Automotive Smart Keys Market Forecasts to 2028 – Global Analysis By Product Type (Single Function, Multi-function and Hybrid Key), By Technology (Remote Keyless Entry, Passive Keyless Entry and Digital keyless Entry), Application, Installation and By Geog

Automotive Smart Keys Market Forecasts to 2028 – Global Analysis By Product Type (Single Function, Multi-function and Hybrid Key), By Technology (Remote Keyless Entry, Passive Keyless Entry and Digital keyless Entry), Application, Installation and By Geography

According to Stratistics MRC, the Global Automotive Smart Keys Market is accounted for $12.69 billion in 2022 and is expected to reach $18.51 billion by 2028 growing at a CAGR of 6.5% during the forecast period. Automotive smart keys, also known as keyless entry systems or smart key fobs, are electronic devices designed to provide convenience, security, and ease of use for vehicle owners. These advanced keys have become increasingly popular in modern vehicles and have replaced traditional mechanical keys in many cases. At its core, an automotive smart key is a wireless device that communicates with the vehicle's electronic systems to perform various functions. The key itself typically consists of a small fob or remote control that fits comfortably in the palm of the hand. It is equipped with buttons or touch-sensitive surfaces that allow the driver to interact with the vehicle wirelessly.

According to the China Automobile Dealers Association, the China automotive industry reported the sale of approximately 2,77,000 luxury cars in April 2020, an 11.1% increase over April 2019.

Market Dynamics:

Driver:

The advances in technology

The vehicle smart key is a sophisticated piece of equipment with many practical characteristics. The automotive sector is susceptible to significant technical advancements. New product launches and variants are produced as a result of these developments. Additionally, it provides the vehicle with greater security and safety. During the projected period, demand for this market's wireless operations is anticipated to rise. The improvements also draw a lot of customers and end users. Moreover, several nations require that vehicle security laws be followed. The demand for automotive smart keys is expanding as a result of the increased government regulations to improve vehicle security, which will accelerate market growth over the course of the forecast period.

Restraint:

The automotive smart key is an expensive product

The vehicle smart key costs a lot of money. This item is pricey because it uses infrared sensors and premium materials. The market for luxury vehicles has a significant demand for automotive smart keys. Owners of basic-model cars make up a smaller portion of this market's demand. The market for basic-model vehicles may be impacted by the product's high cost. The cost prevents the market from growing. The high cost presents a chance for a low-cost substitute for the automobile smart-keys. Another barrier in this sector is the abundance of low cost substitutes. It may have an impact on the forecasted market growth rate.

Opportunity:

The launch of infrared sensors smart keys and hybrid vehicles

The launch of infrared sensor smart keys will provide plenty of market growth opportunities. The infrared sensor is a smart feature on the keys. Through this sensor, the automotive smart key is operated without a remote or hand touch. The intelligent sensor locks unlock and perform plenty of operations in the vehicle. The advancements in the infrared smart key will attract plenty of new key players. The future of the automotive smart key market relies on the use of infrared sensor technology. Further, the launch of hybrid vehicles will provide more scope for automotive smart keys. The hybrid vehicles come with new-generation features. The vehicles use turbochargers and other efficient technologies. The launch of more hybrid vehicles will lead to the launch of a new range of automotive smart-key markets.

Threat:

Security Concerns

Security concerns pose a significant threat to the automotive smart key market. As smart key systems become more advanced and connected, they also become vulnerable to potential cyber security breaches. These security threats can compromise the integrity of the smart key system, leading to unauthorized access or theft of the vehicle. Hackers and cybercriminals are continually finding new ways to exploit vulnerabilities in smart key technology. Weak encryption algorithms, inadequate authentication protocols, or vulnerabilities in the communication channels between the key and the vehicle can be targeted.

Covid-19 Impact:

The COVID-19 epidemic has had a substantial impact on the size of the automotive smart key market. The development of the automotive market has been aided by economic expansion, advancements in production, and industrial facilities, particularly in developing nations. Numerous associations and organizations in the automobile industry claim that in 2020, the sector will see a loss of production of 20–25% and a loss of sales of more than 30%. The COVID-19 epidemic caused the automobile market to see a substantial decline in 2020, but since the fourth quarter of that year, consumer demand for trucks and vehicles has been gradually recovering.

The Multi-function segment is expected to be the largest during the forecast period

The multi-function segment is expected to hold the largest share in the automotive smart key market during the forecast period. With rising consumer demand for premium vehicles outfitted with cutting-edge safety and security features, multi-function smart automotive keys are becoming more widely used. Many market players are offering multi-functional smart keys with innovative fixes for contemporary issues because they have access to basic automotive functions. By automating the procedure and linking with the customer's phone, smart keys make key sharing simple. The key also has a real-time fitness tracker that can measure your heart rate while you work out or sleep.

The Remote keyless entry (RKE) segment is expected to have the highest CAGR during the forecast period

The remote keyless entry (RKE) segment is expected to have the highest CAGR during the forecast period in the automotive smart key market. A common electronic access system for preventing vehicle theft is remote keyless entry (RKE). The market for the RKE category is expanding thanks to cutting-edge features including modular design with an integrated electronic control unit (ECU), entry protection for the car, independent unlocking of the driver and passenger doors, and window lift functionality to prevent injury at automated shutting. By moving an NFC-enabled Smartphone that serves as a remote control closer to the vehicle door, drivers can unlock their cars. After placing their smartphone on the wireless charging station inside their vehicles, they may also start it by hitting the start button, which is fostering the expansion of the global market.

Region with largest share:

North America region has the largest share in the Automotive Smart Keys market. The region has a strong automotive industry and a high demand for advanced security features and convenience in cars, which has contributed to the growth of the automotive smart key market in North America. The demand for advanced security features and convenience in cars has been a major driver for this trend, as smart keys offer better protection against theft and enable hands-free access to the vehicle. Furthermore, the increasing popularity of electric and hybrid vehicles in North America has also contributed to the growth of the automotive smart key market.

Region with highest CAGR:

The Asia-Pacific region is anticipated to develop faster than other regions during the projected period in the market for automotive smart keys. One of the world's largest marketplaces for automobiles is China. Due to political and microeconomic considerations, the production and sales of vehicles in 2018 were lower than anticipated at the start of the year. However, sales of new energy vehicles (NEVs) kept climbing quickly, and exports also grew quickly. As more Chinese and Indian companies introduce automobiles with keyless entry features, the demand for smart keys in both the Chinese and Indian market.

Key players in the market:

Some of the key players in Automotive Smart Keys Market include Alpha Corp, Continental AG, Denso Corporation, HELLA GmbH & Co. KGaA, Honda Lock MFG. CO. LTD, Huf Hulsbeck & Furst GmbH & Co. KG, HYUNDAI Mobis Co. Ltd., Minda Corp. Ltd, Nissan Global, Siemens Mobility, SILCA SPA, Silicon Laboratories Inc., South East (Fujian) Motor Corporation Ltd., TOKAI Rika Co. Ltd., TOYOTA Motor Corp, TRW Automotive, United Technologies Corporation, Valeo, Visteon Corporation and ZF FRIEDRICHSHAFEN AG

Key Developments:

In May 2021, TOKAI RIKA CO., LTD. decided to establish a new cloud business center, Aichi Prefecture, in Nagoya, to expand its cloud-based business activities, particularly those involving digital keys.

In January 2019, Hyundai Motor Co. introduced a band-type wearable multi-function smart key that enables the driver to open car doors and trunk, and starts the engine from remote areas.

In January 2018, Hyundai Mobis developed an integrated smart key system, wherein an app on a Smartphone supported by the Near Field Communication (NFC) technology is used as a smart key for the vehicle.

Product Types Covered:
• Single Function
• Multi-function
• Hybrid Key

Technologies Covered:
• Remote Keyless Entry
• Passive Keyless Entry
• Digital keyless Entry

Applications Covered:
• Non-electric Vehicles
• Electric Vehicles (EV)

Installations Covered:
• OEM
• Aftermarket

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements