Parks Associates’ new research shows that annual unit sales of smart door locks will reach 1.68 million by 2021, while sales revenue from the product will exceed US$357 million in the same year, up from US$207 million in 2017.
Adoption of smart door locks continues to increase, with annual unit sales projected to increase by more than 75% from 2017 to 2021, said Brad Russell, a research analyst at Parks Associates. “The increase in adoption will lead to a US$150 million increase in annual sales revenues during that period.”
Parks Associates notes a major barrier to the mass adoption of smart door locks remains the high upfront costs. According to the firm, many consumers cannot justify the disparity in prices between connected and unconnected models.
“One-half of consumers view smart door locks and smart video door bells as unaffordable,” Russell said. This is a significant challenge for the smart home market. The average price of a smart door lock is US$220 while traditional non-connected door locks can be purchased for $80-$100.
Innovators and early adopters recognize the value of smart home products, but the majority of U.S. consumers sees only marginal value, which is insufficient to justify the premium price for smart products.
Consumers may also have concerns over the security of wirelessly connected locks. The constant stream of online and device security breaches fuels consumers’ fears that these devices can be hacked, especially some of the less-expensive Bluetooth locks on the market, which would leave their homes and personal data vulnerable.
Parks Associates’ recent research also reveals that 34% of U.S. broadband households report problems with smart home devices, and 31% of Amazon Echo owners regularly use the personal assistant to control smart home devices;
Also, 47% of smart home device owners find a service that resolves technical support with their devices to be highly appealing, and one fifth of broadband households express a desire for a smart appliance, though adoption is still below 5%.