks market.

Detailed Segmentation:

  • Global Smart Locks Market, By Product Type:
    • Deadbolt
    • Lever/Knob
  • Global Smart Locks Market, By Unlocking Mechanism:
    • Keypad
    • Touch Screen
    • App Based
    • Hybrid/Integrated
  • Global Smart Locks Market, By Application:
    • Government
    • Commercial
    • Industrial
    • Residential
  • Global Smart Locks Market, By Region:
    • North America
    • Latin America
    • Europe
    • APAC
    • Middle East and Africa
  • Company Profiles
    • Apigy Inc. (Lockitron) *
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Schlage
    • Kwikset
    • Honeywell International Inc.
    • Havenlock Inc.
    • Panasonic Corporation
    • Samsung SDS Co., Ltd
    • Vivint, Inc.
    • August Home Inc.
    • Assa Abloy Group

*Browse all the market data tables and figures on “Global Smart Locks Market- Forecast to 2027”

Frequently Asked Questions

The global smart locks market is estimated to reach US$ 1,718.8 million by 2027.
Major players operating in the global smart locks market include 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.
Concerns regarding system compromise and a threat from hacking are some of the major factors that are expected to hamper growth of the market over the forecast period.
Growing adoption of smart home technologies is one of the major factors that is expected to propel growth of the market over the forecast period.
The global smart locks market is estimated to exhibit a CAGR of 18.8% during the forecast period (2019-2027).
Among regions, North America is expected to hold a dominant position in the global smart locks market in 2019, accounting for 36.0% share in terms of value, followed by Europe and Asia Pacific, respectively.

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