A twofold rise in revenues is projected for the global digital door lock systems market between 2015 and 2018. By the end of 2024, the market’s valuation would have grown nearly 12 times over 2015 to reach US$11.23 bn, according to Transparency Market Research. Our findings also show that the future of digital door lock systems clearly belongs to biometric digital door locks. The segment is not only poised to be the leading one by 2024, but will also register the most promising growth rate. As of 2015, a substantial portion of revenues earned by the digital door lock systems market can be traced back to commercial applications.
With these dynamics at play, a defining shift from convention door lock systems to digital options is evident. In this blog, we answer two pertinent questions that players in this space are asking:
1. Are managed security solutions a real enabler of revenue growth in the digital door lock systems market?
Managed security solutions were among the first high-value applications for digital door lock systems. However, it is the growing affordability of managed security systems that has recently made their impact immutably powerful on the market’s revenues. Across the world, the number of MSMEs is pegged at over 120 million. Of these, nearly 90 million are in South and Southeast Asian economies. Managed security solutions are gaining traction in these markets and digital door lock systems are bound to gain from this trend.
Although developing countries are helping drive demand for digital door lock systems, a sizeable portion of global revenues still comes from high-income economies in the EU and North America. However, in economies with a very high density of MSMEs, volume sales will be a game changer. Biometrics represents a preferred technology for companies across all sectors because they offer better authentication and control. This will help create a fertile environment for the use of biometric digital door lock technologies in managed security solutions.
2. What should now be the core area of focus for digital door lock system providers?
There’s no single winning formula for success in the global digital door lock systems market. We recommend a two-pronged focus on cost-effective solutions and interoperable devices. Cost-effectiveness is an important purchase decision influencer in promising but cost-sensitive markets such as China and India. The newer generation of digital door lock systems come packed with features but are prohibitively expensive for companies in emerging markets. Overhead costs impose an additional burden on consumers, which can cause consumers to refrain from investing in digital door lock systems.
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Interoperability needs to be yet another important consideration in the product development strategy of companies. Smartphones today, for intents and purposes, are becoming as single-point control mechanisms for an array of devices. The prospect of saving on hardware costs is what will eventually prompt consumers to invest in digital door lock systems that carry a higher degree of interoperability.
Nevertheless, there are several other indirect factors that will likely pose an obstacle for the growth of the digital door lock systems market. These include low IT literacy and a higher number of enterprises renting spaces, which makes them hesitant about investing in expensive security solutions.