Automotive Digital Key Market grow at a CAGR of ~12% during the period, 2019-202
Posted by Pradnya on March 4th, 2020
The global automotive digital key market is estimated to be valued at ~US$ 2 Bn in 2019, and grow at a CAGR of ~12% during the period, 2019-2029. Gains remain driven by various factors, ranging from digital revolution in the automotive industry to ever-rising consumers’ demand for convenience and ease of operations.
Smart key fob continues to account for major share of manufacturers’ bottom lines, while key card and smart watch are likely to experience increasing demand in the coming years. In terms of geographical outlook, East Asia is projected to be a prominent region for the automotive digital key market, owing to favourable government initiatives for industrial development along with emergence of China as the world’s largest automotive market.
Manufacturers Lean on Advanced Technologies to Offer Superior Products
The ongoing trend in the automotive industry is the integration of digital technology in vehicles. Significant advances in technology has resulted in fundamental changes which helped deliver value-added services to customers. In addition, digital transformation has helped manufacturers meet evolving customer expectations and deliver superior products. It has enabled a constant pace of innovation on the manufacturing front. As the automotive industry expands, expectations and demands from customers are moving beyond the traditional transportation needs to new, luxurious, stand-out mobility services that enable access to various information and communication technologies. Automotive digital key is one such technology, formed as a result of rapidly changing consumers’ choices. Increasing focus of manufacturers on improving technological features and growing consumer needs for better features are expected to boost the demand for automotive digital key in the coming years.
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Gains Underpinned by Rising Auto Thefts and Need for Increased Vehicle Security
PMR found that auto-thefts have been increasing at an alarming rate. The rate of vehicles stolen has increased significantly over the past five years, due to below par security features in certain vehicles. For instance, the Federal Bureau of Investigation (FBI) has recently released statistics of vehicle theft, which were 773,139 in 2017, increasing from ~686,803 in 2014. As the vehicle theft incidence continues to be on the rise, automotive manufacturers are targeted towards offering better security features and introduction of keyless solutions for vehicles; the result is likely to lead to increasing demand for automotive digital key in the foreseeable future.
Automotive Digital Key Market: Vendors Insights
As OEMs are racing to respond to fast-changing consumer demands and the war of innovation supremacy intensifies, key players in the automotive digital key market are redefining their product development and growth strategies through long-term contracts and partnerships with companies actively operating in the industry. These factors came into play in March 2018 when Telefonaktiebolaget LM Ericsson developed an automotive digital key for Lynk & Co, a Chinese-Swedish automotive brand which is owned by Zhejiang Geely Holding Group. The premiere digital key is named as the LYNK & CO 01 model. Additionally, in July 2017, Continental acquired a minority share participation in French company EasyMile SAS, to develop cutting-edge technologies for driverless vehicles. Such strategic moves are likely to influence other players in the automotive digital key market to follow suit and align with changing demands.
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About the AuthorPradnya
Joined: February 3rd, 2017
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