Whether established market leaders or start-ups, smart access control product and system manufacturers are under constant pressure to keep innovating. Not only have formerly innovative features become standard, but in some access control categories, prices are falling. The average selling price of a smart door lock in the US was $101 in Q4 2021, down from $133 just two years prior. Video doorbells, smart thermostats, and other smart home products are witnessing similar pricing trends.
Manufacturers seek features that demand premium pricing and services that can create recurring revenue streams. Maintaining an edge with innovative technology and the ability to integrate with future solutions are important differentiators in a highly competitive market.
Pace of Innovation
For traditional manufacturers, keeping up with the pace of smart product innovation is a challenge. Product lifecycles for smart products—which demand software updates, new connectivity standards, sensor integration, and cybersecurity patches—are dramatically shorter than traditional, unconnected or locally networked solutions. Manufacturers must be more agile, respond faster to changing market conditions, and get new features to consumers faster than the organization may be able to move.
The constant push to develop the next generation of products leads companies down two paths: acquiring innovation or building it in-house. Access control powerhouse ASSA ABLOY has led the acquisition drive, first acquiring August in December 2017. In September 2021, it announced its intentions to acquire Spectrum Brands’ Hardware and Home Improvement division, including lock brands Kwikset, Baldwin, and Weiser.
Brands lacking the capital or desire to make major acquisitions are investing in internal product development, looking for incremental innovation that improves each product generation.
