Smart Locks Market

Market Overview

The global smart locks market size was valued at USD 2,344.12 million in 2022. It is estimated to reach USD 6,516.42 million by 2031, growing at a CAGR of 12.03% during the forecast period (2023–2031).

Smart locks are called electromechanical devices that lock and unlock doors by receiving authorization instructions from an encrypted digital or mobile key. The smart lock allows users to enter their homes or provide others access without needing a traditional key. Instead, the users use their smartphones or other devices to verify and mechanically unlock the door wirelessly. Smart locks are a type of home automation used for home security. Smart locks are an extension of the Internet of things (IoT), as they are connected devices.

Smart locks can also use mobile apps or websites to allow the users to grant access to third parties by sending a virtual key. These virtual keys can be sent over a text message or email, providing guests or service personnel access to the property. Apart from regulating access, many smart locks log access, offering a way to monitor the use of a particular secured door. Some smart locks have an inbuilt camera, which provides a picture of people who unlock the door and makes for an easily referenced photo log.

Market Dynamics

Global Smart Locks Market Drivers

Increasing Penetration of the Internet and Smartphones

The International Telecommunication Union estimates that more than 4.1 billion people were using the internet in 2019, a 5.3 percent increase compared with 2018. According to the GSM Association's The Connected Society program, more than 3.5 billion people worldwide—or around 47% of the world's population—were now connected to mobile internet in 2018. This brings the overall connected population to over 3.5 billion. Smart locks are connected to other devices through the internet. They can be monitored and controlled by smartphones, tablets, or computers over the internet. The growing penetration of the internet and smartphone devices worldwide supports the adoption of smart locks. This, in turn, drives the market growth for smart locks.

Global Smart Locks Market Restraint

Unreliability Issues Associated with the Smart Locks 

The major problem with the smart locks operated over smartphones is the possibility of being unable to open the door when the smartphone's battery is dead. The autonomy of smart locks is limited. Thus low or no charging on the smartphone exposes the users to the risk of being unable to open the door. Another concern regarding smart locks is a sudden blackout of the control unit or a fault of the recognition device. In both cases, the users cannot enter their houses because the system cannot authenticate them for accessing the premises. Similarly, if the control unit doesn't work correctly and cannot safely close the door, it can lead to thieves entering the premises if the problem is not recognized early enough. Many smart locks do not get regular updates, which exposes them to hacking, restraining the market's growth.

Global Smart Locks Market Opportunities

Rapid Technological Advancement in the Smart Devices

The need for convenience is one of the most important factors that necessitate the development of products that can reduce manual labor. Several futuristic technologies help make home appliances more efficient and convenient. Modern appliances are more widely used because of the Internet of Things (IoT) development. In addition, IoT helps connect appliances such as washing machines to other devices that can be controlled. For instance, Hi-Lock smart lock by hIOTron® incorporates Bluetooth 4.0, WiFi connectivity, and Keypad technology, making Hi-Lock keyless but phone-less smart lock.

Furthermore, smart lock vendors have developed cloud platforms to improve the security profile and efficiency of smart locks. The Edgestate smart lock cloud platform enables users to remotely monitor and control connected door locks installed on properties anywhere in the world from devices having internet connectivity, such as a computer, tablet, or smartphone. Additionally, the development of the 5G network is expected to connect smart locks more easily and quickly than the current network. Such technological advancements are expected to boost the sale of smart locks.

Regional Analysis

Based on region, the global smart locks market is bifurcated into North America, Europe, Asia-Pacific, and RoW. 

North America Dominates the Global Market

North America is the most significant shareholder in the global smart locks market and is anticipated to grow at a CAGR of 10.26% during the forecast period. The smart lock market in the North American region is fueled primarily by demand from the US and Canada. The adoption of smartphones has also accelerated connectivity, further providing a growing demand for WI-Fi and Bluetooth-based smart locks in North America. This provides a significant boost for the growth of the smart locks market. In addition, the growing millennial population, high standard of living, and increasing smartphone penetration are driving the development of the smart lock market in North America. Significant market players and their primarily focused local offerings boost the market. For instance, in January 2020, Canada's leading brand in residential door hardware, The Weiser® of Spectrum Brands Holdings, Inc., added to its family of WiFi-enabled Smart Locks with its latest addition, Halo™ Touch WiFi Smart lock.

Europe is estimated to grow at a CAGR of 11.70% over the forecast period. European urban areas are becoming 'smarter' and more 'sustainable' through the widespread use of ICT, thus improving their citizens' quality of life and well-being. In Eastern Europe, the market is expected to grow due to significant changes in the economic systems and increasing affluence. Declining prices of devices are also responsible for driving market growth. In addition, many vendors are developing innovative and highly secure connected home devices to meet the specific needs of end-users. The leading countries in terms of smart readiness, such as Sweden, Finland, Denmark, and the Netherlands, have implemented enabling policies. Busy European citizens will likely buy smart home technology and appreciate the services built around smart locks, such as easier access for cleaners or deliverers. Furthermore, smart lock vendors are focusing increasingly on catering to the demands of the established real-estate sector in Europe. In 2020, Netatmo, the French startup acquired by Legrand, announced a new device at CES, the Netatmo Smart Door Lock. It can install as a replacement for any cylinder door lock.

Asia-Pacific region is forecast to have the fastest business market growth for building automation services. The growth is attributed to the high economic expansion of major Asia-Pacific countries and the subsequent construction industry growth projections. Rapid modernization and willingness to adopt and adapt to Smart Cities within the Asia-Pacific further serve the smart lock market. The adoption of smart locks in residences is high in China and Japan, whereas the market is still expected to pick up the pace gradually across households in India. In India, the demand for home automation solutions is rising due to their use around connectivity, security, and entertainment. In addition, some more prominent industry manufacturers, such as Schneider Electric and Honeywell Automation, are among the investors in deploying integration solutions to India. The Assa Abloy Group, a Swedish conglomerate and a global leader in access solutions, are also planning to launch more market-oriented smart home products in China to tap the nation's growing demand for smart access products both in commercial and residential use amid consumption upgrade.

The RoW includes Latin America and the Middle East and Africa. In Latin America, the demand for smart locks is set to rise with economic liberalization, more significant operations of foreign corporations, growth in the real-estate sector, and increased spending on security equipment. A growing per capita income and increasing preferences for luxurious homes coupled with the rising Internet of Things drive the growth of the smart lock market.

In addition, companies are focusing on Middle Eastern markets and continuously trying to launch their products. For instance, in 2016, Cielo WiGle, a United States-based smart home products manufacturer, signed a channel partner agreement with a Saudi Arabia- based IT services company to distribute its smart home products in the country. Further, government initiatives such as Smart Dubai are aiding the GCC smart homes industry. Jumbo Unwired, the dedicated division for automated ecosystems, was launched in 2018 and has already successfully served more than 1,659 homes in the UAE by providing automated smart home solutions.

Segmental Analysis

The global smart locks market is segmented by technology, product type, and end-user.

Based on technology, the global market is divided into Bluetooth and WiFi. 

The Bluetooth segment is responsible for the largest market share and is anticipated to grow at a CAGR of 10.84% over the forecast period. Bluetooth options with smart locks offer the same functionality as WiFi without draining the battery as quickly. This capability lets users connect locks directly with their mobile device instead of a smart home system. Smart locks powered with Bluetooth Low Energy technology can communicate with smartphones to perform locking and unlocking functions. The smart locks seamlessly complete the authorization process by connecting through wireless protocol and a cryptographic key. Bluetooth locks are a natural solution because Bluetooth is already enabled on cellphones for monitoring and controlling the lock.

WiFi technology to control home systems on smartphones will become a vital part of people's lives in the future with the continuous maturity of WiFi technology and the increasing progress of smart homes. Several smart locks attribute WiFi connectivity that can be paired with a smart home hub like Amazon Echo. These solutions allow customers to use apps to lock or unlock doors from anywhere with a wireless connection. With the help of this technology, users may keep track of opening and shutting times and distribute e-keys to loved ones, neighbors, maintenance specialists, and other trustworthy people.

Based on product type, the global market is segmented into deadbolts, lever handles, padlocks, and others. 

The deadbolts segment owns the highest market share and is estimated to grow at a CAGR of 10.77% during the forecast period. Deadbolt smart locks can be attached to the inside of the door and are designed to use the existing keyed cylinder and deadbolt hardware. With their code, they can enter the home with just a few simple buttons pushes and lock it with just one. The user can also control the lock anywhere on a smartphone, tablet, or internet-connected device. Overall, door locks and deadbolts offer varying levels of security and convenience. Further, a smart deadbolt allows one to enter a home with an access code on its illuminated touchscreen or smartphone.

Traditional padlocks continue to rely on the dial or rotary locks, but the latest generation of smart ones employs more cutting-edge technologies like fingerprint sensors. This makes unlocking the padlock easier and allows you to keep a list of specific people allowed access while still providing tough and mobile protection. These locks are weatherproof as they are made from non-erosive materials. As a result, smart padlocks are increasingly being considered to be a better substitute for conventional locks.

Based on the end-user, the global market is segmented into commercial, residential, and industrial. 

The residential segment is the highest contributor to the market and is projected to grow at a CAGR of 11.90% over the forecast period. In residential applications, smart locks prevent invasion, unauthorized access, theft, and burglary. The factors such as the growing adoption of Internet-based home security solutions, increasing demand for smart homes, and rising urbanization are contributing to the growth of the market for the residential verticals. In addition, the rising number of smart homes globally has significantly contributed to increased revenue generation. Advanced security tools, including remote door locks, window and door opening sensors, and motion detectors, are now affordable for homeowners, which are expected to drive the adoption of smart locks in residential applications.

The adoption of smart locks in the industrial sector has augmented due to increased awareness of technology and developments in various industry verticals such as healthcare, government, and infrastructure. People can pay for security and safety devices as they believe a need to guard their personal information and belongings against outdoor entities. This factor is estimated to substantially impact the smart lock market growth during the forecast period.

Impact of covid-19

The coronavirus pandemic is estimated to reduce the smart lock installations due to decelerating export activities. The lockdown imposed across the globe has disrupted the supply chain, further hampering the market growth. However, the demand for smart locks is projected to witness significant growth on account of its rising demand across various industrial verticals, especially the commercial sector. The hospitality industry is extensively using smart locks to help the customers unlock the door without touching the surface.

Recent Developments

• January 2023- Schlage® introduced the Schlage EncodeTM Smart WiFi Lever at the 2023 NAHB International Builders' Show® (IBS). Extending the award-winning Schlage Encode family, the latest smart lock is designed to work on typical single bore-hole doors, giving the security and convenience of the Schlage smart lock experience to more home areas.

• February 2023- KoreLock announced an investment supporting the expansion and development of its Smart Lock technology and software platform. Management has invested alongside private equity firm Iron Gate Capital and Kozo Keikaku Engineering, Inc.