A new report from research firm MarketsandMarkets shows that the digital key cabinet market will reach $225 million USD by 2029. That’s up from $160 million USD in 2024–a CAGR of 7.1 percent during that time.

The researchers attribute the growth to increased demand for better security and key management across all sectors including commercial, industrial, and residential properties. The risk of security breaches have encouraged building owners to seek more controlled access to sensitive areas. Digital solutions offer better key management.

MarketsandMarkets also cited technological advances in areas such as IoT and cloud-based systems. Those advancements have made digital key systems more appealing as they enable real-time monitoring, remote access, and automated audit trails.

The report predicts that implementations that require management of 51 to 100 keys will grow the most in the next five years. That reflects greater demand from medium-sized organizations.

Because digital key system rely on hardware cabinets to ensure secure storage, high-security solutions to make those cabinets tamper-proof are required. That will include advanced locking mechanisms, biometric readers, and RFID technology, according to the report.

Key players in the digital key cabinet market mentioned in the report include ASSA ABLOY, Carrier, Godrej & Boyce, Keyguard, Landwell, Morse Watchmans, and Creone.