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The progressive technological advancements are also a vital contributing factor in the area of Automotive Smart Key market. The smart key systems have become more advanced that they incorporate features such as biometric authentication, proximity sensing, and remote start capabilities due to technology changes. These developments do not only improve user experience but also make the vehicle safe and secure leading to an increased consumer base.
Furthermore, this is because there is a growing concern over car thefts and need to enhance security measures which has led to an increase in demand for automotive smart key systems. Often times these systems have strong encryption and authentication techniques making it difficult for thieves to bypass the security system. As such, buyers are now going for cars with smart key technologies that will ensure secure investment.
Also noteworthy is that government initiatives and regulations on vehicle safety/security drive the Automotive Smart Key market. Around the world regulatory bodies are calling for use of modern safety features on automobiles including smart key system to reduce theft cases and enhance road safety. Consequently, automakers have opted to integrate this technology into their vehicles so that they can be compliant with relevant laws which give them competitive advantage.
In addition, the pursuit of innovation and differentiation in the automotive sector drives other factors behind Automotive Smart Key except price factors. Manufacturers give emphasis on introducing new unique technologically advanced features in order attract consumers. As a result of standardizing smart key systems in modern vehicles, manufacturers try offering more functionalities besides customization options thus aiding market growth.
Additionally, rising electric/hybrid automobile markets also contribute significantly toward demand for Automotive Smart Key systems. Electric vehicles mostly contain advanced technology attributes while smart keys make them look more futuristic as well as being eco-friendly type of vehicles. The continuous adoption of electric cars will lead to continued growth of Automotive Smart Key market.
This is another important determinant in shaping the Automotive Smart Key Market since there are many companies competing against each other in this market segment. Therefore, in order to remain competitive in the market, businesses have to invest in innovative and cost-effective measures. When firms face stiff competition, they tend to spend heavily on research and development so as to come up with better smart key technologies.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Technology, Market, and Region |
Automotive Smart Key Market Highlights:
Automotive Smart Key Market Overview:
The Automotive Smart Key Market size was valued at USD 18.23 Billion in 2023. The Automotive Smart Key industry is projected to grow from USD 19.21 Billion in 2024 to USD 27.77 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.71% during the forecast period (2024 - 2032). Growing security regulations leading to the technological advancement of vehicle security systems and rising automobile demand are the key market drivers contributing to the growth and expansion of the market.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Smart Key Market Trends
The growing technological advancement of vehicle security systems is driving market growth.
The technological advancement of vehicle security systems drives the Market CAGR for automotive smart key. The automobile's smart key is sophisticated equipment with many functional characteristics. The automotive sector is susceptible to significant technological advancements. Launches of fresh products and variants are produced due to these developments. The primary driver is the technological advancements in this Market. These advancements result in automotive connectivity and provide the vehicle with greater security and safety. Demand for this Market's wireless services will increase during the projected period. The improvements also attract many customers and end users, and several nations require that vehicle security laws be followed.
The need for smart keys is also expanding due to increased legislative regulations to improve vehicle security. A special chip inside the smart key communicates signals from each operation to the electronic control unit (ECU). The ECU constantly monitors how the automotive smart key is operating to guard against unauthorized use of the motor vehicle. Another major market trend positively affecting the industry is car safety regulatory standards. There will be several prospects for market expansion following the introduction of infrared sensors in smart keys as they can be used without requiring a remote control or human touch. The vehicle's smart sensor locks and unlocks are very versatile. The infrared smart key’s improvements will draw many new important players that will also influence the Market for automobile smart keys in the future. The introduction of hybrid automobiles will expand the potential of this Market. Hybrid cars include cutting-edge features and efficient technologies, introducing a new selection of automotive smart-key markets. The advancements in the vehicle gearbox industry will present excellent opportunities for market expansion for automotive smart keys.
The automobile smart keys market has experienced unexpected losses due to the COVID-19 outbreak. In the months following the epidemic, consumer expenditure on new cars has significantly decreased. Purchases of new vehicles have been halted due to the worldwide shutdowns and restricted mobility that impacted the automotive smart keys market, leading to a declining market. Because there is a decrease in demand from end-users, manufacturing is slowing down. However, after COVID-19, these influences should steadily diminish, and overall, the outlook for this Market is favorable during the projected timeframe.
For instance, The China Automobile Dealers Association reports that the country's automobile market sold about 2,77,000 premium vehicles in April 2020, an 11.1% rise from April 2019. As a result, demand for Automotive Smart Key is expected to increase throughout the projection period due to the rising technological advancement of vehicle security systems. Thus, driving the Automotive Smart Key market revenue.
Automotive Smart Key Market Segment Insights:
Automotive Smart Key Technology Insights
The Automotive Smart Key market segmentation, based on technology, includes transmission, infrared sensors, and others. The others category, which includes biological entry systems, dominated the Market, accounting for 49% of market revenue (USD 8.5 billion) in 2022. The other technologies are built on advanced Technology, including passive keyless entry (PKE) technology, allowing an individual to access a PKE device. At the same time, it is kept in their pocket or bag, boosting the Market's growth.
Automotive Smart Key Market Insights
The Automotive Smart Key market segmentation, based on the market, includes OEM and Aftermarket. The OEM category generated the highest market revenue of about 63% (USD 10.9 billion) in 2022. This is due to boost accessibility regarding vehicle access; a large number of automakers give digital keys to customers when they buy cars. Additionally, due to confidence in the brand and customer loyalty, most customers employ services provided by automaker-authorized service providers when replacing digital keys, fueling the market growth.
Figure 1: Automotive Smart Key Market, by Market, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Smart Key Regional Insights
By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Automotive Smart Key market accounts for the second highest market share, owing to the growing automotive smart key Market. In addition, the growing awareness about the products and their quick adoption in this region will boost market growth.
Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Automotive Smart Key Market Share by Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe region’s Automotive Smart Key market is expected to grow significantly during the projected timeframe growing trend for luxury vehicles that will fuel the growth of the Automatic smart key industry. Further, the German Automotive Smart Key market dominates the market share, and the UK Automotive Smart Key market is expected to grow steadily in the European region.
The Asia-Pacific Automotive Smart Key Market will dominate during the projected timeframe due to the increasing production capacity of automotive smart keys and rising consumption for commercial and luxury vehicles in the APAC region. Moreover, China’s Automotive Smart Key market dominates the market share, and the Indian Automotive Smart Key market is expected to grow rapidly t in the Asia-Pacific region.
Automotive Smart Key Key Market Players & Competitive Insights
Leading market players invested heavily in research and development (R&D) to increase their production capacity and develop innovative products, which will help the Automotive Smart Key market expand further. Market participants are also undertaking organic and inorganic approaches to expand and strengthen their global footprint, with important market developments including new product lines, contractual deals, mergers and acquisitions, capital expenditure, and strategic alliances with other organizations. The Automotive Smart Key industry must offer cost-effective and innovative solutions to survive in a moderately fragmented market.
Manufacturing locally to increase production capacity and minimize operational expenses is one of the key business strategies organizations use in the Automotive Smart Key industry to offer lucrative benefits to their clients and capture the untapped market share. Recently, the Automotive Smart Key industry has offered significant advantages to Technology. Major players in the Automotive Smart Key market, including Denso Corporation (Japan), Valeo (France), TRW Automotive (U.S.), Continental AG (Germany), HELLA KGaA Hueck & Co.( Germany), Hyundai Mobis(India), Visteon Corporation (U.S.), Silca S.p.A. (Italy), Toyota Motor Corporation (Japan) and ALPHA Corporation, are attempting to capture market share by investing in research and development (R&D) operations to offer innovative solutions.
Ericsson is one of the top companies that offer ICT (information and communication technology) to support providers. By developing revolutionary services and technologies that are simple to use, implement, and scale, they unleash the full potential of interconnectivity and help our clients succeed in an entirely connected world. The business is divided into networks, international services, and support solutions. The organization's headquarters are in Stockholm, Sweden, and it was established under Lars Magnus Ericsson around 1876. In December 2019, Ericsson and Microsoft formed a joint venture to offer reliable and accelerated cloud services for the forthcoming generation of connected automobiles. The manufacturing of connected automobile services has been accelerated globally because of the combination of Ericsson's interconnected automobile cloud and Microsoft's connected vehicle platform. The integrated, combined platform solutions allow manufacturers to quickly and affordably roll out and scale up global automotive services, which include fleet management, software upgrades for cars, over-the-air (OTA), and connected safety services.
Founded in 1967, Hyundai Motor is a global South Korean automaker headquartered in Seoul. Hyundai Motor (HMC) is a fully owned subsidiary of Hyundai Motor India Limited (HMIL), an international export hub for HMC. It exports goods to about 85 nations in Africa, Latin America, the Middle East, Australia, and the APAC region. HMIL operates 583 dealerships and 1492 maintenance sites around India to assist with its development and growth objectives. Hyundai has a contemporary R&D facility as part of its dedication to providing customers with cutting-edge advanced Technology. The goal of the R&D center is to become an industry leader in automotive engineering. In June 2015, the biggest manufacturer of vehicle security systems and components in South Korea, Hyundai Mobis, acquired Korea Vehicle System Co., which makes automobile security systems.
Key Companies in the Automotive Smart Key market include
- Denso Corporation (Japan)
- Valeo (France)
- TRW Automotive (U.S.)
- Continental AG (Germany)
- HELLA KGaA Hueck Co.( Germany)
- Hyundai Mobis(India)
- Visteon Corporation (U.S.)
- Silca S.p.A. (Italy)
- Toyota Motor Corporation (Japan)
- ALPHA Corporation
Automotive Smart Key Industry Developments
OCT 2021: To grow its cloud-based business operations, particularly those requiring digital keys, TOKAI RIKA CO., LTD. chose to open a new cloud business center, Aichi Prefecture, in Nagoya. The primary responsibilities of this new agency will be developing and creating digital key applications and systems.
December 2019: Ericsson and Microsoft have formed a joint venture to offer reliable and accelerated cloud services for the forthcoming generation of connected automobiles. The manufacturing of connected automobile services has been accelerated globally because of the combination of Ericsson's interconnected automobile cloud and Microsoft's connected vehicle platform. The integrated, combined platform solutions allow manufacturers to quickly and affordably roll out and scale up global automotive services, which include fleet management, software upgrades for cars, over-the-air (OTA), and connected safety services.
June 2015: The biggest manufacturer of vehicle security systems and components in South Korea, Hyundai Mobis, has acquired Korea Vehicle System Co., which makes automobile security systems.
Smart Key Car Market Segmentation:
Smart Key Car Technology Outlook
- Transmission
- Infrared sensor
- Others
Smart Key Car Market Outlook
- OEM
- Aftermarket
Smart Key Car Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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