Smart Locks: Price Wars, AI Integration, And Global Expansion As The Key Trends
In the smart home sector, Xiaomi and Huawei have once again emerged as key players. According to data released by research firm Lotoo Technology, Xiaomi leads in shipment volume with over 1.5 million units sold, securing the top spot in sales. While its sales revenue slightly trails behind that of Deshman, it still holds a strong position in the market. Notably, Huawei’s smart locks, although not ranking in the top five for units sold, have performed exceptionally in the high-end market, securing the fifth spot in terms of sales revenue.
The rapid rise of the consumer market has introduced a new wave of growth for the smart lock industry. According to data from Lotoo Technology, the total online sales volume of smart locks in China is projected to reach 7.72 million units in 2024. With a market predominantly driven by online sales, the success of smart lock brands now heavily relies on consumer support and product visibility. Major players like Xiaomi, Huawei, and TCL, with their immense influence in the internet and digital tech sectors, have a significant edge in attracting consumers.
This heightened competition has inevitably led to price wars among smart lock brands. Data from Lotoo Technology reveals that the average price of smart locks in China’s online market has decreased from ¥1,301 in 2021 to ¥913 in 2024. Beyond pricing, the "tech war" in the smart lock industry is also intensifying. As smart locks evolve to become integrated into home security platforms, they are incorporating increasingly complex biometric technologies. Currently, lower-end smart locks primarily offer convenient unlocking methods such as app-controlled Bluetooth, fingerprint recognition, and NFC. Meanwhile, high-end smart locks have advanced to include biometric features like AI palm vein recognition and 3D structured light facial recognition.
The smart lock industry is witnessing a shift in its primary sales drivers, moving from B2B to B2C, with online markets playing a pivotal role. The biggest beneficiaries of this shift are undoubtedly internet giants like Xiaomi and Huawei. In 2024, online channel sales are projected to grow by over 150% year-on-year.
In contrast, brands like Kaadas and Deshman, which focus on high-end products, demonstrate greater resilience to market risks. For instance, Deshman leads the market in the price range above $200, while Kaadas ranks highly in the $260–$340 segment.
The B2C market, targeting individual consumers, demands a higher level of product design from companies. Smart locks must be built on a foundation of advanced technology, incorporating additional biometric features to reduce the risk of being compromised while enhancing ease of use. The smart lock industry is also actively integrating AI to improve performance. Leveraging AI to increase recognition accuracy and unlocking efficiency will become a crucial development for the future of the industry. AI not only enhances the user experience but can also play a significant role in marketing strategies.
According to the China Smart Lock Industry White Paper by AVIC Cloud Network, the penetration rate of smart locks in China is approximately 27.9% in 2024. In contrast, Lotoo Technology reports that the penetration rate of smart locks in overseas markets is less than 3%, with products primarily focused on fingerprint and password unlocking, lacking advanced features. Products from the domestic market entering international markets can be seen as a "dimension reduction" move, offering a competitive edge.
The relatively low market competition and significant growth potential in overseas markets present a unique opportunity for domestic smart lock companies. By tapping into these vast international markets, smart lock brands stand to gain more substantial profits than in the domestic market.