Keyless Vehicle Access Control Market Size, Share & Trends Analysis Report By type (Passive keyless entry systems, Remote keyless entry system), By End-user (Original equipment manufacturer (OEMs), Aftermarket), By application (Passenger vehicle, Commercial vehicle) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The keyless vehicle access control market size is expected to grow at a CAGR 5.3% during the forecast period, 2023–2031.

Keyless vehicle access control is a part of the automotive market that uses technology such as radio communication and the Ultra Wide Band (UWB) frequency for effective communication between the car and the key. The multiple features comprise convenience, better access control, time-saving, advanced security, and automatic locking, among others. It’s rising use in luxury cars, and the growing popularity of economical vehicles in developing countries drives the market growth.

Market Dynamics

Increasing Penetration of Smartphones and Other Smart Devices to Drive the Market

The advent of technology has led to a rise in the number of smartphone users across the globe. As stated in the report entitled ‘The Mobile Economy 2020’ by the GSM Association, in 2019, there were nearly 5.2 billion smartphone users that accounted of a total of 65% of the global population and are expected to reach 7.1 billion by 2025 that is 80% of the total population. Further, as stated in ‘The Ericsson Mobility Report 2020’, by Ericsson, a significant growth in the mobile network data traffic every quarter was witnessed in the year 2018. Increasing dependency on smartphones and the internet for efficient connectivity has surged the utilization of keyless vehicle access control.  

Surge in the Automotive Sales to Drive the Demand for Keyless Vehicle Access Control

Over the years, a surge in automotive sales has been observed mainly due to the need for easy and comfortable commutation. China holds first place by accounting for a sale of approximately 27 million in the year 2019, owing to the booming manufacturing sector and availability of inexpensive and efficient labor and raw materials. Further, the U.S. and European Union are in the second position with 17 million each. As stated by the International Energy Agency, the global number of car sales has gradually increased from 59 million to 93 million over a decade that is 2010–2019. The tremendous rise is attributed to the availability of high tech features, such as remote start, keyless entry, electric propulsion, cruise control, assisted steering, and others that make the travel experience convenient, comfortable, and fun.

Rising Security Concerns of the Vehicle to Hamper the Market

The transmission of the waves from the key to the car at a certain distance to automatically unlock the doors is a very convenient and effective use of technology. However, surging risks was observed as simple technology such as the relay technique was used to easily transmit the signals from the key to the vehicle. As stated by the Office for National Statistics (ONS), more than 89,000 cars were stolen in England and Wales in the year 2017.  Additionally, as the smartphone acts as a key in the passive keyless entry system, the loss or theft of the smartphone can cause havoc, which hampers the market growth.

Regional Analysis

North America to Lead the Keyless Vehicle Access Control Market

North America leads keyless vehicle access control market on account of the favorable technological infrastructure, increased participation of the region’s leading automotive companies, and rising purchasing power parity (PPP) of the people. Surging number of smartphone users and growing internet penetration has flooded the automotive sector, further driving the market growth. As per the GSMA Mobile Economy North America 2019, in 2019, the mobile market revenue accounted for USD 280 million, securing the first position of the U.S. in the mobile market. The report also stated that the region witnessed 83% of smartphone adoption in the year 2019. By 2025, the percentage of smartphone users is anticipated to grow by up to 91%.   

India and Japan to Bolster Asia-Pacific’s Market Growth

Asia-Pacific is perceived to be the fastest-growing keyless vehicle access control market due to the higher penetration of luxurious cars, inclination towards digitalization, and presence of key players, such as Denso Corporation, Calsonic Kansei Corporation, Alps Automotive Inc., Mitsubishi Electric Group, and Omron Automotive Electronics Co. Ltd (Nidec). Japan's car industry is one of the world's most famous and growing industries. It has the presence of luxury brands, such as Lexus, Acura, Infiniti, Toyota Crown, and Toyota Century, among others. The India Brand Equity Foundation (IBEF) states that the luxury car market in the Indian subcontinent is anticipated to grow with a CAGR of 25% until the year ending of 2020. 

Segmental Analysis

Remote Keyless Entry System Segment Accounted for the Maximum Market Share

On the basis of type, the keyless vehicle access control market is divided into a passive keyless entry system and remote keyless entry system. The remote keyless entry system segment accounted for the maximum share, owing to the high convenience, better access control, and improved security. It is highly preferred by the consumers and deployed in all types of cars, including luxury and economical cars. Further, its increased functionality over the traditional keys and cost-effective nature over the passive keyless entry systems drives the segment growth. Passive keyless entry systems, on the other hand, are highly advanced and use the Ultra Wide Band technology that enables security-critical vehicular access control applications. They are utilized mainly by the original equipment manufacturers for luxury vehicles.  

Inclination Towards Luxury Vehicles to Drive the OEM Segment Growth

By end-user, the keyless vehicle access control market is divided into original equipment manufacturer (OEMs) and aftermarket. The OEM segment holds the highest share, owing to the inclination towards luxury vehicles and its increased production by the various automotive companies. The luxury car market is projected to reach USD 13 billion by the end of 2020. Further, the increasing research and development by companies, such as Audi, BMW, VOLVO, Lincoln, Porsche, and Mercedes Benz, among others, to provide hi-tech facilities to the customers have bolstered the segment growth.  

Impact of covid-19

The pandemic led to a temporary lockdown of the countries which hampered the businesses and the industry verticals on a large scale. The automotive industry that comprises mainly the outdoor work was badly exposed to the uncertainties that led to a rapid decline in automotive sales. Further, the disruptions of the supply chain market mainly due to the shutting down of national and international borders and the changes aroused adhering to the decision of not utilizing Chinese goods may hamper the growth of the market. However, the new norm of avoiding touching the surfaces often may have a slight impact on the market growth of the keyless vehicle access control system shortly.

Recent Developments

• On December 12, 2018, Bosch launched a new digital access service, Perfectly Keyless. The service follows the passive keyless entry systems. The new launch aims to strengthen the product portfolio and enhance the business
• On December 14, 2017, Denso Corporation acquired InfiniteKey, along with its patents and research. The acquisition aims to advance the keyless automotive experience and other technologies by effectively using the research to lead the market