COMPETITIVE LANDSCAPE OF THE AUTOMOTIVE DIGITAL KEY MARKET: KEY PLAYERS AND STRATEGIES

Competitive Landscape of the Automotive Digital Key Market: Key Players and Strategies

Competitive Landscape of the Automotive Digital Key Market: Key Players and Strategies

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Market Overview

The automotive digital key market will generate an estimated revenue of USD 3,604.9 million in 2024 and witness a CAGR of 14.5% during 2024-2030, to reach USD 8,141.3 million by 2030. The technical evolution of the sensors and the growing need for sophisticated ADAS are key contributing factors to the growth of the market.

The incorporation of the internet of things in automobiles is aiding in the development of new solutions helping in making the auto industry more efficient and sophisticated. IoT offers consumers better features compared to the older models, including fuel tracking, ADAS, and speed control. To manufacture more useful and safe automobiles, OEMs are deploying IoT technology in an electronic lock/unlock system.

Another advantage of implementing AI in the automotive digital key is the extra functionality and security that it brings. Some of the functionalities made possible by AI included: facial recognition, behavioral tracking, and contextual perception. AI extends security that is not available in the automotive digital key in the analog key system by incorporating anti-theft features.

Thus, connected cars are gradually gaining popularity with consumers due to their latest technical components enabling them to connect to the internet. This enhances the driving experience and elevates the status of security measures. As for the V2V technology, the vehicles can communicate with each other. That is why, passengers and vehicles get details about traffic flow, road status, recommended speed, and many other operational factors.

Key Insights


  • The remote keyless entry category grips the largest industry share at 65% in 2024 and is projected to advance at a CAGR of 14.8%.



  • Its cost-efficacy makes it available to a wider variety of consumers due to affordability and low maintenance costs. These systems are simple, easy to operate, and available for various vehicle models by different OEMs.



  • Passenger cars hold the largest market share at 70% in 2024. The increasing global population drives demand for passenger vehicles with new digital features.



  • Commercial vehicles are expected to grow at a higher CAGR due to the focus on minimizing downtime, preventing accidents, and ensuring driver safety.



  • The near-field communication category holds the largest share at 45% and is expected to grow at the highest CAGR of 14.8% during the forecast period



  • The OEMs category dominates the market in 2024, as OEMs integrate digital key technology into cars during production, often as standard or optional features for new models.



  • The aftermarket category is expected to grow at a higher CAGR of 15.0% during the forecast period.



  • Technological advancements and increased vehicle safety awareness drive the retrofitting of this technology into older vehicles, offering cost-effective options for various models.



  • The multi-function category dominates the market and is expected to grow at a higher CAGR of 14.7% during the forecast period. The demand for digital keys capable of performing multiple tasks, such as locking/unlocking and engine on/off, is rising.



  • The personal category dominates the market with 55% revenue. Automotive digital keys offer numerous advantages over normal keys, leading to more convenience for individuals.

  • The growing sale of high-end cars with modern features for personal transportation propels the market.



  • Asia-Pacific holds the largest market share at around 50%. This is due to major automotive manufacturers in China, Japan, South Korea, and India.



  • North America is expected to grow at the highest CAGR of 14.8% during the forecast period.


Source: P&S Intelligence

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