Automotive Digital Key Market
Automotive Digital Key Market (Component: Switches, Sensors, Electronic Control Unit [ECU], and Others; Connectivity: Remote Cloud Key Access, Biometric, Near Field Communication [NFC], Bluetooth, and Wi-Fi; Hardware: Remote Key Entry Devices, Smartphones & Tablets, and Wearables; Technology: Passive Keyless Entry System and Remote Keyless Entry System; Application: Vehicle Engine Start/Stop, Fleet Management, Vehicle Security, Charging Application, Payment Application, Shared Mobility, and Others; Vehicle Type: Passenger Vehicle and Commercial Vehicle; and Sales Channel: OEM and Aftermarket) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031
Press Release :
Buyers Considering Purchasing Cars via eCommerce During COVID-19 Outbreak
In a sign of how the COVID-19 outbreak is changing car buying, companies in the automotive digital key market are relying on digital showrooms, online customer reviews, and virtual test drive videos to boost sales. Tesla’s celebrity-led online livestream touting the company’s vehicles gained increased popularity in China during the pandemic in April 2020. Thus, manufacturers are expected to use these unique strategies to revive sales decimated by the ongoing pandemic in India, Canada, Pakistan, and Germany.
Buyers in the automotive industry are still warming up to the idea of purchasing big-ticket items such as cars via apps, livestreaming sites, and social media. Companies in the automotive digital key market are expecting future growth potentials in China’s auto industry, owing to their growing the adoption for eCommerce.
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Innovations in Activity Keys Help Overcome Limitations in Conventional Digital Keys
The automotive digital key market is predicted to expand at an astonishing CAGR of 21.5% during the forecast period. However, pros and cons of digital keys are emerging as hurdles for market expansion. For instance, Apple’s CarKey Tech is enabling car manufacturers to allow smartphones to unlock vehicles, but cannot entirely replace physical keys. Despite these challenges, key makers are marching toward the one-device-does-all scenario to attract new car buyers.
Companies in the automotive digital key market are focusing their attention toward supplementary keys that are taking the form of activity bands and being publicized by brands such as Jaguar Land Rover. These activity keys allow car owners to leave their standard car keys, phones, and wallet safely at home or in the glovebox.
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Car Door Lock Keyless Entry Systems Achieve Safety, Easy Installation
Manufacturers in the automotive digital key market are unlocking revenue potentials through eCommerce to make vehicles safer against robber attempts. Compact size, reliability, and effectiveness of car remote locking systems are grabbing the attention of vehicle owners. This has led to the popularity of the FICBOX car remote control central locking system, which known for direction light flashing and LED (Light Emitting Diode) indicator. Innovative remote locking systems are being discussed for its raise window output and remote trunk release.
On the other hand, CLOUDSALE car door lock keyless entry system is being known for its impeccable remote control features and easy installation.
Demand for Maximum Data Protection, Security of Digital Car Keys
In cooperation with Apple, BMW is gaining popularity for offering its digital car key on the iPhone. Companies in the automotive digital key market are taking cues from such innovations to develop technology and systems that help to set up a car key on a compatible smartphone and share it with other individuals. Maximum security and data protection are being preferred in digital car keys.
Companies in the automotive digital key market are increasing their research in the near-field communication (NFC) technology, which ensures high level of data protection. They are innovating in digital keys, which only require the Internet for setup and eliminate the need for the Internet in places, which lack active connection.
UWB Technology Helps to Automatically Unlock Car Doors without Pulling Out Keys
Apart from Apple, even Samsung is seen collaborating with Ford, Audi, and Genesis. Smartphone companies are developing phones that help to remotely unlock car doors. Even car brands are gaining awareness about NFC and the UWB (Ultra Wideband) technology to make cars compatible with continuous innovations in digital car keys.
Companies in the automotive digital key market are partnering with smartphone brands to develop UWB enabled digital keys that send short pulses between the mobile device and the paired car. Phone and car brands are expanding their revenue streams using the UWB technology to automatically unlock car doors without pulling out the keys.
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Carmakers and dealers are gaining valuable and handy online experience due to the ongoing COVID-19 outbreak. Apart from innovating in digital keys, car brands are focusing on digital marketing and creating podcasts to keep listeners and automobile enthusiasts updated with exclusive insights in tech, lifestyle, car designs, and the likes. However, there is a common security and power anxiety, among users, in case their smartphone is stolen or runs on low battery. Hence, companies in the automotive digital key market are collaborating with smartphone companies to develop over-the-air software, which improve security concerns faced by users. Companies are innovating in activity keys to avoid the hassles of physically handling standard keys and wallets.
Automotive Digital Key Market: Overview
- The global automotive digital key market was valued over US$ 1.3 Mn in 2020. It is estimated to expand at a CAGR of 21.5% from 2021 to 2031.
- Increasing focus on vehicle safety features, rising demand for automation and electric vehicles, growing trend of vehicle electrification in the automobile industry as well as government regulations on emissions, and fuel efficiency are prominent factors driving the demand for advanced features in vehicles, including keyless entry system in vehicles
Drivers of Automotive Digital Key Market
- Rise in integration of luxury features in vehicles, including advanced drive assistance systems and connected vehicles using the Internet of Things, is prompting vehicle manufacturers to develop advanced vehicle security systems. Increase in use of smartphone applications in vehicles is also a major factor boosting the integration of digital key solutions in vehicles.
- Increase in penetration of wireless connectivity in vehicles is likely to fuel the demand for digital key solutions in vehicles. Likewise, DS, Citroën's luxury car brand, developed a novel use for the key fob, making it a contactless payment card. Simply tapping the key fob on the screen of a card payment terminal enables it to be used similar to a normal credit or debit card for any transaction of US$ 40 or less. Users can add money to the key via a smartphone app and since it employs an integrated chip plus Radio-Frequency Identification (RFID), it is safe and secure as any current payment card, adopted by a number of consumers across Europe.
- Changing customer expectations are prompting digital key solutions providers to design innovative key solutions that provide customers with multiple functionalities. Usage of start-stop module, which certainly stops and restarts the internal combustion (IC) engine and reduces fuel consumption and vehicle emissions, is increasing rapidly, which is likely to propel the digital key market across the globe.
- Research and development in digital key solutions is increasing. For instance, BMW AG introduced a smart key fob with a display that enables control of various features of its cars such as pre-conditioning, park-assist, and lighting. It also displays information such as range and timer, which is likely to boost the automotive digital key market.
Challenges for Automotive Digital Key Market
- A digital key is more likely to face cyber security issues, as a digital key is connected to the vehicle through the smartphone that employs software technology for its operation. Digital keys are keyless entry, which do not require the driver to push any buttons on the key to unlock the doors. Doors unlock automatically when the key fob is near the car. Smart keys mostly utilize infrared radiation (IR) technologies to transmit signals to the car. Digital keys built in mobile applications work in a similar way, except that they transmit signals via Bluetooth or NFC technologies, such technologies can be hacked, which is likely to restrain the automotive digital key market.
- The recent outbreak of COVID-19 pandemic hampered majority of businesses across the globe owing to the forced lockdown, which caused people to stay at home. The forced lockdown led to a decline in vehicle sales; subsequently, contracting the global automotive digital key. However, the global automotive digital key is expected to expand from 2021, owing to economic measures taken by governments to recover from financial losses caused by forced shutdown of business activities during the COVID-19 pandemic in 2020.
Segmentation of Automotive Digital Key Market
- The global automotive digital key market has been segmented based on component, connectivity, hardware, technology, application, vehicle type, sales channel, and region
- Based on vehicle type, the passenger vehicles accounted for the major share of the global automotive digital key market in 2020. The segment accounted for more than 75% share of the market in 2020. Increase in per capita income, along with rapid industrialization has fueled the sale of passenger vehicles and commercial vehicles across the globe in order to meet the rise in demand for transportation of people and goods. Additionally, the global coronavirus pandemic outbreak has heightened safety awareness among consumers. Therefore, the trend of owning a personal vehicle is likely to increase among the population, thereby increasing the demand for passenger vehicles. All these segments are likely to boost the passenger vehicle segment during the forecast period.
- Based on sales channel, the automotive digital key market has been bifurcated into OEM (original equipment manufacturer) and aftermarket. In terms of revenue, the OEM segment accounted for a major share of the global automotive digital key market in 2020. Majority of the automakers are providing digital keys to their consumers during the vehicle purchase in order to increase convenience in terms of vehicle access. Additionally, in case of digital key replacements, majority of consumers prefer to use services offered by automaker-authorized service providers owing to brand trust and consumer loyalty. This, in turn, is likely to propel the OEM segment of the global automotive digital key market during the forecast period.
Automotive Digital Key Market: Regional Analysis
- Based on region, the global automotive digital key has been segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
- Asia Pacific accounted for a major share of the global automotive digital key. Asia Pacific has major presence of developed countries that are home to advanced research and development facilities for digital key, which is likely to enhance the use of digital key solutions across the region. China dominates the automotive digital key market in Asia Pacific. China is the hub for automotive markets across the globe. Demand for keyless entry access systems in the market in China and India is increasing at a rapid pace, as various China- and India-based companies are launching vehicles with keyless entry feature, which, in turn, is estimated to propel the automotive digital key market in China and India. The market is also driven by increasing sales of passenger car in countries such as China, Japan, India, and South Korea. Sales of passenger cars and commercial vehicles in countries in ASEAN have been rising significantly for the past few years, which is also estimated to boost the automotive digital key in Asia Pacific during the forecast period.
Automotive Digital Key Market: Competition Landscape
- Key players operating in the global automotive digital key include
- ALPHA Corporation
- Continental AG
- Denso Corporation
- Heights Security, Inc.
- HELLA GmbH & Co. KGaA
- Hyundai Mobis
- Minda Corporation
- Mitsubishi Electric Corporation
- NXP Semiconductors
- Robert Bosch GmbH
- Telefonaktiebolaget LM Ericsson
- Valeo SA
- Key players operating in the global automotive digital key market are expanding their presence by engaging in mergers and acquisition activities or by establishing new facilities
- For instance, In December 2019, Ericsson and Microsoft entered in a joint collaboration for the development of secure and accelerated cloud services for the next-generation of connected cars. Combining Ericsson’s Connected Vehicle Cloud and Microsoft Connected Vehicle Platform has enabled automobile manufacturers to accelerate the production of connected car services globally. The integrated, combined platform solution enables automakers to deploy and scale global vehicle services including fleet management, over-the-air (OTA) software updates for vehicles and connected safety services at a rapid pace and at reduced costs.
Automotive Digital Key Market – Scope of the Report
Transparency Market Research’s recent report on the automotive digital key market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the automotive digital key market analyzes the scenario for the period of 2021 to 2031, wherein, 2020 is the base year and 2017 to 2019 covers historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This TMR study on the automotive digital key market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the automotive digital key market gives readers an individual understanding of the market.
Key Questions Answered in This Report on Automotive Digital Key Market
- How much value will the automotive digital key market generate by the end of the forecast period?
- Which segment of the market is likely to have the maximum market share by 2031?
- What are the impact factors and their effects on the market for automotive digital keys?
- What regions currently contribute the maximum share to the overall automotive digital key market?
- What are the indicators expected to drive the automotive digital key market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies by key stakeholders in the automotive digital key market to expand their geographic presence?
- What are the major advancements witnessed in the automotive digital key market?
- How regulatory norms affected the market for automotive digital key market?
This report answers these questions and more about the automotive digital key market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
Automotive Digital Key Market – Research Methodology
This TMR report on the automotive digital key market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. Market volume is determined by country wise model mapping of vehicle through internal & external proprietary databases, and relevant patent and regulatory databases. The competitive scenario of the automotive digital key market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends and announcement by key players, researchers of the automotive digital key market arrive at predictions and estimations, and calculate the forecast for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the automotive digital key market, with both a bottom-up and top-down approach.
This detailed assessment of the automotive digital key market, along with an overview of the landscape, is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the automotive digital key market is estimated to expand are based on carefully vetted primary and secondary sources.
Automotive Digital Key Market – Segmentation
This report on the automotive digital key market provides information on the basis of component, connectivity, hardware, technology, application, vehicle type, sales channel, and region.
This study also discusses the underlying trends and impact of various factors that are driving the automotive digital key market, along with their influence on the evolution of the market.
This study also offers Porter’s Five Point Analysis, value chain analysis, regulatory scenario, and a SWOT analysis of the automotive digital key market, in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.