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The market is witnessing significant growth due to the increasing adoption of advanced keyless entry and push-button start systems. These systems utilize various technologies such as Radio Frequency Identification (RFID), Near Field Communication (NFC), and Bluetooth Low Energy (BLE) for contactless vehicle access. The market is driven by the convenience and security features offered by these systems, including personalized user settings, encrypted communication, and rolling codes. However, the risk of vehicle theft has led to the implementation of security measures such as proximity sensors and remote keyless entry with security features. The market is also witnessing the integration of connected automobile capabilities, including data security, telehealth services, artificial intelligence, and machine learning, to enhance user experience and safety. Remote patient monitoring and passive keyless access are also gaining popularity in the market. Overall, the market is expected to grow at a powerfulpace in the coming years.
Rising demand for electric and hybrid vehicles is the key factor driving the growth of the 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 market during the forecast period.
The need for enhanced vehicle security is the primary trend in the 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 powerful 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 market will witness growth during the forecast period.
Expensive smart keys and their replacement are major challenges impeding the growth of the 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 keys market during the forecast period.
The market research report includes the adoption lifecycle of the market research and growth, 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 and forecasting strategies.
Market 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.
Dormakaba Holding AG: The company offers automotive smart key solutions 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 14 market 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 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.
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The single function segment was valued at USD 9.16 billion in 2018. 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.
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APAC is estimated to contribute 45% 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.
In addition, 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.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Further, luxury vehicle manufacturers are at the forefront of this trend, integrating these features into their vehicles to enhance safety, car security, and user experience. The Internet of Things (IoT) is also playing a role in the development of connected automobile capabilities, allowing for remote capabilities and vehicle customization. However, with the increasing use of smart keys, there is also a growing concern for relay attacks and other cybersecurity threats. The central control unit is a critical component in ensuring the security of these systems. Overall, the market is expected to continue growing, driven by the demand for user convenience, vehicle security, and sustainable innovations.
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Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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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 4.36% |
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Market growth 2024-2028 |
USD 3.27 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.11 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 45% |
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Key countries |
China, US, Germany, Japan, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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., Valeo SA, and ZF Friedrichshafen AG |
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Market dynamics |
Parent market growth analysis, Market forecasting, 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 market forecast period. |
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Customization purview |
If our market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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