Smart lock makes better smart home and businesses: Grand View Research

Smart lock makes better smart home and businesses: Grand View Research
Always wanted a device that could unlock your door with a smartphone? It has been done. No need to fumble for keys at the door. These new-age devices unlock the doors wirelessly using an authorized users’ authentication generated by smartphones.

Numerous companies, with more on their way, are contending to be the effective barrier between you and the inside of your home. Innovative startups and lock manufacturers worldwide have already unveiled their wide range smart locks for residential as well as commercial applications. According to an estimation by Grand View Research, the global smart lock market size was valued at USD 559.4 million in 2016, and the demand for such locks is anticipated to exceed 134 million units by 2024.

Smart locks have transitioned from the trend of niche innovation to a necessity smart household fixture for users seeking sophisticated security devices, with products from well-established brands, like Yale, joining products from innovative startups on the shelves. Moreover, the smart lock trend doesn’t start and finish with connected locks designed for smart homes. Another emerging application of smart lock technology can be observed in smart padlocks that portable, free-standing and come in a range of sizes.

Innovative smart locks increases the core value delivered to consumers

While the majority of smart locks offer smartphone applications, which allow users to lock and unlock doors with a simple tap; some provide web apps that enable users to manage and control devices from their laptops or desktop PCs. Almost all apps allow end-users to add and control temporary and permanent users, schedule access for particular days and times and provided activity logs for owners to monitor the time of entrance and exit of users/visitors.

Some innovative startups are developing and commercializing locks that offer various advanced features, such as auto-locking, geofencing, and voice activation. Other smart lock features available in the market include email and push text notifications, forced entry and tamper alarms, keyless touchpads for access in the absence of mobile/keys.

Smart home specialists and telecom companies are leveraging the available growth opportunities to their fullest, thereby further propelling the industry growth by introducing smart door locks in their new ventures. Manufacturers have induced themselves towards incorporating contemporary technologies, such as Wi-Fi and Bluetooth-based unlocking access, owing to the growing popularity of the associated IoT device usage and BYOD trend thereby complimenting the smart door locks industry growth.

Thailand is poised for smart lock demand growth

Being the second largest economy in Southeast Asia, Thailand is regarded to encompass substantial opportunities for smart home market growth, with significant growth prospects besides the matured economies, such as the US and Europe.

The regional smart lock market growth lies on three driving pillars, namely the new construction of commercial buildings and luxury apartments, adoption of smart technologies by security solution providers to enhance their services, and growing installation of advanced-technological products/devices by the key hotel brands to improve the overall guest experience. The adoption of smart locks in Thailand is expected to witness considerable growth in the near future due to the growing awareness of niche-technology products among the local populace.

VCs investing in the smart home marketplace across Southeast Asian countries, particularly Thailand and Singapore, are continuously seeking to increase their portfolios by reducing volatility and risks and increasing profits. Smart lock startups are increasingly partnering with the commercial users to expand their footprints across a broad application base.

Recently, in April 2018, Igloohome, a Singapore-based smart lock manufacturer, closed a USD 4 million Series A round of funding. The company has formed a strategic alliance with Airbnb to deploy their locks across the some of the latter’s properties. As a result of this alliance, once a user receives a confirmation of reservation, the company’s server generates a code and shares it with the user, which allows the user to gain entry in the property on particular dates and times. The company’s smart lock products are sold across Thailand, Australia, and Singapore.

Adoption of Smart Locks Across Various Residential As Well As Commercial Applications

Smart door locks cater both the residential and commercial market’s needs. Commercial markets altogether acquire a more significant chunk of overall smart door lock market. The hospitality segment is expected to witness considerable growth in the near future. Worldwide hotel businesses are increasingly implementing smart locks to cater to the safety needs of international customers.

The residential sector is anticipated to witness significant growth in years to come, especially in the Southeast Asian countries, owing to growing architectural and construction ventures along with the advent of the concept of building numerous smart cities. Residential smart locks that interact with smartphones and offer an enhanced automated living experience are now being increasingly seen at the front doors. With the growing adoption and smart lock technology proliferation, these products are expected to offer homeowners more connectivity and convenience while maintaining control and security.

Smart locks are capable of unlocking and locking via homeowner’s smart device. They can be integrated with a wide range of home automation devices, thereby providing convenience as well as security for users as they leave or arrive at home. With such locks setting the trend in the housing sector, they are expected to be seen at every smart home entrance in the near future, rendering mechanical locks and keys a thing of the past. The residential application segment is envisioned to emerge as the highest revenue generating and the most lucrative part over the next few years.

Price vs. Value of smart locks

However, a higher price tag for such connected locks is expected to pose signification challenge for the adoption of smart locks. While the homeowners in developed economies are starting to embrace the convenience and benefits of smart home technologies, they are not yet ready to spend big bucks for them. The average selling price of a smart lock is a little over USD 200, while conventional mechanical locks can be purchased for as low as USD 60. Although startups and investors increasingly recognize the core value of such smart products, the majority of end-users worldwide perceive only a marginal value of the cost that isn’t enough to vindicate the higher prices of such smart devices.

*Contributed by Siddharth Misra, Consultant of IT & Telecom and Next-Generation Technologies

Siddharth is a consultant with Grand View Research and is responsible for the company’s syndicate and consulting market research across the IT & Telecom and Next-Generation Technologies domains. His key areas of interest include smart locks, electronic locks, wireless access control technologies, and other emerging technologies shaping the new-age security solutions industry. Siddharth has extensive experience in the smart security solutions industry and has worked mainly with the global and regional technology providers, security product manufacturers, and wireless connectivity service providers, helping them make better business decisions.
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