Date: December 3, 2021
Source: China Economic News Network
According to data from the China Smart Lock Industry Research Institute and Lockin Intelligence, the total smart lock sales volume in 2020 exceeded 15 million units. In the first half of 2021 alone, the industry reached 7 million units, with significant year-on-year growth. With demand typically surging in the second half of each year due to real estate project completions, the full-year sales for 2021 are expected to surpass 2020 levels substantially.
A Market with Massive Growth Potential
- China has approximately 493 million households.
- Current smart lock penetration is around 20%, leaving room for growth up to 100%.
- Estimated potential replacement demand: 394 million units.
- With an average price of RMB 1,200 per unit, the total potential market size exceeds RMB 472.8 billion.
- Including hotels and offices, the actual market potential is even larger.
Despite rapid market expansion—from RMB 8.65 billion in 2016 to RMB 27.46 billion in 2020 (33.5% CAGR)—penetration remains low. By 2025, the market is expected to reach RMB 58.53 billion, making it one of China’s most promising smart home sectors.
Smart Locks as the Entry to Smart Home Ecosystems
Smart locks are no longer just security devices. They serve as:
- The first touchpoint in smart home ecosystems
- Hubs for interconnectivity with products like smart cat eyes, cameras, TVs, and HVAC systems
- A gateway to next-generation smart living
Industry consensus points to smart locks becoming the “standard configuration” in future homes, valued for both security and smart integration. They are expected to drive broader smart home adoption.
Fenda Technology's Strategic Advantage
Fenda Technology invested in Romance Smart Home (Shenzhen) in 2019 (92% stake), focusing on R&D, production, and service of smart locks and smart home products. Romance integrates:
- Core tech and brand power of a Top 10 smart lock brand
- Fenda’s AI capabilities and precision manufacturing
In just two years, Romance became a leading player in China's smart lock sector.
Fenda’s smart lock business is primarily ODM-based, serving major clients like TCL, Wangli Group, and Buyang Group. However, smart locks are not an isolated business—they are an extension of Fenda’s AI ecosystem, following the success of its AI speakers and wearables. Smart locks represent another gateway into the AI consumer wave.
Source: China Economic News Network (中国经济新闻网)