Report : RFID Locks Market Forecast to 2027 - COVID-19 Impact and Global Analysis By Access Device (Key Cards, Mobile Phones, and Key Fobs) and End User (Hospitality, Residential, Manufacturing, Retail, Automotive, Aerospace & Defense, Government & Public Utility, and Others), and Geography
According to the new research report titled “RFID locks Market Forecast to 2027 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 8,779.61 million by 2027, registering a CAGR of 12.6% from 2020 to 2027.
Technological innovations, strong economy, and emerging technologies facilitate development of latest & convenient solutions for end users. The scope of using advanced access solutions, such as RFID looks, is gaining high traction. The inclination toward procurement of electromechanical products over traditional locking systems has increased drastically, which is expected to continue and offer various growth opportunities to users of smart locking systems. Ergonomic and well-suited design, ADA compliance and adaptability are some of the features provided by the RFID locks, which is boosting their adoption among various industries, especially hotels. Array of apartments, residential homes, small commercial buildings, schools, and other similar spaces are still using old-fashioned key-and-doorknob locks in their exterior & interior doors. With growing urbanization and rising demand for security, the business owners & homeowners getting inclined to smart locking systems. Hence, the lock manufacturers are incorporating smart technology in their electronic locks to make it smart. Therefore, emergence of RFID locks, which can be accessed through smartphones is receiving high momentum. Smartphone use or voice command are a few better methods of opening/closing doors while omitting demand for key. Growth in smartphone penetration is expected to promote the use of RFID locks among target end users.
Growing hospitality sector, especially hotel and tourism industry, across the different parts of the world is contributing toward the construction of new commercial buildings, including hotels. Rise in government funding to boost the hospitality sector and plans to make hotels with more number of rooms are directly driving the demand for RFID locks, thereby stimulating the market growth. Also, urbanization is among the major factors generating demand for advanced access solutions. As urbanization is resulting into added conurbations and more cities with above million inhabitants, demand for more advanced and sophisticated infrastructure solutions is expanding. This factor is further making substantial contribution toward the market growth. In addition, other factors, such as rise in demand for security, demographic change, emergence of dynamic technologies, and inflating prosperity in emerging economies driven by rising middle class level group, require advanced technological approaches. All the above-mentioned factors are projected to benefit both RFID locks manufacturers and tech giants to develop better version of access solutions keeping in mind safety & security.
According to Electronic Components Industry Association, the emergence of COVID-19 has caused delay in product releases, disruption in supply chain events, and other industry activities. Several manufacturers have temporarily halted the manufacturing units owing to lesser demand for the products as a result of lockdown measures and limited manufacturing resources. Additionally, the manufacturers of various electronic and semiconductor products, including RFID strips and chips, have been experiencing substantial delay in lead times, which has weakened the supply chain. Similar to RFID strips or chip manufacturers, the locking system manufacturers also observed delay in procuring RFID strips and chips, which are integrated on the locks. This resulted in lesser production and delay in shipment of the final products. This has had a negative impact on the RFID locks market. Several locking system manufacturers across the globe are dependent on RFID components manufactured in China, owing to cost effectiveness of the products. During the first quarter of 2020, numerous Chinese manufacturers had temporarily shut their manufacturing facilities, thereby showcasing decline in supply as well as demand for electronics & semiconductor products worldwide. This also had a harsh impact on the RFID locks market.
Key Findings of Study:
The global RFID locks market is fragmented into five major regions—North America, Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South America (SAM). Europe held the largest share of the RFID locks market in 2019, followed by Asia Pacific and North America. Further, Asia Pacific is projected to witness the highest growth rate during the forecast period.
Nevertheless, significant strategic initiatives by several industry players are observed in the market; for instance, on February 2021, Digilock (Security People, Inc.) had launched a 6g smart lock product line with a cloud-based network management system. Digilock's 6g locks continue to be wireless to easily install on new builds, retrofits, and upgrades. Moreover, in June 2021, dormakaba Holding AG had launched RT plus BLE-enabled RFID locks, which are ideal for magstripe or mechanical lock retrofit. The RT Plus lock is a cost-effective solution for small hotels and large properties, including guest rooms, common areas, meeting spaces, and back of house access control.