The vast rise in the number of micro-, small, and medium-scale enterprises (MSMEs) across the globe, rapid industrialization and geographic expansion of service and operations units of businesses, and increased demand across the residential sector are collectively boosting the global demand for digital door lock systems. Lately, enhanced security needs of enterprise and residential consumers have led to the development and increased adoption of technologically advanced digital security systems incorporating technologies such as iris recognition and signature recognition.
Transparency Market Research estimates that the global digital door lock systems market will exhibit a strong 32.8% CAGR from 2016 through 2024. As a result, the market will rise from a valuation of US$920.7 mn in 2015 to US$11,230 mn by 2024. In terms of volume-wise growth, the market is expected to exhibit a 52% CAGR over the same period.
Demand for Biometric Door Lock Systems to Accelerate in Commercial and Residential Applications
Of the key varieties of digital door lock system available in the market, biometric door lock systems presently account for the majority of the market’s revenue and volume share, chiefly owing to the vast deployment fingerprint recognition devices across commercial and residential areas. In 2015, the segment had a valuation of US$615.4 mn in 2015 and is expected to rise to US$8,110.7 mn, exhibiting an excellent 33.9% CAGR from 2016 through 2024. In terms of volume, the segment is expected to exhibit a nearly 54% CAGR over the same period.
Over the period between 2016 and 2024, the segment of biometric door lock systems is expected to retain its position as the most preferred product variety, and witness a rise in its share in the overall market to 71% in 2024. Fingerprint recognition systems accounted for majority of the market share in the biometric door lock systems segment, accounting for a nearly 3/4th of the market in 2015.
Investor Interest in Asia Pacific Market Poised for Substantial Uptick
Europe is presently the dominant regional market for digital door lock systems, holding nearly one-third of the global market in 2015. The dominance of the region is primarily attributed to factors such as the vast rise in demand for digital door lock systems in the residential sector. The stabilizing construction sector post the recent economic turmoil of 2008 and the subsequent rise in new residential construction projects has also influenced growth of the market lately. Over the next few years, however, the region is projected to lose a substantial portion of its share in the global market, which is expected to fall from nearly 35% of the global market in 2015 to 30% by 2024.
Asia Pacific is expected to be the leading region in terms of new opportunities for the global digital door lock systems market in the next few years. Exhibiting growth at a swift pace of 35.5% CAGR over the period between 2016 and 2024, the Asia Pacific digital door lock systems market is expected to account for about 28% of the global market as compared to its nearly 20% in 2015. A rise in new construction projects across urban dwellings in emerging economies, growth of the industrial sector, and the rising numbers of SMEs in the region are expected to bolster the Asia Pacific digital door lock systems market in the near future.
Some of the key vendors operating in the global digital door lock system market are Nestwell Technologies, Hanman International Pte Ltd., Godrej & Boyce Manufacturing Company Ltd., Allegion PLC, Cisco Systems, Inc., Panasonic Corporation, Wintec Electronic Tech Co. Ltd., Hitachi Ltd., Assa Abloy Group, United Technologies Corporation, Xeeder Technology Co. Ltd., Vivint, Inc., Tyco International Ltd., Honeywell International Inc., and Siemen