The Mechanical and electromechanical locks market is expected to grow at a CAGR of 5.79% from 2022 to 2027 and is expected to cross $23 billion by 2027 from $16 billion in 2022. Mechanical and electromechanical locks have an established market worldwide, and their demand is driven by the adoption of new doors in all buildings. Locks and access control systems have always been a standard component in residential and non-residential buildings, including commercial and industrial ones. Locks now have a long-established market. Electromechanical locks currently available in the market are compatible with the latest smart home technologies and existing network infrastructure of commercial premises, which allows the implementation of easy and secure access control parameters and provides protection against unauthorized ingress or egress to the corporate office, commercial spaces, and homes.
Locks find application in various areas, including the residential, educational institutions, retail stores, warehouses, pharmaceutical companies, and other sectors. The growing need for safety in various highly security-driven areas such as hospitals, government buildings, banks, and others is pushing the demand for smart electromechanical locks with tighter security features. Hence, this is expected to push the demand for electromechanical locks in the market.
The growth of the APAC locks market is mainly driven by China, South Korea, Japan, Australia, and India. The mechanical locks market has the largest share. The electromechanical locks market is expected to grow fastest, with a CAGR of 6.79% between 2022 and 2027. Emerging technologies such as the Internet of Things (IoT) and Machine Learning play a prominent role in digitalizing locks. IoT is increasingly gaining momentum across various sectors and provides significant growth opportunities for electromechanical locks in the market. Smart electromechanical locks promote efficiency, save time, and provide a better experience to users. People are increasingly opting for smart products and are equipping their homes with devices that enable home automation. Hence, the continuous innovations to upgrade the electromechanical locks will likely support the market growth.
The following factors are likely to contribute to the mechanical and electromechanical locks market growth:
- Wireless Access Control & Locking
- High Potential in Emerging Markets
- The emergence of New Technologies (IoT, AI/ML)
- Increasing Number of Smart Homes
- Growing Construction in the Commercial Sector
- Coworking Spaces Driving Demand for Digital Locks
- Demand for Electronic Access Control from the Hospitality Sector
- Mechanical and electromechanical locks have an established market worldwide, and their demand is also driven by the adoption of new doors in all buildings. Locks have always been a standard component in residential and non-residential buildings, including commercial and industrial buildings, and locks now have a long-established market.
- As the global construction industry rebounds from the impact of COVID-19, the market is expected to witness developments among high construction zones, with some of the developments precipitating to local levels, creating some degree of pull demand for new and innovative products.
- New hotels and rooms increase present opportunities for mechanical and electromechanical locks. The demand for electromechanical locks is driven by the growing need for hotel digital access control capabilities.
- Hospitals are important for vendors as they run on high capacity and need replacement doors with the potential to access control systems, thereby driving the demand for both mechanical and electromechanical locks.
- The surge in the growth of the electromechanical and mechanical locks market in the Latin American region is mainly due to the new construction of small & medium scale corporate offices as well as replacement & renovation activities in the residential, industrial & educational segments.
- The demand for electromechanical locks is rising as part of renovation activities, especially in developed countries. These locks offer image and video capturing functionalities and alarm settings from remote locations, making the market growth through its unique innovations.
- Mechanical locks also adopt automatic and glass doors as terminal locking systems. As in such doors, mechanical locks are installed to keep them closed when the premises are shut, for instance, retail outlets and corporate premises at night. Hence, such developments are also propelling the demand for mechanical locks across the globe.
- Developed countries like North America adopt a higher degree of electromechanical locks. Over 1.5 million homes in North America use electromechanical locks, which include electronic-only or electronic functions with mechanical operation. In addition, the adoption rate of smart locks in the U.S. is anticipated to witness unprecedented growth during the forecast period.
- The vendors will pursue growth by acquisitions as numerous small-scale vendors are active in towns and small regions. These small vendors have a presence all over their marketplace; thus, acquiring them gives an edge to the vendors to have a strong, firm grip in the market.
- Due to the rising traction of innovative and high-quality mechanical and electromechanical locks in emerging countries, these markets hold high potential for the entry of multinational vendors, especially in the field of electromechanical locks.
- Market vendors must introduce and invest in various products to survive and succeed in a competitive environment. They must distinguish their offerings through a clear and unique value proposition to different end-user segments. Thus, to compete, the differentiation of the products will depend on providing an exclusive value proposition and a unique experience to end-users.
- The growth of the players in the market depends on the condition, overall GDP growth, and industry development. High capital requirements and rapid technological advances are the major entry barriers for new players. Thereby, to attain sustainability in the market, vendors need to expand into other geographies and revive domestic demand.
- APAC has the highest potential for electromechanical and mechanical locks, mainly driven by a surge in building construction activities in rural and urban areas and rising demand for digital locks in replacement activities to accelerate the market growth.
- Driven by new construction in the residential and retail segments, the Middle East and Africa have a higher potential for mechanical locks than Europe and North America. The region is also expected to present profitable prospects for the electromechanical segment. However, the demand for electromechanical locks will be confined to selected countries and end-user segments.
- The construction market output in the APAC region is expected to grow due to strong investments in infrastructure spending, especially in Australia, China, Hong Kong, Japan, the Philippines, Singapore, Taiwan, Thailand, Myanmar, and Vietnam; the APAC locks market is to emerge as the most potential region in the mechanical and electromechanical locks market.
- The increasing construction activities in GCC countries and proactive government policies result in rising demand for new buildings, subsequently driving the demand for new locks.