The Automotive Keyless entry access system market is expected to register a CAGR of over 9% during the forecast (2020 - 2025).
- A keyless vehicle access control system is an entirely automated system containing an electronic looking feature, which secures access to the vehicle electronically and substitutes the conventional mechanical key.
- The growing demand for connected cars and the integration of smartphones will encourage vendors to launch advanced and integrated electronic systems in the market. Additionally, the increasing regulatory policies that focus on vehicle safety and increased sales of luxury cars are also driving the market growth.
- The implementation of vehicle security systems in developed countries (such as the United States and Western Europe) and the emerging countries (such as China and India) is expected to boost the demand for these systems in the market. The implementation of telematics, keyless entry systems, digital clusters, and high-end infotainment systems is gaining immense traction in the global automotive market.
Key Market Trends
Increased Penetration of Keyless Entry for Passenger Cars
The growing demand for entry and go keyless systems is fueling the growth of the automotive keyless entry system market. The growing focus on increasing the functionality of these systems by integrating it into other vehicle components is expected to initiate the launch of new product portfolios in the market.
The evolution of automotive electronics enabled vendors to design the modern ignition system and change it into a push-button. This system is combined with an ignition system, which receives signals from the key fob to activate the ignition. Such high-end systems will transform the automotive industry over the forecast period. Major automobile manufacturers are investing heavily in the keyless entry access systems. Many automobile companies are launching new models and the new version of old models with keyless entry access system technology.
- For instance in March 2020, Renault launched a new version of Duster with keyless entry system technology. The technology also allows starting air-conditioning before getting into the car using the remote engine start.
- South Korean automobile manufacturers Kia and Hyundai are investing in research and development of the Keyless Entry Access System. In February 2020 Kia launched Carnival with a keyless entry access system and in March 2020, Hyundai launched a new version of Creta with the keyless entry access system.
Asia-Pacific is expected to witness the highest growth
The Asia Pacific dominated the automotive keyless entry access system market. The market is driven by increasing passenger car sales in countries such as China, Japan, India, and South Korea. Over the past three years, the passenger car and commercial vehicle sales in the ASEAN region have increased significantly, which is also contributing to the growth of the market.
China is one of the biggest automotive markets in the world. In 2018, the volumes of production and sales of vehicles were lower than expected at the beginning of the year, due to political factors and microeconomics. However, new energy vehicle sales continued to rise rapidly, while exports also showed fast growth. The demand for Keyless Entry Access systems in the Chinese, as well as the Indian market, is growing rapidly, as various Chinese and Indian companies are launching vehicles with Keyless entry feature, which shall lead to a growth of the automotive keyless market in China and India.
The passenger car sales in the region have increased until 2018, after which factors like a slowdown in the economy. This was continued by the outbreak of the Corona Virus during the first two months of 2020. However, it is expected that the sales are expected to revive by the end by the end of 2020 or during the first quarter of 2021.
Thus, such developments are expected to lead to growth in the automotive keyless entry systems in the Asia-Pacific region.
The Automotive Keyless Entry Access System Market is consolidated. Some of the major players are Continental Automotive GmbH, Denso Corporation, Atmel Corporation, HELLA KGAA Hueck & Co., Alps Electric Co. Ltd, and Omron Automotive Electronics Co. Ltd, among others.
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