The smart lock market size is anticipated to grow owing to the rising security concerns among consumers and the rising proliferation of home automation systems, according to Global Market Insight.
Thefts and burglaries have risen significantly in the recent years. For instance, in 2016, an estimated 2.5 million home invasions and property thefts were registered in the U.S. with an average estimated loss of US$2,230 per break-in. This has fueled the demand for smart locks and has led consumers to transition away from traditional lock systems owing to the higher security and convenience that smart systems provide.
Additionally, these detect tampering alert the users and the authorities discretely before a property break-in occurs, allowing higher rates of arrests of the guilty parties.
In the light of the rising trend of IoT in recent years, intelligent and connected devices have found increasing applications in personal and commercial settings, propelling the smart lock market growth.
These devices use connective technologies such as Wi-Fi, Bluetooth, infrared, and NFC to connect to handheld and controlling devices over a short range and Internet to connect to the devices over a long range. Users can access their home security systems from a remote location by connecting through the Internet. The proliferation of smart lock market is projected to grow at a rapid rate as they are equipped with advanced technological features such as remote access and intercom and camera facilities.
Barriers to adoption
A major factor impeding the smart lock market growth is the high cost of purchasing and deploying these systems. The equipment is priced relatively higher than its traditional counterparts and requires technical expertise to be operated. However, the declining costs of raw materials and labor for manufacturing the equipment are aiding in overcoming the hurdle.
Another challenge hindering the smart lock market is the perception of the unreliability of these security electronics and consumer reluctance to adopt them. As a major portion of the functionality is in the digital platform, these are highly susceptible to third-party cyber-attacks. Hacking and malware attacks can lead to the loss of financial funds and physical properties. Additionally, safety issues can lead to the loss of reputation in organizations, causing a decline in the customer trust and an inflow of new customers.
Rising construction of smart homes and the rising penetration of home automation security systems are providing an avenue for the growth of the smart lock market. Economies including China and India are experiencing heavy investments in the development of the urban locations for residential and commercial purposes, owing to the decline in the labor and raw materials and the rising rate of urbanization.
Wi-Fi as the popular protocol
Smart lock market segmentation by connectivity technologies indicates that the Wi-Fi segment dominated in terms of revenue in 2017 as it provides long-range connectivity, strong connectivity, and is the most favorable technology in smart devices. Wi-Fi comes is relatively more expensive than Bluetooth and requires a dedicated power source contributing to the strong projected growth of the Bluetooth smart lock market. These are equipped with battery systems and can function effectively even during times of power outages.
Product type segmentation of the smart lock market by product indicates that the deadbolt segment holds the largest market share owing to their high adoption in the residential sector. These have lower installation costs and higher durability. Lever handles segment of the smart lock market is projected to witness a significant growth as they prevent door knob stains, contributing to the high adoption in workshops or garages, bathroom doors, and handicap accessibility locations.
Market demand
The residential end-user segment is anticipated to lead the smart lock market owing to the rising consumer awareness and the rising demand for home automation solutions that provide higher security and convenience.
The commercial segment holds the largest market share as locations such as banks, government agencies, and places containing large financial and physical assets, require multiple layers of protection against thefts. BSFI is expected to be the largest adopter of the smart lock market over the forecast timespan. Banks pose high risks of security breaches due to a large flow of cash. These devices enable a high degree of protection for these institutions. For instance, strict parking controls, low spaces, and heavy parking regulations in Taiwan are promoting the smart lock market. Chunghwa Telecom has developed an NB-IoT-powered device that can be used to prevent unauthorized parking.
Europe is among the major consumers of smart lock market. The rise of new investors in the region after the decline of Europe debt crisis has offered substantial opportunities for the market growth.
Additionally, consumers in the region also possess the technical expertise required to operate these devices and are more inclined to adopt new and advanced technologies. Strong local manufacturing of the products and technology, the abundance of low-cost labor and raw materials, and the increasing construction of broadband infrastructure contribute to the rapid growth in the Asia Pacific smart lock market.
Various economies in the region including China and India are at the forefront of the industrial boom. This is leading to the increase in the disposable income of the general population owing to which consumers are now able to purchase high-end and advanced technologies.
Key players in the industry
Key players in the smart lock market include Assa Abloy, Allegion, Panasonic, Spectrum Brands, Salto Systems, Onity, UniKey, Haven, Canseco Systems, and Master Lock.
Major players in the industry are focusing on manufacturing sustainable products, entering into mergers & acquisitions, and partnerships to sustain growth in the global marketplace.
In June 2017, ASSA ABLOY announced the acquisition of the Atlantic Door Control, which provides automatic door and entrance systems. This strategy was undertaken to strengthen their presence across the world and increase their product offerings; strengthening their presence in the smart lock market.