Technological Innovations, Improvements in COVID-19 Vaccines Boost Market Growth
Carmakers across the globe are seeing initial signs of improvement in automotive sales post the coronavirus pandemic. However, stakeholders in the auto industry are still concerned about long-term recovery of the market. Hence, companies in the automotive OEM key market are banking on technological innovations, such as the introduction of remote keyless entry systems to contain the spread of the novel coronavirus.
Improvements in COVID-19 vaccines are in the pipeline, thereby triggering vehicles sales in the first and second quarter of 2021. The reopening of manufacturing plants and fully-operational facilities with employees working at break-neck speeds to strengthen car prices and demand are strategies being used by carmakers. Such strategies are becoming necessary to revive growth in the automotive OEM key market, since cars and other vehicles fall under the list of non-essential goods.
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Over-the-Air Software Updates Help Troubleshoot Keyless Systems in Vehicles
As Tesla gains popularity for its robust autonomous technology, concerns regarding its keyless system being hacked are surfacing in the market landscape. Thus, Tesla released an over-the-air software update to strengthen the security of the keyless system. In this way, manufacturers in the automotive OEM key market should team up with researchers and experts to troubleshoot issues in keyless systems.
Companies in the automotive OEM key market are collaborating with researchers to advance in keyless systems to prevent hacking of vehicles. Software innovations in automotive OEM key systems are anticipated to become commonplace during the forecast period.
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Virtual Car Keys Enhance Customer Digital Experience During Journey
The automotive OEM key market is estimated to reach the valuation of US$ 280 Mn by the end of 2030. As such, remote key less entry systems are projected to hold a higher revenue share as compared to conventional key entry systems. This trend is anticipated to grow with the introduction of digital car keys. Thales Group— a French multinational company that designs and builds electrical systems, is shifting its R&D focus in virtual car keys that easily unlock cars using smartphone.
Virtual car keys are enhancing the digital experience of a customer’s journey for private cars, rental cars, and vehicle fleets. As such, passenger vehicles are estimated to dictate the highest revenue share among all vehicle types in the automotive OEM key market.
Push Buttons, Electronic Key Fobs Omit Need of Keys, Key Inserts
Cars with electronic key fobs are eliminating the hassle to search for keys while boarding or leaving vehicles. Companies in the automotive OEM key market are increasing their R&D muscle in key fobs that allow the user to unlock the vehicle from a significantly long distance. They are innovating in key fobs that are lightweight, and facilitate the add-on of starting the engine before the vehicle owner enters it.
Manufacturers in the automotive OEM key market are developing push button start and stop of vehicles. This eliminates the issue of looking around to locate the key insert in order to get the vehicle going.
Smart Keys Make Car Journey Safe, Convenient for Vehicle Owners
Smart keys are featuring as one of the most popular technologies in the automotive sector, which is making cars safer and technologically sound for owners. Innovative sensors are playing a key role in the smart key technology sector. Companies in the automotive OEM key market are increasing the availability of smart key systems that can disengage the immobilizer in a vehicle and activate the ignition without putting a key into the ignition.
The proliferation of electric and hybrid vehicles is contributing to the growth of the automotive OEM key market. On the other hand, carmakers such as Mercedes-Benz are making advancements in keyless technology by publicizing its transponder built into the vehicle that identifies the driver’s key.
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Automotive OEM Key Market: Overview
- The global automotive OEM key market is anticipated to expand at a CAGR of ~2% during the forecast period, owing to considerable expansion of the automotive industry across the globe. Various government initiatives, decline in vehicle loan interest rates, and trade agreements between various nations have contributed to the expansion of the automotive sector, thus fueling the automotive OEM key market across the globe.
- Changing customer expectations coupled with technological advancements have led to the emergence of contactless smart key solutions, which enable vehicle owners to perform multiple operations other than opening doors and starting the ignition
Drivers of Automotive OEM Key Market
- Consistent rise in employment levels, industrial productivity, and other such factors have inflated the GDP of the global population. This increase in disposable income has boosted the sale of vehicles and consequently, vehicle production. Rise in sale and production of vehicles around the globe has boosted the automotive OEM key market.
- Insurance companies formulate their vehicle insurance policies and premiums according to the make and security levels of the vehicle. Numerous customers are preferring vehicles with high-tech key solutions to avail these lower premium rates, thereby propelling the automotive OEM key market around the globe.
- Rise in awareness about vehicle security amidst a rise in vehicle theft incidents, worldwide, has led to an increase in expenditure on advanced key solutions. Increased inclination of automobile customers toward highly secure key solutions is fueling the global automotive OEM key market in terms of revenue.
Challenges for Automotive OEM Key Market
- COVID-19 pandemic disrupted majority of industries across the globe due to the forced shutdown of manufacturing and trade activities. This caused disruption in supply chains of the automotive sector, thus hampering its growth. Moreover, the demand for new vehicles has reduced, as people are restraining themselves from spending money on non-essential products and services. These factors have lowered the demand for automotive keys from OEMs.
- Emergence of virtual or digital key solutions that are stored in smartphones or wearable devices of customers is decreasing the demand for traditional key solutions, which, in turn, restrains the global automotive OEM key market
Automotive OEM Key Market Segmentation
- The global automotive OEM key market has been segmented based on key material, technology, key type, vehicle type, and region
- Based on key type, the smart key segment held a dominant share of the automotive OEM key market in 2019. High level of security, flexibility in operation, and multiple functionalities offered by these smart keys are propelling the smart key segment of the global automotive OEM key market.
- Based on vehicle type, the passenger vehicles segment held a significant share of the global automotive OEM key market. Rise in demand for passenger vehicles has boosted their production worldwide. This growing production of passenger vehicles is driving the passenger vehicles segment of the global automotive OEM key market.
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Automotive OEM Key Market: Regional Analysis
- Based on region, the global automotive OEM key market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Asia Pacific led the global automotive OEM key market followed by Europe. Countries in Asia Pacific such as China, India, Japan, and South Korea contribute for more than 40% of the total automobile production, worldwide. Thus, OEMs based in the region boost the demand for automotive key solutions.
Automotive OEM Key Market: Competition Landscape
- Key players operating in the global automotive OEM key market include
- Altuna Group
- Chiavit (Tornado Group)
- Continental AG
- Credit Card Keys
- dormakaba Holding
- Garin System Co. Ltd
- Hangzhou Zhengdian Technology Co., Ltd.
- Heights Security, Inc.
- LOCKMASTERS INCORPORATED
- Mitsubishi Electric Corporation
- One-Tool Co., Limited
- QINGDAO EVERISE INT’L CO., LTD.
- Qinuo Electronics Co., Ltd.
- Runking Technology Co., Ltd
- Sakthi Industries
- Spark Minda
- STRATTEC SECURITY CORPORATION
- TSNEW TECHNOLOGY CO., LIMITED
- Key players operating in automotive OEM key market at the global level are continuously investing in research and development activities to expand their product offerings and to cater to the changing consumer needs. For instance, Robert Bosch GmbH has developed a smart key solution that enables the customer to remotely park the vehicle by pressing a button on the car key. Numerous OEMs, including BMW AG, Daimler AG, KIA Corporation, and Hyundai Motor Company are providing such multi-functional smart keys with new vehicle models.
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