Automotive Keyless Entry Access System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Automotive Keyless Entry Access System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Automotive keyless entry access system market was valued at USD 1.6 billion in 2021 and is anticipated to reach USD 2.68 billion by 2027, at a CAGR of more than 10% during the forecast period.

The COVID-19 pandemic had brought unprecedented disruptions to many industries, and the automobile industry was among the most disrupted ones. Vehicle production and sales decreased across the world in 2020 due to lockdowns and a halt in manufacturing activities across the world. However, by 2021 the market started picking up pace and is expected to grow significantly during the forecast period.

Over the medium term, growing demand for connected cars and the integration of smartphones are expected to encourage vendors to launch advanced and integrated electronic systems in the market creating a positive outlook for the market. Additionally, the increasing regulatory policies that focus on vehicle safety and increased sales of luxury cars are also likely to augment market growth.

Further, the implementation of vehicle security systems in developed countries (such as the United States and Western Europe) and emerging countries (such as China and India) is expected to boost the demand for these systems in the market. The implementation of telematics, keyless entry systems, digital clusters, and high-end infotainment systems is gaining immense traction in the global automotive market.

Moreover, data communication between these keyless access systems and the vehicle is generally powered by RF or Bluetooth signal, thereby increasing the risk of cyberattacks. In addition, the limited availability of service centers and the high cost of repair and maintenance are expected to restrain the market growth.

Europe and North American regions followed by the Asia-Pacific region expected to play a significant role in the market during the forecast period. The growth in revenue and share of these regions is owed to increased participation of the region’s leading automotive companies, and favorable technological infrastructure coupled with rising consumer inclination towards safety and comfort features in vehicles.

Key Market TrendsIncreased Penetration of Keyless Entry for Passenger Cars to Enhance Market growth

The growing demand for entry and go keyless systems is fueling the growth of the automotive keyless entry system market. The growing focus on increasing the functionality of these systems by integrating it into other vehicle components is expected to initiate the launch of new product portfolios in the market.

The evolution of automotive electronics enabled vendors to design the modern ignition system and change it into a push-button. This system is combined with an ignition system, which receives signals from the key fob to activate the ignition. Such high-end systems will transform the automotive industry over the forecast period.

Major automobile manufacturers are investing heavily in keyless entry access systems. Many automobile companies are launching new models and the new version of old models with keyless entry access system technology.

• In March 2020, Renault launched a new version of Duster with keyless entry system technology. The technology also allows starting air-conditioning before getting into the car using the remote engine start.
• South Korean automobile manufacturers Kia and Hyundai are investing in research and development of the Keyless Entry Access System. In February 2020 Kia launched Carnival with a keyless entry access system and in March 2020, Hyundai launched a new version of Creta with the keyless entry access system.

Such developments over forecast period to further increase and likely to create notable positive impact on the market.

European Region is Expected to Witness Highest Growth During Forecast Period

The automotive industry has been proactive in embracing new safety technologies, and the adoption of car security systems is set to increase demand in the market. Governments across Europe, have taken several initiatives mandating the installation of certain safety features in vehicles, especially cars. These developments are expected to propel awareness about car security systems during the forecast period. For instance,​

• In March 2019, The European Parliament, Council, and Commission (the EU institutions) reached a provisional political agreement on the revised General Safety Regulation. The 15 new safety features have become mandatory from 2022, except for direct vision for trucks and buses and an enlarged head impact zone on cars and vans, which will follow later due to the necessary structural design changes.​

Moreover, the presence of outdated and basic security systems in economic and low-end cars has led to rising keyless theft incidents. To prevent this, manufacturers are working towards integrating multiple standalone systems that offer more robust and modern car security modules in both low-end and high-end cars.​

• In July 2019, German General Automobile Club (ADAC) conducted a series of tests on 237 vehicles with keyless entry and found that about 230 of them were worryingly easy to break into using cheap electronic equipment called relay boxes.​

In addition, the growing need of adopting advanced technologies in developing car security systems is rising day by day in wake of increasing car thefts especially cyber threats through hacking.

The aforementioned factors and instances are anticipated to contribute significantly to improving Europe position in the overall market share during the forecast period.

Competitive Landscape

The Automotive Keyless Entry Access System Market is consolidated. Some of the major players are Continental Automotive GmbH, Denso Corporation, Atmel Corporation, HELLA KGAA Hueck & Co., Alps Electric Co. Ltd, and Omron Automotive Electronics Co. Ltd, among others. The key players operating in the market are focused on adopting several growth strategies like expansion, product innovations, etc. For instance,

• In June 2021, HELLA launched a digital car key with ultra-wideband technology. With HELLA Smart Car Access, end users can lock and unlock their cars completely hands-free and can also start the engine without having to pick up a classic remote key or a smartphone. From a distance of 50 meters, the mobile device is automatically detected and recognized by the vehicle.

In addition, partnerships, acquisitions, and collaborations of automakers with digital giants to develop new keyless entry technology to counter future risks anticipated to propel the market growth. For instance,​

• In January 2021, Audi, BMW, Ford, and Genesis entered into an agreement with Samsung to offer technology that will let people unlock and start their vehicle without a key instead they will be unlocked using smartphones i.e., through a digital key.​

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