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 user’s 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.