Automotive Keyless Entry System Market: Current Analysis and Forecast (2021-2027)

Automotive Keyless Entry System Market: Current Analysis and Forecast (2021-2027)

Automotive Keyless Entry System Market is anticipated display a CAGR of around 8% over the forecast period (2021-2027). The keyless entry feature allows vehicle owners to lock and unlock their vehicle without physically using the key. They can lock the vehicle by walking away with the key and it will unlock once the key is in close proximity. The key can be set to unlock one door, multiple doors, or even the trunk on entry. Global automotive keyless entry system market is majorly driven by the steady growth in the vehicle sales with the overall demand for the advance electric systems. Autonomous driving (AD), connected cars, and electrification of powertrain are the major trends that are mutually reinforcing developments in the automotive industry. All these trends are not only disrupting the automotive value chain and affecting all stakeholders but also are major drivers for the market. Furthermore, rising adoption of electric vehicles in also driving the demand for automotive keyless entry system.

Insights Presented in the Report

“Amongst Product Type, RKE system category dominated the market in 2020”

Based on product type, the market is bifurcated into Passive Keyless Entry System (PKE) and Remote Keyless Entry System (RKE). In 2020, RKE system to hold majority share owing to larger penetration and easy availability of these systems. However, PKE systems to witness fastest growth of XX% during the forecast period. This is mainly due to the its benefits by conferring the added conveniences of opening doors, enabling users to start the engine wthout taking the key fob out of the pocket, and allowing the storage of vehicle settings data and remote opening of windows. This has resulted in higher adoption rate and integration of PKE systems in vehicles by OEMs as a vale added feature. Furthermore, Automotive keyless entry system manufacturers are actively focusing on design innovations, opening new opportunities for the market. Furthermore, automakers are introducing smart key systems that employ radio communications and advanced detection systems to detect the presence of the key fob near or inside the vehicle..

“Amongst Vehicle Type, Light Commercial Vehicle category to witness fastest growth during the forecast period”

Based on vehicle type, the market is segmented into passenger vehicle, light commercial vehicle, and medium & heavy commercial vehicles.. Light commercial vehicle category is expected to witness highest CAGR of during the forecast period owing to sustained economic activities coupled with increasing e-commerce activities, have bolstered the growth of the light commercial vehicle market. Furthermore, market players are investing heavily on the research and launch of advance systems for commercial vehicles, which is further expected to drive the market. For instance, in 2018, Valeo S.A. displayed its innovative fleet management solution: Mov’InBlue at IAA International Motor Show for commercial vehicles (IAA CV 2018). The company has developed Mov’InBlue, a smart fleet management solution compatible with more than 95% of vehicles on the road that allows users to lock and unlock their vehicle and start the engine from their smartphone using a secure digital key..

“Amongst Sales Channel, OEM category dominated the market”

Based on sales channel, the market is bifurcated into OEM and aftermarket. Among these, OEM category to hold the majority during the forecast period. This is mainly due to the increasing number of vehicle theft incidents, driving the demand for advanced security features like keyless entry systems. Vehicle theft instances have grown significantly across the world. For instance, according to the National Insurance Crime Bureau, US$ 6 Billion was lost due to vehicle thefts in the US. Therefore, OEMs are adding new features like stolen vehicle assist and smart keyless entry systems for better vehicle safety and security. Thus, keyless entry system for cars came with innovation and this is what attracted a large number of buyers, resulting increased demand for OEM integrated keyless entry system in vehicles. All major vehicle manufacturers offers smart keyless entry systems. For instance, Smart Key Fob, which is available with Honda vehicles, car owners do not even have to push a button. Once they put their hand in the door handle, with the key fob in their pocket or purse, the car will automatically unlock the doors.

“Asia-Pacific is expected to witness highest growth during the forecast period”

For a better understanding of the demand of Automotive Keyless Entry System, the market is analyzed for major regions including North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Rest of Europe); Asia-Pacific (China, Japan, South Korea, Rest of Asia-Pacific); and Rest of World. Currently, Asia-Pacific dominates the market. Moreover, it is expected to grow with considerable CAGR during the forecast period owing to growing awareness and demand for new-age electric vehicles coupled with presence of large number of automotive OEMs and component manufacturers in countries like India and China. China is the largest automobile market in the world whereas India is the fifth largest automobile market in the world, surpassing Germany in terms of sales, as of 2020. Furthermore, the demand for smart keys in the Chinese, as well as the Indian market, is growing rapidly, as various Chinese and Indian companies are launching vehicles with keyless entry features, which shall lead to a growth of the automotive smart key market in China and India. For instance, Tata Nexon is a 5-seater SUV. One of the many features that add to the comfort and convenience of the driving experience is the Smart key feature. The press of the button on the door handle of the Nexon with the key fob inside the pocket and car owners can gain entry into the vehicle.

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