Smart Lock Market Size, Share & Trends Analysis Report By Type (Deadbolt, Lever Handle, Padlock), By Application (Residential, Hospitality, Enterprise, Critical Infrastructure, Others), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global smart lock market size was valued at USD 1.38 billion in 2020. The demand was recorded at 8.9 million units and is expected to expand at a compound annual growth rate (CAGR) of 21.4% from 2021 to 2028. The rising Internet of Things (IoT) penetration along with the advent of technologies such as Machine Learning (ML) and Artificial Intelligence (AI) are expected to accelerate the mass adoption of smart locks over the forecast period. Furthermore, the growing consumer awareness regarding the benefits and convenience offered by these locks is responsible for their increasing demand, especially across the residential and hospitality sectors globally.

The number of individuals using a smartphone in 2020 has witnessed a significant surge of approximately 10% compared to that in 2019. This ever-increasing adoption has resulted in considerable dependency on smartphones and mobile apps to accomplish crucial tasks. Prominent market players incorporate various innovative techniques in smart lock models, such as Wi-Fi-enabled locking/unlocking and Bluetooth-based (BLE) locking/unlocking using smartphones and other devices. Touch panels are also being incorporated to facilitate the entry of passwords or pattern-based locking/unlocking.

The rising smart home adoption across the globe and an influx of companies coming up with innovative home automation technologies are also responsible for the growing smart lock demand. Industry players focus on offering commercially viable products and developing advanced techniques, including remote locking/unlocking of entrances, doors, and windows. Moreover, since the number of households with voice assistants is continuously increasing, manufacturers are integrating their offerings with such devices, enabling the locks to be voice-controlled. Such innovations are expected to result in considerable traction among customers since they are increasingly seeking advanced and convenient locking/unlocking procedures.

Smart locks have witnessed significant demand across the residential area globally. With an increasing number of renovations and new construction activities across the Asia Pacific and North America, the industry has garnered immense potential in recent years due to a surge in new installations. When connected to a smart home hub, the lock acts as the most prominent element in a connected home. As a result, customers demand products that can suffice all their requirements and consider crucial factors such as battery life, size, design, and price when selecting a lock.

As per our analysis of the COVID-19 impact on the industry, smart locks have gained significant traction during these unprecedented times. The market is expected to witness numerous opportunities during the ongoing pandemic since the locking/unlocking procedures can be carried out using voice recognition and smartphones/smart gadgets, thereby reducing the need to physically touch the devices. Such technologies are enabling manufacturers to fulfill customer demands for touchless/contactless platforms to operate their devices, thus gaining an upper hand during these challenging times. New product development and incorporation of advanced/touchless technologies are the key strategies that a majority of the industry players are expected to adopt to expand their customer base over the next few years.

Type Insights

The deadbolt segment registered the highest revenue share of over 47% in 2020 and is expected to continue dominating the industry over the forecast period. The high revenue generation can be attributed to its rising deployment across the residential sector owing to numerous benefits such as ease of use as well as a durable locking mechanism. Additionally, prominent companies in the market, such as Kwikset, are adding advanced deadbolts with built-in features such as low battery warning, one-touch locking, and customizable user codes into their portfolio, ultimately attracting a vast user base.

Lever handles are expected to expand at the fastest CAGR of over 23.0% during the forecast period owing to substantial growth in the construction sector. Modernization activities across the hospitality sector to fulfill the security requirements of tourists are also expected to foster the growth of the segment. Smart lever handles are being extensively used in inner doors across commercial settings. They possess easy locking/unlocking procedures compared to their counterparts due to the push-down style handle instead of a knob, which requires grasping and turning. The padlock segment is also expected to expand at a considerable CAGR in the forthcoming years due to benefits such as high-end security along with user activity management, convenience, and smartphone compatibility, which has resulted in its widespread use worldwide. Apart from the residential sector, smart padlocks are increasingly used while traveling to ensure the overall security of the luggage.

Application Insights

The residential segment dominated the smart lock market in 2020, capturing over 65% of the revenue share. It is expected to retain its dominance over the next seven years. Its high revenue generation can primarily be attributed to the rising global smart home penetration as well as an increasing number of new and renovation projects across the sector over the past few years. Additionally, increased affordability of advanced security tools, including door and window opening sensors, motion detectors, and remote door locking/unlocking, is expected to further drive the adoption of these devices. The development of locks compatible with technologies such as ZigBee, Z-Wave, and BLE technologies, specifically for mass-market residential purposes, is at the forefront, thereby attracting a large customer base.

The hospitality segment is expected to expand at the fastest CAGR of over 25% from 2021 to 2028. The industry has been aggressively deploying smart locks to address customers' growing security concerns during their stays. The need to increase in-room security measures at hotels is presumed to bolster the adoption of these keyless access devices in the future as well. Leading market players are offering innovative solutions for the hospitality industry. For instance, in October 2018, Hoomvip, an app-based service for accessing rental properties, implemented ENTR smart door lock by TESA, one of the brands of Assa Abloy, to enhance security and ensure hassle-free access to rental properties. The adoption of these locks also leads to an increase in the hotel’s brand value, which further drives their adoption across the sector.

Regional Insights

North America captured the largest market share of over 42% in 2020 and is expected to maintain its dominance over the forecast period. This is primarily attributed to the high technology adoption and rising penetration of smart homes across the U.S. As per a study conducted by Grand View Research, approximately 30% of the broadband households in the U.S. intend to purchase a smart lock by the end of 2021. The high spending capacity of customers and rising security concerns, especially across the critical infrastructure and residential applications, have led to a favorable regulatory scenario for their adoption.

Asia Pacific is anticipated to emerge as the fastest-growing region, exhibiting a CAGR of over 24% from 2021 to 2028. The substantial growth can be attributed to a significant increase in the number of residential and commercial projects as well as ongoing smart city initiatives in developing countries such as India. Moreover, smart home penetration across the region has also witnessed significant growth, which, in turn, is playing a crucial role in spreading awareness regarding advanced gadgets and technologies. However, norms laid down by government bodies in countries such as Australia require additional product enhancement and modification, which is expected to act as a challenging factor for market growth.

Key Companies & Market Share Insights

The industry is undergoing rapid transformation and moving toward consolidation over the past few years, with leading companies constantly striving to capture a dominating market share. Numerous companies are taking up initiatives such as partnerships, acquisitions, and R&D investments to differentiate their portfolio from their competitors and strengthen their market presence.

IoT implementation to develop touchless lock technologies has gained immense traction during the ongoing pandemic, as a result of which prominent companies are introducing solutions that involve minimal human contact. In March 2020, Kwikset launched its expanded line of products featuring the Microban SilverShield technology, which helps to mitigate the bacterial growth on door hardware. The company is also focusing on expanding its partnership with Microban for introducing keyless entry and advanced smart locks by the end of 2021. Some of the prominent players operating in the global smart lock market are:

• Yale

• Schlage

• August Home

• Kwikset

• Goji

• SDS Smart Locks

• Mul-T-Lock

• UniKey Technologies Inc.

Smart Lock Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-markets from 2016 to 2028. For this study, Grand View Research has segmented the global smart lock market report based on type, application, and region:

• Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2028)

  • Deadbolt

  • Lever Handles

  • Padlock

  • Others

• Application Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2028)

  • Residential

  • Hospitality

  • Enterprise

  • Critical Infrastructure

  • Others

• Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Korea

    • Japan

  • Latin America

  • Middle East & Africa (MEA)