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The automotive smart key fob market size is forecast to increase by USD 4.59 billion, at a CAGR of 5.36% between 2023 and 2028. The growth of the market depends on several factors such as the safety and convenience associated with advanced vehicle access solutions, the growing penetration of automotive electronics, and the growing market share of mid and luxury-segment vehicles with convenience functionalities.
The report offers extensive research analysis on the Automotive Smart Key Fob Market, with a categorization based on Type, including remote keyless entry systems and passive keyless entry systems. It further segments the market by Application, encompassing single-function and multi-function. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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Our researchers analyzed the data with 2023 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 key factors driving the automotive smart key fob market growth is the growing penetration of automotive electronics. With the evolution of the global automotive industry, the penetration rate of automotive electronics is increasing in modern automobiles. In addition, the applications of electronic-based components in vehicles have significantly increased over the last decade or so. Thus, this is a primary market enabler for the systems as traditional mechanical keys are fast becoming obsolete.
Moreover, the automotive keys have witnessed an evolution in terms of material, design, and functionalities. In addition, for many decades, the car keys were carved out of metals such as iron, steel, brass, or aluminum and solely carried for the closing/opening door, opening boot, and ignition start. Furthermore, the advanced smart keys use RFID, chips, and other sensors to lock/unlock doors, open/close windows, open trunks, and locate parked vehicles. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the automotive smart key fob market growth is the advent of vehicles with virtual keys. There has been a significant transformation in automotive car keys a mechanical device for locking/unlocking doors. In addition, the connected car technology applications have been extended to smart keys. Furthermore, from being completely mechanical to electromechanical, the future car keys would be completely virtual.
For instance, the launch of the Model 3 by American carmaker Tesla is such an example. As per the carmaker, the vehicle doors and the boot can be locked/unlocked using a smartphone app connected to the car through Bluetooth. Moreover, the user can remotely park, even in tight spaces, using the Summon feature. In addition, the feature is already available in Tesla Model X and Model S cars. Hence, such factors are driving the market growth during the forecast period.
The high price and replacement cost of smart key fobs is one of the key challenges hindering the automotive smart key fob market growth. The global automotive smart key fob market is influenced by numerous market enablers. However, there are certain hindrances to the growth of the market. For instance, the cost of the development of smart key fobs is high, which adds to the overall cost of the vehicle, owing to the use of many electronic components in smart key fobs.
Moreover, automotive smart key fobs are made using advanced technology, which integrates hardware and complex software in terms of algorithms or encrypted floating key codes. In addition, these key fobs are expensive to maintain. Furthermore, replacement due to loss of the key fob can cost between USD200 and USD400 (if purchased from an authorized dealership) as the control unit that monitors the vehicle access system needs to be reprogrammed along with the new key and should be in sync with the engine immobilizer. Hence, such factors are hindering 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 Smart Key Fob 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.
ALPHA Corp: The company offers automotive smart key fob such as remote control key, intelligent key, and mechanical 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 remote keyless entry systems segment is estimated to witness significant growth during the forecast period. The automotive remote keyless entry system segment refers to an electronic lock that enables the user of the vehicle to gain physical access that enables the locking and unhooking option operation without using the conventional mechanical key. In addition, the automobile unlocks the car using biometric scanning, electronic locks, and radio frequency identification locks, which secures access to the vehicle
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The remote keyless entry systems segment was the largest segment and was valued at USD 6.49 billion in 2018. Moreover, as automotive remote keyless entry systems are a standard feature in all passenger cars, the production of passenger vehicles has a direct impact on the passenger vehicle market. In addition, automotive electronics have rapidly evolved over the past decade with the electrification of mechanical components and the introduction of electronics in safety, security, and propulsion technologies.
Furthermore, this structural shift has pushed semiconductor and integrated circuit companies to focus on the automotive industry and cater to its requirements. Therefore, numerous innovations in auto semiconductors have been undertaken in the past couple of years that have influenced the use of remote keyless entry systems. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 50% 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. China, Japan, India, Indonesia, South Korea, Thailand, and Australia are some of the key countries contributing to the market growth in APAC. In addition, the high-volume sales of automobiles in these countries are driving the market growth.
Moreover, the penetration rate for smart key fob is growing in the vehicles sold in the region. Furthermore, the increasing incidence of vehicle thefts in the region is driving the automakers to offer vehicles with advanced security systems. In addition, the economic growth in these countries has boosted spending on infrastructure and industrial development as well as pushed demand for passenger and heavy commercial vehicles. Hence, such factors are driving the market growth in APAC during the forecast period.
The automotive smart key fob market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Automotive Smart Key Fob Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.36% |
Market Growth 2024-2028 |
USD 4.59 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.05 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALPHA Corp., Alps Alpine Co. Ltd., Continental AG, DENSO Corp., Dormakaba Holding AG, Firstech LLC, Giesecke Devrient GmbH, HELLA GmbH and Co. KGaA, Huf Hulsbeck and Furst GmbH and Co KG, Hyundai Mobis Co. Ltd., JPM Group, Mitsubishi Electric Corp., Panasonic Holdings Corp., Thales Group, Tokai Rika Co. Ltd., Toyota Motor Corp., Valeo SA, VOXX International Corp., ZF Friedrichshafen AG, and STRATTEC SECURITY Corp. |
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. |
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. |
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