Car Security Systems Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The car security systems market was valued at USD 8,956.7 million in 2021, and it is expected to reach USD 12,704.31 million in 2027, registering a CAGR of around 6% during the forecast period (2022 - 2027).
The COVID-19 pandemic had a negative impact on the market as the shutdown of manufacturing units and lockdowns resulted in a slowdown in demand for car security systems. However, rising awareness about the benefits of security systems in vehicles with restrictions eased the market gaining momentum and is expected to continue over the forecast period.
The demand in the market is propelled by the implementation of stringent vehicle security norms by the governments in the region along with the advancement in passive and active safety/security technologies. Consistent advancements in technology in the last few decades have benefited the global car security system market immensely.
The proliferation of high-speed internet and the rising use of global positioning systems and other internet connectivity systems which are capable of offering advanced security features to consumers are some of the other factors boosting the growth of the car security system market.
Asia-Pacific is predicted to own the highest share of the car security system market on account of the burgeoning growth of the automotive sector in this region. The growing capacity of vehicle production in Asia-Pacific and the increasing number of exports of automobiles are likely to remain major driving factors for the market during the forecast period.
Car Security Systems Market TrendsIncreasing Number of Advanced Technologies to Boost the Market GrowthThe automotive sector is undergoing a profound transformation with the digitalization of in-car systems that are necessary to deliver vehicle automation, connectivity, and shared mobility. Moreover, the presence of outdated and basic security systems in economic and low-end cars has led to rising keyless theft incidents.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 toward 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 to adopt advanced technologies in developing car security systems is rising day by day in the wake of increasing car thefts, especially cyber threats through hacking. For instance,
In June 2020, Japanese automotive company Honda was forced to halt production in a number of its plants due to a WannaCry ransomware attack that targeted its networks in Europe and Japan.
In July 2020, according to Europol, the European Union's law enforcement body, the Polish National Police discovered that car thieves had been stealing Mercedes-Benz equipped with the KEYLESS-GO system mostly in Germany, moving them to Poland, and dismantling them to sell for parts.
OEMs and aftermarket suppliers have understood the necessity of embedding advanced systems in vehicles and are developing products in line with the latest technology to counter these attacks. For instance,
Security System manufacturers are focusing on new product development to gain a competitive advantage. They are also investing in research and development projects and launching novel security systems to exploit opportunities offered by emerging markets. For instance,
Such developments are expected to continue during the forecast period, and hence, the demand for car security systems is poised to grow, offering an optimistic environment for players over the forecast period.
Europe is Likely to Play a Significant Role in the Development of the MarketEurope expected to capture a significant share in the market growing trend of installing safety features among the people in this region due to high incidences of car theft will propel the growth of this market in the region. There has been a significant increase in used car sales in the country during the past few years, resulting in an increase in the total number of cars in use/operation. This is another factor driving the demand for car security systems from the aftermarket channel.
The impact of the pandemic is inevitable on the market as new car registrations in Germany in 2020 accounted for 2,917,678, representing a decline of 19.11% as compared to 3,607,258 units sold in 2019. However, with ease in lockdown restrictions, production facilities are operational and thereby contributing to the increasing demand. With a huge number of cars selling in the region, several new hardware and software designs and developments are being introduced and demonstrated in the field of automotive electronics that can be used for vehicle protection. For instance,
Major OEMs are partnering with software solutions providers for developing platforms that can augment vehicle security systems with some human intervention. For instance, Hyundai Motor Group, in August 2021, partnered with The Qt company of Finland as their key Human Machine Interface (HMI) technology partner for all Hyundai, Kia, and Genesis brand vehicles. Hyundai will leverage the Qt Design Studio, a UI designer, to develop several In-Vehicle frameworks that can adapt to new innovations in safety and vehicle security.
With several such developments across Europe, the market for security systems is expected to grow significantly during the forecast period.
Car Security Systems Market Competitive AnalysisThe market is majorly dominated by major players, such as Robert Bosch GmbH, Continental AG, Hella GmbH & Co. KGaA, Tokairika Co. Ltd, and Alps Alpine Co. Ltd, among others. The companies are majorly investing in R&D projects and launching new car security technologies. For instance,
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