Automotive Smart Key Market Overview and Growth by 2031

The automotive smart key market size is projected to reach US$ 13.85 billion by 2031 from US$ 8.67 billion in 2023. The market is expected to register a CAGR of 6.0% during 2023–2031. The advancements in automotive telematics and advanced driving assistance systems (ADAS) are likely to remain key trends in the market.

Automotive Smart Key Market Analysis

The rise in global production of luxury cars across the globe is expected to drive the automotive smart key market growth during the forecast period. In addition, the rise in the deployment of safety features in commercial and passenger vehicles is anticipated to fuel the demand for automotive smart keys, which in turn is expected to propel the market growth during the analyzed timeframe. Moreover, the rise in the uptake of keyless authorization systems in vehicles is expected to create opportunity for the companies operating in the automotive smart key market.

Automotive Smart Key Market Overview

The automotive smart key market infrastructure primarily comprises hardware/component providers, smart key manufacturers, system integrators, and end users. An automotive smart key combines various hardware components such as sensors, microprocessors, metal keys, and covering boxes, among others. Major players occupy significant places in the various nodes of the automotive smart key market ecosystem. Automotive smart key hardware comprises microcontrollers, radio-frequency modules, power supply, transmitters, door control modules, and switch panels, among others. The component providers supply the material to build the automotive smart key hardware. Smart key manufacturers then carry out various processes, such as designing, assembling, and production, to transform raw materials into finished products. System integrators bring the component subsystems together, ensuring that they operate efficiently.

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Automotive Smart Key Market: Strategic Insights

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Automotive Smart Key Market Drivers and Opportunities

Surge in Safety Feature Integration in Commercial and Passenger Vehicles to Favor Market

The increasing demand for the incorporation of safety and security functions in modern vehicles is propelling the automotive smart key market at large. The rising prevalence of vehicle theft has increased the demand for upgraded systems with a unique code for unlocking the car, involving an electronic key fob recognition through a code authorization. As a result, automakers begun to use computer-encrypted microchips in their keyless system to enhance the security layers that drive market growth. The surge in hybrid and electric vehicles, equipped with technologically advanced safety and security features, has also increased the demand for smart keys. For instance, Mercedes' Keyless Go enables a driver to lock & unlock a vehicles without using the corresponding smart key buttons. As the driver enters a car with an equipped Keyless Go SmartKey card, it can turn-on and turn-off the engine without inserting the Smart Key. Technological advancements such as transmission and infrared sensors is expected to strengthen safety and security features and are expected to propel the market growth considerably during the forecast period.

Increasing Uptake of Keyless Authorization Systems in Vehicles

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 are 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.

Automotive Smart Key Market Report Segmentation Analysis

Key segments that contributed to the derivation of the automotive smart key market analysis are application and technology.

• Based on application, the automotive smart key market is divided into single function and multi-function. The single function segment held the larger market share in 2023.
• By technology, the market is segmented into remote keyless entry and passive keyless entry. The remote keyless entry segment held the larger share of the market in 2023.

Automotive Smart Key Market Share Analysis by Geography

The geographic scope of the automotive smart key market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America.

The scope of the automotive smart key market report encompasses North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, Spain, the UK, and Rest of Europe), Asia Pacific (China, India, Australia, Japan, South Korea, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South America (Brazil, Argentina, and the Rest of South America). In terms of revenue, Asia Pacific dominated the automotive smart key market share in 2023. Europe was the second-largest revenue contributor to the global automotive smart key market, followed by North America.

Automotive Smart Key Market Regional Insights

The regional trends and factors influencing the Automotive Smart Key Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Automotive Smart Key Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Automotive Smart Key Market Report Scope

Automotive Smart Key Market Players Density: Understanding Its Impact on Business Dynamics

The Automotive Smart Key Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Automotive Smart Key Market are:

1. ALPHA Corporation
2. Continental AG
3. Denso Corporation
4. Honda Lock Mfg. Co., Ltd.
5. Silca S.p.A.
6. Toyota Motor Corporation

Disclaimer: The companies listed above are not ranked in any particular order.

Automotive Smart Key Market News and Recent Developments

The automotive smart key market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the automotive smart key market are listed below:

• HELLA introduced a new digital car key access solution based on ultra-wideband technology for passenger car OEMs. This new smart car access offers enhanced convenience to users with completely hands-free, smartphone-based vehicle access. (Source: HELLA GmbH, Press Release, June 2021)
• Silca S.p.A. launched Remote Vehicle Key TOY49R25, a new reference for duplicating remote car keys compatible with Citroen, Peugeot, and Toyota: the ideal solution for replacement of damaged or lost original keys or having a duplicate in case of emergency. (Source: Silca S.p.A., Press Release, September 2021)

Automotive Smart Key Market Report Coverage and Deliverables

The “Automotive Smart Key Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Automotive smart key market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Automotive smart key market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Automotive smart key market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the automotive smart key market
• Detailed company profiles