- Key-as-a-Service (KaaS) is a digital cloud-based keyless entry technology. This technology enables the user to unlock and lock the vehicle’s doors and also start the engine with a smart device. The Key-as-a-Service (KaaS) aftermarket solution enables car sharing companies to manage their fleets without physical keys, which helps increase utilization of vehicles and reduce friction during the rental pickup and return process.
Key Drivers of Global Key-as-a-Service Market:
- Rise in integration of luxury features in vehicles, including advance drive assistance systems and connected vehicles using cloud technology, is prompting vehicle manufacturers to develop advanced vehicle security systems. Rise in usage of smartphone applications in vehicles is also a major factor boosting the integration of key-as-a-service in vehicles. Increase in penetration of wireless connectivity in vehicles is likely to fuel the demand for key-as-a service solutions in vehicles.
- Changing customer expectations are prompting key-as-a-service 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 in turn is likely to propel the key-as-a-service market across the globe.
- Research and development in key-as-a-service is increasing. For instance, Continental introduced key-as-a-service solution from passenger cars to commercial vehicles. Key-as-a-service enables users to open their vehicles and start their engines with a simple command via smartphone or Bluetooth Card, which is likely to boost the key-as-a-service market.
Key-as-a-Service Market to Offer Significant Opportunities:
- Key-as-a-service is an autonomous vehicle system, which is developed in order to secure vehicle access electronically by means of remotely controlling vehicle locking/ unlocking and aims to substitute traditional mechanical key. However, the recent development in terms of key-as-a-service solutions eliminates the use of smart key fobs, as the vehicle key is stored directly on cloud systems, which can be directly accessed by consumers using their smartphone or smartwatch. This feature enables the vehicle owner to share the key of the vehicle with multiple users without actually sharing the vehicle key in the physical form. Demand for smartphone-based key-as-a-service is expected to increase among vehicle fleet owners as well as ride-sharing companies. This, in turn, is expected to propel the key-as-a-service market at a rapid pace.
Challenges for Key-as-a-Service Market:
- A key-as-a-service is more likely to face cyber security issues, as a key-as-a-service solutions is connected to the vehicle through the smartphone, which employs software technology for its operation. Key-as-a-service are keyless entry does 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. Key-as-a-service solution 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 key-as-a-service market.
- The 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 key-as-a-service solutions. However, the global key-as-a-service solution 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.
Asia Pacific to Hold Significant Share of Global Key-as-a-Service Market:
- Asia Pacific accounted for a major share of the global key-as-a-service market. Asia Pacific has major presence of developed countries that are home to advanced research and development facilities for key-as-a-service, which in turn is likely to enhance the use of key-as-a-service solutions across the region. China dominated the key-as-a-service market in Asia Pacific owing to the presence of numerous OEMs and aftermarket players who are engaged in production and supply of digital key and related components.
- The market in the Asia Pacific 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 increasing significantly for the last few years, which is also projected to propel the key-as-a-service market in Asia Pacific during the forecast period.
Key Players Operating in Global Market:
The global key-as-a-service market is highly consulted with top manufacturers across the global market. A few of the key players operating and potential in the global key-as-a-service market are:
- Continental AG
- ALPHA Corporation
- Denso Corporation
- HELLA GmbH & Co. KGaA
- Valeo SA
- Hyundai Mobis
- Minda Corporation
- Mitsubishi Electric Corporation
- NXP Semiconductors
- Robert Bosch GmbH
- Telefonaktiebolaget LM Ericsson
Global Key-as-a-Service Market: Research Scope
Global Key-as-a-Service market, by Hardware
- Remote Key Entry Devices
- Smartphones & Tablets
Global Key-as-a-Service Market, by Vehicle Type
- Passenger Vehicle
- Utility Vehicles
- Light Commercial Vehicle
- Heavy Commercial Vehicle
Global Key-as-a-Service Market, by Sales Channel
Global Key-as-a-Service Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
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The following regional segments are covered comprehensively:
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