Vehicle Access Control Market Size, Share & COVID-19 Impact Analysis, By Type (Biometric System, Non-Biometric System), By Technology (RFID, NFC, Bluetooth, Others), By Vehicle Type (Passenger Car, Commercial Vehicle) and Regional Forecast, 2020-2032

The global vehicle access control market size was valued at USD 9.61 billion in 2019 and is projected to reach USD 19.3 billion by 2032, at a CAGR of 6.0% during the forecast period.

The technological advancement of vehicle access control systems has led to greater adoption of these systems among consumers. Furthermore, increased investment by automakers aimed at reducing the cost of deploying vehicle access control systems is set to boost the adoption of these systems across low and mid-tier automobiles. These factors are responsible for the growth of the vehicle access control market.

Delayed Widespread Adoption of Advanced Systems Owing to COVID-19 May Hinder Growth

The impact of the COVID-19 pandemic on the automotive industry has been characterized by assembly plant closures, disruption of parts supply chain, and global demand shock. According to the United Nations Conference on Trade and Development (UNCTAD), a decline in the export of Chinese parts and other intermediate inputs to automakers operating in Japan, Europe, South Korea, the U.S., and other key automotive producing economies can lead to a reduction of USD 7 billion in automotive exports to the rest of the world from these countries.

The removal of a large number of commercial vehicles (particularly heavy class 6-8) and passenger cars from production schedules would impact the automotive manufacturers' ability to invest in R&D initiatives such as biometric authentication. Currently, features in the biometric system such as fingerprint recognition are mostly available on premium and high-end automobiles. Significant cost reduction is necessary to integrate such features in the architecture of low and mid-tier vehicles.

However, owing to the pandemic, manufacturers have been compelled to focus on day-to-day cash flow management and reduce innovation funding. These factors are expected to delay the adoption of biometric authorization systems over the next two years as manufacturers will be unable to considerably reduce the current hardware and software requirements of such advanced vehicle access control systems.

Moreover, vehicle thefts have also increased during the lockdown, particularly in the U.S. For instance, according to the regional law enforcement agencies, vehicle thefts in Los Angeles and New York increased by nearly 17% and 63% from January to mid-May in 2020, as compared to 2019. Hence, the demand for cost-effective alternatives such as stolen vehicle location assist and immobilizers is expected to increase among consumers.

LATEST TRENDS

Development of a Standardized Ecosystem for Keyless Vehicle Access is a Crucial Trend

Recently, in May 2020, the Car Connectivity Consortium (CCC) comprised of the global vehicle and smartphone manufacturers, chip vendors, and automotive tier-1 suppliers, introduced the Digital Key Release 2.0. The digital key architecture uses near field communication (NFC) to operate on a standard interface that allows interoperability across different vehicles and mobile devices. Furthermore, the 2.0 architecture allows vehicle owners to access their vehicles even without internet connectivity.

The CCC is also developing the Release 3.0 specification that aims to utilize ultra-wideband (UWB) and Bluetooth low-energy for greater vehicle security. The adoption of standardized interface technologies by large-scale manufacturers such as Honda, BMW, and Hyundai (members of the CCC) among others allows greater convenience for consumers and increases the commercial viability of such passive vehicle access control systems. Hence, the development of a standardized ecosystem for vehicle access using digital keys is positively influencing the growth of the market.

DRIVING FACTORS

Increasing Vehicle Thefts to Fuel Demand for Vehicle Access Systems

According to a report published by the National Insurance Crime Bureau (NICB) in March 2019, between January 2016 and December 2018, the number of vehicle thefts with keys or fobs left in the vehicle increased to 229,339 in the U.S. This number represents a 56 percent rise in vehicle thefts using keys over the 147,434 vehicles stolen between January 2013 and December 2015. Keyless car entry and more advanced techniques such as facial recognition and fingerprint authorization for vehicle ignition can enhance its security and significantly reduce the loss per motor vehicle theft. Hence, increasing motor vehicle theft is the primary factor fueling the vehicle access control market growth.

Advancement of Vehicle Access Control Technologies to Augment Growth

The false acceptance rate (FAR) (matching with incorrect input) and false rejection rate (FRR) (failure to detect the vehicle owners' input) of biometric access control systems such as fingerprint and iris recognition have improved considerably over the last few years. For instance, according to tests conducted by the National Institute of Standards Technology (NIST) in the U.S. in 2019, facial recognition achieved an FRR of 1.1%. Hence, the technological advancement of biometric authentication is expected to propel the growth of the market.

RESTRAINING FACTORS

High Costs of Advanced Systems to Restrain Growth

Advanced systems such as biometric access (iris recognition and fingerprint recognition) and perfectly keyless systems (smartphone-based access) would increase the component requirements and design complexities in terms of integrating with the vehicle architecture. The rising installation, manufacturing, and overall cost of such systems owing to these factors can reduce the adoption among vehicle owners.

SEGMENTATION

By Type Analysis

Biometric Systems Segment to Grow at a Faster Pace Owing to Technological Advancement

By type, the vehicle access control market is segmented into biometric systems and non-biometric systems. The advancement of in-vehicle facial recognition software and the increased adoption of fingerprint authorization among vehicle manufacturers is fueling the growth of the biometric systems segment. For instance, Hyundai introduced the Hyundai Santa Fe SUV in 2019 as the first commercially equipped vehicle with fingerprint scanning sensors to unlock, as well as to start the vehicle ignition. Hence, this segment is anticipated to exhibit a higher CAGR over the forecast period.

An increase in the demand for cost-effective solutions such as audible alarm systems and steering column collars in developing economies, as well as a rise in the demand for immobilizers and keyless entry solutions, particularly in developed economies are some of the factors attributed to the considerable growth of the non-biometric segment.

By Technology Analysis

RFID Segment Dominated in 2019 Fueled by its Low Cost

Based on technology, the global market is segmented into RFID, Bluetooth, NFC, and others. The RFID segment held the largest share of the market in 2019 owing to its low cost, relatively easier deployment in vehicles, and quick access authorization for vehicle owners, as compared to other segments.

The NFC segment is anticipated to show significant growth in the market. The reduced cost of this technology has enabled manufacturers to introduce NFC-enabled smartphone or card-based access for more mainstream vehicles. Owing to NFC’s limited operational range, relay attacks are prevented. These attacks take place when hackers trick the vehicle into thinking that the owner's mobile device is in range. These factors are propelling the growth of this segment.   

By Vehicle Type Analysis

Passenger Car Segment Held Largest Share in 2019 Owing to Increasing Adoption of Non-biometric Systems

By vehicle type, the vehicle access control market is segmented into passenger cars and commercial vehicles. The passenger car segment held the largest share of the market in 2019 owing to the increasing application of non-biometric systems in all basic models in developed countries. Besides, the increasing consumer preference towards sport utility vehicles and rising demand by fleet owners for vehicles equipped with advanced access control features to avert theft are set to fuel the growth of the commercial vehicle segment.

REGIONAL INSIGHTS

The market in North America is characterized by the increasing demand for advanced security features such as electronic immobilizers and keyless entry owing to the rising vehicle thefts. According to the National Insurance Crime Bureau (NICB), vehicle theft led to losses of nearly USD 6 billion in the U.S. in 2019. Hence, the popularity of solutions such as stolen vehicle assist and remote ignition disablers has increased significantly among consumers in this regional market. These factors are attributed to the considerable growth of the market in this region.

Asia Pacific is anticipated to exhibit a higher CAGR over the forecast period. Factors such as the rising vehicle production, surging demand for high-end automobiles, and greater awareness regarding the security benefits of vehicle access control solutions such as low-cost non-biometric systems are set to fuel the growth of the market in this region.

Furthermore, the implementation of biometric authentication in passenger cars is a key area of focus for OEMs in this region. For instance, Hyundai Mobis invested USD 5 million in Deep Glint, a leading Chinese startup that specializes in object recognition using artificial intelligence (AI). These are some of the factors attributed to the considerable growth of Asia Pacific.

Europe is also expected to show good growth in the market owing to the early adoption of advanced vehicle access control systems such as facial and fingerprint recognition in premium vehicles and the increased investment by key manufacturers in the region such as Mercedes-Benz and BMW towards the development of such advanced technologies. For instance, the new luxury Mercedes-Benz S-Class has been equipped with facial recognition and biometric security among other features. These factors are propelling the growth of the market in this region.

KEY INDUSTRY PLAYERS

Leading Market Players to Focus on Introducing Cost-effective Solutions

Key players in the vehicle access control market include Robert Bosch GmbH, Nuance Communications, Valeo, Continental AG, and Denso Corporation. The majority of the market players are focusing on strategic partnerships and increasing research and development initiatives aimed at introducing cost-effective, yet highly secure vehicle access solutions.

For instance, in January 2019, Bosch introduced its smartphone-based keyless vehicle access control system that enables vehicle owners to lock, unlock, and start the vehicle using an app. The system eliminates dependence on chip cards or keys and requires no action from the driver as the vehicle unlocks automatically when the smartphone is in range of the unlocking zone. Hence, increasing investment to develop such innovative solutions is expected to fuel the growth of the market.

LIST OF KEY MARKET PLAYERS PROFILED IN THIS REPORT:

• Continental AG (Hanover, Germany)


• Robert Bosch GmbH (Gerlingen, Germany)


• Denso Corporation (Aichi, Japan)


• Valeo (Paris, France)


• Nuance Communications, Inc. (Massachusetts, US)


• Lear Corporation (Michigan, US)


• Mitsubishi Electric Corporation (Tokyo, Japan)


• NXP Semiconductors (Eindhoven, Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• June 2020 – Continental AG recently announced that it secured production orders from three major vehicle manufacturers for its CoSmA smartphone-based vehicle access control solution with the manufacturers aiming to integrate the system in their upcoming vehicle lineup from 2021.


• June 2020 – Tesla launched a new car access feature for its vehicles that can enable four people besides the owner to unlock and access the vehicle via Tesla’s smartphone app.


• March 2020 – NXP Semiconductors launched a new NFC digital car key solution. It leverages the CCC standards and NXP's secure element technologies and NFC chipsets to enable key fobs, smartphones, and other devices to securely authenticate and access vehicles using digital keys.


• November 2019 – NXP Semiconductors added a new Ultra-Wideband Integrated Circuit (IC) to its product portfolio. The new UWB chip offers convenient smartphone-based vehicle access control while providing a maximum level of protection against relay attacks.

REPORT COVERAGE

The vehicle access control market research report covers a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that have contributed to its growth over recent years.

Report Scope & Segmentation