According to our latest market study on “Automotive Smart Key Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Application and Technology,” the market is expected to grow from US$ 8,023.9 million in 2021 to US$ 12,020.4 million by 2028; and is estimated to grow at a CAGR of 5.9% from 2021 to 2028.
The rise of advanced technologies that use radio frequency (RF) signals and convert them to digital information is driving the prevalence of smart keys in the automotive sector. Increase in vehicle thefts, and demands for advanced and enhanced features have accelerated the development of automotive telematics and advanced driving assistance systems (ADAS). Telematics is a communication technology that provides navigation, safety, security, and communication in an automobile. The rising demand for an electronic technologies that assist drivers through a safe human–machine interface has propelled the growth of ADAS. The use of digital or radio frequency identification (RFID) technologies for signaling or information handling has been providing lucrative growth opportunities for smart key market vendors. The advanced telematics navigation and tracking systems are increasingly becoming a standard on vehicles. In March 2020, NXP Semiconductors announced an automotive Digital Key Solution that enables smartphones, key fobs, and other mobile devices to securely communicate, authenticate, and share digital keys with vehicles. The solution is built on near-field communication (NFC) chipsets, and it features key sharing, multi-car access, and configurable driving rights, among other capabilities. The increasing contribution of high-end technologies in the passenger car segment, owing to supporting legislation and consumer awareness, is projected to boost the smart keys market in Europe, North America, and Asia Pacific in the coming years.
Based on Application, the automotive smart key market is segmented into single function and multi-function. The market for the single function segment was valued at US$ 4,610.66 million in 2020. On the basis of technology, the automotive smart key market is segmented into remote keyless entry and passive keyless entry.
Impact of COVID-19 Pandemic on Automotive Smart Key Market
According to Organisation Internationale des Constructeurs d'Automobiles (OICA), the global automotive production reduced by 15.8% from 91.8 million in 2019 to 77.6 million in 2020 during to the COVID-19 pandemic. However, as countries have begun reopening their industries sectors in 2021, and manufacturing units and facilities are up and working again, the number of new vehicle registrations is anticipated to grow rapidly in the coming years. Technological advancements and upgrades in the automotive sector is anticipated to boost the demand of vehicles with enhanced security features, which will encourage the development and adoption of automotive smart keys. Increasing trend of keyless authorization and innovative keyless systems is anticipated to propel the market growth during the forecast period. The global automotive sector is further projected to grow on the account of rising economies, reflecting positively on the global automotive smart keys market proliferation.
ALPHA Corporation; Continental AG; Denso Corporation; Honda Lock Mfg. Co., Ltd.; Hyundai Mobis; Silca S.p. A.; TOKAIRIKA,CO, LTD.; TOYOTA MOTOR CORPORATION; Valeo; and HELLA GmbH and Co. KGaA are a few major companies operating in the automotive smart key market.
