The global mechanical and electromechanical locks market size to cross USD 23 billion by 2025, growing at a CAGR of over 4% during the forecast period. The global mechanical and electromechanical locks market is expected to witness moderate growth during the forecast period. The demand for new access points mainly drives the market for new locks and digital access control systems, door installations, as well as renovation activities to increase the security of homes and commercial premises, including retail, hospitality, recreational facilities. Most commercial spaces are implementing the latest infrastructure and technology to improve aesthetics while ensuring maximum security and convenience, which is boosting the demand for electromechanical and networked locking systems. The demand for the new safety systems is driven by the installation of new fire-rated and energy-efficient doors in developed countries, which boost the demand for mechanical and electromechanical locks. Fire-rated, as well as thermally efficient doors, can prove highly beneficial for industrial spaces, and investments in production sites are expected to contribute to the growth of the electronic locks market globally.
The rapid spread of the COVID-19 pandemic in early 2020 has greatly affected global construction, manufacturing, and industrial outlook. The momentum for new orders and the expansion of industrial capabilities have reduced across the world both in terms of production. Stringent lockdowns from local and national governments have restricted supply, production, and logistics activities of finished goods.
- The electromechanical segment is expected to reach over $10 billion by 2025. This is on account of the adoption of networked access control and cloud-based digital locks & systems in the market.
- The hospitality segment is likely to grow at a CAGR of over 6% during the period 2019–2025. The growth is due to the increased demands for the latest infrastructure, high security, and convenience, and improved aesthetics.
- The replacement segment is projected to reach over $14 billion by 2025. The segment is driven by rapid infrastructural development and construction projects, as well as renovation activities across the world.
- The APAC market is likely to observe an incremental growth of $2.5 billion by 2025. The growth is due to rapid urbanization and infrastructure development in the region.
MECHANICAL AND ELECTROMECHANICAL LOCKS MARKET SEGMENTATION
The research report includes a detailed segmentation by
INSIGHTS BY TYPE
The mechanical locks segment accounted for 60% of the mechanical and electromechanical locks market shares in 2019. A widespread adoption worldwide and high compatibility with common door types are the major factors driving the market growth. The growth of mechanical systems is proportional to the installation of manual doors. Automatic and glass doors have mechanical ones installed in retail outlets and corporate premises, which are boosting the demand across the globe. They are witnessing innovations in terms of materials, proofing, and protection.
The growing demand for dynamic and multi-optional locking and unlocking mechanism is the primary factor, which is fostering the market growth for electromechanical locks. The growing traction of electromechanical systems, including awareness of smart and networked access control systems both in residential and commercial segments, is responsible for the segment growth. In 2019, developed countries offered a high adoption of electromechanical systems.
INSIGHTS BY INSTALLATION
In 2019, the replacement segment for existing locking and access control systems accounted for 65% of the mechanical and electromechanical locks market share. The demand for replacement doors is higher in renovation and retrofit activities, thereby driving the demand for replacement locks. APAC and Europe have led the market for replacement systems as a majority of the existing commercial building stock is not energy efficient. North America follows Europe in terms of replacement systems as building owners in the region seek advanced access control systems in their buildings and homes. The demand for replacement systems is directly connected to the replacement of doors as well as the growing trend of do-it-yourself (DIY) activities and the rising need for advancing security. In terms of replacement demand for locks, the current trend is energy efficiency, which brings the overall fenestration of buildings.
APAC was the largest market for the installation of locks in the new construction segment, with a share of 35%. The region is expected to grow at a CAGR of over 6% during the forecast period. Rapid infrastructure developments and construction projects are primarily driving the market for new doors & electromechanical door locks in new constructions in the region, thereby driving the demand in new construction. Europe and North America were the other largest mechanical and electromechanical locks market in the new construction segment in 2019. The growth of lodging spaces and the demand from verticals such as healthcare and education are driving the adoption of modern locking systems and access control systems in new construction activities in the region.
INSIGHTS BY END-USERS
The demand for locks in hotels typically varies by region and hotel size. The penetration of electromechanical systems in large hotel chains in developed countries, as well as tourist hotspots, averaged around 70% in 2019; whereas, hotels, lodges, and resorts in emerging countries and low budget destinations witnessed a high share for mechanical systems. The revenue potential for mechanical systems in the hospitality segment is improving as the demand is rapidly skewing toward higher revenue variants such as mortise locks. Automatic doors, smart door locks, and smart locks market is gaining immense popularity over the years, thereby becoming mainstream products in the hospitality locking systems.
The corporate segment is likely to grow at a steady rate from 2023 through 2025, as the global mechanical and electromechanical locks market overcomes the COVID-19 pandemic and corporate offices are back with full capacity, thus boosting investments in new construction of office space as well as renovation and retrofitting in access control systems. The corporate sector is expected to follow the hospitality segment in demand for electronic locks and network access control systems. There is a large potential for energy-efficient doors in the renovation of corporate buildings as air conditioning and lighting account for the maximum power usage in these buildings.
Shopping malls, hypermarkets, fashion, and cosmetic stores, food stores, and convenience stores are the major users of multiple security and access control points in the retail segment. The mechanical and electromechanical locks market has recently witnessed a great use of sliding glass doors in retail spaces. The retail segment also employs a high number of steel doors that need to be lightweight but high impact traffic handling doors. Fashion and clothing retail spaces also use multiple wooden doors in trial rooms and storage units. Thus, the increasing adoption of glass doors is driving the demand for electromechanical systems; whereas, the use of wood and steel doors keeps the sale of mechanical systems steady in the retail segment.
INSIGHTS BY GEOGRAPHY
In the APAC mechanical and electromechanical locks market, the growth is mainly driven by China, South Korea, Japan, Australia, and India. Strong economic growth, coupled with the rise in residential and non-residential construction activities and an increase in disposable incomes, has primarily supported the growth of the market in the region. The region remains a promising market for both mechanical and electromechanical systems. Comprising the most emerging economies in the world - China and India, the APAC region is expected to witness considerable investor attention in both residential and commercial building construction activities. APAC also constitutes about 60% of the world’s population, which is growing at an annual rate of 1.3%.
Moreover, APAC comprises a large millennial population, especially in countries such as China and India. The APAC market holds a key area of interest for building construction business vendors due to the high infrastructure demand across the region. As the region will witness increasing investments and activities in new construction, renovation, and retrofit activities, it holds the handsome potential for new revenue generation for both mechanical and electromechanical systems.
INSIGHTS BY VENDORS
Several small and medium scale companies dominate the global mechanical and electromechanical locks market. In North America and Europe, domestic and long-established vendors enjoy high brand loyalty and strong market positions. Established large vendors offer locks with longer life cycles, and an existing large base of installed systems presents them with stable demand growth prospects in replacement activities as well. In emerging countries, regulatory standards for safety systems and strong national brands are less common. Moreover, with rising traction of innovative and high-quality mechanical as well as electromechanical systems growing in emerging countries, these markets hold high potential for entry of multinational vendors, especially in the field of electromechanical locks. Vendors are expected to pursue growth by acquisitions as there are numerous small-scale vendors.
The global mechanical and electromechanical locks market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Type
- New Construction
- North America
- South Korea
- Latin America
- Middle East & Africa