Smart Lock Market

Global Smart Lock Market Size (2024 to 2029)

The size of the global smart lock market was worth USD 1.8 Billion in 2023. The global smart lock market is expected to grow at a CAGR of 13% from 2024 to 2029 and reach a value of USD 3.75 Billion by 2029 from USD 2.03 billion in 2024.

A smart lock is an electromechanical lock that responds to commands from an authorized device to lock and unlock a door. A remote protocol and a cryptographic key are used to carry out the authorization process. It also maintains track of who has access to the system and sends out notifications for the various events it monitors. Smart locks are one component of a smart home. These locking instruments are available wirelessly with the confirmation of a confirmed purchaser. Using a cryptographic key and their cell phones, the user can validate wirelessly and automatically open or lock the door. The use of smart locks for residential properties around the world is owed to the accelerated development of smart home architecture, which includes features like remote access, voice control, and seamless connectivity. The elimination of the necessity to carry mechanical keys around has also enticed residential owners.

CURRENT SCENARIO

The smart locks market is growing rapidly and the adoption rate has significantly increased after COVID-19. Also, the increased cases of mass gun shootings in the United States and others are driving up the smart lock revenues. Moreover, the rising government projects and initiatives related to smart cities are further influencing the acceptance in the commercial and industrial sectors.

Approximately 40 per cent of overall expenditure on smart homes is done by North American customers. It is the biggest industry for home automation. With around 29 per cent, Asia Pacific holds the second spot and Western Europe in third with 18 per cent. In addition, due to rapid digitalization and urbanization, improved disposable income and lifestyle it is highly projected that Asia Pacific will be the fastest-expanding smart locks market.  Another factor which is expected to fuel the market is the development of a complete lithium battery solution for smart security.

MARKET DRIVERS

The growth of the smart lock market is driven by the rising acceptance of modern home security solutions and the use of smart devices.

Smart locks are needed in both the residential and commercial sectors because of an increase in incidences of security threats and the development of smart cities. As a result, classic locking systems with bulky systems are rapidly replaced as keys are more prone to loss and theft. Also, people are more interested in technology to help them in their daily lives because of increasing urbanization, disposable income and the rapid adoption of IoT technology.

Moreover, it is essential to safeguard data and its privacy because video surveillance devices gather huge amounts of data. So, cybercriminals can get unauthorized access to smart lock cameras owing to poor passwords, obsolete firmware and unresolved software weaknesses. This presents a serious risk of potential video feed manipulation as well. Similarly, the top factors attracting the US people are the reduction in key replacement expenses, unique access codes, monitoring entries and exits, granting access to units remotely, tracking labour time for contractors and restricting access to evicted society people.

The growing global smartphone penetration has opened new growth potential for industry participants because of their continued efforts to build apps to manage the locking or unlocking processes. Furthermore, prominent market players are incorporating various unique tactics into their smart lock models. This includes Wi-Fi-enabled operation and Bluetooth based (BLE) locking and unlocking through smartphones and other devices. Also, password entry and pattern-based door entry are made easier with touch panels. According to research, around 78 per cent of prospective customers are willing to spend more money on the smart home and about 75 per cent of intelligent house buyers are less than the age of 55. Besides this, at least 8 devices on average are present in an American smart home.

Smart locks are Internet-of-Things-enabled entry systems that dispense without keys and allow users to control door locks remotely from their smartphones and other smart devices. Smart locks use Wi-Fi, mobile apps, and voice assistants like Alexa, Google Assistant, and Siri to lock and unlock doors, grant access to visitors, and send notifications when doors are left open or unlocked. The development of improved smart locks has been aided by artificial intelligence, machine learning, cloud-based apps, and IoT connectivity. Controlled door access, user recognition, and comprehensive facility control are all possible with integrated access control systems.

MARKET RESTRAINTS

High deployment costs and integrated access systems, the growing concerns about reliability as the number of hacking and cyber-attacks on connected systems increases are restricting the growth of the smart lock market. Also, the lack of awareness about smart locks in developing countries is expected to slow market revenue growth in the future.

Problems with smart components are a challenge for the industry players. For instance, Akuvox E11 is a system for offices and not for homes which allows intelligent intercommunication with a video stream along with a button to open the door and can be operated through mobile application. And, with the help of software’s ability to separate the web interface using the internet anybody can gain access to the audio and video camera to simply control and open it.

Another factor derailing the market expansion is the fast battery drain of smart locks. Primarily the dry battery users frequently complain about rapid discharge. Moreover, the operating life of four dry batteries is 6 to 8 months and 8 to 12 months for automatic and semiautomatic locks.

Malfunction in functionality is also decreasing the growth rate of the smart locks market. There are incidences where the door is not opened despite the correct password or pin or voice command and people struck outside or inside are forced to call company service which is often costly or other technicians which can be risky from the security point of view.

Impact Of COVID-19 On the Smart Lock Market

The COVID-19 pandemic hampered the installation of new smart locks during the first few quarters of 2020. Drastic changes in the industry, such as cross-border trade prohibitions, economic instability, rigorous standards mandating temporary shutdowns of industrial facilities, and stay-at-home mandates for the general public, created a tough situation. During the COVID-19 outbreak, however, speech recognition and mobile phones or smart devices would be used to lock and unlock devices, decreasing the need for physical contact with the hardware. Manufacturers were able to meet client demands for touchless and contactless systems to operate their devices as a result of these improvements, reducing the risk of infection during these challenging times. Throughout the pandemic, businesses employed new product development and the deployment of advanced and touchless technology as primary strategies.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Smart Lock Market Analysis - By Type

The deadbolts segment is estimated to account for the largest share of the smart locks market during the forecast period due to the rising demand in residential and commercial buildings which provide increased security and durability. Moreover, there is growing popularity of touch screens and smart deadbolts because of their easy installation and remote operation. This offers people the facility to check the current state of their locks online and operate doors from any location via internet. So, it also contributes to the segment's market growth. As per the whitepaper in 2022, more than 12 million US families have installed smart locks which shows its rapid expansion. But, currently, there are still a large number of mechanical locks in operation in the country.

Global Smart Lock Market Analysis - By Technology

The Wi-Fi segment is expected to grow significantly in the smart work market during the forecast period. This is owing to advancements in network technology, improvements in remote control capabilities of Wi-Fi-enabled smart locks and real-time alerts delivered by Wi-Fi-based smart locks. It provides a higher level of security and a safe smart home experience. Moreover, it removes the requirement for extra network access points or hubs and streamlines the installation and configuration procedure for customers. Also, wifi makes it effortless to pair or combine with larger smart home ecosystems. Further, it helps in establishing a better interdependent and smart home environment by enabling smart locks to connect with other wifi-based systems like voice-controlled assistants, thermostats and cameras.

Global Smart Lock Market Analysis - By End-User

The residential segment is expected to account for a significant share of the smart lock market. This is due to the growing adoption of smart locks in residential buildings to address modern security and safety concerns, the rising trend of home automation and increased investment in equipping new residential infrastructure with smart windows, sensors and other integrated safety features.

However, the keypad segment is growing rapidly because it removes the conventional physical key system and provides users a psychological relief. Apart from this, companies are heavily financing the development of next-generation electronic door locks. Some of the features have already started rolling out like fingerprint recognition, OTP access, Bluetooth smartphone application control, RFID cards, PIN code entry, etc.

REGIONAL ANALYSIS

North America held the greatest revenue share in the smart lock market in 2023 and it is predicted to continue to grow rapidly in the future. The expanding trend of smart homes, rising demand for IoT devices and quick adoption of modern lock systems due to an increase in break-ins are all contributing to the regional market growth. In addition, the United States is by far the largest industry for smart locks. This is due to a higher ratio of single-family houses and consumer's growing interest in smart home automation or security services. According to a study, the expenditure on home tech either surged or remained the same for more than 70 per cent of Americans in 2022 in spite of inflation. During May 2021 and May 2022, home technology expenses increased and three out of five purchased a smart home device. Moreover, the percentage of people who bought security systems like locks and cameras was about 65 percent and 28 percent of overall house automation tech buys were on security devices, 11 percent on smart locks and 9 percent were on smart baby monitors, indoor safety or nanny cameras. Therefore, these spending patterns are accelerating the regional market revenue.

Asia Pacific is predicted to have the highest CAGR of over 22 per cent in the coming years. This is attributed to an increased pace of modernization activities in the hospitality and residential sectors along with a greater awareness level of advanced security systems in emerging nations like India and Korea. Moreover, smart home solutions in South Korea are applied in multi-dwelling complexes in South Korea and shared entrances with commercial-grade electronic lock systems are also common. Besides this, in recent years China has not only led the region but also the world market as well regardless of product form, function or the number of brands and firms. But in this industry, households in South Korea have a penetration rate of over 50 per cent whereas in China the adoption rate is at their middle stage with around 35 per cent. Because of the maturing of smart lock technology and growing consumer awareness, China is striving towards being a global leader in this field. Furthermore, India is witnessing a rapid digital transformation, rising internet usage, and widespread acceptance of smartphones coupled with governmental schemes like Digi-India. So, the smart lock market is quickly grasping its foot in the country.

Europe is estimated to grow at a CAGR of 15 per cent during the forecast period and achieve a market value of approximately 12 billion dollars. In Western Europe, temperature control is more important and smart locks are progressively linked to intelligent home services. Moreover, the speedy digitalization and prevalence of connected devices in France, Germany, Italy and the United Kingdom are propelling the Europe smart lock market. For instance, Nuki which is an Australian company introduced its fourth-generation retrofit smart for European styled doors. Also, it is the first in the world to integrate products with Matter-over-Thread. Additionally, the rising penetration of home automation technologies is driving the growth of digital locks in Germany.

The LAMEA Smart Lock Market is likely to be dominated by Brazil, Argentina, the United Arab Emirates, Saudi Arabia, South Africa and Nigeria.

KEY PLAYERS IN THE GLOBAL SMART LOCK MARKET

August Home, Haven Lock Inc, Honeywell International Inc, Panasonic Corp, Samsung SDS Co Ltd, Schlage, Spectrum Brands, Unikey Tech Inc, Vivint Inc, Salto Systems SL, U-TEC Group Inc, Yale Locks & Hardware and Gantner Electronic GmbH are playing a key role in the global smart locks market.

RECENT HAPPENINGS IN THE MARKET

• In April 2024, Yale introduced the retrofit smart door lock with wifi which is priced at 129.99 dollars. It is the company’s first retrofit smart lock. Also, it comes with a facility that does not require changing the whole deadbolt and can simply be attached behind your door. Moreover, it can also be operated with the Yale wireless keypad. Later this year they will also launch a fingerprint enabled version and poses an inbuilt firmware upgrade to add Matter-over-Thread connectivity.

• In February 2024, Proxgy introduced the smart lock called Lockator for transportation industry trading with fixed containers and wagons. It comes with satellite and mesh connectivity, sophisticated safety features and real time surveillance abilities. In addition, it is all the time linked to the back end dashboard for sending and receiving live statistics and command regardless of zero network zones involving deep seas.