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The automotive smart key fob market size is forecast to increase by USD 4.59 billion at a CAGR of 5.36% between 2023 and 2028. Market growth relies on various factors, including the safety and convenience offered by advanced vehicle access solutions, the increasing integration of automotive electronics, and the expanding market presence of mid and luxury-segment vehicles equipped with convenient features. These factors collectively drive demand for advanced vehicle access solutions as consumers prioritize enhanced security and ease of use in their vehicles. With a growing emphasis on technology and convenience in the automotive industry, the market for advanced vehicle access solutions is poised for steady expansion, catering to the evolving needs and preferences of modern vehicle owners.
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The market is evolving rapidly, integrating advanced features to enhance car security and user convenience. Key players like Leap Motor are adopting infra red sensor technology to enable seamless access to vehicles. These fobs, compatible with both luxury cars and standard models, replace conventional key and offer functionalities like rearview mirror control and moonroof operation. Crafted using lightweight materials and eco-friendly materials, they align with the automotive industry's shift towards sustainability. With features such as radio presets and mirrors control, smart key fobs provide a holistic solution for modern vehicle access and control needs.
Further, the report offers extensive research analysis on the market, with a categorization based on Type, including remote keyless entry systems and passive keyless entry systems. It further segments the market by Application, encompassing single-function and multi-function. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
The remote keyless entry systems segment is estimated to witness significant growth during the forecast period. The segment refers to an electronic lock that enables the user of the vehicle to gain physical access that enables the locking and unhooking option operation without using the conventional mechanical key. In addition, the automobile unlocks the car using biometric scanning, electronic locks, and radio frequency identification locks, which secures access to the vehicle.
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The remote keyless entry systems segment was the largest segment and was valued at USD 6.49 billion in 2018. Moreover, as such systems are a standard feature in all passenger cars, the production of passenger vehicles has a direct impact on the passenger vehicle market. In addition, automotive electronics have rapidly evolved over the past decade with the electrification of mechanical components and the introduction of electronics in safety, security, and propulsion technologies. Hence, such factors are fuelling the growth of this segment, which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 50% 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. China, Japan, India, Indonesia, South Korea, Thailand, and Australia are some of the key countries contributing to the market growth in APAC. In addition, the high-volume sales of automobiles in these countries are driving the market growth.
Moreover, the penetration rate for smart key fob is growing in the vehicles sold in the region. Furthermore, the increasing incidence of vehicle thefts in the region is driving automakers to offer vehicles with advanced security systems. In addition, the economic growth in these countries has boosted spending on infrastructure and industrial development as well as pushed demand for passenger and heavy commercial vehicles. Hence, such factors are driving the market growth in APAC during the forecast period.
The market is witnessing significant growth driven by advancements in vehicle security technology. Leveraging radio frequency (RF) signals and digital information, these fobs enhance security in the automotive sector, offering convenience and peace of mind to consumers. Manufacturers are increasingly incorporating finger vein recognition and face recognition features alongside infra-red sensor technology, ensuring secure access to vehicles. With the rise of luxury vehicles, demand for smart key fobs with features like door lock and window control is soaring. These fobs are crafted using lightweight and eco friendly materials, catering to the growing preference for sustainable solutions in the automotive industry. 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.
One of the key factors driving market growth is the growing penetration of automotive electronics. With the evolution of the global automotive industry, the penetration rate of automotive electronics is increasing in modern automobiles. In addition, the applications of electronic-based components in vehicles have significantly increased over the last decade or so. Thus, this is a primary market enabler for the systems as traditional keys are fast becoming obsolete.
Moreover, the automotive keys have witnessed an evolution in terms of material, design, and functionalities. In addition, for many decades, the car keys were carved out of metals such as iron, steel, brass, or aluminum and solely carried for the closing/opening door, opening boot, and ignition start. Furthermore, the advanced smart keys use RFID, chips, and other sensors to lock/unlock doors, open/close windows, open trunks, and locate parked vehicles. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping market growth is the advent of vehicles with virtual keys. There has been a significant transformation in automotive car keys a mechanical device for locking/unlocking doors. In addition, the connected car technology applications have been extended to smart keys. Furthermore, from being completely mechanical to electromechanical, the future car legends would be completely virtual.
For instance, the launch of the Model 3 by American carmaker Tesla is such an example. As per the carmaker, the vehicle doors and the boot can be locked/unlocked using a smartphone app connected to the car through Bluetooth. Moreover, the user can remotely park, even in tight spaces, using the Summon feature. In addition, the feature is already available in Tesla Model X and Model S cars. Hence, such factors are driving the market growth during the forecast period.
The high price and replacement cost is one of the key challenges hindering market growth. The market is influenced by numerous market enablers. However, there are certain hindrances to the growth of the market. For instance, the cost of the development of smart key fobs is high, which adds to the overall cost of the vehicle, owing to the use of many electronic components in the market.
Moreover, the market fobs are made using advanced technology, which integrates hardware and complex software in terms of algorithms or encrypted floating key codes. In addition, these key fobs are expensive to maintain. Furthermore, replacement due to loss of the key fob can cost between USD200 and USD400 (if purchased from an authorized dealership) as the control unit that monitors the vehicle access system needs to be reprogrammed along with the new key and should be in sync with the engine immobilizer. Hence, such factors are hindering the market growth during the forecast period.
The market research 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 essential purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth 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.
ALPHA Corp: The company offers automotive smart key fobs such as remote control key, intelligent key, and mechanical key.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 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 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 2023 for the following segments.
The market is experiencing significant growth fueled by advancements such as the Leap ID smart system and computerized system integration. These fobs utilize microchips and transmitter technology to enable keyless entry and ignition, enhancing vehicle safety and security. Equipped with capacitive sensor technology, they facilitate convenient seat adjustment and other features tailored to modern vehicle design preferences, especially in luxurious vehicles. Amidst increasing environmental concerns and volatile oil prices, the market is witnessing a shift towards hybrid and electric vehicles, prompting further innovation in automotive technology for improved synchronization and reduced carbon dioxide emissions, pollution, and greenhouse gases. Data security measures ensure data security and safety in this evolving landscape.
Additionally, chemicals play a crucial role in various industries, such as textiles and automobiles, where they are utilized for manufacturing processes and product development. In the automotive industry, hybrid vehicles represent a shift towards more environmentally friendly transportation options, contrasting with traditional internal combustion engines.
Furthermore, the market is experiencing rapid growth fueled by advancements in car security and the rising demand for luxury cars. Manufacturers are integrating innovative features such as infra-red Sensor Technology into fobs, enhancing security and convenience. These fobs are made using lightweight and eco-friendly materials, aligning with the automotive industry's shift towards sustainability. With players like Leap Motor driving innovation, smart key fobs now offer functionalities beyond traditional key operations, including rearview mirror control and moonroof adjustment. As consumers seek personalized experiences, features like radio presets cater to their preferences, elevating the overall driving experience.
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Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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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 5.36% |
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Market Growth 2024-2028 |
USD 4.59 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.05 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 50% |
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Key countries |
US, China, Japan, India, and Germany |
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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., Alps Alpine Co. Ltd., Continental AG, DENSO Corp., Dormakaba Holding AG, Firstech LLC, Giesecke Devrient GmbH, HELLA GmbH and Co. KGaA, Huf Hulsbeck and Furst GmbH and Co KG, Hyundai Mobis Co. Ltd., JPM Group, Mitsubishi Electric Corp., Panasonic Holdings Corp., Thales Group, Tokai Rika Co. Ltd., Toyota Motor Corp., Valeo SA, VOXX International Corp., ZF Friedrichshafen AG, and STRATTEC SECURITY Corp. |
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Market dynamics |
Parent market analysis, market growth and trends, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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 Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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