The worldwide market size for smart locks is estimated to be USD 481.1 million in 2017 and is anticipated to grow at a CAGR of 33.2% during the forecast period. Increasing adoption of smart home technologies and growing development in the connected devices technology has fueled the growth in this market. The growing usage of of smartphones has supplemented the development of this market and is ventured to drive the business over the forecast years. Alternate variables driving the market include heavy development in the field of convenient security gadgets, development of urban communities, and increasing penetration of internet has propelled the market growth. However, high cost of gadgets, fear of privacy compromise and increasing cyber-attacks are hampering the market development and could be some of the restraints.
There has been a significant development in the way people can control access to their homes. Development from traditional key based access to next generation mobile based access has been significant. With the usage of smart locks, people can control remotely who they can give access to their doors. The user can check who has accessed their doors, who is inside the home and whether their doors are locked or not. They can control this remotely from any part of the world by connecting to a hub which is connected to the locks. This has been possible due to enhanced connectivity technologies such as Bluetooth, Near Field Communication (NFC), and Z-wave/ZigBee. Additionally, the rise of capacitive touch screens and add-on locks to build the level of the buyer satisfaction is foreseen to push the business development in the coming years.
The worldwide smart locks industry is its development phase, and is presumed to witness a high growth in coming years. Many major companies have increased spending on their R&D and are coming up with new features and technologies in their smart locks. Owing to the changes in standard of living, awareness about new technology and high disposable income, the spending in this market has been increased. This factor is anticipated to force a significant effect over the market development amid the estimated years.
The smart lock market has been segmented by product type and by end-use. The product type segment include padlock, lever handled, deadbolts and others. The market for smart deadbolts has the highest share and it is anticipated to continue its growth during the forecast period. This is majorly due to its major application as a main lock which can protect from forceful entry into any premises. Main doors in all the residences have deadbolts as its primary lock along with lever handles or padlocks. This growth is followed by padlocks which is expected to grow due to significant technological advancements such as touch type padlocks and NFC/Bluetooth enabled padlocks. The market for lever handles is expected to grow at the highest CAGR during the forecast period
Hospitality industry vertical is expected to be the largest adopter of these products after residential segment. This is majorly due to increasing security in hotel rooms and restaurants. Hotels and resorts have multiple rooms which are occupied by different people. Having secured and limited access to these rooms is of utmost importance to these hotels, to ensure customer safety. To cater to this requirement, hotels and resorts are implementing smart locks which provide limited access only to their guests, thus enhancing security and reducing thefts. Commercial organizations and enterprises on the other hand must ensure restricted access to their premises to authorized staff only. These organizations and enterprises rely on smart locks and access systems which provide these features.
The increasing adoption of smart locks in the home and residential segment is expected due to growing smart homes around the world. The adoption of gadgets such as remote door locking, door/ window opening sensors and motion detectors are presumed to drive the implementations in home segment. Asia Pacific region is projected to have fastest growth rate over the forecast years. This development can be attributed to the rising number of smart homes, hotels and commercial organizations in the developing nations of China and India. North America region om the other hand dominated the global market in terms of revenue.
Major industry players in this market include Yale, Schlage, Haven, Weiser Lock, SDS, Mul-T-Lock among others.