Global RFID lock market to grow at a CAGR of nearly 17% during the forecast period 2016-2020.
The research study covers the present scenario and growth prospects of the global radio frequency identification (RFID) lock market for 2016-2020. To determine the market size, the study considers revenue generated by vendors from the manufacture and sale of RFID locks for different end- government.
Geographically, North America leads the RFID lock segment with a market share of almost 38% (2015 figures). With the customers in the region becoming more accepting towards new technologies, there is an increase in number of residential properties adopting the RFID-based locks to enhance home security. They are finding increased utility as they can be linked to the customer's smart phone to monitor and operate the locks. While the residential sector is still finding traction in the market, the hospitality industry sees widespread use of this technology.
Manufacturers of RFID locks are continuously innovating their products to cater to the evolving customer demands. Accessibility of RFID locks with smart phones is the latest technology in this market space, providing enhanced user experience. Because of innovations like this, the global RFID lock market is expected to reach a market value of USD 1.1 billion, at a CAGR of almost 17%.
"Countries in APAC are rapidly developing with high rates of urbanization. An increasing percent of population is opting to migrate to urban areas, creating a demand for rapid urban infrastructure development. This blooming construction industry in APAC is expected to drive the RFID lock market," says Abhay Sinha, one of the lead market research analysts at Technavio.
The construction market in APAC is driven by China. The market in the region was valued at USD 1,574 billion in 2015, and is forecast to reach USD 2,791 billion by 2020. It is projected that 60% of the total Chinese population will reside in urban areas by 2020. Similarly, a majority of the population from India, Vietnam, and Singapore will also be residing in urban areas. With the global population heading towards technologically advanced solutions, there will be a high demand for RFID locks in the region.
Near field communication (NFC) is an RFID based short range wireless technology, made specially for smart devices. This technology enables connecting two devices equipped with NFC when they are brought within close proximity of one another. NFC chips are embedded into smart phones with help of card emulation technology. This technology finds applications mainly in payment and ticketing.
It can also be utilized for connection handovers such as set-up of wireless technologies like Bluetooth and Wi-Fi when there is a requirement for additional bandwidth. The basic intent behind connection handovers is to unlock Bluetooth-enabled doors or RFID locks with the touch of a tag. This application can be used in the hospitality sector by providing guests with an encrypted room key and room number on their mobile devices, which will enable them to bypass the check-in process. This technology will bring in significant revenue for the RFID locks market.
"The hospitality sector is swiftly growing at a CAGR of over 11% through 2020. This sector includes hotel chains, restaurants, fast food joints, amusement and theme parks, and the entertainment industry. This industry is witnessing transformation to keep up with the technologically advanced offerings that the customers of this segment demand," says Abhay.
Vendors, especially ones in the hotel and restaurant businesses, have increased pressure to reinvent themselves to create a unique identity, gain a competitive edge in the market, and create enhanced customer experience. They are incorporating advanced technologies into their businesses and have started deploying electronic locks in place of traditional locks. The technology advances RFID-based electronic locks offer enhanced customer experience and security.
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