Assa Abloy: digital locks will be sales driver
According to global door, key, and security expert, Assa Abloy, homes converting to digital locks in the near future will be an important driver of growth. The company’s CEO, Johan Molin, who will step down next year, told Reuters that 2018 would be a strong year, driven by an uptick in digital solutions. He said: “I believe our organic growth will accelerate, partly because homes convert to digital solutions and partly because we see much more digital solutions within business to business”
Molin is more positive about the coming year than he was about 2017. Partly, that’s because the global economic backdrop looks better now than it did then. But it’s also down to what he thinks are powerful trends in the security market: digitization, and commercial building locks.
This is partly down to growth in the Internet of Things (IoT). People who have purchased “smart” thermometers, virtual personal assistants, and other connected home items from Google Home or Amazon are, more likely than not, also on the market for a modern security system that can integrate with the wider virtual world. Molin didn’t offer specifics, but this is an area that Assa Abloy is working hard towards: “we have launched within parts of the group, but now more and more applications are entering the picture.”
Right now, Assa Abloy is the market leader in Europe and North America. If it can make good on its plans to beat competitors to market with digital solutions, and devices that can become part of the IoT, then it is possible that it will consolidate that position over the coming years.
Dominion holds Assa Abloy in its Global Trends Managed Fund.
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