Locksmiths

The 3,900 locksmiths in the US sell, install, open, modify, and service mechanical or electronic locking devices, safes, and security vaults. Major revenue categories include non-residential services, residential services, key duplication, and merchandise resale. Firms may install and service electronic alarm and surveillance systems or provide roadside assistance for locked vehicles.

Staying Current With Technology

Electronic locking technology is changing the security industry and forcing locksmiths to adapt accordingly.

Recession-Resistant, But Not Recession-Proof

While the locksmith industry is considered recession-resistant, an individual firm’s specialty can be sensitive to economic factors.

Jul 22, 2026 - Smart Lock Adoption Continues Growth

• Smart locks and connected garage door openers are gradually reshaping the US locksmith industry as consumers increasingly integrate access control into broader home security systems, according to a report in Locksmith Ledger. According to Parks Associates, smart door locks and smart garage door openers were installed in 11% of U.S. internet households by mid-2025, with adoption largely driven by home purchases, renovations, and security system installations. New interoperability standards and biometric features are improving compatibility and convenience, creating opportunities for locksmiths to expand installation and service offerings. However, adoption remains tied to housing activity, while high equipment costs, long replacement cycles, and installation complexity continue to moderate market growth.
• The AIA/Deltek Architecture Billings Index (ABI) remained below growth territory for a 41st consecutive month in June, signaling continued weakness in future nonresidential construction activity that could temper demand for the US locksmith industry. The ABI improved to 47.3 from May but remained below the growth threshold of 50, while new project inquiries increased and newly signed design contracts were essentially flat, suggesting conditions may be stabilizing. Declining backlogs, particularly among smaller firms and multifamily specialists, indicate fewer projects moving toward construction, which could weigh on demand for locksmiths serving new commercial and residential developments. However, improving inquiries and relatively stable contracts point to potential opportunities if projects continue to advance, while ongoing renovation, retrofit, and security upgrade work may help support locksmith activity despite a slower construction pipeline.
• Rising bankruptcy filings and growing financial strain on households and businesses could increase demand for US locksmith services tied to evictions, foreclosures, and property turnover, according to recent Epiq AACER and ABI data. Commercial Chapter 11 bankruptcies rose 28% during the first six months of 2026 year over year, while total commercial filings increased 13%. For locksmiths, increased foreclosures, business closures, and property transitions may create more demand for lock changes, rekeying, access control updates, and security services for distressed residential and commercial properties. However, broader economic weakness and reduced construction activity could continue limiting demand for nonessential security upgrades and installation projects.
• According to the 2025 State of the Industry report in Locksmith Ledger, US locksmiths are experiencing a period of adaptation and moderate growth as business models shift and technology adoption accelerates. In 2025, 45% of locksmiths operate primarily as mobile businesses, while retail locksmith shops rebounded to 32%, up from 26.3% in 2024, signaling renewed demand for storefront services. Service diversification is driving impact: 85% now perform commercial door hardware installation (up from 75% in 2024), 54% offer stand-alone access control, and 30% provide networked access control, reflecting growing electronic integration. Financially, momentum is improving; 40.5% of locksmiths reported revenue growth in 2025, and 38.5% reported profit growth, while those reporting significant revenue decline fell to 13%. However, cost pressures remain acute, with 54.5% citing controlling costs as their top challenge and 18% already impacted by tariffs.

Industry size & Structure

The average locksmith operates out of a single location, employs four workers, and generates about $667,100 annually.

• The locksmith industry consists of about 3,900 companies that employ about 16,300 workers and generate about $2.7 billion annually.
• The industry is highly fragmented; the top 50 companies account for 22% of industry revenue.
• The industry primarily consists of small, independent operators that serve a local market. Franchises include Pop-A-Lock and Mr. Rekey.