Smart Lock Market

Smart Lock Market Outlook (2023 to 2033)

The global smart lock market size is forecasted to expand at a high-value CAGR of 16% from 2023 to 2033. In light of this trend, worldwide sales of smart locks are set to increase from US$ 5 billion in 2023 to US$ 22.06 billion by the end of 2033.

Smart locks are advanced, electronic locking systems designed to provide secure and convenient access control to homes, businesses, and other properties. They replace traditional mechanical locks and keys with digital technology. Smart locks allow users to lock and unlock doors without the need for physical keys. Instead, they typically use methods such as PIN codes, smartphone apps, keycards, or biometrics (fingerprint or facial recognition) for access.

Many smart locks can be controlled remotely through a smartphone app or a web interface. This feature enables users to monitor and control their locks from anywhere with an internet connection. Smart locks are gaining popularity due to the convenience and enhanced security they offer. They are often used in residential properties, vacation rentals, commercial buildings, and any place where controlled access is essential.

Some of the smart locks are deadbolts, lever handles, and padlocks. Deadbolt smart locks accounted for a revenue share of over 46% in 2022 and this segment is projected to maintain its dominance in the industry in the coming decade. The immense growth can be attributed to its mounting deployment across the residential sector owing to plentiful benefits such as ease of use as well as a durable locking mechanism.

Deadbolt smart locks offer a high level of security compared to traditional locks. The added digital features, such as encryption and real-time monitoring, make it difficult for intruders to tamper with or pick the lock. This added security is a strong selling point, especially for homeowners and businesses looking to protect their property.

• Kwikset, one of the key market players, is combining advanced deadbolts with built-in features such as low battery warning, one-touch locking, and customizable user codes into its portfolio, ultimately enticing a vast user base.

Report Attributes	Details
Smart Lock Market Size (2023E)	US$ 5 Billion
Forecasted Market Value (2033F)	US$ 22.06 Billion
Global Market Growth Rate (2023 to 2033)	16% CAGR
Leading Regional Market	North America
Key Companies Profiled	Assa Abloy AB Allegion PLC Dorma + Kaba Holding AG Spectrum Brands Holdings Inc. Salto Systems S.L. Onity Inc. Cansec Systems Ltd. Gantner Electronic GmbH Master Lock Company LLC MIWA Lock Co. Samsung Electronics Co. Ltd. Amadas Inc. Sentrilock LLC Avent Security Dessmann

Why are Smart Locks Gaining Popularity Worldwide?

“IoT- and AI-integrated Locks Making Homes and Public Structures Smarter”

Smart lock technology can make life simpler for professionals as well as crack the emerging last-mile delivery problem. Many innovations today are aiming to make homes smarter and everyday life easier, now achievable due to superior data analytics and the advent of artificial intelligence (AI) and the Internet of Things (IoT). The augmented penetration of smart devices in residential and commercial properties is boosting the growth of the smart lock market.

Consumer awareness about smart devices and the convenience they offer is significantly influencing the smart lock market growth. The shift in respective government's focus on the digitization of public and private sector infrastructure acts as a central driver for smart lock sales.

High connectivity of smart devices in public, private, and residential infrastructure is generating simultaneous demand for smart locks. In the smart lock market, there are many divergent product designs with different operational characteristics as well as many active competitors. Enhanced security, safety, and monitoring of properties for theft prevention is enabling the deployment of advanced smart lock systems.

“Innovations Redefining User Experience and Enhancing Power of Smart Locks”

Technological advancements in home and office security systems have set new benchmarks with the installation of functions such as voice controls, and fully keyless, app integration. These functions are offering extensive growth opportunities for smart lock manufacturers across the globe.

Voice Controls: Voice assistants including smart speakers, such as Amazon Echo and Google Home, are witnessing rapid adoption in homes. Security device manufacturers are introducing their offerings compatible with these devices, facilitating the devices to be voice-controlled.

Fully Keyless: Smart locks come with conventional keys so that homeowners can gain entry even if power is out. Kwikset, a manufacturer in Lake Forest, California, provides a smart lock that operates with a 9 V battery, eliminating the need for customers to carry keys.

App Integration: While customers may like to have multiple types of smart home devices, they are less likely to enjoy having to use separate smartphone apps for separate device types. Initially, this was a common requirement, but increasingly, end users can use a single app to control multiple smart devices, including smart locks.

Users can easily lock or unlock their smart locks from their smartphone apps, granting them unparalleled convenience and peace of mind. This is particularly beneficial for homeowners who want to monitor and manage access to their property while away from home.

Many smart lock apps offer features like real-time notifications, allowing users to receive alerts when someone enters or exits their property. This real-time feedback enhances the sense of security and control.

Which Factors are Barriers for Both Consumers and Smart Lock Producers?

“High Initial Cost of Smart Locking Systems”

Smart locks generally come with high upfront costs compared to traditional lock and key systems. The cost includes not only the smart lock itself but also any additional components or accessories, such as a hub for remote access or a Wi-Fi bridge.

Initial investment can be a deterrent for consumers who are budget-conscious or price-sensitive, as it may represent a significant expense, especially when considering the purchase and installation of multiple locks for various entry points in a home or business.

“Data Collection and Privacy Issues and Cyber Theft Risks”

Collection of user data and potential vulnerabilities in smart lock systems is a critical concern that can have far-reaching implications for both individuals and organizations. Smart locks often collect and store data related to user access, including entry and exit times, who entered or exited, and how they gained access (e.g., PIN code, smartphone app, or biometrics). This data can be sensitive and may raise privacy concerns, as it provides insight into the movements and activities of individuals within a property.

Users may be worried about who has access to this information and how it is being used. Smart lock systems, like any connected device, are susceptible to cybersecurity vulnerabilities. These vulnerabilities can be exploited by malicious actors, potentially leading to unauthorized access to a property. Weak passwords, unpatched software, and inadequate encryption are common points of vulnerability that could compromise the security of smart lock systems.

How Can New Companies Change the Competitive Game in This Market?

“Focus on Advanced Security Features and Customization”

New entrants can primarily focus on innovative features and unique selling points. This could include introducing advanced security measures, integrating with emerging technologies, or offering customization options that set their products apart from established competitors.

“Competitive Pricing to Attract Price-sensitive Customers”

Offering smart locks at a competitive price point can also be a winning strategy for new companies. Price-conscious consumers are always on the lookout for cost-effective options, and this can help newcomers acquire a high market share.

“Niche Marketing Securing High-Profit Slice”

New companies can also identify and target specific niche markets, such as vacation rental property owners, small businesses, or senior living facilities. Tailoring products and marketing efforts to meet the unique needs of these segments can lead to better sales.

Country-wise Analysis

As per a detailed study by Fact.MR, a market research and competitive intelligence provider, the smart lock market is growing in the United States, Germany, and Japan, driven by different factors in each country. These factors range from technological preferences to cultural values and urbanization trends, all contributing to the growth of the market in these countries.

What Dynamics are Driving the Profits of Smart Lock Suppliers in the United States?

“Home Automation Trends Increasing Adoption of Smart Locks”

The United States is witnessing significant growth in the adoption of smart home technologies. Smart locks are an integral part of this trend, offering convenience and security. The desire for interconnected and automated homes is driving smart lock sales in the United States.

Why are Energy-efficient Smart Locks Highly Popular in Germany?

“Focus on Quality and Sustainability Pushing Sales of Eco-friendly Smart Locks”

German consumers highly value the quality and reliability of their products. Smart locks, with advanced security features and durable designs, align with these preferences. Germany's focus on sustainability extends to its technology choices. Energy-efficient smart locks and those with reduced environmental impact resonate with environmentally conscious consumers.

Why are Digital Locks Gaining Momentum in Japan?

“Growing Demand for Easy and Safe Smart Locks among Senior Citizens”

Japan's expanding aging population is propelling the need for secure and easy-to-use home access solutions. Smart locks with biometric features, such as fingerprint recognition, cater to this demographic. Safety and privacy are paramount in Japan. Smart locks provide a sense of security and control over who enters the home.

Category-wise Analysis

While smart locks are gaining significant popularity in residential settings due to their convenience and security features, their demand is also predicted to rise in commercial settings during the next 10 years. The ability to offer advanced access control and integrate with existing security systems is making smart locks a compelling choice for businesses looking to enhance their security measures.

What is the Primary Application of Smart Locks?

“Growing Trend of Smart Homes Driving Use of Smart Locks”

Smart locks are experiencing significant usage in residential settings. Their growing adoption is closely associated with the global proliferation of smart homes and a surge in new construction and renovation projects in recent years.

Rising affordability of contemporary security solutions, including motion detectors, door/window sensors, and remote door access control, is expected to propel adoption even further. Emergence of locks compatible with technologies such as ZigBee, Z-Wave, and BLE is also gaining popularity, particularly in mass-market residential applications, thus appealing to a diverse customer base.

Competitive Landscape

Key manufacturers of smart locks are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions to expand their presence. Leading smart lock manufacturers are also continuously investing in research and development initiatives to introduce innovative features and designs.

• In March 2023, Tennessee's HavenLock Inc., known for its innovative Haven Lockdown System, introduced a new Power G smart lock designed for school and commercial use.
• In February 2023, Sentrilock, a top provider of real estate electronic lockbox solutions, announced a partnership with the Chesapeake Bay and Rivers Association of REALTORS® (CBRAR) to establish a smart electronic lockbox marketplace for REALTORS®.
• In February 2022, Dormakaba acquired AtiQx Holding B.V., enhancing its core operations and services in the Netherlands.
• In September 2021, ASSA Abloy signed a definitive agreement to acquire the Hardware and Home Improvement (“HHI”) division of Spectrum Brands for a purchase price of MUSD 4300 on a cash and debt-free basis.
• In February 2021, Allegion Plc. introduced the new Schlage Ease™ range of smart locks that are easy to install and use, but with maximum features. These locks are available in either deadbolt or entry lock versions and offer affordable style, convenience, and security with modern smart functionality for any home.

Key Segments of Smart Lock Market Research

• By Type :

  • Deadbolt Smart Locks
  • Lever Handle Smart Locks
  • Smart Padlocks

• By Technology :

  • Wi-Fi
  • Bluetooth
  • Zigbee
  • Z-Wave

• By Application :

  • Residential
  • Hospitality
  • Enterprises
  • Critical Infrastructure

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa