Automotive Digital Key Market

Automotive Digital Key Market Outlook 2030 -

The automotive industry is undergoing tremendous changes and is moving in direction of vehicle digitization. Manufacturers are developing automotive digital keys that provide more advanced features than traditional keys, such as enhanced driver safety features, connected cars, and keyless entry. Due to advantages such as improved car safety, popularity of car smart keys has increased significantly in the past decade. Features like high-end luxury cars are being applied in budget cars by companies, such as Honda, which are developing smart keys for budget cars. Use of lightweight and environmentally friendly materials to make internal chips and buttons of smart keys is becoming more and more popular. However, a research report from the University of Leuven in Belgium stated that due to loopholes in the security system, a car's digital key can be hacked and unlocked in a short time. For instance, on 28 August 2019, researchers successfully bypassed keyless entry system of a Tesla Model S with ease. Leap Motor introduced biological entry system with the launch of their smart electric coupe S01 model in China, in January 2019. These vehicles are equipped with a “Leap in” biological lock/unlock system that integrates finger vein recognition and face recognition technologies, thus, giving customers a keyless experience from entering vehicles to starting engines.

In addition, major players in the automotive digital key market continue to focus on developing key cards, smart key fobs, and wearable smart keys or smart watches with RFID technology. For instance, Senturion key developed a wearable key or smart watch. With the use of it, one can enter a vehicle and can be used for various other operations as well such as engine start/stop and door lock/unlock.

Market scope and structure analysis:

COVID-19 Impact analysis

Vendors in the digital key market industry across the globe are severely affected due to restrictions on producers as well as declared lockdowns, which, in turn, is affecting digital key manufacturers worldwide. The pandemic have had a negative impact on the digital key market size for the year 2020, and a major deviation was noticed in the growth of digital key manufacturers due to coronavirus. Digital key market is an evolving sector, which is hampered due to the ongoing pandemic as all type of production and installation activities across affected countries have been shut down and all operations were disrupted. Majority of digital key manufacturers are facing major issues such as closure of factories and unavailability of workforce due to lockdowns, which further affects production of cars as well.

Top Impacting Factor:

• Rise of Internet of things (IOT), rapidly growing innovations in automotive industry, and ease of use drive growth of the automotive digital key market.
• Cyber security threats may affect demand for automotive digital key and subsequently hinder the market growth.
• Improvement in standard of living and technological development is the opportunity for the automotive digital key market.

Market Trends

Rise of Internet of Things (IOT)

Embedding Internet of Things technology in the automotive field, creating new applications and solutions, making cars smarter, and providing comfort, efficiency and driving safety, has always been the focus of automotive manufacturers. Manufacturers are implementing Internet of Things to provide drivers with connected car applications such as fuel tracking, advanced driver assistance systems (ADAS), speed control, and in-vehicle infotainment systems. Manufacturers participate in development of advanced network security systems to provide better security against hacker attacks. In addition, to ensure vehicle safety, the National Highway Transportation and Safety Administration (NHTSA) is working with vehicle manufacturers, federal partners, and suppliers to address vehicle cybersecurity challenges. Digital car key is one of the new innovations brought about by adoption of Internet of Things, hence is expected to gain momentum among car manufacturers and consumers in the next few years.

Key segments covered:

Key benefits of the report:

• This study presents the analytical depiction of the automotive digital key industry along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with challenges of the automotive digital key market.
• The current market is quantitatively analyzed from 2020 to 2028 to highlight the automotive digital key market growth scenario.
• The report provides a detailed automotive digital key market analysis based on competitive intensity and how the competition will take shape in coming years.

Questions answered in the automotive digital key market research report:

• Which are the leading market players active in the automotive digital key market?
• What would be the detailed impact of COVID-19 on the market?
• What current trends would influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the automotive digital key market?
• What are the projections for the future that would help in taking further strategic steps?

 Automotive Digital Key Market Report Highlights