New York, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Market Size & Overview:
Global Automotive Digital Key Market sales reached approximately US$3,016.7 million by the end of 2023, with a projected 14.2% CAGR, expected to surpass US$11,381.3 million by 2033, according to Persistence Market Research.
The swift adoption of smartphone-to-vehicle technology by major manufacturers is a key driver for this growth. Ongoing developments in IoT, automotive, and automotive digital key market platforms are creating ample opportunities for digital systems in vehicle operations, contributing to the expanding vehicle-connected market. The East Asian and European regions are leading this growth, presenting lucrative sales opportunities.
Sales Analysis
The automotive digital keys market witnessed a notable growth rate of 4.4% from 2018 to 2022. The automotive industry faced challenges like the semiconductor shortage, the COVID-19 pandemic, and the Russia-Ukraine invasion, impacting global economy and supply chains. Manufacturers had to reconstruct their supply chains and manage operations, leading to a decline in automotive digital key sales.
Despite these challenges, the market is poised for growth at a compound annual growth rate (CAGR) of 14.2% during the assessment period. Factors such as increasing initiatives for autonomous and electric mobility, rising demand for luxury vehicles due to higher disposable income, and growing awareness about vehicle security are driving the surge in automotive digital key sales.
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Market Scope:
| Report Coverage | Details | |
| Market Revenue 2023 | US$3,016.7 million | |
| Estimated Revenue 2033 | US$11,381.3 million | |
| Growth Rate - CAGR | 14.2% | |
| Forecast Period | 2023-2033 | |
| No. of Pages | 300 Pages | |
| Market Segmentation |
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| Regions Covered |
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| Key Companies Profiled |
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In a nutshell, the Persistence Market Research report is a must-read for start-ups, industry players, investors, researchers, consultants, business strategists, and all those who are looking to understand this industry. Get a glance at the report at: https://www.persistencemarketresearch.com/market-research/automotive-digital-key-market.asp
Market Growth Drivers:
Autonomous and Electric Mobility Initiatives: Increasing development efforts in autonomous and electric mobility are driving the growth of the automotive digital key market. As vehicles become more advanced and connected, the demand for digital keys to facilitate secure and convenient access rises.
Rising Demand for Luxury Vehicles: The global rise in per capita disposable income has led to an increased demand for luxury vehicles. High-end vehicles often incorporate advanced technologies, including digital key systems, contributing to the market's growth.
Growing Awareness of Vehicle Security: With a heightened awareness of the importance of vehicle security, there is an increased adoption of advanced security systems, including digital keys. Consumers are seeking solutions that enhance the safety and protection of their vehicles.
Technological Advancements: Continuous advancements in digital key technology are contributing to the market's expansion. As technology evolves, more sophisticated and secure digital key systems are being developed, attracting consumers and driving market growth.
Connected Vehicle Ecosystem: The integration of digital keys into the broader connected vehicle ecosystem is a significant driver. As vehicles become more interconnected, digital keys play a crucial role in providing seamless and secure access to vehicles.
Increasing Permeation of Connected Cars: The growing adoption of connected cars, which rely on digital keys for access and operation, is a key driver for market growth. Consumers are increasingly valuing the convenience and smart features offered by connected vehicle technologies.
Recovery from External Disruptions: Despite challenges such as the semiconductor shortage, the impact of the COVID-19 pandemic, and geopolitical events like the Russia-Ukraine invasion affecting the automotive industry, the market is expected to rebound as manufacturers rebuild supply chains and adapt their operational programs.
Market Restraints:
Semiconductor Shortage: The ongoing semiconductor shortage has been a significant restraint on the automotive industry, affecting the production of vehicles and related technologies, including digital key systems. This shortage has led to delays and disruptions in the supply chain.
Impact of COVID-19 Pandemic: The global COVID-19 pandemic has disrupted various industries, including automotive. Lockdowns, supply chain interruptions, and economic uncertainties have hampered vehicle sales and slowed down the overall market recovery.
Geopolitical Events: Events such as the Russia-Ukraine invasion can have widespread implications on the automotive industry. Political instability and conflicts can disrupt supply chains, impact production capacities, and create uncertainties in the market.
Supply Chain Disruptions: The automotive industry relies on complex global supply chains. Disruptions, whether caused by natural disasters, geopolitical events, or other factors, can lead to delays in manufacturing and distribution, affecting the availability of digital key systems.
Operational Challenges for Manufacturers: The need for manufacturers to rebuild and reorganize their supply chains, coupled with managing operational programs in response to external disruptions, can pose challenges. This can impact the timely production and delivery of automotive digital key systems.
Consumer Adoption Challenges: While awareness of vehicle security is increasing, there may still be challenges in convincing consumers of the benefits and reliability of digital key systems. Some consumers may be hesitant to adopt new technologies or may have concerns about the security of digital key solutions.
Opportunities:
Technological Advancements: Opportunities lie in the continuous evolution of digital key technology. Investing in research and development to enhance features, security, and compatibility with emerging automotive technologies can provide a competitive edge.
Integration with Smart Devices: Exploring integration opportunities with smart devices, such as smartphones, smartwatches, and other wearable technologies, can enhance user convenience and accessibility, further expanding the market reach.
Collaboration and Partnerships: Collaborating with other stakeholders in the automotive ecosystem, including vehicle manufacturers, technology companies, and service providers, presents opportunities for creating comprehensive and integrated solutions that cater to evolving consumer needs.
Expansion in Emerging Markets: Exploring and expanding into emerging markets with growing automotive industries and increasing disposable incomes can open up new customer bases and drive sales of automotive digital key systems.
Customization and Personalization: Offering customizable and personalized digital key solutions can attract a diverse range of consumers with varying preferences, contributing to increased adoption rates and customer satisfaction.
Cybersecurity Solutions: Given the rising concerns about cybersecurity in the automotive industry, there is an opportunity to develop and offer robust cybersecurity solutions integrated with digital key systems, enhancing trust and security for consumers.
Subscription-Based Models: Introducing subscription-based models for digital key services can create recurring revenue streams. This approach allows for ongoing updates, additional features, and improved customer engagement.
Country-wise Insights:
What are the Factors Fueling the Demand for Automotive Digital key in U.S.?
The U.S. automotive digital key market reached approximately US$388.9 million by the end of 2022 and is projected to lead North American demand in the forecast period. The key driver is the growing awareness of vehicle safety, with increasing popularity among rental fleet owners who use digital keys for contactless vehicle transactions. The convenience of remote monitoring further fuels the demand for automotive digital keys in the U.S.
What is the Outlook for Automotive Digital Key Market Manufacturers in China?
China is expected to dominate over one-third of the East Asia Automotive Digital Key market. The region anticipates a surge in sales driven by the growing adoption of electric vehicles and the advancement of connected vehicle technologies in China. The country's leadership in technology development, especially for connected vehicles and luxury cars, is a key factor propelling the demand for automotive digital keys in China.
Category-wise Insights
Which Product type is driving the demand for Automotive Digital Keys?
The Smart Keyfob segment currently dominates the global automotive digital key market, commanding over 90% of total sales. This significant market share is attributed to its user-friendly operation and the incorporation of advanced security technologies. The Smart Keyfob segment is expected to exhibit steady growth in both value and volume throughout the forecast period, driven by ongoing developments from manufacturers.
Which Vehicle Category has the most potential for Automotive Digital Keys market growth?
The passenger vehicle segment is poised to drive significant demand growth for Automotive Digital Keys worldwide. Increasing ownership trends in developing countries, coupled with a growing population and rising disposable incomes, create substantial opportunities for market growth. This trend is expected to contribute significantly to the automotive digital key market during the forecast period.
Key Recent Developments:
Smartphone Integration: Many automotive manufacturers were working on integrating digital keys with smartphones. This allows users to unlock and start their vehicles using a mobile app, enhancing convenience and security.
Biometric Authentication: Implementation of biometric authentication, such as fingerprint recognition and facial recognition, was becoming more prevalent in digital key systems. This adds an extra layer of security to access and start vehicles.
Wireless Connectivity Standards: Adoption of wireless communication standards like Bluetooth Low Energy (BLE) and Near Field Communication (NFC) for secure and convenient communication between the digital key and the vehicle.
Collaborations and Partnerships: Automotive manufacturers were partnering with technology companies and cybersecurity experts to ensure the safety and security of digital key systems. Collaborations were aimed at developing robust and tamper-resistant solutions.
Remote Access and Control: Some digital key systems allowed users to remotely access and control various vehicle functions, such as unlocking, starting the engine, and adjusting climate settings through a mobile app.
Expansion of Ecosystems: Automotive companies were working on expanding the digital key ecosystems, allowing users to share digital keys with family members or friends securely. This feature enables convenient car-sharing options.
Cybersecurity Measures: With the increased reliance on digital technology, there was a growing emphasis on implementing robust cybersecurity measures to protect digital key systems from hacking and unauthorized access.
Regulatory Developments: Regulatory bodies were also beginning to address the legal and safety aspects of digital key technologies to ensure they meet industry standards and comply with relevant regulations.
Some of the market players:
- Infineon Technologies AG: Infineon Technologies is a German semiconductor manufacturing company. They provide a wide range of semiconductor solutions for various industries, including automotive, industrial, and digital security.
- Telefonaktiebolaget LM Ericsson: Ericsson is a Swedish multinational networking and telecommunications company. It is a major player in the development and implementation of telecommunications infrastructure, including mobile networks and 5G technology.
- Continental AG: Continental is a German automotive manufacturing company specializing in tires, brake systems, automotive safety, and other automotive components. They are a prominent supplier to the automotive industry.
- Denso Corporation: Denso is a Japanese automotive component manufacturer. It is known for producing a wide range of automotive parts, including air conditioning systems, engine components, and electronic systems.
- Tokai Rika Co. Ltd: Tokai Rika is a Japanese company that specializes in the production of automotive electronic components. They manufacture products like keyless entry systems, steering column systems, and electronic control units.
- ALPHA Corporation: ALPHA Corporation is a Japanese company that designs and manufactures automotive interior systems, including seating, cockpit modules, and various interior components for vehicles.
- Garmin Ltd: Garmin is a multinational technology company based in the United States. It is known for its GPS navigation and wearable technology products. Garmin provides solutions for automotive, aviation, marine, and outdoor activities.
- Firstech, LLC: Firstech is an American company specializing in automotive aftermarket products. They are known for their remote start systems, security products, and connected car solutions.
Key Segments Covered in Automotive Digital Key Industry Analysis
By Product Type, the market is segmented into -
Smart Keyfob
Key Card
Smart Watch
By Vehicle Type, the market is segmented into -
Passenger Cars
Compact Cars
Mid-Sized Cars
Luxury Cars
SUVs
LCVs
HCVs
Automotive Digital Key Market by Sales Channel
OEMs
Aftermarket
Automotive Digital Key Market by Region
North America
Latin America
Europe
East Asia
South Asia & Pacific
Middle East & Africa
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