The vehicle security market is largely driven by the need to adhere to the safety regulations and vehicle security norms in accordance with the governmental policy. The automotive production registered a steep fall during COVID, noticeable reduction in distance traveled, brief lockdowns in the multiple regions and considerable reduction in requirement of daily commute over past few months to are the reasons which are anticipated to obstruct the market development in the vehicle Security market.
The vehicle security market size was valued at USD 8.09 billion in 2019 and is expected to progress with a decent CAGR of 5.9% during the forecast period.
The market is primarily affected by the steep downfall of the automotive industry and the noteworthy use of private vehicles. The global automotive sectors are still operating with a minimum workforce. Also, decrement in the GDP, decreased disposable income, and rise in unemployment hampers market growth. Countries such as India, which have strong potential for automotive manufacturing, is also estimated to shed 500,000 employees from services due to considerable decrement in the manufacturing of automotive vehicles.
|Market Size||USD 8.09 billion in 2019|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The governments in various countries have imposed strict rules and regulations to ensure safety. The immense is use vehicles fleet which is bulging every year has further increased occurrences of on-road accidents thus subsequently highlighting the need of vehicle security in across the globe. This security is achievable through enhance levels of safety in vehicle operations and built standards.
For instance, standards for vehicle security systems in U.S, Federal Motor Vehicle Safety Standards, all the vehicles operating on the roads are abode by these standards has decided to increase the safety and security features of the vehicles. This situation has encouraged manufacturers to develop safer and secure vehicles for the market. Additionally, In India, the government has introduced a new and updated Bharat New Car Assessment Program (Bharat NCAP) to elevate the vehicle security standards and increase the performance of the vehicles. According to this program, the vehicles needs to go through 48 kmph frontal clash, 50kmph side-impact clash, and 56kmph front-offset impact assessment to elevate the built quality of the vehicles and increase their security to reduce loss of lives in accidental fatalities. Further, the systems such as driving assistance, cruise control, Anti-lock Braking system is also providing optimum standards for vehicle security
Customer’s inclination towards connected cars has encouraged the manufacturers to shift their focus towards the development of high-end vehicles with more safety and security features, which are controlled electronically and serves as a viable application in achieving the positive development in the segment of the connected car. The high rate of vehicle theft occurrences and vehicle controls malfunctioning has created an alarming situation, elevating the vehicle security standards across the globe. For instance, ADAS controls, SOTA, and Automotive Telematics have garnered notable traction amongst OEM manufacturers and have also received positive reviews from the automobile specialist and en- use consumers of the product.
North America’s vehicle security market is expected to reach new growth avenues due to the introduction of E-Safety Vehicle Intrusion Protected Applications (EVITA) project in the U.S. Additionally, the introduction of “Healing vulnerabilities to enhance software security and safety” (HEAVENS) project is anticipated to cement the market growth by development of products which provide integration of hardware safety solutions with software and electronic modules. These modules improve the performance of the automotive vehicle. The increment in occurrences of vehicle theft is also expected to provide significant traction for the market
Asia Pacific region is anticipated to witness decent growth prospects on the back of developed manufacturing clusters of OEM in numerous countries, such as China and India. The increasing number of on road existing vehicle fleet due to increment in expected serving life of the vehicles, the trend of vehicle customization and installation of different security-enhancing products to the vehicle are also the factors which are contributing for the market development in the region.
The light commercial vehicle (LCV) segment holds the largest market share on account of the rising use of these vehicles for personal use in Europe and North America. Thus, the manufacturers are providing enhanced and developed security standards in the vehicles for the LCV products in order to maintain their sales footprints in the region of Europe and North America. The high-security standards are also important for the manufacturers as the developed countries maintain strong implementation and high standards of vehicle security.
In terms of product type remote keyless entry and central locking system are the features expected to cater the market as the leading segment in the market owing to the integration of these features in medium and high-end passenger vehicles by the manufacturers. High security against the attempts of vehicle theft also to support market growth. Features such as keyless entry also provide hassle-free operation for the driver and provide easy locking and unlocking features for the vehicle.
The market is expected to record noteworthy decrement due to the COVID -19 outbreak, which originated in China that has now halted the automotive operations and disrupted the supply chain.The decrement in the manufacturing of automotive vehicles is anticipated to curb market development. The raw material demand and supply imbalance, inability in proper inventory management due to instability in the market are also contributed in the decrement in the market after the outbreak of COVID -19 pandemic across the globe.
The development of anti-theft solutions such as Lo Jack, On star security system which provides 24x7 available service with single push-button for the cars are some of the prominent product development which is fortifying the sales of the vehicle security solutions in the market. Further, automobile manufacturers such as BMW and Nissan have developed their own safety security model vehicles to attract customers towards the market. Thus, to get a competitive edge in comparison with their peers and to establish as a trusted and reliable brand in terms of vehicle security the company is expected to develop the security standards for the market.