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The automotive digital key market size is estimated to grow at a CAGR of 6.76% between 2022 and 2027. The market size is forecast to increase by USD 777.22 million. The growth of the market depends on several factors such as the standardization for using smart devices as keys, the accessing multiple vehicles with a single device or application, and the rise of the Internet of Things (IoT).
This automotive digital key market report extensively covers market segmentation by application (personal use, car sharing, and car rental), vehicle type (passenger cars and commercial vehicles), and geography (Europe, North America, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the main factors driving the automotive digital key market growth is the rise of the Internet of Things (IoT). There is an increasing focus by several automotive manufacturers to integrate Internet of Things technology into the industry, developing new applications and solutions, making automobiles smarter, and delivering comfort, efficiency, and driving safety. There is a growing adoption of the Internet of Things by manufacturers to give connected car applications including fuel tracking, advanced driver assistance systems (ADAS), speed control, and in-vehicle infotainment systems to drivers.
Moreover, manufacturers participate in the development of advanced network security solutions to offer stronger security against hacker attacks. Furthermore, the National Highway Transportation and Safety Administration (NHTSA) is ensuring vehicle safety by addressing cybersecurity concerns in collaboration with vehicle manufacturers, federal partners, and suppliers. Hence, such factors are positively impacting the market. Therefore it is expected to drive the market during the forecast period.
A main factor shaping the digital key market growth is the digital key for all connected systems. The automotive digital key is an emerging trend in the market and a disruptive technology that makes the key virtually available. Another significant development in the research phase in this market is a digital key that can be connected to all the connected devices in the vehicle, including infotainment systems, seats, lighting, and dashboard setup, among others.
For instance, if the user has a digital key that enables access to a vehicle and is able to customize infotainment, seat adjustments, and ambient lighting, among others, this digital key stores all these settings and activates when the user drives the vehicle with the digital key access. There is an increasing focus on several OEMs such as Volkswagen on developing digital keys for all vehicles under one brand. Hence, such factors are positively impacting the market growth during the forecast period.
Cybersecurity issues are one of the key challenges hindering the digital key market growth. Due to the increasing integration of digital technology in vehicles, there are several challenges and cybersecurity issues associated with the global automotive digital key market. Additionally, this automotive industry has to comply with different regulatory frameworks related to cybersecurity and data protection. Hence, it is a significant challenge to adhere to these regulations while delivering seamless digital key solutions.
Moreover, these systems are vulnerable to cyber security attacks and hackers could gain unauthorized access to vehicles. Additionally, digital key systems comprise the exchange of sensitive data between vehicles and devices and the interception of these data can lead to privacy breaches or theft of personal information. Hence, such factors can negatively impact the market growth which in turn will hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Digital Key Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Apple Inc: The company offers automotive digital key such as WWDC20 digital key and WWDC21 UWB based digital car key.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The personal use segment is estimated to witness significant growth during the forecast period. There are various applications for automotive digital keys for personal use by leveraging technology to improve convenience, security, and functionality. The main function of automotive digital keys is to offer keyless entry and start capabilities.
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The personal use segment was the largest segment and was valued at USD 1,045.74 million in 2017. The main advantage of these digital keys is that users are able to start their vehicles, which is especially useful for warming up the car interior on cold days or cooling it down on hot days before entering. Additionally, it enables users to provide temporary access to family members, friends, or valets without giving them a physical key. In addition, this feature improves security as the main keyholder can retain control over vehicle access as the main keyholder can retain control over vehicle access. There is an increasing preference for the automotive digital key segment as it offers numerous advantages and can be used for a wide variety of applications that cater to personal preferences, security needs, and modern technological conveniences which will significantly fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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Europe is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors that are significantly contributing to the growth of the global automotive digital key market in Europe is the increasing demand for the increasing market for car sharing and car rental. Even though the sharing and car rental segment has a lower share in the overall automotive digital key market, the frequent innovation and growing awareness of the use of automotive digital keys will fuel the adoption of this technology across car rental and car-sharing service providers.
Moreover, the growth in the connected infotainment system, which enables the use of digital keys, is expected to grant access to lock/unlock the door through an over-the-air (OTA) update. For example, NXP Semiconductors NV, headquartered in the Netherlands, provides technologies and system knowledge to enable robust, secure, and scalable car access solutions. Hence, such factors are expected to drive market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global automotive digital key market witnessed a significant slowdown due to the significant decline in sales of automotive in Europe. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of the automotive sector. Such factors are expected to drive the market during the forecast period.
The automotive digital key market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Automotive Digital Key Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.76% |
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Market growth 2023-2027 |
USD 777.22 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.34 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 47% |
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Key countries |
US, Canada, Germany, UK, and Sweden |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Apple Inc., Bayerische Motoren Werke AG, Continental AG, DENSO Corp., Ford Motor Co., Giesecke Devrient GmbH, Hyundai Motor Co., IDEMIA France SAS, Infineon Technologies AG, Mercedes Benz Group AG, NXP Semiconductors NV, Robert Bosch GmbH, Samsung Electronics Co. Ltd., STMicroelectronics International N.V., Telefonaktiebolaget LM Ericsson, Tesla Inc., Thales Group, Valeo SA, Volkswagen AG, and Volvo Car Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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