In this Research Note, we examine iLOQ, the Finnish digital access management business, based on 2022 financial results, Annual reports and recent press releases. This is an update on our previous article, Exploring iLOQ Financials & the Mechatronic Lock Market.
iLOQ is a growing Finnish innovator in the mechatronic locking sector. Based on patented energy-harvesting technology, the company has developed self-powered digital locking and NFC-enabled mobile access management solutions which offer electronic locking without batteries or cables. It's smart locks and keyless solutions provide benefits for building owners, property managers and end users alike by maximizing security, minimizing maintenance, administration and lifecycle costs, and creating smart living and working environments.
In 2019, Nordic Capital, a private equity firm, invested in a majority stake in iLOQ, which had posted €50 million in revenues in 2018. The vision was to accelerate the Company’s growth and to expand into new markets and customer segments, unlocking the value of its innovations.
In 2022, the company reports around 280 employees, subsidiaries in 13 countries in Europe, the Middle East and North America, a network of more than 1,000 partners around the world and deliveries in over 1,200 locations in more than 40 countries.
iLOQ reported around €133 million in 2022 revenues, a 29% increase between 2021 and 2022, while also growing operating profit significantly. The company has also continued to grow with some 70 new employees onboarded during the past year and two new countries, Poland and USA starting local operations.
iLOQ US Expansion
iLOQ’s expansion into the US market is supported by an extensive patent portfolio, according to a March 2023 article. “Traditional mechanical locking is still going strong in the US. However, regulatory changes are supporting the shift from mechanical to electronic locking,” states Joni Lampinen, General Manager, iLOQ USA.
“The size and design of US locks differ from those in Europe. Starting a business in the US is therefore a much bigger investment and a much larger project than opening a branch in a new European country. iLOQ stands out in the US market because our competitors’ digital solutions are still battery-powered or require an external power supply. This makes it even more important to maintain our advantage by protecting our unique technology,” he continues.
A significant partnership was also announced with Honeywell Building Technologies, a major supplier of security products, with the signing of a global Master Supply Agreement in March 2023. “The purchase of access management solutions from iLOQ demonstrates that Honeywell clearly recognizes and understands the benefits of self-powered digital access management in the building technologies and throughout the value chain within building industry,” states Heikki Hiltunen, President & CEO of iLOQ.
In July 2022, to further augment the company’s smart living capabilities on a more holistic level, iLOQ also announced the acquisition of Kodinportti, a Finnish IT company specializing in digital and interactive bulletin boards and reservation systems for residential buildings.
With the aim of growing by about twice the size of the electromechanical locks market, iLOQ have set an ambitious annual growth target of around 25–30%.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.