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Automotive Digital Key Market

Global Market Study on Automotive Digital Key: Shaping the Future of Car Connectivity

Global Automotive Digital Key Market by Product Type (Smart Key Fob, Key Card, and Smart Watch), The Smart Key fob segment is currently holds more than 90% of the sales generated across the globe.

Automotive Digital Key Market Snapshot

[300 Pages] According to Persistence Market Research, Global Automotive Digital Key Market sales were valued at around US$ 3,016.7 million at the end of 2023. The market is projected to register 14.2% CAGR and top a valuation of US$ 11,381.3 by 2033.

Global Automotive Digital Key Market Size (2022A)

US$ 2,686.4 million

Global Automotive Digital Key Market Size (2023E)

US$ 3,016.7 million

Projected Automotive Digital Key Market Value (2033F)

US$ 11,381.3 million

Value CAGR (2023–2033)


Collective Value Share: Top 3 Countries (2022)


Developments for smartphone to vehicle technology has been raised at a significant pace by prominent vehicle manufacturers and is anticipated to be a key supporting factor behind the lucrative growth of the market.

Ongoing developments in IoT and automotive and digital key sector platforms have resulted in a substantial increase in digital system for vehicle operation opportunities. The continuous advancements in digital key technology is also contributing to growth in the vehicle-connected market.

The global automotive digital key market is expanding at a substantial rate, with the East Asian and European regions controlling a sizable portion of the market. In terms of sales, these regions are anticipated to be an opportunistic market.

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Sales Analysis of Automotive Digital Key from 2018 to 2022 Vs Market Projections for 2023 to 2033

The market for automotive digital keys has experienced significant growth rate of 4.4% during 2018 to 2022, the growth of automotive industry has been affected by various factors such as semiconductor shortage, COVID pandemic and Russia invasion of Ukraine, these factors has not just impacted the vehicle sales but has a significant impact over the global economy and overall supply chain, as manufacturers need to re-build the overall supply chain, and manage their operational programs, due to which the sales for automotive digital key were also impacted.

Increasing development initiatives for autonomous and electro mobility, growing demand for luxury vehicles across the globe due to rising per capita disposable income, and increasing awareness towards the vehicle security, are the driving factors for growth in sales of automotive digital keys, owing to these factors, the market is anticipated to grow with compound annual growth rate of 14.2% during the assessment period.

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What are the Key Opportunities for Automotive Digital Key Market Manufacturers?

“Collaborations with Cloud-based Service Providers to Improve Market Footprint”

Manufacturers in the automotive industry are currently focusing on developing cloud-based services for emerging technologies such as artificial intelligence (AI), machine learning, connected-car solutions, and containerization.

The cloud service industry is expected to play a prominent role in shaping the future of the automotive industry, as more and more technologies being developed are based on connected car network and digitization of automotive solutions.

In the automotive digital key market, collaborations with cloud service providers can provide improved security to digital key solutions.

Cloud service providers can also help automotive digital key manufacturers to improve their footprint in new geographical locations without the need of setting up of physical distribution channels, thereby resulting in less operational costs.

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What are the Driving Factors Supporting the Growth for Automotive Digital Key market?

“Internet of Things (IoT) - A Connectivity Revolution in the Automotive Industry”

Vehicle manufacturers and technology companies have been concentrating their efforts to embed IoT technology for vehicle applications. The aim is to develop more effective, safe, and more comfortable vehicles that provide improved utility and automotive security.

Manufacturers are implementing IoT to offer connected car applications for drivers such as fuel tracking, Advanced Driver-Assistance Systems (ADAS), speed control, in-vehicle infotainment systems, etc. Nowadays, vehicles are becoming compatible to IoT devices, which can connect to smartphones, take voice commands, and operate as per the owner’s choice.

Digital key, one of the new innovations resulting from the adoption of IoT, is therefore expected to gain momentum among manufacturers and consumers in the coming years.

“Consumers Going ‘Smart’ in Vehicle Functionality and Security”

The automotive industry is undergoing many enhancements in the field of technology, as automobile manufacturers are implementing more innovative options in their vehicles. With more available products in the marketplace among cars, buyers of people with greater spending power are favoring vehicles with more innovative performance features and safety and security options than ever before.

In the recent past, consumers have been introduced to technologically-advanced vehicles, which are equipped with smart devices with advanced mapping technology, emergency braking capabilities, and anti-theft alarms, among others. Digital key solutions are one of the emerging features, which are expected to sway the consumers towards opting for vehicles with the mentioned technology.

Hence, growing consumer awareness for added vehicle features is expected to drive the growth of the automotive digital key market.

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What Factors Can Hinder the Sales for Automotive Digital Key?

“Cyber Security-related Threats Expected to Dent Market Growth”

Automotive digital key is connected to vehicles through a smartphone that is enrolled with the software and connects both on a cloud server.

Manufacturers are hence involved in developing advanced cyber security systems to provide better security against hacking.

Moreover, to ensure vehicle security, the National Highway Transportation and Safety Administration (NHTSA) is collaborating with vehicle manufacturers, federal partners, and suppliers to address vehicle cybersecurity challenges. Hence, risks pertaining to cyber security are expected to have high impact on the adoption of automotive digital keys in the broader market

Country-wise Insights

What are the Factors Fueling the Demand for Automotive Digital key in U.S.?

The U.S. automotive digital key market is valued at around US$ 388.9 million at the end of 2022, the U.S. market is expected to lead the demand for automotive digital keys in North America during the forecast period.

Awareness towards the vehicle safety is key factor driving the market in U.S., the demand is expected to be driven by increasing popularity of digital keys amongst the rental fleet owner so that they can deliver or receive vehicle without meeting physically, additionally digital key helps the owners to monitor their vehicle is expected to push the sales for Automotive Digital Keys during forecast period.

What is the Outlook for Automotive Digital Key Market Manufacturers in China?

China is anticipated to hold more than 1/3rd market value share of the East Asia market for Automotive Digital Key. Sales in the region are expected to rise with increasing adoption of electric vehicle and development of connected vehicles in the country. China is leading in terms of technology development for connected vehicles and luxury cars that is expected to drive the sales of automotive digital keys in China.

Category-wise Insights

Which Product type is driving the demand for Automotive Digital Keys?

By Product type, The Smart Keyfob segment is currently leading the demand for automotive digital keys, the segment is currently holds more than 90% of the sales generated across the globe, due to its ease of operability and various security technologies associated with it. The segment is anticipated to grow steadily during the projection period in terms of both value and volume, with continuous development from the manufacturers end.

Which Vehicle Category has the most potential for Automotive Digital Keys market growth?

The passenger vehicle segment is expected to create high growth opportunities for Automotive Digital Keys demand growth across the globe, the rising trend for owning the vehicle in developing countries is creating high growth opportunities for the market. In addition, rising population and growing disposable incomes are further fueling the demand for cars, especially in developing countries. This will further contribute to the growth of automotive digital key market during the forecast period.

Competitive Landscape

The Automotive Digital key market is moderately fragmented with presence of significant players operating in the market, the leading players operating in the market are focusing on technological developments to offer innovative solution, apart from that key trend observed in the market was leading players are targeting fleet owners for long - term partnerships to enhance their revenue generation capabilities, especially in European and North America region

Few of key players in the global Automotive Digital Key market are Infineon Technologies AG, Telefonaktiebolaget LM Ericsson, Continental AG, Denso Corporation, Tokai Rika Co. Ltd., ALPHA Corporation, Garmin Ltd., STMicroelectronics, GARIN System Co., Ltd., Firstech, LLC., Silca S.p.A., and Senturion Keys.

Automotive Digital Key Market Report Scope



Forecast Period


Historical Data Available for


Market Analysis

  • ‘000 Units for Volume
  • USD Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • The Middle East & Africa

Key Countries Covered

  • U.S.
  • Canada
  • Mexico
  • Brazil
  • Germany
  • France
  • Italy
  • Spain
  • U.K.
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Australia and New Zealand
  • GCC
  • Türkiye
  • South Africa
  • Northern Africa.

Key Market Segments Covered

  • By Product Type
  • By Vehicle Type
  • By Sales Channel
  • By Region

Key Companies Profiled

  • Infineon Technologies AG
  • Telefonaktiebolaget LM Ericsson
  • Continental AG
  • Denso Corporation
  • Tokai Rika Co. Ltd
  • ALPHA Corporation
  • Garmin Ltd
  • Firstech, LLC
  • GARIN System Co., Ltd
  • STMicroelectronics
  • Silca S.p.A

Report Coverage

  • Market Forecast
  • brand share analysis
  • Competition intelligence
  • Drivers
  • Restraints
  • Opportunities
  • Trends analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

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Key Segments Covered in Automotive Digital Key Industry Analysis

By Product Type, the market is segmented into -

  • Smart Keyfob
  • Key Card
  • Smart Watch

By Vehicle Type, the market is segmented into -

  • Passenger Cars
    • Compact Cars
    • Mid-Sized Cars
    • Luxury Cars
    • SUVs
  • LCVs
  • HCVs

Automotive Digital Key Market by Sales Channel

  • OEMs
  • Aftermarket

Automotive Digital Key Market by Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa

- Companies Covered in This Report -

  • Infineon Technologies AG
  • Telefonaktiebolaget LM Ericsson
  • Continental AG
  • Denso Corporation
  • Tokai Rika Co. Ltd.
  • ALPHA Corporation
  • Garmin Ltd.
  • Firstech, LLC.
  • GARIN System Co., Ltd.
  • STMicroelectronics
  • Silca S.p.A.

- Frequently Asked Questions -

The worldwide Automotive Digital Key Market is currently valued at US$ 3,016.7 million (2023).

Sales of Automotive Digital Key services are slated to surge at a CAGR of around 14.2% from 2023 to 2033.

China, U.S. and Germany are lucrative markets for the Automotive Digital Key Market.

Infineon Technologies AG, Telefonaktiebolaget LM Ericsson, Continental AG, Denso Corporation, and Tokai Rika Co. Ltd. are among other leading players in the Automotive Digital Key market.

The market for Automotive Digital Key in the US to grow at a 12.4% CAGR through 2033.

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