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The global automotive keyless entry system market size was USD 1,340.6 million in 2020. The global impact of COVID-19 has been staggering and unprecedented, with the automotive keyless entry system industry expected to witness a negative demand shock across all regions amid the COVID-19 crisis. Based on our analysis, the global market exhibited a decline of 5.6% in 2020. The market is projected to grow from USD 1,369.6 million in 2021 to USD 3,061.4 million in 2028 at a CAGR of 12.2% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the COVID-19 crisis is over.
The automotive keyless access system is an electronic lock that allows the user of the vehicle to gain physical access and that enables the unlocking and locking operation without needing the conventional mechanical key. The automotive keyless access system unlocks the automobile using biometric scanning, electronic locks, radio frequency identification locks, and Bluetooth unlocking systems, which secure access to the vehicle. Further, the automotive keyless access system industry is growing rapidly around the world, especially in Germany and the United States.
Moreover, growing vehicle sales in developing economies, the convenience offered by keyless access systems, and the increasing regulatory policies that focus on vehicular safety are major factors anticipated to boost the demand for automotive keyless access systems over the forecast period.
Growth of Automotive keyless entry system Market is Expected to Slow Down During COVID-19
The coronavirus pandemic led to a temporary lockdown situation of the countries which hampered several industry verticals and businesses on a large scale. The automotive industry faces several challenges like labor shortage and even interrupted supply chain services. Further, this has had an impact on the global automobile manufacturer’s supply chain, especially those OEMs that mainly rely on China as manufactured goods, components, or raw materials. On the other hand, the new norm of avoiding touching surfaces may slightly impact the market growth shortly.
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Growing Demand for Luxury and Premium, and Electric Vehicles Expected to Drive Market Growth
Over the past five years, the automotive industry has witnessed an average growth of more than 3%, with a growing consumer preference for luxury and premium vehicles. This can be attributed to the integration of advanced safety systems in these vehicles. Thus, the rise in the production of luxury and premium vehicles is expected to fuel the automotive keyless entry system market growth in coming years.
Rising Safety and Security Concerns Favoring the Deployment of Keyless Vehicle Entry System
The growing vehicle sales, and increasing safety and security concerns, especially in the emerging economies are the major factors responsible for driving the market growth. The keyless access control system is available with advanced applications that feature safety systems such as opening the tailgate, front & rear seat settings, tire pressure monitoring systems, car alarms, light control, and storing multimedia files. Further, stringent automotive safety regulations like Canadian Motor Vehicle Safety Standards, Bharat New Car Assessment Program (BNCAP), and Federal Motor Vehicle Safety Standards (FMVSS). This, in turn, is expected to boost the adoption of automotive keyless vehicle entry systems, subsequently fueling the market growth during the forecast period.
Increasing Risk of Cyberattacks and High Repair and Maintenance Costs to Restrain Growth
Over the past two decades, passenger cars and commercial vehicles have been transformed from mechanical machines to more electronically driven machines. The data communication between these keyless access systems and the vehicle is generally powered by RF or Bluetooth signal, thereby increasing the risk of cyberattacks. Further, the consumer finds it difficult to get used to the keyless access system, and the repair and maintenance costs of these systems are very high; all these major factors are restraints for the market.
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Improved security with better access control features makes the remote keyless entry system segment dominate the market
Based on product type, this system market is segmented into passive keyless entry systems (PKES) and remote keyless entry systems (RKES). The RKES segment holds the major share in the market due to improved security, better access control, and high convenience. It is highly preferred by the end-users and deployed in all types of vehicles, including economical and luxury cars. Remote keyless entry is a vehicle security access system that operates through digital keys available on the mobile phone. The user, through the app, can access the vehicle and also start the engine.
Passive keyless entry is an automotive security system that activates and unlocks the vehicle doors when the user in possession of a key reaches within the proximity of the system operation area around the car. It also supports engine start simply through a push button and doesn’t require access to be inserted in the vehicle. Additionally, its cost-effective nature over the PKES and increased functionality over the traditional keys drive the segment growth over the forecast period.
Growing passenger car sales worldwide to boost the demand for keyless vehicle access control
Based on the application, the market for automotive keyless entry system is segmented into passenger cars and commercial vehicles. The passenger cars application segment accounts for the major market share and is also projected to dominate the market. This is attributable to the growing sales of passenger cars and the increasing demand for vehicle security systems.
Asia-Pacific Automotive Keyless Entry System Market Size, 2020 (USD Million)
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Based on the geography, this market is segmented into North America, Europe, Asia Pacific and the Rest of the World. The North American region will dominate the automotive keyless entry system market due to the rising purchasing power parity (PPP) of the people, increased participation of the region’s leading automotive companies, and favorable technological infrastructure. Further, the United States, Mexico, and Canada are the major revenue contributors to the market. Moreover, growing internet penetration and a surging number of smartphone users drive the growth of the automotive sector, further fueling the market growth.
In the Asia Pacific, the market is expected to emerge as the most lucrative regional market due to the adoption of stringent safety norms, increasing penetration of luxurious cars, and major players, such as Mitsubishi Electric, Continental AG, Alps Automotive Inc., and Denso Corporation. The presence of emerging markets such as India, Japan, South Korea, and China will drive the market growth over the forecast period. Moreover, Europe is expected to become the second-fastest-growing market in terms of growth, with a CAGR of 12.4% during 2021–2028. Besides, it has been observed that countries in the Rest of the World (RoW) are adopting advanced vehicle safety features like intrusion alarms, theft assists, keyless entry, and others that are propelling the growth of the market.
Focusing on innovative product launch to expand its customer base & strengthen its product offering helping Continental AG to dominate the market
Continental AG, DENSO CORPORATION, and HELLA GmbH & Co. KGaA are the key market players in the market. The key companies are focusing on new product developments, expansions, acquisitions, and collaborations to strengthen their position in the market. Also, several players in the market are highly focused on research and development activities to develop innovative products so as expand their product offerings.
An Infographic Representation of Automotive Keyless Entry System Market
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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.
Value (USD Million)
Fortune Business Insights says that the global market size was USD 1,340.6 million in 2020 and is projected to reach USD 3,061.4 million by 2028.
In 2020, the Asia-Pacific market size stood at USD 364.0 million.
The market is projected to grow at a CAGR of 12.2% and will exhibit exponential growth in the forecast period (2021-2028).
The RKES segment is expected to be the leading segment in this market during the forecast period.
The increasing regulatory policies that emphasize vehicular safety will propel market growth.
Continental AG is the leading player in the global market.
North America dominated the market share in 2020.
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