The mechanical security industry, including locks, safes, and vaults, will grow 5.4 percent annually through 2020 to $6.1 billion. The large lock segment accounted for 72 percent of industry demand in 2015 and will drive growth. The recovering construction industry will support demand, while ongoing shifts to higher value electrified products, particularly door locks and door security hardware that are used with electronic access control systems, will assist gains, too. The need for electrified versions of mechanical security products will continue to rise as access control and other such systems are installed at more entry points. The newly published study Mechanical Security Products further discusses the markets.
Generally speaking, product use is similar across the various markets for mechanical security equipment. However, some markets are particularly intensive users of particular products. For example, the financial sector is the heaviest user of security storage equipment like vaults and safes. Similarly, the equipment market accounts for the vast majority of padlock and other lock sales, since their primary purpose is to secure various types of equipment.
Sales to consumers represent the largest market for mechanical security products because of the large base of households and residential buildings. This segment will also see above average gains going forward, spurred by the increase in new home construction and renovations. As the number of healthcare facilities rapidly increases, so will the sales of mechanical security products to these institutions. Furthermore, other institutional facilities such as hospitals and schools have a strong priority to protect their patients and students. In the office and lodging market, where each individual unit must be equipped with door locks and door security hardware, gains will benefit from the rising number of building and establishments. In addition to door security, hotels install small safes for their guests in each unit. Offices will increasingly use electronic access control systems, boosting sales of expensive electrified hardware in this segment.
The many different kinds of businesses in the much smaller services sector will also bring strong growth. Much like the other fast-growing segments, growth in the service sector will be driven by the increasing number of establishments using higher value products. Although product use in retail and wholesale businesses and related warehouses is very similar to the services segment, growth is expected to be slower, due to the ever growing importance of ecommerce and online sales placing pressure on brick and mortar establishments. Similar weakness will limit growth in the industrial and financial markets, with an outright decline in the number of banking and credit union offices severely limiting sales to the financial market.
To learn more about the demand for door locks and security hardware and storage equipment, see the recent industry study Mechancial Security Products published by The Freedonia Group, a reliable and unbiased market research firm and a division of MarketResearch.com.
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The Freedonia Group