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The vehicle access control market size is forecast to increase by USD 4.47 billion at a CAGR of 8.51% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. Rising vehicle theft and the need for enhanced security measures are primary factors fueling market expansion. Additionally, the development of standard ecosystems for keyless vehicle access is a major trend, as automakers and NFC technology companies collaborate to create more convenient and secure solutions. However, the market is also facing challenges, including the decreasing automotive production and sales due to the global economic downturn and the ongoing semiconductor shortage. Despite these challenges, the market is expected to continue growing, driven by advancements in technology and the increasing demand for secure and convenient access solutions.
The Market is a growing industry that focuses on enhancing the security of vehicles by controlling access to them. Automotive companies are increasingly investing in developing advanced safety features to mitigate the risk of vehicle theft. Biometric systems, such as fingerprint recognition and facial recognition, are gaining popularity in this market due to their high accuracy and convenience. Satellite technology and antenna are also being used in automobile to provide real-time location tracking and remote access control. Mergers and new product launches are common in the market as automotive vehicle manufacturers and automotive OEMs compete to offer the latest smartphone functions and cell phone integration. ADAS (Advanced Driver-Assistance Systems) are becoming standard in passenger cars and commercial vehicles, which is driving the demand for vehicle access control systems. Electric vehicles from companies like Maruti Suzuki are also contributing to the market growth due to the increasing disposable income of consumers and the need for advanced security features. Power plants, nuclear power zones, tollways, and traffic congestion areas are also adopting vehicle access control systems to ensure security and efficiency. The market is expected to continue its growth trajectory due to the increasing focus on safety and security in the automotive industry.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The RFID segment is estimated to witness significant growth during the forecast period. Vehicle access control is a critical safety feature in today's automotive industry, particularly in the context of vehicle theft prevention. Automotive companies are continually investing in research and development centers to innovate new solutions using satellite technology and AI. For instance, power plants and nuclear power zones utilize advanced access control systems to secure their premises.
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The RFID segment was the largest segment and was valued at USD 2.54 billion in 2018. Similarly, tollways and areas prone to traffic congestion also benefit from such technology. New product developments in RFID include the integration of smartphone functions, such as car manufacturers offering smart keys and bluetooth that can be accessed via a cell phone. KIA, for example, has adopted a modular hardware design for its smart keys, making them more affordable for consumers. Passenger vehicles and light commercial vehicles are the primary focus of these advancements. Hence, such factors are fuelling the growth of this segment during the forecast period.
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Europe is estimated to contribute 37% 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. Vehicle access control is a critical aspect of automotive security, particularly in light of rising vehicle theft. Automotive companies are investing heavily in safety features to mitigate this risk, with development centers focusing on advanced technologies such as satellite technology and AI. Power plants and nuclear power zones, as well as tollways and areas with heavy traffic congestion, are prime targets for vehicle theft and require robust access control systems. New product developments in this market include the integration of smartphone functions and cell phone connectivity, allowing for keyless entry using smart keys and modular hardware designs. Hence, such factors are driving the market in Europe during the forecast period.
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.
Rising vehicle theft is notably driving market growth. The issue of vehicle theft continues to be a significant concern for automotive companies and consumers alike. In the United States, the FBI reported an estimated 721,885 motor vehicle thefts in 2019, equating to a rate of 219.9 thefts per 100,000 inhabitants. This figure represented a 4% decrease from the 2018 estimates but a 1.2% increase compared to 2015.
Moreover, similar trends were observed in the UK, where the rate of motor vehicle thefts rose from 71 vehicles per 1000 cars in 2015 to 115 cars per 1000 cars in 2019. In response to these concerns, technological advancements have led to the development of sophisticated vehicle access control systems. Thus, such factors are driving the growth of the market during the forecast period.
Development of standard ecosystem for keyless vehicles access is the key trend in the market. In May 2020, the Car Connectivity Consortium unveiled Digital Key Release 2.0, enabling smartphones to securely store, authenticate, and share digital keys for vehicles. This technology, based on Near Field Communication, ensures contactless communication between phones and vehicles, promoting scalability and cost reduction.
Moreover, Digital Key Release 2.0 offers enhanced security and privacy, interoperability, and user experience consistency. Capabilities include vehicle access, start, mobilization, and more, as well as key sharing with custom entitlement profiles and support for low-battery mobile devices. The standardized interfaces and public key infrastructure ensure interoperability and end-to-end security between mobile device and vehicle manufacturers. Thus, such trends will shape the growth of the market during the forecast period.
Decreasing automotive production and sales is the major challenge that affects the growth of the market. The global market for vehicle access control systems has experienced a downturn due to the decline in automotive sales and production since 2018. In the US, light vehicle sales dropped by approximately 2.1% during the first quarter of 2020 compared to the same period in the previous year. Similar trends have been observed in major automotive manufacturing countries such as Germany, the UK, and China, where automotive production has been declining since 2017.
For instance, China recorded a 12.4% decrease in automotive sales during the first half of 2019. However, automotive production in countries like India, Japan, and the US showed growth during 2017-2018. Despite these challenges, the development of advanced safety features and the integration of satellite technology, smartphone functions, and AI in vehicle access control systems continue to drive market growth during the forecast period.
The market forecasting 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 market growth analysis strategies.
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.
Continental AG: The company offers access systems such as Start Stop Button, Immobilizer, that reliably protect machines against unauthorized access with features from immobilizers to central locks.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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 market is witnessing significant growth due to the increasing concerns over vehicle theft and the need for advanced safety features. Automotive companies are investing in development centers to integrate satellite technology, antenna, and AI into their vehicles. These technologies enable smartphone functions, such as smart key, keyless entry using cell phones and self-driving vehicles. Safety is a priority for car manufacturers, leading to the integration of connected vehicles and ADAS (Advanced Driver-Assistance Systems). Modular hardware design and cloud services are essential components of these systems, allowing for real-time updates and remote monitoring.
Moreover, power plants, nuclear power zones, tollways, and areas with heavy traffic congestion are potential applications for vehicle access control. The integration of smart keys and OS (Operating System) in passenger cars and light commercial vehicles is becoming increasingly common. Electric vehicles are also adopting these technologies to enhance security and convenience. The disposable income of consumers is a significant factor driving the growth of the market. The integration of these advanced technologies into vehicles is expected to increase the purchase price, but the benefits far outweigh the costs. In conclusion, the market is a dynamic and innovative industry, with automotive companies continuously developing new products and technologies to meet the evolving needs of consumers and ensure the safety and security of their vehicles.
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Market Scope |
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Report Coverage |
Details |
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Page number |
147 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.51% |
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Market growth 2024-2028 |
USD 4.47 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.67 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 37% |
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Key countries |
US, Germany, China, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Axis Communications AB, BIODIT AD, Continental AG, DENSO Corp., FEIG ELECTRONIC GmbH, Fingerprint Cards AB, HELLA GmbH and Co. KGaA, Johnson Electric Holdings Ltd., Lear Corp., MinebeaMitsumi Inc., Mitsubishi Electric Corp., Nortech Access Control Ltd., Nuance Communications Inc., NXP Semiconductors NV, Robert Bosch GmbH, STid, Synaptics Inc., Tokai Rika Co. Ltd., Valeo SA, and VOXX International Corp. |
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Market dynamics |
Parent market analysis, market report , market forecast , 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 |
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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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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