Mechanical and Electromechanical Locks Market

Market Overview

The global mechanical and electromechanical locks market size was valued at USD 18.55 billion in 2022. It is estimated to reach USD 30.26 billion by 2031, growing at a CAGR of 5.59% during the forecast period (2023–2031). 

The demand for smart locks is experiencing a significant and rapid increase, with expectations for further growth over the projection period. This surge in demand is contributing to the overall demand for electromechanical locks within the market.

A lock is any mechanical or electronic device restricting access to a building or protected area. The locking mechanism can be locked or unlocked using physical keys, fingerprints, key cards, security tokens, or secret information such as a combination of letters and numerals. The locks are operable through a combination of confidential information and physical keys.

Locks are available in various forms, including padlocks, cylinders, deadbolts, and mortise. Electromechanical locks currently available on the market are compatible with the most up-to-date smart home technologies and existing network infrastructure of commercial premises, enabling the implementation of simple and secure access control parameters and providing protection against unauthorized access to corporate offices, commercial spaces, and homes.

Market Dynamics

Global Mechanical and Electromechanical Locks Market Drivers:

Increasing Demand for Digital Locks from Coworking Spaces 

Operating in coworking and flexible offices has not only become a new standard, but it is also becoming an expected and preferred workplace of the current workforce. High- and fast-growing coworking spaces are evidenced by the fact that even large and established companies are increasingly taking up offshore office spaces in coworking locations to retain and attract talent. Moreover, new office goers prefer coworking to working from a coffee shop or home.

The demand for innovative locks and related solutions has witnessed a growth in coworking spaces as the model has evolved into a hybrid form, incorporating both open floor areas and enclosed office spaces. Flexible working spaces accounted for around 18% of the total leasing activity in Central London in 2019. As the lessee firms develop such spaces into coworking spaces, the demand for innovative digital access control solutions will increase proportionally. Consequently, there is an increase in the need for mechanical and electromechanical locks.

Increasing Demand for Safety and Convenience

Safety is one of the primary aspects of any household or business. The rising theft and burglary cases are leading to safety concerns among individuals. Smart electromechanical locks are accessed through mobile applications that alert homeowners if their doors' physical or virtual security is breached. Some locks allow the shuffling of code after every entry. This high-end safety is resulting in an upsurge in demand for smart electromechanical locks across various countries.

Convenience is the primary benefit of smart locks as they enable homeowners to track activities with their door from any corner and give access to other people in their absence. Some people also tend to forget to lock the door while leaving. Hence, smart electromechanical locks help control the door irrespective of the individual's location, extending higher security and convenience. Therefore, the demand for smart locks is increasing rapidly and is expected to grow further during the forecast period, supporting the demand for electromechanical locks in the market.

Global Mechanical and Electromechanical Locks Market Restraint:

Growing Security Risks in Smart Devices

Households have been increasingly adopting smart home appliances and products in recent years. Although the connectedness of IoT appliances can improve the convenience of daily tasks, it leaves them open to security risks. The security risks associated with these smart devices are some of the primary challenges in the industry's growth. For instance, in November 2021, more than 50% of American homes had access to smart-connected devices. Consumers and developers alike must take steps to lessen security and privacy risks introduced by the increasing proliferation of smart connected devices.

Global Mechanical and Electromechanical Locks Market Opportunities:

Rising Emergence of New Technologies (IoT, AI/ML)

Technology plays a fundamental role in the functioning of smart locks. A lot of data transmission (such as username, user ID, and instructions) takes place in the backend, which controls the functioning of smart locks. Emerging technologies like Artificial Intelligence, Machine Learning (ML), the Internet of Things, and cloud computing are increasing the convenience level, which is pushing customers toward products with the latest inbuilt technologies and better performance features.

Additionally, IoT is a major push for home automation technology. There is a continuous rise in demand for luxury and convenience among consumers. Increasing awareness of the functioning of emerging technologies, followed by their rising adoption, is opening new avenues for smart products in the market. In addition, people in the US are increasingly adopting smart products such as smart locks to automate remote monitoring and operating their doors from anywhere. The emergence of new products with better technology-enabled features will create opportunities for the mechanical and electromechanical locks market over the forecast period.

Regional Analysis

Based on region, the global mechanical and electromechanical locks market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global mechanical and electromechanical locks market shareholder and is anticipated to exhibit a CAGR of 6.57% during the forecast period. Asia-Pacific remains to be a promising market for both mechanical and electromechanical locks. Comprising the most emerging economies in the world, China and India are anticipated to exhibit considerable investor attention in commercial and residential building construction activities. Asia-Pacific also constitutes about 60% of the world's population, growing at an annual rate of 1.3%. Moreover, the region has a large millennial population, especially in nations such as India and China. For instance, China and India have more than 409 million millennials, about five times more than the US.

In addition, building construction company providers are particularly interested in the Asia-Pacific market because of the region's high demand for infrastructure. As the region will experience increasing investments and activities in new construction, renovation, and retrofitting, there is a significant opportunity for mechanical and electromechanical locks to generate new revenue.

Europe is estimated to exhibit a CAGR of 4.37% over the forecast period. High standards of living, top-of-the-value chain-focused industries, and stringent labor and environmental regulations characterize Europe. Europe has several countries that are key to future regional and global economic growth. The European market growth is driven by the growth of fenestration installations in new industrial buildings and the higher demand for renovations of doors and retrofit activities. Furthermore, the demand for retrofit and renovation accounts for a considerable share of the market growth in Europe. The European construction industry is forecasted to witness dynamic growth. Countries such as France and the UK are expected to witness fluctuation in the overall manufacturing and construction sector, which is expected to impact the European locks and access control market.

In North America, newly constructed and remodeled business and residential areas are equipped with modern locks for security purposes. North America has the largest consumer spending in the world and ranks third for mechanical and electromechanical locks. Changing workstyles, high socializing, technological development, and introducing innovative designs mainly drive renovation and retrofit activities. The growth of the tourism industry is also driving the demand for digital locks due to new construction and renovations in the hotels and hospitality industry. In addition, industrial, office, retail, and public utilities will play a major role in North America's demand for new locks. In 2021, there was a notable decline in the number of private office building construction projects, with a decrease of almost 56% observed in June 2021 compared to the previous year. However, growth is anticipated to be resurgent for these projects in the future years. The replacement activity will remain upbeat during the forecast period, boosting market demand.

The Middle East and Africa region is one of the quickest-growing markets for locks due to the region's fast-growing construction sector and infrastructural development. The region has witnessed considerable investor traction in the last few years and is expected to experience future growth. Significant groundwork has been laid across markets in the Middle East region, which is anticipated to drive growth in the upcoming years. Several investments in industrial activities and growth in the economy are projected to contribute significantly to new building and facility constructions in the region, hence warranting demand for innovative security and access control solutions, such as electromechanical locks and networked digital locks, which can be operated using mobile applications and even remotely.

Segmental Analysis

The global mechanical and electromechanical locks market is segmented by product type, installation, and end-user.

Based on product type, the global mechanical and electromechanical locks market is segmented into mechanical and electromechanical locks. 

The mechanical locks segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 4.93% over the forecast period. Mechanical locks are anticipated to hold the largest percentage due to their widespread adoption and high compatibility with all common door types. Mechanical locks need human help to lock and unlock. In the domestic sector, mechanical locks are commonly utilized due to their affordability and ease of usage. These locks come in various configurations, including padlocks, cylinders, deadbolts, and mortise. In addition, the increase in mechanical locks is proportional to the increase in manual door installations. Mechanical locks are also utilized in automatic and glass doors as terminal securing systems. They are installed to secure doors shut when the building is closed. Consequently, such developments also drive up the demand for mechanical locks worldwide.

Locks are used to secure buildings, residences, investments, and other valuables because of their strength, thanks to developments in door and window production and breakthroughs in locking systems. They provide convenience in terms of locking and unlocking functionalities. The locks market has transformed from conventional mechanical locks to electromechanical, smart, and digital ones. Locks can now collect and share information regarding premises safety, allowing users to control it remotely from their smartphones or Bluetooth. The growing demand for dynamic and multi-optional locking and unlocking mechanisms is the primary factor for electromechanical locks' market growth.

Based on installation, the global mechanical and electromechanical locks market is bifurcated into new construction and replacement. 

The replacement segment is the highest contributor to the market and is anticipated to exhibit a CAGR of 5.08% over the forecast period. The demand for replacement locks is directly related to the replacement of doors, the surging popularity of do-it-yourself projects, and the growing need to enhance the security of commercial properties. The current propelling force behind the replacement demand for locks is the surge in energy efficiency, which puts the overall fenestration of buildings at the forefront. Also, consumers and building proprietors are increasingly adopting new doors for their buildings, particularly exterior and entry doors.

The new construction category has revenue potential because many new construction projects exist worldwide. This will enable a steady demand for new doors in new building projects, even if replacement, retrofit, and renovating activities account for a higher income worldwide for locks. The recommencement of construction activities with the recovery from the COVID-19 pandemic is expanding the residential and commercial sectors worldwide. Emerging nations like China, India, Brazil, and others are expected to significantly expand in constructing new buildings. Various construction projects related to hospitality, real estate, healthcare, and others are lined up, which is expected to spur market growth.

Based on end-users, the global mechanical and electromechanical locks market is bifurcated into hospitality, corporate, retail, healthcare, residential, education, and others. 

The hospitality segment dominates the global market and is projected to exhibit a CAGR of 6.41% over the forecast period. The hospitality industry mainly refers to lodging and accommodation services, food and drinks services, event planning, theme parks, and other fields of the hotel and tourism industry. The demand for locks in hotels typically varies by region and size of hotels. For instance, the penetration of electromechanical locks in large hotel chains in developed countries and tourist hotspots averaged around 70% in 2019. In contrast, hotels, lodges, and even resorts in emerging countries and low-budget destinations still have a higher share of mechanical locks.

Healthcare institutions, such as hospitals, medical research centers, and disease control facilities, have shifting needs, which is why access control systems and other entry devices, such as locks, are always altering. Using foolproof and secure locks has become crucial in sensitive areas such as isolation rooms, maternity wards, and emergency departments. Along with such sensitive areas in hospitals, asset protection and securing theft-prone high-value products such as portable equipment, medical supplies, and prescription medication are driving the need for high-quality locks for hospital doors.

Recent Developments

• February 2023- Tuchware, the foremost Manufacturer of Electronic Locks and RFID Locks, introduced a hotel locking variant of their XS smart lock series that includes Hotel Management Software Hotel-XS.

• May 2023- Godrej Locks & Architectural Fittings and Systems (GLAFS) introduced its innovative range of Catus interconnected hospitality locks and Catus connected residential locks, which use cutting-edge technologies to improve security.