The automotive smart key market size is projected to reach US$ 13.85 billion by 2031 from US$ 8.67 billion in 2023. The market is expected to register a CAGR of 6.0% during 2023–2031. The advancements in automotive telematics and advanced driving assistance systems (ADAS) are likely to remain key trends in the market.
The rise in global production of luxury cars across the globe is expected to drive the automotive smart key market growth during the forecast period. In addition, the rise in the deployment of safety features in commercial and passenger vehicles is anticipated to fuel the demand for automotive smart keys, which in turn is expected to propel the market growth during the analyzed timeframe. Moreover, the rise in the uptake of keyless authorization systems in vehicles is expected to create opportunity for the companies operating in the automotive smart key market.
The automotive smart key market infrastructure primarily comprises hardware/component providers, smart key manufacturers, system integrators, and end users. An automotive smart key combines various hardware components such as sensors, microprocessors, metal keys, and covering boxes, among others. Major players occupy significant places in the various nodes of the automotive smart key market ecosystem. Automotive smart key hardware comprises microcontrollers, radio-frequency modules, power supply, transmitters, door control modules, and switch panels, among others. The component providers supply the material to build the automotive smart key hardware. Smart key manufacturers then carry out various processes, such as designing, assembling, and production, to transform raw materials into finished products. System integrators bring the component subsystems together, ensuring that they operate efficiently.
The increasing demand for the incorporation of safety and security functions in modern vehicles is propelling the automotive smart key market at large. The rising prevalence of vehicle theft has increased the demand for upgraded systems with a unique code for unlocking the car, involving an electronic key fob recognition through a code authorization. As a result, automakers begun to use computer-encrypted microchips in their keyless system to enhance the security layers that drive market growth. The surge in hybrid and electric vehicles, equipped with technologically advanced safety and security features, has also increased the demand for smart keys. For instance, Mercedes' Keyless Go enables a driver to lock & unlock a vehicles without using the corresponding smart key buttons. As the driver enters a car with an equipped Keyless Go SmartKey card, it can turn-on and turn-off the engine without inserting the Smart Key. Technological advancements such as transmission and infrared sensors is expected to strengthen safety and security features and are expected to propel the market growth considerably during the forecast period.
The demand for active and passive Keyless entry systems to lock, unlock, and start the car's engine remotely using RF signals has increased significantly. Mechanical keys restrict unauthorized access to automobiles. Modern vehicles use microcontrollers for applications such as passive keyless entry systems and vehicle immobilizer systems. Embedded electronic systems are convenient; however, system security can be breached through theft or fault in the wireless interface scanning. This factor has led to the development of an automobile keyless entry system using two-factor authentication, in which the automobile can autonomously verify the user and device-based key fob authentication framework, enabling a two-factor authentication system. The emerging trends of two-factor authentication in keyless authorization systems to prevent security breaches and hacking are boosting the global automotive smart key market. A state-of-the-art radio technology, innovative keyless system, high-precision, and interference-free key location system provide optimum safety and convenience to drivers and passengers.
Key segments that contributed to the derivation of the automotive smart key market analysis are application and technology.
The geographic scope of the automotive smart key market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America.
The scope of the automotive smart key market report encompasses North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, Spain, the UK, and Rest of Europe), Asia Pacific (China, India, Australia, Japan, South Korea, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South America (Brazil, Argentina, and the Rest of South America). In terms of revenue, Asia Pacific dominated the automotive smart key market share in 2023. Europe was the second-largest revenue contributor to the global automotive smart key market, followed by North America.
The regional trends and factors influencing the Automotive Smart Key Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Automotive Smart Key Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 8.67 Billion |
| Market Size by 2031 | US$ 13.85 Billion |
| Global CAGR (2023 - 2031) | 6.0% |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Application
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Automotive Smart Key Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Automotive Smart Key Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The automotive smart key market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the automotive smart key market are listed below:
The “Automotive Smart Key Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
6.0% is the expected CAGR of the automotive smart key market.
US$ 13.85 billion estimated value of the automotive smart key market by 2031.
ALPHA Corporation, Continental AG, Honda Lock Mfg. Co., Ltd., Silca S.p.A., Denso Corporation, Toyota Motor Corporation, Valeo SA, Minda Corp Ltd, Tokai Rika Co Ltd, and HELLA GmbH are some of the leading players in the automotive smart key market.
Advancements in automotive telematics and advanced driving assistance systems (ADAS) are the future trend of the automotive smart key market.
Asia Pacific dominated the automotive smart key market in 2023.