VOL. XCIV, NO. 247

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Friday, January 2, 2026

ASSA ABLOY AB

ASSA-B · Nasdaq Stockholm

Market cap (USD)
SectorIndustrials
Industry
CountrySE
Data as of
Moat score
76/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

ASSA ABLOY is a global access solutions group organized into regional Opening Solutions divisions (EMEIA, Americas, Asia Pacific) plus Global Technologies and Entrance Systems. The core moat is a large installed base monetized through upgrades to digital/electromechanical access, with growing recurring revenue from subscriptions, service agreements and connected services. A broad service/distribution footprint and trusted brand portfolio (including Yale and HID) support demand preference and recurring aftermarket economics. Key pressures are fragmented local competition (especially in Asia), construction cycle volatility, and execution/cybersecurity risks in connected offerings.

Primary segment

Entrance Systems

Market structure

Oligopoly

Market share

HHI:

Coverage

5 segments · 8 tags

Updated 2026-01-02

Segments

Opening Solutions EMEIA

Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)

Revenue

16.3%

Structure

Oligopoly

Pricing

moderate

Share

Peers

ALLEDOKA.SWFBIN

Opening Solutions Americas

Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)

Revenue

29.4%

Structure

Oligopoly

Pricing

moderate

Share

Peers

ALLEDOKA.SWFBIN

Opening Solutions Asia Pacific

Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)

Revenue

5.5%

Structure

Competitive

Pricing

weak

Share

Peers

ALLEDOKA.SW

Global Technologies

Secure identity and physical access technologies (credentials, readers, access control/identity solutions, connected services)

Revenue

16%

Structure

Oligopoly

Pricing

strong

Share

Peers

JCICARRDOKA.SWALLE

Entrance Systems

Entrance automation and industrial door solutions (pedestrian automatic doors, industrial doors, loading dock equipment, service/maintenance)

Revenue

32.9%

Structure

Oligopoly

Pricing

moderate

Share

Peers

DOKA.SW6268.TALLE

Moat Claims

Opening Solutions EMEIA

Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)

Revenue share computed from FY2024 external sales by division in ASSA ABLOY Q4 Report 2024 (Full-year summary 2024).

Oligopoly

Installed Base Consumables

Demand

Strength

Durability

Confidence

Evidence

Installed base provides recurring upgrade path to digital/electromechanical solutions; aftermarket, subscriptions and service agreements monetize devices over time.

Erosion risks

  • Faster-than-expected commoditization of basic mechanical products
  • Open standards and interoperability reducing platform differentiation
  • Cybersecurity incidents reducing trust in connected offerings

Leading indicators

  • Electromechanical & digital organic growth rate
  • Subscription-based solutions growth and ARR-style disclosures (if provided)
  • Service agreements attach rate / service revenue mix

Counterarguments

  • For many customers, door hardware is a price-led purchase with multi-sourcing
  • Large projects can rebid suppliers; installed-base advantages are weaker in new construction

Service Field Network

Supply

Strength

Durability

Confidence

Evidence

Service agreements and connected services (e.g., remote monitoring/mobile access) deepen customer relationships and enable ongoing parts/service pull-through.

Erosion risks

  • Independent service providers competing on price
  • Remote monitoring becomes commoditized across vendors
  • Construction/maintenance cycles reduce service demand temporarily

Leading indicators

  • Service share of divisional sales and service margin
  • Growth in subscription/service agreements and connected-service penetration
  • Customer retention/renewal rates for service contracts (if disclosed)

Counterarguments

  • Service is not always exclusive; customers can switch to third-party maintenance
  • Service network scale can be replicated regionally through acquisitions

Brand Trust

Demand

Strength

Durability

Confidence

Evidence

Trusted global and local brands support preference in security-critical purchases and help sustain premium positioning.

Erosion risks

  • Brand damage from product failures, breaches, or recalls
  • Innovation gap vs competitors in smart/connected access
  • Regional preference shifts and private-label channel pressure

Leading indicators

  • Average selling price (ASP) / mix vs peers
  • Win rates on specified projects and key account retention (if disclosed)
  • Warranty/return rates and customer satisfaction measures (if disclosed)

Counterarguments

  • B2B procurement often prioritizes total installed cost and standards compliance over brand
  • Strong local competitors can outcompete on price and relationships in fragmented markets

Opening Solutions Americas

Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)

Revenue share computed from FY2024 external sales by division in ASSA ABLOY Q4 Report 2024 (Full-year summary 2024).

Oligopoly

Installed Base Consumables

Demand

Strength

Durability

Confidence

Evidence

Large installed base in commercial and residential channels supports recurring replacement/upgrade demand and recurring subscriptions for connected access solutions.

Erosion risks

  • Faster-than-expected commoditization of basic mechanical products
  • Open standards and interoperability reducing platform differentiation
  • Cybersecurity incidents reducing trust in connected offerings

Leading indicators

  • Electromechanical & digital organic growth rate
  • Subscription-based solutions growth and ARR-style disclosures (if provided)
  • Service agreements attach rate / service revenue mix

Counterarguments

  • For many customers, door hardware is a price-led purchase with multi-sourcing
  • Large projects can rebid suppliers; installed-base advantages are weaker in new construction

Service Field Network

Supply

Strength

Durability

Confidence

Evidence

A broad service/distribution footprint (built through acquisitions) supports service agreements, maintenance and digital service rollouts that increase retention.

Erosion risks

  • Independent service providers competing on price
  • Remote monitoring becomes commoditized across vendors
  • Construction/maintenance cycles reduce service demand temporarily

Leading indicators

  • Service share of divisional sales and service margin
  • Growth in subscription/service agreements and connected-service penetration
  • Customer retention/renewal rates for service contracts (if disclosed)

Counterarguments

  • Service is not always exclusive; customers can switch to third-party maintenance
  • Service network scale can be replicated regionally through acquisitions

Brand Trust

Demand

Strength

Durability

Confidence

Evidence

Strong residential and commercial brand portfolio supports trust and willingness-to-pay in security purchases, especially in premium segments.

Erosion risks

  • Brand damage from product failures, breaches, or recalls
  • Innovation gap vs competitors in smart/connected access
  • Regional preference shifts and private-label channel pressure

Leading indicators

  • Average selling price (ASP) / mix vs peers
  • Win rates on specified projects and key account retention (if disclosed)
  • Warranty/return rates and customer satisfaction measures (if disclosed)

Counterarguments

  • B2B procurement often prioritizes total installed cost and standards compliance over brand
  • Strong local competitors can outcompete on price and relationships in fragmented markets

Opening Solutions Asia Pacific

Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)

Revenue share computed from FY2024 external sales by division in ASSA ABLOY Q4 Report 2024 (Full-year summary 2024).

Competitive

Installed Base Consumables

Demand

Strength

Durability

Confidence

Evidence

Installed base and upgrades to digital/electromechanical solutions create recurring opportunities, but the market is more fragmented and price-competitive.

Erosion risks

  • Faster-than-expected commoditization of basic mechanical products
  • Open standards and interoperability reducing platform differentiation
  • Cybersecurity incidents reducing trust in connected offerings

Leading indicators

  • Electromechanical & digital organic growth rate
  • Subscription-based solutions growth and ARR-style disclosures (if provided)
  • Service agreements attach rate / service revenue mix

Counterarguments

  • For many customers, door hardware is a price-led purchase with multi-sourcing
  • Large projects can rebid suppliers; installed-base advantages are weaker in new construction

Service Field Network

Supply

Strength

Durability

Confidence

Evidence

Service agreements and connected services can drive stickier relationships, though field service is easier to replicate and often served by local contractors.

Erosion risks

  • Independent service providers competing on price
  • Remote monitoring becomes commoditized across vendors
  • Construction/maintenance cycles reduce service demand temporarily

Leading indicators

  • Service share of divisional sales and service margin
  • Growth in subscription/service agreements and connected-service penetration
  • Customer retention/renewal rates for service contracts (if disclosed)

Counterarguments

  • Service is not always exclusive; customers can switch to third-party maintenance
  • Service network scale can be replicated regionally through acquisitions

Global Technologies

Secure identity and physical access technologies (credentials, readers, access control/identity solutions, connected services)

Revenue share computed from FY2024 external sales by division in ASSA ABLOY Q4 Report 2024 (Full-year summary 2024).

Oligopoly

Switching Costs General

Demand

Strength

Durability

Confidence

Evidence

Installed systems (credentials/readers/software) plus subscription/service agreements increase inertia and multi-year customer relationships, supporting retention and upsell.

Erosion risks

  • Open credential standards and interoperability reducing vendor lock-in
  • Cybersecurity incidents increasing churn or regulatory scrutiny
  • Cloud-first competitors pushing bundle pricing or freemium entry

Leading indicators

  • Subscription-based solutions growth and mix within Global Technologies
  • Renewal/retention metrics for software & service (if disclosed)
  • Share of connected/managed services vs hardware-only sales

Counterarguments

  • Large enterprises can standardize on multi-vendor solutions and rebid contracts
  • Some deployments use standards-based components with limited switching friction

Brand Trust

Demand

Strength

Durability

Confidence

Evidence

Brand reputation in identity/security (e.g., HID) supports customer trust and reduces perceived risk in security-critical deployments.

Erosion risks

  • Security breaches undermining trust
  • Technological disruption (mobile credentials, new standards) shifting buyer preferences

Leading indicators

  • Share of wins in strategic enterprise/government projects (if disclosed)
  • Product security incidents and remediation cadence
  • ASP/mix for premium credential and reader lines

Counterarguments

  • Buyers may prioritize integration and total cost over brand, especially in commoditized credential formats
  • Platform differentiation can erode if mobile OS ecosystems control credential distribution

Entrance Systems

Entrance automation and industrial door solutions (pedestrian automatic doors, industrial doors, loading dock equipment, service/maintenance)

Revenue share computed from FY2024 external sales by division in ASSA ABLOY Q4 Report 2024 (Full-year summary 2024).

Oligopoly

Service Field Network

Supply

Strength

Durability

Confidence

Evidence

A meaningful service component and connected service model (remote monitoring) create recurring revenue and enable replacement/upsell across a large installed base of doors.

Erosion risks

  • Independent service providers competing on price
  • Remote monitoring becomes commoditized across vendors
  • Construction/maintenance cycles reduce service demand temporarily

Leading indicators

  • Service share of divisional sales and service margin
  • Growth in subscription/service agreements and connected-service penetration
  • Customer retention/renewal rates for service contracts (if disclosed)

Counterarguments

  • Service is not always exclusive; customers can switch to third-party maintenance
  • Service network scale can be replicated regionally through acquisitions

Installed Base Consumables

Demand

Strength

Durability

Confidence

Evidence

Installed entrance equipment requires ongoing maintenance and parts; service relationships can drive product pull-through and upgrades over equipment life.

Erosion risks

  • Customers extending replacement cycles in downturns
  • Competition from local manufacturers on new equipment
  • Service pricing pressure from third-party providers

Leading indicators

  • Entrance Systems service growth vs equipment growth
  • Recurring revenue share and contract penetration
  • Aftermarket parts revenue trend (if disclosed)

Counterarguments

  • Equipment can be sourced from many vendors; OEM lock-in is limited if service is not bundled
  • Service revenue can be cyclical and exposed to customer cost-cutting

Evidence

sec_filing
ASSA ABLOY Quarterly Report Q4 2024 (CEO comments)

An important part of our strategy is upgrading the installed base with innovative digital and electromechanical products and solutions.

Direct statement that strategy is to monetize/upgrade a large installed base via digital/electromechanical transitions.

sec_filing
ASSA ABLOY Quarterly Report Q4 2024 (CEO comments)

In 2024, sales of our subscription-based solutions grew by 18%.

Quantifies growth of subscription-based solutions, supporting recurring-revenue expansion.

sec_filing
ASSA ABLOY Annual Report 2022

Two-thirds of our revenue is generated from the aftermarket, which provides us with a stable customer and revenue base.

Shows the business is heavily aftermarket-driven, reinforcing recurring upgrade/service opportunities from the installed base.

sec_filing
ASSA ABLOY Quarterly Report Q4 2024 (CEO comments)

Recurring revenue continues to be a key driver for growth with subscription-based models, service agreements, and digital solutions like remote monitoring and mobile access.

Links growth to recurring revenue mechanisms (subscriptions, service agreements, digital services).

investor_day
ASSA ABLOY Capital Markets Day 2025 - Strategy presentation (Service slide)

17 acquisitions in distribution/service since 2020.

Supports scale and breadth of the service/distribution network built via acquisitions.

Showing 5 of 9 sources.

Risks & Indicators

Erosion risks

  • Faster-than-expected commoditization of basic mechanical products
  • Open standards and interoperability reducing platform differentiation
  • Cybersecurity incidents reducing trust in connected offerings
  • Regulatory/antitrust actions limiting bundling or channel practices
  • Independent service providers competing on price
  • Remote monitoring becomes commoditized across vendors

Leading indicators

  • Electromechanical & digital organic growth rate
  • Subscription-based solutions growth and ARR-style disclosures (if provided)
  • Service agreements attach rate / service revenue mix
  • Price/cost spread and gross margin trend
  • Service share of divisional sales and service margin
  • Growth in subscription/service agreements and connected-service penetration
Created 2026-01-02
Updated 2026-01-02

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