China smart lock industry soars with booming demands: Report

China smart lock industry soars with booming demands: Report
In China, the penetration of smart locks is still under 3%. But the gadget has been considered as the starter-product of smart homes to build up the basis of home security. According to the report, offline channels and projects share 90% of the smart lock sales in the country currently. International brands Samsung and Yale dominate the market, while domestic brands Kaadas, Midea Group, ZTE and others are competitive with their local advantages of full supply chain.

In the recently released “2017 White Paper: Smart Lock in China” by Analysys, a research firm in China, China’s smart home market is worth as of RMB 114 billion in 2016, and will reach 140.4 billion by 2017, in a growth rate of 23.2%. By 2019, a market size of RMB 195 billion is estimated.

Among the smart devices, smart lock is considered a starter-product of smart home to build up the basis of home security. Together with the connected devices including cameras, sensors, alarms, and data sharing on cloud systems, smart locks creates an instant effect on home entrance security.

By 2017, the market penetration of smart locks is still under 3% in China. With promising market forecasts, traditional hardware doorlock manufacturers, start-ups, security system providers, telecommunication companies and home appliance producers are all planning to share the market pies of smart home locks in China.

As B2B market steadily grows, B2C market soars

As more business and public buildings are applying smart locks or access control, Analysys considers the B2B market will be the majority of smart lock consumption, and the B2C market is at its initial stage. The sale of smart locks in offline retails are exceeding e-commerce and project-based channels. Offline retail is predicted to be the major distribution channel in Chinese market. Companies need to promote real-time user experience to educate end users.

To the business segments, B2B smart lock solutions set foundations for smart neighborhoods and smart cities. It supports house management programs, and enables data sharing for the complex applications such as the hotel automation and amalgamated dwelling management. As for B2C solution in smart homes, it is expected to upgrade life experience and be integrated with other smart home appliances such as smart light and indoor thermostat.

Smart lock suppliers compete the market with their background advantages in China. For example, traditional door lock companies have their existing market share and manufacturing backups. These suppliers tend to combine new IoT technologies into the traditional locks. On the other hand, start-ups have the advantage of offering integrated solutions of software, aesthetic designed hardware and services to consumers.

The locals gear up

As the report cited, international bigshots Samsung and Yale of Assa Abloy are two smart lock pioneers in China at the moment. Local leaders such as Kaadas are gearing up to share the pie.

Kaadas has R&D centers in Germany, Beijing and Shenzhen, and deploys globally with their innovative techniques and the integrated security kit. Apart from security products, Kaadas also provides premium service. Within an hour of booking, the technician from Kaadas will visit customers’ home and install their products right away.

Coming from the home appliance industry, Midea Group has been developing its foothold in China’s smart home market with its M+ open platform and Msmart smart home platform. With the supply of smart locks with other smart home appliances, Midea sets up a complete smart home ecosystem, providing hardware and services in smart neighborhoods and households.

ZTE Corporation started smart lock deployment based on telecommunications and information technology. With the launch of router, ZigBee gateway and smart locks, ZTE builds its own smart home ecosystem.

DDING.NET released both smart locks for the apartment building and detached houses. With the production of the doorlock and magnetic contacts, they further supply security solutions to occupy the potential market.

Seeing the future potential, manufacturers and solution providers are both aware of the smart lock market in China. To catch consumers’ attention, companies need to find out the most innovative techniques and solutions to meet the strong demand in Chinese households.

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