[Research Report] The automotive smart key market is expected to grow from US$ 8,023.9 million in 2021 to US$ 12,020.4 million by 2028; it is estimated to grow at a CAGR of 5.9% from 2021 to 2028.
With rapid technological advancements, the global automotive smart key market is estimated to grow at a significant CAGR during the forecast period. The increasing awareness about the vehicle safety and security among customers is boosting the need for automotive smart keys substantially. In addition, the rising demand for automobiles, electrification of vehicles, and the surge in the number of government policies and regulations pertaining to vehicle safety are anticipated to propel this market in the next few years. The production and sales of passenger and commercial vehicles have surged significantly across the world. This has resulted in high demand for central locking or comfort closing systems to increase the convenience of the driver and the security of the cabin. Further, automotive smart keys can benefits by conferring the added conveniences of opening doors, enabling users to start the engine without taking the key fob out of the pocket, and allowing the storage of vehicle settings data and remote opening of windows.
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Automotive Smart Key Market: Strategic Insights
Market Size Value in US$ 8,023.9 million in 2021 Market Size Value by US$ 12,020.4 million by 2028 Growth rate CAGR of 5.9% from 2021 to 2028 Forecast Period 2021-2028 Base Year 2021
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Automotive Smart Key Market: Strategic Insights
| Market Size Value in | US$ 8,023.9 million in 2021 |
| Market Size Value by | US$ 12,020.4 million by 2028 |
| Growth rate | CAGR of 5.9% from 2021 to 2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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Automotive smart key manufacturers are actively focusing on design innovations, opening new opportunities for the market. Smart keys with two-way vehicle communications and rolling security code with changing patterns are also encouraging the market growth. Automakers are introducing smart key systems that employ radio communications and advanced detection systems to detect the presence of the key fob near or inside the vehicle. The automotive smart keys are waterproof and durable and, thus, exhibit extended performance. Technological advancements have enabled car manufacturers to employ sophisticated equipment for car security and safety at reduced costs. For instance, Mercedes-Benz’s “Smart Key” transmits a unique code to car’s onboard computer system, which is hard to duplicate for the benefit of heightened security.
Impact of COVID-19 Pandemic on Automotive Smart Key Market
Impact of COVID-19 Pandemic on Automotive Smart Key Market
Growth of economies, and improvements in production and manufacturing infrastructures, especially in developing countries, have bolstered the growth of the automobile market. According to several automotive industry associations and organizations, the automotive sector recorded ~20–25% loss in production and more than 30% loss in sales in 2020. After witnessing a significant drop in 2020 due to the COVID-19 pandemic, the automotive market has been experiencing a gradual recovery in consumer demand for trucks and cars since the last quarter of 2020.
Lucrative Regions for Automotive Smart Key Market
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Market Insight
Increased Global Production of Luxury Cars Drives Automotive Smart Key Market Growth
Shifting preferences of consumers and their increasing disposable incomes have fueled the demand for luxury cars worldwide. The need for a high level of comfort and safety and the new trend of electric vehicles is further bolstering the luxury cars segment. China’s luxury car market currently exhibits the highest growth potential among all the developing countries with a significant presence of carmakers, such as Audi, Mercedes-Benz, and BMW. According to the China Automobile Dealers Association, the China automotive industry reported the sale of approximately 2,77,000 luxury cars in April 2020, an 11.1% increase over April 2019. In September 2017, Continental Aftermarket & Services announced its Keys-as-a-Service Portfolio with the availability of its cloud-based solutions continental smart access (CoSmA) and remote cloud key (RCK) to provide keyless vehicle access and start authorization. This solution enables owners to access vehicles using a smart device, such as a smartphone. Such developments are significantly driving the automotive smart keys market.
Application Segment Insights
Based on application, the global automotive smart key market is segmented into single function and multi-function. The adoption of multi-function smart automotive keys is growing with the rising demands for luxury vehicles with equipped with advanced safety and security features. With access to standard car operations, many market players are offering multi-functional smart keys with creative solutions to modern problems. Smart keys make key sharing simple by digitizing the process and integrating with the customer’s phone. In 2016, Hyundai Motor Co. introduced a band-type wearable multi-function smart key that enables the driver to open car doors and trunk, and start the engine from remote areas. The key also features real-time fitness tracker such as heart rate monitoring during sleep or workout. Similarly, Valeo launched a smart watch system that allows drivers to lock and unlock vehicles by enabling the synchronization of data between the car and the smartphone; the drivers can these data to check tire pressure and fuel levels. The Ford Escape has settings to prevent the vehicle from exceeding a maximum speed if it has been started with a certain key. Technological advancements are further bolstering the growth of the market for multi-functional automotive smart keys.
Automotive Smart Key Market, by Application (% Share)
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Technology Segment Insights
Based on technology, the global automotive smart key market is segmented into remote keyless entry and passive keyless entry.
The remote keyless entry (RKE) is an electronic access system commonly used to protect vehicles from theft. Advanced features such as modular design with integrated electronic control unit (ECU), entry protection for the vehicle, separate unlocking of driver door and passenger door, and window lift function to prevent injury at automatic closing are bolstering the growth of the market for the RKE segment. In 2017, Hyundai Mobis developed an integrated smart key system, wherein an app on a smartphone supported by the Near Field Communication (NFC) technology is used as a smart key for the vehicle. Drivers can unlock their vehicle by positioning NFC-supported smartphone that acts as a remote control closer to the door of the vehicle. They can also start it by pressing the start button after setting their smartphone on the wireless charging pad inside their vehicles. The vehicle owners can also authorize a third party to use an NFC-based smart key, alongside controlling user permissions for the smart key, to prevent unwanted incidents.
The automotive smart key market players focus on new product innovations and developments by using advanced technologies and features. In October 2021, TOKAI RIKA CO., LTD. decided to establish a new cloud business center, Aichi Prefecture, in Nagoya, to expand its cloud-based business activities, particularly those involving digital keys. This new office will be primarily responsible for the development and design of digital key systems and applications.
Automotive Smart Key Market – by Application
- Single Function
- Multi-Function
Automotive Smart Key Market – by Technology
- Remote Keyless Entry
- Passive Keyless Entry
Automotive Smart Key Market – by Region
- North America
- US
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- UK
- Russia
- Rest of Europe
- Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
- Australia
- Rest of APAC
- Middle East & Africa (MEA)
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
- South America (SAM)
- Brazil
- Argentina
- Rest of SAM
Automotive Smart Key Market – Company Profiles
- ALPHA Corporation
- Continental AG
- Denso Corporation
- Honda Lock Mfg. Co., Ltd.
- Hyundai Mobis
- Silca S.p. A.
- TOKAI RIKA,CO, LTD.
- TOYOTA MOTOR CORPORATION
- Valeo
- HELLA GmbH and Co. KGaA
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Application, and Technology
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Increased Global Production of Luxury Cars
Surge in Safety Feature Deployment in Commercial and Passenger Vehicles
The rising demand for an electronic technology that assists drivers through a safe human-machine interface has propelled the growth of ADAS. The use of digital or radio frequency identification (RFID) technologies for signaling or information handling has been providing lucrative growth opportunities for smart key market vendors. The advanced telematics navigation and tracking systems are increasingly becoming a standard on vehicles. Advanced driving assistance systems in vehicles are estimated to surge due to the increasing awareness about vehicle safety ratings and decreasing component costs. In March 2020, NXP Semiconductors announced an automotive Digital Key Solution that enables smartphones, key fobs, and other mobile devices to securely communicate, authenticate, and share digital keys with vehicles. The solution is built on near-field communication (NFC) chipsets and enables new features, such as key sharing, multi-car access, and configurable driving rights. The increasing contribution of high-end technologies in the passenger car segment, attributed to supporting legislation and consumer awareness, is projected to boost the smart keys market in Europe, North America, and Asia Pacific.
Based on Application, the global automotive smart key market is segmented into single function, and multi-function. The global automotive smart key market is dominated by single function segment in 2020, which accounted for ~ 56%.
The demand for active and passive Keyless entry systems to lock, unlock, and start the car’s engine remotely using RF signals has increased significantly. Mechanical keys restrict unauthorized access to automobiles. Modern vehicles use microcontrollers for applications, such as passive keyless entry systems and vehicle immobilizer systems. Embedded electronic systems are convenient; however, system security can be breached through theft or fault in the wireless interface scanning. This factor has led to the development of an automobile keyless entry system using two-factor authentication, in which, the automobile can autonomously verify the user and device-based key fob authentication framework, enabling a two-factor authentication system. The emerging trends of two-factor authentication in keyless authorization systems to prevent security breaches and hacking is boosting the global automotive smart key market. A state-of-the-art radio technology, innovative keyless system, high-precision, and interference-free key location system provide optimum safety and convenience to drivers and passengers.
Key companies in the automotive smart key market include ALPHA Corporation; Continental AG; Denso Corporation; Honda Lock Mfg. Co., Ltd.; Hyundai Mobis; Silca S.p. A.; TOKAIRIKA,CO, LTD.; TOYOTA MOTOR CORPORATION; Valeo; and HELLA GmbH and Co. KGaA.
APAC held the largest market share in year 2020, along with the notable revenue generation opportunities in Europe and North America.
The List of Companies - Automotive Smart Key Market
- ALPHA Corporation
- Continental AG
- Denso Corporation
- Honda Lock Mfg. Co., Ltd.
- Hyundai Mobis
- Silca S.p. A.
- TOKAIRIKA,CO, LTD.
- TOYOTA MOTOR CORPORATION
- Valeo
- HELLA GmbH and Co. KGaA
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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