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


Automotive Digital Key  Market
  • Report code : PMRREP30747 |
  • Industry : Automotive |
  • Published On : Oct-2019 |
  • Pages : 333 Pages |
  • Format : PPT PDF Excel Word

The automotive industry is changing drastically, moving towards digitization of vehicles. Manufacturers are developing automotive digital keys that provide advanced features over conventional keys such as enhanced driver safety features, connected automobiles, keyless entry, among others. In addition, prominent players in the automotive digital key market are constantly focusing on the development of a key card with RFID technology, smart key fob, and a wearable smart key or smart watch. For instance, Senturion key, a wearable key or smart watch, has been developed which can access the vehicle and can be used for various operations such as engine start/stop, door lock/unlock and many other features.

The global automotive digital key market is studied with in-depth understanding of the drivers, restraints, trends, forecast factors and macro-economic factors. PMR forecasts the global automotive digital key market to reach a value of ~US$ 6.0 Bn by the end of 2029, and a projected growth at a CAGR of ~12%. The automotive digital key market in East Asia and Europe is estimated to witness a steady growth through 2029. These regions are estimated to hold a prominent share in the global automotive digital key market during the forecast period.

global automotive digital key market

Internet of Things (IoT) Driving a Connectivity Revolution – Key Growth Promoter

Embedding IoT technology into the automotive sector to create new applications and solutions that make vehicles smarter, more intelligent, and provide comfort, efficiency, and driving safety has been a focus among vehicle manufacturers. Manufacturers are implementing IoT to offer connected car applications for drivers such as fuel tracking, Advanced Driver-Assistance Systems (ADAS), speed control, and in-vehicle infotainment systems. Automotive digital key, one of the new innovations resulting from the adoption of IoT, is therefore expected to gain momentum among auto manufacturers and consumers in the coming years.

Manufacturers Focus on Building Customer Loyalty through Best-in-Class Aftersales

The business of selling vehicles, parts, and services is undergoing enormous disruption at every level. In this competitive area, automobile manufacturers are focusing on building customer loyalty by offering best-in-class aftersales. A new and more sophisticated level of aftersales service, such as invisible service in aftersales, where service comes with a swipe of a card or through mobile apps has been a prominent trend among certain manufacturers

Aftersales has been one of the main concerns of automotive customers. With the acceleration of technological innovation, evolving customer expectations, and shifts in competitive power, companies have been enhancing their aftersales service offerings to customers. Moreover, major shifts in the aftermarket industry and new technologies for vehicles such as IoT, digital key, and head-up display are expected to be the game-changing factors for manufacturers to maintain their strong positions in the future.

Cyber Security Related Threats to Dent Automotive Digital Key Market Growth

Manufacturers are 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. However, a research by Belgium University KU Leuven reported that automotive digital key can be hacked into and unlocked in very little time due to existing loopholes in the security system. For instance, on 28 August 2019, the researchers successfully bypassed the keyless entry system of a Tesla Model S with ease.

Hence, risks pertaining to cyber security are expected to negatively impact the growth of the automotive digital key market.

Analysts’ Viewpoint

A widespread view of the global automotive digital key market has led our analysts to conclude that the market is growing at an impressive rate with East Asia and European regions holding a large share of the global automotive digital key market. These regions are expected to be an opportunistic market in terms of sales of automotive digital keys. Smart key fob continues to account for relatively high sales as compared to key card and smart watch, thereby significantly contributing to the growth of the automotive digital key market growth. However, the cyber security threats may affect the demand for automotive digital key, and subsequently hinder the market growth.

Rapidly growing innovations in automotive industry and increasing consumer preference for digital transformation in various regions such as East Asia and Europe, is resulting in improvement in the standard of living, which in turn, is responsible for increase in automotive digital key production in the region. Such factors are likely to remain instrumental to the steady growth of the automotive digital key market.

Automotive Digital Key Market - Scope of the Report

Persistence Market Research (PMR) recently published a market study on the global market for automotive digital key. The study provides detailed assessment on the key market dynamics, including drivers, trends, opportunities, and restraints, along with detailed information about the automotive digital key market structure. The market study presents exclusive information about how the automotive digital key market will grow in the forecast period of 2019-2029.

Key indicators of market growth, which include year-on-year (Y-o-Y) growth of the market, value chain, supply chain analysis, and compounded annual growth rate (CAGR) are explained in PMR’s study in a comprehensive manner. This information can help readers understand the quantitative growth prospects of the automotive digital key market in the forecast period.

The study is relevant for stakeholders in the automotive digital key market, including automotive digital key manufacturers, suppliers, distributors, and investors, and can help them in developing appropriate strategies to grow in the market. Stakeholders in the automotive digital key market, investors, industry experts, researchers, and journalists, as well as business researchers can leverage the information and data presented in PMR’s study.

The study also includes statistics as well as facts related to the macro as well as micro economic factors that are impacting developments in the market. It also offers actionable insights based on the future trends in the automotive digital key market. Furthermore, small businesses and new entrants in the automotive digital key market too can make use of the information presented in this study, based on which, they can make appropriate business decisions in order to gain momentum in the market.

Key Segments of the Automotive Digital Key Market

PMR’s study on the automotive digital key market is divided into four segments namely product, vehicle, sales channel, and region. This report offers comprehensive data and information about the important market dynamics and growth parameters related to these categories.

    Product

        Vehicle

Sales Channel

 Region

  • Smart Key Fob
  • Passenger Car (PC)
  • OEMs
  • North America
  • Key Card
  • LCV
  • Aftermarket
  • Latin America
  • Smart Watch
  • HCV

 

  • Europe

 

  • HEV

 

  • East Asia

 

 

  • South Asia

 

 

 

  • Oceania

 

 

 

  • Middle East and Africa (MEA)

Key Questions Answered in PMR’s Automotive Digital Key Market Report

  • Which regions will continue to remain the most profitable regional markets for automotive digital key market players?
  • Which factors will induce a change in the demand for automotive digital key during the assessment period?
  • How will changing trends impact the automotive digital key market?
  • How can market players capture the low-hanging opportunities in the automotive digital key market in developed regions?
  • Which companies are leading in the automotive digital key market?
  • What are the winning strategies of stakeholders in the automotive digital key market to upscale their position in this landscape?

Automotive Digital Key Market: Research Methodology

In PMR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the automotive digital key market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure accuracy and reliability of the conclusions.

Secondary resources referred by analysts during the production of the automotive digital key market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, who contributed to the development of this report as a primary resource.

Comprehensive information acquired from primary resources and secondary resources acts as a validation from companies in the automotive digital key market, and makes PMR’s projection on the growth prospects of the automotive digital key market more accurate and reliable.

Company Profiles:

  • 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
  • SENTURION KEY
  • Silca S.p.A.
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