★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
VOL. XCIV, NO. 247
Stock Profile
ASSA ABLOY AB (ASSA-B) Moat Analysis
ASSA ABLOY AB
ASSA-B · Nasdaq Stockholm
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 with three regional Opening Solutions divisions plus Global Technologies and Entrance Systems. H1 2026 division sales before eliminations were led by Entrance Systems at 32.4% and Americas at 28.7%; their normalized adjusted-EBIT shares were 32.1% and 31.7%. EMEIA and Americas have medium upgrade friction from the group's large installed base, but the evidence does not justify durable regional lock-in; Asia Pacific is moatless amid fragmented competition and weak Greater China demand. Global Technologies has measured switching friction around HID readers, credentials, and subscriptions plus medium trust advantages in secure identity. Entrance Systems has the clearest moat: a direct service network supporting preventive maintenance and recurring agreements, with service representing 28% of 2025 division sales.
Primary segment
Entrance Systems
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
5 segments · 8 tags
Updated 2026-08-23
Segments
Opening Solutions EMEIA
Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)
Revenue
17.4%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Opening Solutions Americas
Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)
Revenue
28.7%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Opening Solutions Asia Pacific
Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)
Revenue
5%
Structure
Competitive
Pricing
weak
Share
—
Peers
Global Technologies
Secure identity and physical access technologies (credentials, readers, access control/identity solutions, connected services)
Revenue
16.5%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Entrance Systems
Entrance automation and industrial door solutions (pedestrian automatic doors, industrial doors, loading dock equipment, service/maintenance)
Revenue
32.4%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Moat Claims
Opening Solutions EMEIA
Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)
H1 2026 division sales were SEK13.200B and adjusted EBIT was SEK2.068B. Shares are normalized across the five divisions before eliminations and exclude the negative Other result. Organic sales grew 4%.
Installed Base Consumables
Demand
Installed Base Consumables
Strength
Durability
Confidence
Evidence
A large installed base supports replacements and transitions to electromechanical access, while EMEIA also offers subscription models. Open standards and competitive retrofit bids limit lock-in.
Installed Base Consumables moat: definition, examples, and stocks
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
Opening Solutions Americas
Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)
H1 2026 division sales were SEK21.817B and adjusted EBIT was SEK4.004B. Shares are normalized across the five divisions before eliminations and exclude the negative Other result. Organic sales grew 4%.
Installed Base Consumables
Demand
Installed Base Consumables
Strength
Durability
Confidence
Evidence
Commercial and residential installed products support replacement and electromechanical upgrades, but customers can change brands during retrofit or new construction and the company does not disclose regional retention.
Installed Base Consumables moat: definition, examples, and stocks
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
Opening Solutions Asia Pacific
Door opening solutions (mechanical & electromechanical locks, access control, doors and related hardware)
H1 2026 division sales were SEK3.814B and adjusted EBIT was SEK279M. Shares are normalized across the five divisions before eliminations and exclude the negative Other result. Organic sales declined 2%, including a 4% Q2 decline. Group installed-base evidence does not establish a regional barrier amid fragmented local competition, so this segment is moatless.
Insufficient segment-specific evidence to assign a moat claim.
Global Technologies
Secure identity and physical access technologies (credentials, readers, access control/identity solutions, connected services)
H1 2026 division sales were SEK12.579B and adjusted EBIT was SEK2.216B. Shares are normalized across the five divisions before eliminations and exclude the negative Other result. Organic sales grew 4%, with growth in HID and Global Solutions.
Switching Costs General
Demand
Switching Costs General
Strength
Durability
Confidence
Evidence
Reader, credential, software, and mobile-wallet deployments create migration work and an upgrade path, but open platforms and multi-vendor enterprise architectures constrain lock-in.
Switching Costs General moat: definition, examples, and stocks
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
Brand Trust
Strength
Durability
Confidence
Evidence
HID's position in trusted identity reduces perceived implementation risk in security-critical deployments, but buyers also prioritize interoperability, certification, and total cost.
Brand Trust moat: definition, examples, and stocks
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)
H1 2026 division sales were SEK24.653B and adjusted EBIT was SEK4.048B. Shares are normalized across the five divisions before eliminations and exclude the negative Other result. Organic sales grew 2%, accelerating to 4% in Q2.
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
A direct technician footprint supports preventive maintenance, service agreements, and connected monitoring. Service was 28% of 2025 division sales, creating recurring relationships, though independent maintenance remains viable.
Service Field Network moat: definition, examples, and stocks
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
Evidence
offer our customers a variety of subscription models
The EMEIA division links subscriptions to electromechanical solutions and recurring revenue.
largest installed base which is continuously maintained and upgraded with new solutions
Group-level evidence applies to the regional opening-solutions model; the report separately states aftermarket is two-thirds of total sales.
HID is focusing on upgrading the installed base to mobile-ready readers
This is division-specific evidence of an installed-reader migration path; the report also says subscription investment aims to increase recurring revenue.
leading market positions in trusted identity solutions
Current division disclosure positions HID in trusted identity; this is company-reported and therefore scored conservatively.
offering preventive maintenance, service agreements, and connected solutions
The division head ties its technician base and proactive service model to predictable, higher-margin revenue; the overview reports service at 28% of sales.
Showing 5 of 6 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
- Open credential standards and interoperability reducing vendor lock-in
- Cybersecurity incidents increasing churn or regulatory scrutiny
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
- Subscription-based solutions growth and mix within Global Technologies
- Renewal/retention metrics for software & service (if disclosed)
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