Impact of covid-19 on the Global Mechanical Locks Market
The advent of the global pandemic, COVID-19, has resulted in a global crisis across the world. The outbreak has disrupted the growth of real estate across the globe. Mechanical locks are used for security purposes. The global market for locks has been growing due to the deployment of security-based products such as mechanical and digital locks in residential, commercial, and industrial spaces. The increasing security concerns across all the world are driving the need for high-security locking systems in residential and commercial spaces. The sale of mechanical locks is highly dependent on the real estate sector. The real estate sector has witnessed substantial growth over the last few years in the emerging economies, which helped increase the sales of mechanical locks. Rapid urbanization also expected to increase the growth of the mechanical locks market. However, due to the increasing positive cases of COVID-19 patients globally, several governments have decided to lock down borders to minimize the spread of COVID-19. So, the construction process has stopped over the last couple of months, which is anticipated to create a major impact on the Mechanical Locks Market. Both residential and commercial sectors are expected to face a major downfall during the lockdown period as well as in the near future. One of the significant factors reducing the demand from the residential sector is the decreasing per capita disposable income of the consumers during the lockdown period. Additionally, many banks have started reducing the interest rate in a savings account in several emerging economies. For instance, in April 2020, the Indian government has announced a reduction in the interest rates on the Public Provident Fund (PPF), which is anticipated to reduce the per capita income of Indian consumers. Additionally, India’s largest bank, State Bank of India (SBI), has reduced fixed deposit rates as well. Thus, the per capita disposable income of Indian consumers is expected to be reduced in the upcoming quarters. Furthermore, the construction process will be stopped in several countries owing to the lack of workers. Thus, many of the projects will not be completed in the stipulated period. The usage of mechanical locks will be limited across the globe. Moreover, the decreasing growth of the hospitality industry has negatively impacted the growth of the mechanical locks market during the study period. Additionally, the import & export activities are strictly prohibited in the majorly infected countries, which restricts the growth of the global mechanical locks market.
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