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Keyless Ignition System Market - Forecast(2023 - 2028)
Keyless Ignition System Market Overview
The Keyless Ignition System Market size is estimated to reach $3.5 Billion
by 2027, growing at a CAGR of 8.1% during the forecast period 2022-2027. The
factors that impact the Keyless Ignition System Market include growing consumer
demand for digital keys or advanced vehicle security systems, increasing
application of immobilizers within economical cars and so on. A significant trend
of replacing mechanical keys with electronic locks or remote central locking as
well as the adoption of passive keyless entry systems have been aiding its
market growth. In addition, the growing
integration of biometric authentication and advanced technologies within
vehicles as well as rising investments of global automotive companies
in improving vehicle access and control features will also cater to its market
growth. Moreover, increasing smartphone integration to improve vehicle accessibility,
control & convenience standards, rising concerns over vehicle security with the surge in car thefts and many others are
some of the major factors set to transform the Keyless Ignition System industry
outlook in the long run.
Keyless Ignition System Report Coverage
The
“Keyless Ignition System Market Report –
Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the
following segments in the Keyless
Ignition System Market.
Key Takeaways
- Remote Keyless Entry System held the largest market share in 2021, attributed to rising consumer inclination towards smart technologies, growing penetration of smartphone applications and so on.
- Passenger Cars is analyzed to witness the fastest growth in the Keyless Ignition System Market during 2022-2027, attributed to surge in passenger car sales, increased car thefts related to passenger cars and so on.
- North America Keyless Ignition System Market held the largest share in 2021, owing to rising vehicle security concerns, growing demand for passenger vehicles and so on.
- Rising smartphone integration to improve vehicle accessibility, control & convenience standards alongside growing concerns over vehicle security with a surge in car thefts is analyzed to significantly drive the market growth of the Keyless Ignition System Market during the forecast period 2022-2027.
Keyless Ignition System Market Value Share, by Region, 2021 (%)
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Keyless Ignition System Market Segment Analysis - by Product Type
The remote Keyless Entry
System segment dominated the Keyless Ignition System Market with a share of 53% in 2021 and is also analyzed to have significant growth during the forecast period 2022-2027. Factors including
growing consumer inclination towards smart technologies, increasing penetration
of connected smartphone apps and so on have attributed to its market growth. Compared to Passive Keyless Entry
Systems, these systems are capable of offering better user access and
convenience with improved security, thus gaining wide popularity across
luxury, premium as well as economical passenger cars. Since vehicle security
access systems like remote key entry systems operate through the digital keys
available on mobile phone applications, they have been facing significant
growth from consumers. Increased functionality over traditional or
mechanical keys along with the integration of biometric features like fingerprint
authentication, voice recognition and others for remote vehicle access is also
aiding its market growth over time. In November 2020, DENSO announced investing in a German company, Lambda:4, which focused on developing wireless positioning technologies
for short-range applications leveraging Bluetooth Low Energy. This was meant to
strengthen DENSO’s passive digital key, as a part of increasing its location
accuracy as well as user authentication capabilities. These factors are set to influence the growth
of remote keyless entry systems, thereby
influencing the Keyless Ignition System industry in the long run.
Keyless Ignition System Market Segment Analysis - by Vehicle
Type
Passenger
Cars are analyzed to grow with the
highest CAGR of 9.4% in the Keyless Ignition System Market during
2022-2027, attributed to several factors including rising passenger car sales,
adoption of smart technologies to improve car access control and so on. Growing
demand for vehicle security systems or immobilizers within economical
passenger cars, along with an increase in the number of car thefts related to
passenger cars has been also aiding its market growth over time. In March 2020,
one of the leading automotive giants, Renault launched a new version of its
compact SUV model, Duster integrated with keyless ignition technology.
Leveraging this technology enabled users to start off the air-conditioning even
before getting into the car, through the remote engine control. According to
CarTrade.com, in 2021, there were around 143 cars with keyless entry available
within India, including popular ones like Maruti Suzuki Baleno, Hyundai Creta,
Renault Kwid, and so on. Moreover, the deployment of keyless entry features
within SUVs, electric cars and so on along with the significant development of cars
with keyless ignition from global automakers like Renault, Maruti Suzuki,
Hyundai, Kia and others have been also impacting its market demands. These factors
will help in expanding the Keyless Ignition System Market size for passenger cars
in the coming time.
Keyless Ignition System Market Segment Analysis - by
Geography
North America dominated the Keyless Ignition System Market with a share of 37% in 2021, attributed to rising vehicle security concerns, increasing demand for passenger cars and so on. The adoption of advanced immobilization technologies as well as a significant development of vehicles integrated with keyless entry features from major automakers like General Motors, Ford Motor and so on, have been also driving the market growth in this region. In January 2020, Kia launched the 2021 Kia Rio, as an updated version of its Kia Rio model within the U.S market, priced from $16,050. This development was meant to include cosmetic updates with technology addition like keyless entry combined with lane departure warnings, automatic climate control and others. Additionally, increased cases of passenger cars as well as commercial vehicle thefts, growing consumer inclination towards smartphone-connected devices, and many others can influence the demand for electronic locks. These factors are set to transform the North American Keyless Ignition System industry outlook in the long run.
Keyless Ignition System Market Drivers
Growing Concerns over Vehicle Security due to Surge in Rate of Car Thefts is Driving the Growth of Keyless Ignition System Market:
With the rapid rise of car thefts, there is significant growth in
vehicle security concerns among consumers, making it one of the major factors driving
the growth of the Keyless Ignition System Market.
Factors that have been attributed to its market growth include growing
penetration of immobilizers within economical cars, increasing shift towards
innovations for reducing unauthorized access, and so on. In comparison to
mechanical keys, keyless ignition helps in providing ease as well as better
security by leveraging remote central locking technology, thus driving its market
growth. The adoption of keyless ignition systems helps consumers to prevent
unauthorized access or activation, ensuring higher security while minimizing
the rate of car thefts. Moreover, advancements in remote keyless entry features
and the growing adoption of developing vehicles with keyless ignition support can
also help in mitigating theft concerns. In January 2020, Bajaj Auto launched an electric scooter, Chetak in the Indian market equipped with a keyless
ignition system, alongside other features including reverse riding mode,
regenerative braking system, front LED turn indicators, and so on. Being a
fully connected electric scooter, its most significant feature included keyless
ignition, capable of notifying owners during unauthorized movement and charging
start/completed/stopped. According to the data published by Delhi Police, India, about
36,177 cases of motor vehicle
theft were reported in 2021, as compared to 33,128 during the previous year. This
statistical data highlighted the increase in vehicle theft incidents, which in
turn emphasizes the need for better security and control systems among
consumers. Such factors can be considered essential
in boosting the growth of the Keyless Ignition System industry over time.
Rising Smartphone Integration to Improve Vehicle Accessibility, Control & Convenience Standards is Accelerating the Growth of Keyless Ignition System Market:
Integration of smartphones for improving vehicle accessibility,
control & convenience standards can be considered a major driver influencing
the market growth of Keyless Ignition Systems. Rising trends like replacing key
fobs with smartphone-assisted apps to improve vehicle accessibility, control,
convenience as well as comfort standards have been attributed to the market
growth. Utilizing a smartphone application by the vehicle owners to ensure
remote access as well as authorization, irrespective of not being in close
proximity has eventually catered to its market needs. In March 2019,
Hyundai Motor Corp announced its development of a digital key, which
was capable of allowing users to unlock and start their vehicles using a
smartphone. This was aimed at the replacement of a traditional physical key, with
downloading availability through a cell phone application. Leveraging Near
Field Communication (NFC) technology, this development enabled the detection of the presence of an authorized digital key-enabled cell phone within close
proximity to the vehicle door. According to Cisco’s report, the total number of
mobile users will increase to 966 million by 2023, accounting for about 68% of the Indian population, in comparison to 56% in 2018. Moreover, high R&D
activities from major automobile players towards smartphone integrated digital
keys alongside increased penetration of mobile phone users will further drive
the market forward. These factors are
set to help in the expansion of the Keyless Ignition System Market size in the coming time.
Keyless Ignition System Market Challenges
Security Concerns over Data Hacking & Data Exploitation
of Keyless Ignition Systems is Restraining its Market Growth:
Security concerns related to data hacking and data
exploitation act as one of the major factors impeding the growth of the Keyless
Ignition System industry. Due to the utilization of technologies like Bluetooth,
NFC, and so on, data transmitted can be easily attacked by cybercriminals to
steal personal or confidential data. Since the keyless ignition feature using
smartphone applications or electronic locks includes critical information like
vehicle identification number, cloning or decoding the access through computer
systems or different advanced malware can create security concerns for the user.
In July 2022, Security researchers from Star-V Lab revealed a vulnerability in the remote keyless entry (RKE) system of
Honda vehicles which can be easily exploited by hackers for permanently
unlocking as well as remotely starting the car. The “Rolling-PWN” attack is
capable of exploiting Honda’s RKE system, due to transmitting authentication
codes between the car and key fob. This in turn, also contributes to the rise in relay attacks,
which eventually creates an adverse
impact on the growth of the Keyless Ignition System Market.
Keyless Ignition System Industry Outlook
Product launches,
acquisitions and R&D activities are key strategies adopted by players in
the Keyless Ignition System Market. The top 10
companies in the Keyless Ignition System Market are:
- Geotab Inc.
- Mitsubishi Corporation
- Nissan Motor Company
- Hyundai Motor Company
- Denso Corporation
- Continental AG
- Robert Bosch
- Ford Motor Company
- Atmel Corporation
- Hitachi
Recent Developments
- In October 2020, Geotab announced the launch of a keyless entry system, specifically for pool fleets, car sharing operations as well as rental companies. The development of this digital key was meant to provide an instant solution for businesses looking out for a contactless way of transferring keys between drivers amidst the Covid pandemic.
- In June 2020, Continental revealed about receiving orders from three European & Asian vehicle manufacturers regarding its Cosma smartphone-based vehicle access system. This smartphone-based car key will be integrated within the architecture of their upcoming vehicles, with production to start in 2021.
- In March 2020, Hyundai India launched the new-generation SUV, Creta with a floating roofs, LED tail lamps and so on. This car was developed incorporating key entry access as well as key ignition system functions.
Relevant Report Titles:
Report Code: ATR 0019
Report Code: ATR 0008
Report Code: AD 0029
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