Enjoy complimentary customisation on priority with our Enterprise License!
The automotive smart keys market size is estimated to grow at a CAGR of 4.62% between 2022 and 2027. The market size is forecast to increase by USD 3,334.33 million. The growth of the market depends on several factors, including the rising demand for electric and hybrid vehicles, the growing market share of luxury vehicles, and the increasing disposable income of consumers.
This automotive smart keys market report extensively covers market segmentation by application (single function and multi function), technology (remote keyless entry and passive keyless entry), and geography (APAC, North America, Europe, South America, and 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.
To learn more about this report, View Report Sample
The rising demand for electric and hybrid vehicles are notably driving the market growth, although factors such as the expensive smart keys and their replacement may impede the market growth. 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.
Rising demand for electric and hybrid vehicles is the key factor driving the growth of the global automotive smart keys market. The global shift to electric and hybrid vehicles is opening opportunities for intelligent key providers. Electric vehicles often require additional functionalities, such as managing charging stations, monitoring battery levels, and scheduling charging sessions. Electric and hybrid vehicles are often equipped with advanced security features, and smart keys play an important role in enhancing vehicle security. Tesla vehicles, including the Model S, Model 3, Model X, and Model Y, use a keyless entry system. These keys use advanced encryption technology, making them more difficult to replicate or hack compared with traditional keys.
Smart keys typically have built-in authentication mechanisms that communicate with the vehicle's onboard computer system, allowing only authorized users to start the vehicle. Smart keys can integrate these features, enhancing the overall user experience in electric and hybrid vehicles. Smart keys, with their advanced features and convenience, align with this trend and cater to the preferences of tech-savvy individuals who value innovation and convenience in their vehicles. Thus, increased demand for electric and hybrid vehicles will boost the growth of the global automotive smart keys market during the forecast period.
The need for enhanced vehicle security is the primary trend in the global automotive smart keys market growth. Enhanced vehicle security refers to the implementation of advanced technologies and strategies to protect vehicles from theft, unauthorized access, and other security threats. As technology advances, so do the methods used by criminals to bypass traditional vehicle security measures. Enhanced vehicle security is aimed at staying ahead of these threats by integrating more sophisticated and robust security features. They use encryption and authentication technologies, making it difficult for thieves to duplicate or hack them.
As vehicle theft remains a significant concern, smart keys provide an effective solution, thereby driving their adoption. Smart keys use radio frequency identification (RFID) technology to automatically unlock a vehicle when the key fob is in proximity. Advanced keyless entry systems incorporate additional security features like encrypted communication between the key and the vehicle, making it difficult for thieves to intercept and clone the key signal. Thus, with the increasing need for vehicle security, the global automotive smart keys market will witness growth during the forecast period.
Expensive smart keys and their replacement are major challenges impeding the growth of the global automotive smart keys market. Smart keys can be more expensive and costly to replace compared with traditional keys. Smart keys are advanced key systems that use electronic components and technology to provide additional security and convenience features. They often incorporate remote locking/unlocking, keyless entry, push-button start, and other advanced functionalities. The increased complexity and technology involved in smart keys contribute to their higher cost. Smart keys typically contain transponder chips, which communicate with the car's onboard computer system to authorize ignition and enable keyless entry.
These chips require programming and synchronization with the vehicle, which adds to the replacement cost. Furthermore, smart keys are designed to be more secure, which involves encryption and specialized hardware. This can make the manufacture and replacement of smart keys expensive compared with traditional keys. Thus, the cost associated with automotive smart keys may hamper the growth of the global automotive smart keys market during the forecast period.
The market 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 Keys Market Customer Landscape
Vendors 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.
Dormakaba Holding AG: The company offers automotive smart key solution namely Silca-Proximity and Remote Car Keys through its subsidiary Silca Spa.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the single function segment will be significant during the forecast period. Single-function automotive smart keys are advanced key systems used in modern vehicles. Smart keys offer convenience to drivers by eliminating the need for physical key insertion and allowing keyless entry and push-button start.
Get a glance at the market contribution of various segments View the PDF Sample
The single function segment was valued at USD 8,892.93 million in 2017 and continued to grow until 2021. As technology evolves, consumers expect smart and connected features in various aspects of their lives, including their vehicles. Smart keys align with this trend, providing a modern and technologically advanced solution for vehicle access and ignition. Single-function smart keys are often less expensive compared to more advanced smart key systems that incorporate multiple features. This makes them a more affordable option for consumers who primarily value the convenience of keyless entry without the need for additional functionalities. With the increasing demand for cost-friendly smart keys, single-function smart keys are expected to gain traction, and the global market in focus is expected to witness significant growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 39% 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. Rapid urbanization and infrastructure development in APAC countries have led to increased demand for vehicles as urban areas become more congested, and smart key features such as keyless entry, remote start, and hands-free trunk access have become desirable for convenience and efficiency.
Automotive smart keys offer enhanced security features compared with traditional keys. They utilize advanced encryption and authentication mechanisms, making it difficult for thieves to replicate or bypass the key. As the number of vehicle thefts rises in some APAC regions, consumers are opting for smart key systems to protect their vehicles. Such factors will increase the market growth in this region during the forecast period.
In 2020, following the outbreak of COVID-19, the APAC automobile industry faced widespread production losses as factories were shut down as per the lockdown protocols. However, with the marked decline in the number of COVID-19 cases in mid-2021 due to vaccination programs across the region, automobile industry players resumed production in the region. This positively impacted the sales of various automobile players. The automobile industry in the region started recovering in 2021. Thus, the growth in automobile sales, new product launches, and the adoption of digital technologies will have a positive impact on the automobile industry in the region, which, in turn, will boost the growth of the automotive smart keys market in APAC during the forecast period.
The automotive smart keys 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.
Technavio categorizes the global automotive smart keys market as a part of the global automotive components and accessories market within the global auto components market. The global automotive components and accessories market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Automotive Smart Keys Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.62% |
Market growth 2023-2027 |
USD 3,334.33 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.22 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALPHA Corp., Continental AG, DENSO Corp., Dormakaba Holding AG, HELLA GmbH and Co. KGaA, Honda Motor Co. Ltd., Huawei Technologies Co. Ltd., Huf Hulsbeck and Furst GmbH and Co KG, Hyundai Motor Co., Minda Corp. Ltd., Nissan Motor Co. Ltd., Robert Bosch GmbH, Tokai Rika Co. Ltd, and Valeo SA |
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, Market condition analysis for 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. |
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 Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.