Automotive Smart Key Market Size to Surpass USD 27.67 Billion by 2032

Overview

The automotive smart key market size is expected to increase from USD 18.25 billion in 2023 to an estimated USD 27.67 billion by 2032, with a compound yearly growth rate (CAGR) of 5.42% over the forecast period (2023-2032).

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Growing security laws, which lead to technical advancements in vehicle security systems, as well as rising car demand, are significant market factors that contribute to the industry's growth and expansion.

• Automotive smart keys have gained significant traction in the past decade due to their advantages, including enhanced vehicle security. Features once exclusive to luxury cars are now being integrated into budget vehicles by manufacturers like Honda, driving the adoption of smart keys across all segments. Additionally, the use of advanced technology, such as radio frequency (RF) signals converted into digital information, is making smart keys more prevalent in the automotive sector, thereby fuelling market growth.
• Advancements in automotive technology and the increasing incidence of vehicle thefts are expected to drive the development and adoption of smart keys in the coming years, further bolstering market growth.
• There is a growing trend towards using lightweight and eco-friendly materials in the manufacturing of smart key components like chips and buttons. Leading car manufacturers such as BMW, Volkswagen, and Mercedes-Benz are investing in developing compact and visually appealing smart keys. This shift towards lightweight materials presents significant growth opportunities for the smart key market in the foreseeable future.
• The popularity of smart keys in the automotive sector has surged in recent decades due to their enhanced security features. Automotive OEMs are incorporating similar features in their budget vehicle offerings, mirroring those found in luxury cars. Companies like Honda are actively involved in developing smart keys for their budget vehicle line-up. Moreover, the emergence of advanced technologies, such as RF signal-based systems, is driving widespread adoption of smart keys across all vehicle types. Additionally, the rise in vehicle theft incidents is expected to further increase the demand for biometric security systems. For example, in April 2023, Car Keys Express, a leading U.S.-based provider of automotive key replacement solutions, announced the upcoming launch of the Universal Smart Key, reflecting the continued innovation and expansion in the smart key market.

Trends in the Automotive Smart Key Market

This section covers the major market trends shaping the automotive smart key market according to our research experts:

The Other Technology Segment Expected to Experience Rapid Growth

Automotive Market's 'Other Technologies' Segment

• Leading market share with innovative technologies like biological entry system and smartphone-connected car technology.
  Passive keyless entry (PKE) technology offers practicality and convenience.
• Leap Motor introduced biological entry system in smart electric coupe S01 model in China in 2019.
• "Leap In" biological lock/unlock system integrates finger vein and face recognition for seamless keyless experience.
• "Leap ID" smart system customizes car settings based on user habits.
• High Compound Annual Growth Rate expected due to rising consumer demand for advanced vehicle access and customization features.
• Growing Demand for Advanced Automotive Technology: The increasing preference for luxury cars equipped with cutting-edge automotive technology is expected to drive market growth.
• Rise of Electric and Hybrid Cars: The introduction of electric and hybrid vehicles with advanced safety and security features is further fueling the demand for automotive keys.
• Technological Advancements: Rising technological innovations in vehicle security and safety, including passenger vehicle telematics systems and driving assistance systems, are anticipated to contribute to market expansion.
• Incorporation of Advanced Technologies: The integration of modern technologies such as automotive telematics and ADAS into vehicle safety and security is predicted to increase demand for automotive keys.

Asia-Pacific is Expected to Witness the Highest Growth

• The Asia-Pacific region is poised for significant growth in the automotive smart key market.
• China, being one of the largest automotive markets globally, is expected to drive substantial growth in the region.
• Despite lower-than-expected vehicle production and sales volumes in 2018 due to political and microeconomic factors, the demand for new energy vehicles (NEVs) and smart keys continued to surge.
• Both China and India are witnessing rapid growth in smart key demand, fuelled by the introduction of vehicles with keyless entry features by domestic companies.
• Japan's increasing demand for smart keys with advanced technology is anticipated to further propel the market in the country.
• Expanding automotive vehicle production and the adoption of safety features in commercial and passenger vehicles contribute to the dominance of the Asia-Pacific region in the global smart key market.
• The presence of developed nations with cutting-edge research and development centres for digital keys in the Asia-Pacific region is expected to drive the adoption of digital key solutions.
• Notably, China's premium car industry saw a significant uptick in sales in April 2020, indicating a growing market for automotive smart keys.
• Advancements in vehicle security systems are driving the demand for technologically advanced automotive smart keys, leading to anticipated growth throughout the forecast period.

Automotive Smart Key Industry Overview

• The automotive smart key market is characterized by fragmentation, with several players operating in the industry.
• Tokai Rika Co. Ltd stands out as the leading player in this market segment.
• Notably, Tokai Rika, along with Denso and Alpha Corporation, serves as major suppliers of electronic keys, smart keys, and keyless systems to prominent automakers like Toyota and Nissan in Japan.
• Other significant players in the market include Bosch, Valeo, among others, collectively representing over 20% market share.
• Many of these players have expanded their offerings to include smart key solutions in the aftermarket channel.
• Tokai Rika Co. Ltd has strengthened its market presence through various initiatives and product innovations.
• For instance, In 2017, the company introduced Continental AG’s Keys-as-a-Service Portfolio, enabling car owners to access cloud-based solutions such as Continental Smart Access (CoSmA) and Remote Cloud Key (RCK).
• This innovative solution empowers owners to secure keyless vehicle access and authorization using a smart device, such as a smartphone.

Automotive Smart Key Market Leaders

• Alpha Corp.
• Minda Corp. Ltd
• Denso Corporation
• Continental AG
• Huf Hulsbeck & Furst GmbH & Co. KG
• Honda Lock Mfg Co. Ltd
• ZF Friedrichshafen AG
• Valeo SA
• HELLA GmbH & Co. KGaA
• Tokai Rika Co. Ltd
• Silicon Laboratories Inc.

Automotive Smart Key Industry Segmentation

• A smart key, also referred to as an intelligent key, incorporates digital features and information to offer enhanced functionalities beyond traditional lock systems.
• It operates within a computerized system utilizing microchips and sensors to automatically unlock vehicle doors and start the engine without manual key insertion.
• Beyond basic unlocking, a smart key serves as an electronic access and authorization system, commonly available as either standard equipment or an optional feature based on car model specifications.
• The automotive smart key market encompasses various applications, including single-function and multi-function technologies.
• Examples of multi-function technologies include Transmitter Technology (Remote Keyless Entry) and Capacitive Sensor Technology (Passive Keyless Entry).
• Additionally, the market involves installation by Original Equipment Manufacturers (OEMs) and aftermarket service providers.
• Notably, the study also covers Infra-red Sensor Technology, although analysis is qualitative in nature.
• Smart keys play a pivotal role in modern vehicle access and security systems, offering convenience and advanced functionality to users.

Market Segmentation

By Application

• Single Function
• Multi-Function

By Technology

• Remote Keyless Entry
• Passive Keyless Entry

By Installation

• OEM
• Aftermarket

By Geography

• North America
  
  • United States
  • Canada
  • Rest of North America
• Europe
  
  • Germany
  • United Kingdom
  • France
  • Rest of Europe
• Asia-Pacific
  
  • China
  • India
  • Japan
  • Rest of Asia-Pacific
• Latin America
  
  • Brazil
  • Rest of Latin America
• Middle East and Africa
  
  • South Africa
  • Rest of Middle East and Africa