The architectural hardware industry, encompassing locks, access control systems, door hardware, and security solutions, has undergone significant transformation over the past few decades. What was once a fragmented market with numerous small players— Allegion, dormakaba, Hager, and ASSA ABLOY, whose strategic maneuvers—mergers, acquisitions, and technological innovations—have reshaped the industry. This article explores the emergence of Allegion, dormakaba, and Hager, the consolidation strategies of ASSA ABLOY, and the broader implications for the architectural hardware market.
The Emergence of Allegion: A Spin-Off with Global Ambitions
Allegion’s story begins in 2013 when it spun off from Ingersoll Rand, a diversified industrial conglomerate, to become a standalone, publicly traded company. Headquartered in Dublin, Ireland, Allegion emerged as a focused provider of security products, including electronic and mechanical locks, access control systems, and door hardware under brands like Schlage, Von Duprin, and LCN. The spin-off allowed Allegion to streamline its operations and prioritize innovation in the security and access solutions market. With revenues of $3.27 billion in 2022 and a presence in over 130 countries, Allegion quickly established itself as a formidable player.
Allegion’s growth strategy has been marked by targeted acquisitions and technological advancements. For instance, in January 2014, Allegion acquired Schlage Lock de Colombia, expanding its footprint in Latin America with a 45,000-square-foot manufacturing facility in Bogota. In July 2018, it acquired GWA Group’s Door and Access Systems Business in Australia, incorporating brands like API Locksmiths and Gainsborough Hardware, strengthening its presence in the Asia-Pacific region. More recently, in April 2022, Allegion purchased Stanley Access Technologies, enhancing its portfolio of automatic door solutions.
Beyond acquisitions, Allegion has invested heavily in smart and connected technologies. The launch of the Schlage Encode Smart Wi-Fi Deadbolt in January 2019, which integrates with Amazon’s Key and Ring devices, exemplifies its focus on smart home solutions. Allegion Ventures, a $50 million venture capital fund launched in 2018, further underscores its commitment to fostering innovation by investing in early-stage companies in security and smart access. These moves have positioned Allegion as a leader in both mechanical and electronic security solutions, catering to residential, commercial, and institutional markets.
dormakaba: A Powerhouse Born from a Mega-Merger
The formation of dormakaba in 2015 marked a pivotal moment in the architectural hardware industry. The merger of Switzerland-based Kaba Group and Germany-based Dorma Group created a global security powerhouse, combining Kaba’s expertise in access control and identification systems with Dorma’s leadership in
