The global smart lock market demand is expected to reach 34.9 million units by 2027, registering a CAGR of 21.6% from 2020 to 2027, according to a new report from the research company.  Increasing consumer awareness regarding advanced and secure home solutions, along with steady rise in the adoption of connected devices, is cited as being a positive influence on the market.

Findings suggest that a growing number of residential and commercial projects, along with renovation of existing infrastructure, is expected to provide lucrative growth prospects for the industry. Smart locks can be integrated with several home automation devices, thereby providing security as well as convenience for users as they leave or arrive at home. With the growing prominence of smart locks across the residential sector, they are presumed to witness substantial demand, making mechanical locks a thing of the past.

Increased usage of smartphones globally has further paved opportunistic ways for industry participants, since they are continually launching apps to control locking/unlocking procedures. Regular innovations across the market for smart locks are increasingly driving investor interests with, say the analysts, remarkable funding contracts from key players. The industry has witnessed a considerable transformation over the past few years, with an influx of new startups, causing prominent vendors to form in-house hardware connectivity, software, and app development teams. The report suggests that this shift has resulted in market consolidation to a certain level due to numerous acquisitions across the marketplace.

Other key indicators showed that companies such as Airbnb Inc.; Couchsurfing International, Inc.; and other hospitality facilitators require homeowners to provide temporary access to guests, which has resulted in increased adoption of smart locks owing to provision of convenience to both customers and owners.  In addition, the residential segment is expected to account for the largest revenue share of more than 65.0% by the end of 2027. Rising smart home penetration is resulting in a higher number of connected devices across the sector.

Geographically speaking, the smart lock market in the Asia Pacific region is expected to grow at the fastest rate over the next few years due to an increasing number of modernisation activities across the residential and hospitality sectors as well as construction of new infrastructure in emerging economies such as India.