Automotive Digital Key Market size is set to grow by USD 891 million from 2024-2028, Standardization for using smart devices as keys to boost the market growth, Technavio

NEW YORK, June 25, 2024 /PRNewswire/ -- The global automotive digital key market  size is estimated to grow by USD 891 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 7.22%  during the forecast period.  Standardization for using smart devices as keys is driving market growth, with a trend towards use of smart wearables as digital keys. However, complexity of integration with existing infrastructure  poses a challenge. Key market players include Apple Inc., Bayerische Motoren Werke AG, Continental AG, DENSO Corp., Ford Motor Co., Giesecke Devrient GmbH, Hyundai Motor Co., IDEMIA France SAS, Infineon Technologies AG, Mercedes Benz Group AG, NXP Semiconductors NV, Robert Bosch GmbH, Samsung Electronics Co. Ltd., STMicroelectronics International N.V., Telefonaktiebolaget LM Ericsson, Tesla Inc., Thales Group, Valeo SA, Volkswagen AG, and Volvo Car Corp..

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Key Market Trends Fueling Growth

The automotive digital key market is advancing with OEMs offering digital keys alongside mechanical ones. Accessibility through smartphones and wearables is a developing trend. Jaguar Land Rover's Activity Key and Hyundai's Android Wear watch are examples. Apple's digital car keys using NFC technology are also gaining traction, expected to be supported by BMW 5 Series. This use of smart wearables as digital keys is projected to boost the market growth. 

The Automotive Digital Key market is experiencing significant growth with technologies like Bluetooth, NFC, and Ultra-Wideband gaining popularity. Smartphones are becoming digital keys, enabling contactless vehicle access and starting. Companies are focusing on convenience and security features, such as keyless entry, push-button start, and location tracking. The market is also witnessing the integration of vehicle systems and mobile apps, offering services like vehicle diagnostics and remote engine start. Additionally, the use of biometric authentication and geofencing technology is on the rise, enhancing security and convenience. The future of the Automotive Digital Key market lies in the development of more advanced and integrated solutions. 

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Market Challenges

• The integration of digital key solutions into the intricate automotive infrastructure poses a significant challenge for the global automotive digital key market. With vehicles consisting of multiple hardware and software components from various manufacturers, ensuring compatibility and seamless integration is essential. Retrofitting existing vehicles with digital key capabilities is more complex than integrating them into new models due to differences in technologies and architectures. Communication protocols used in vehicles must be considered to avoid disruptions. Intuitive and user-friendly digital key interfaces must be designed to integrate with existing infotainment systems and controls. These complexities may hinder market growth during the forecast period.
• The Automotive Digital Key market faces several challenges. Technology convergence in cars requires seamless integration of digital keys with various systems such as telematics, connectivity, and security. Keyless entry and start systems using digital keys are becoming increasingly popular, but ensuring secure transmission and protection against hacking is a major concern. Additionally, ensuring compatibility with various car models and makes, as well as integrating digital keys with mobile apps, adds to the complexity. Regulations and standards for digital keys are still evolving, which can hinder market growth. Lastly, consumer acceptance and trust in using digital keys instead of traditional physical keys is a significant challenge that needs to be addressed.

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Segment Overview 

This automotive digital key market report extensively covers market segmentation by

1. Application 
• 1.1 Personal use
• 1.2 Car sharing and car rental
2. Vehicle Type
• 2.1 Passenger cars
• 2.2 Commercial vehicles
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Personal use-  The automotive digital key market is experiencing significant growth due to the numerous benefits it offers for personal use. Digital keys provide keyless entry and start capabilities, enabling users to unlock and start their vehicles using smartphones or wearable devices. This technology enhances convenience and security by eliminating the need for physical keys and allowing temporary access to be granted. Additionally, digital keys offer seamless sharing and access control for multiple users, making them an essential component of modern technological conveniences. Companies like Giesecke+Devrient GmbH provide simple and easy-to-use digital key solutions that integrate with existing vehicle entry systems and support various functions, contributing to the market's growth.

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Research Analysis

The Automotive Digital Key market is experiencing significant growth as the automotive industry shifts towards vehicle digitization. Digital keys, such as those utilizing RFID technology, key cards, smart key fobs, wearable smart keys, and even facial or finger vein recognition, are increasingly popular in both high-end luxury cars and budget models. These digital keys offer a keyless experience, enhancing convenience and security. Connected cars, with their advanced keyless entry systems and driver safety features, are driving the demand for digital keys. The market for these innovative security systems is expected to expand rapidly, offering engine start/stop and door lock/unlock capabilities, among other features. The integration of digital keys into the automotive landscape is revolutionizing the way we interact with our vehicles, prioritizing both convenience and safety.

Market Research Overview

The Automotive Digital Key market refers to the technology that enables vehicle owners to unlock, start, and operate their cars using a digital key on their smartphones. This innovative solution offers convenience, security, and contactless access to vehicles. The technology consists of various components such as Near Field Communication (NFC), Bluetooth, and Ultra-Wideband (UWB) technology. The market is driven by factors like increasing smartphone penetration, growing demand for contactless solutions, and advancements in automotive technology. The integration of digital keys in ride-hailing and car-sharing services is also expected to boost market growth. Additionally, the development of standardized digital key protocols by organizations like Car Connectivity Consortium (CCC) and Global Automakers is further fueling market expansion.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Personal Use
• Car Sharing And Car Rental
• Vehicle Type
• Passenger Cars
• Commercial Vehicles
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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