Thinking of Buying a Locksmith Business in Australia? Here Are 3 Vital Questions to Ask

Australia’s investigation and security services industry, which includes locksmiths, alarm installers, and access control specialists, generated $13.9 billion in revenue in 2025 across 10,763 enterprises, employing more than 154,000 people.

The locksmithing segment represents a key part of this industry, servicing both residential and commercial security needs. As crime prevention, smart locks, and digital access systems evolve, locksmith businesses have expanded beyond traditional key cutting into integrated security installation and maintenance. With security demand forecast to rise 2.2% annually to 2031, locksmiths remain well-positioned for steady growth across housing, retail, and corporate sectors.

1. Does the Business Have a Diverse and Stable Client Base?

Why It Matters:

Locksmith profitability relies on steady demand from property managers, homeowners, and corporate facilities. Businesses with a balance of emergency, residential, and commercial contracts are better protected from seasonal downturns.

What to Check:

• Revenue mix – Residential services remain core, but commercial clients (such as real estate agencies, offices, and government sites) provide consistent repeat work.

• Market trends – Ongoing urbanisation and housing growth have driven higher demand for security services, particularly in New South Wales and Victoria, which together account for more than 60% of all locksmith-related work.

• Service diversification – Locksmiths offering 24-hour callouts, master key systems, and electronic lock installations are outperforming traditional key-cutting businesses.

• Contract value – Long-term service contracts with local councils, body corporates, or security firms ensure recurring income.

• Geographical advantage – Metropolitan areas sustain higher callout volume, while regional businesses benefit from less competition and strong community relationships.

2. Is the Business Equipped for the Shift Toward Smart and Electronic Security?

Why It Matters:

The locksmith industry is undergoing rapid transformation, driven by the adoption of smart locks, biometric systems, and integrated digital access controls. Businesses that embrace technology are more competitive and command higher margins.

What to Check:

• Technology adoption – Digital locking and alarm integration now represent a growing share of demand, as home automation and workplace access systems expand.

• Industry innovation – The rise of IoT-enabled locks and keyless entry systems is reshaping locksmithing services. Businesses investing in training and equipment for these systems see faster growth.

• Partnerships – Aligning with smart lock manufacturers or building management system providers strengthens service offerings.

• Training and certification – Staff should be accredited under ASIAL (Australian Security Industry Association Limited) or similar bodies for compliance and credibility.

• Cybersecurity awareness – Digital security installations carry new responsibilities, requiring adherence to privacy and data protection standards.

3. Is the Business Compliant and Professionally Licensed?

Why It Matters:

Locksmiths operate in a security-sensitive environment. State and territory laws require all locksmiths to hold valid security licences, meet background check requirements, and adhere to consumer protection laws.

What to Check:

• Licensing requirements – Each state mandates registration under local security or locksmith licensing bodies (e.g. Security Industry Act 1997 (NSW) and Private Security Act 2004 (VIC)).

• Insurance – Public liability and professional indemnity insurance are essential to protect against accidental property damage or key system errors.

• Consumer confidence – Transparency in pricing, guaranteed workmanship, and rapid response times are major reputation drivers.

• Regulatory compliance – Businesses must maintain accurate key control and customer data records under privacy and security laws.

• Brand reputation – Positive online reviews and established local presence greatly enhance trust in a market where reliability is critical.

Ready to Invest in a Thriving Locksmith Business?

With steady urban growth, strong housing turnover, and the rapid shift to digital security, locksmithing remains one of Australia’s most reliable and adaptable service industries.

Success depends on licensing compliance, technological readiness, and diversification into integrated smart security systems to stay ahead of evolving client needs.

For Buyers:
Create an account to set up alerts here.

For Sellers:
Sell Your Business here.