Keyless Ignition System Market - Forecast(2024 - 2030)

Report Code: ATR 0096 Report Format: PDF + Excel

Keyless Ignition System Market Overview

The Keyless Ignition System Market size is estimated to reach $3.5 Billion by 2027, growing at a CAGR of 8.1% during the forecast period 2022-2027. The factors that impact the Keyless Ignition System Market  include growing consumer demand for digital keys or advanced vehicle security systems, increasing application of immobilizers within economical cars and so on. A significant trend of replacing mechanical keys with electronic locks or remote central locking as well as the adoption of passive keyless entry systems have been aiding its market growth. In addition, the growing integration of biometric authentication and advanced technologies within vehicles as well as rising investments of global automotive companies in improving vehicle access and control features will also cater to its market growth. Moreover, increasing smartphone integration to improve vehicle accessibility, control & convenience standards, rising concerns over vehicle security with the surge in car thefts and many others are some of the major factors set to transform the Keyless Ignition System industry outlook in the long run. 

Keyless Ignition System Report Coverage

The “Keyless Ignition System Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Keyless Ignition System Market.

By Product Type: Passive Keyless Entry System, Remote Keyless Entry System.
By Technology: Ultra-wide Band, Near Field Communication (NFC), Radio Frequency Identification (RFID), Bluetooth, Others.
By Distribution Channel: OEM, Aftermarket.
By Vehicle Type: Passenger Cars, Commercial Vehicles (Light Commercial Vehicles, Medium/Heavy Duty Commercial Vehicles).
By Geography: North America (U.S, Canada, Mexico), Europe (U.K, Germany, France, Italy, Spain, Others), APAC (China, Japan India, South Korea, Australia, Others), South America (Brazil, Argentina, Others), RoW (Middle East, Africa).

Key Takeaways

  • Remote Keyless Entry System held the largest market share in 2021, attributed to rising consumer inclination towards smart technologies, growing penetration of smartphone applications and so on.
  • Passenger Cars is analyzed to witness the fastest growth in the Keyless Ignition System Market during 2022-2027, attributed to surge in passenger car sales, increased car thefts related to passenger cars and so on.
  • North America Keyless Ignition System Market held the largest share in 2021, owing to rising vehicle security concerns, growing demand for passenger vehicles and so on.
  • Rising smartphone integration to improve vehicle accessibility, control & convenience standards alongside growing concerns over vehicle security with a surge in car thefts is analyzed to significantly drive the market growth of the Keyless Ignition System Market during the forecast period 2022-2027.

Keyless Ignition System Market Value Share, by Region, 2021 (%)

Keyless Ignition System Market

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Keyless Ignition System Market Segment Analysis - by Product Type

The remote Keyless Entry System segment dominated the Keyless Ignition System Market with a share of 53% in 2021 and is also analyzed to have significant growth during the forecast period 2022-2027. Factors including growing consumer inclination towards smart technologies, increasing penetration of connected smartphone apps and so on have attributed to its market growth. Compared to Passive Keyless Entry Systems, these systems are capable of offering better user access and convenience with improved security, thus gaining wide popularity across luxury, premium as well as economical passenger cars. Since vehicle security access systems like remote key entry systems operate through the digital keys available on mobile phone applications, they have been facing significant growth from consumers. Increased functionality over traditional or mechanical keys along with the integration of biometric features like fingerprint authentication, voice recognition and others for remote vehicle access is also aiding its market growth over time. In November 2020, DENSO announced investing in a German company, Lambda:4, which focused on developing wireless positioning technologies for short-range applications leveraging Bluetooth Low Energy. This was meant to strengthen DENSO’s passive digital key, as a part of increasing its location accuracy as well as user authentication capabilities. These factors are set to influence the growth of remote keyless entry systems, thereby influencing the Keyless Ignition System industry in the long run.

Keyless Ignition System Market Segment Analysis - by Vehicle Type

Passenger Cars are analyzed to grow with the highest CAGR of 9.4% in the Keyless Ignition System Market during 2022-2027, attributed to several factors including rising passenger car sales, adoption of smart technologies to improve car access control and so on. Growing demand for vehicle security systems or immobilizers within economical passenger cars, along with an increase in the number of car thefts related to passenger cars has been also aiding its market growth over time. In March 2020, one of the leading automotive giants, Renault launched a new version of its compact SUV model, Duster integrated with keyless ignition technology. Leveraging this technology enabled users to start off the air-conditioning even before getting into the car, through the remote engine control. According to CarTrade.com, in 2021, there were around 143 cars with keyless entry available within India, including popular ones like Maruti Suzuki Baleno, Hyundai Creta, Renault Kwid, and so on. Moreover, the deployment of keyless entry features within SUVs, electric cars and so on along with the significant development of cars with keyless ignition from global automakers like Renault, Maruti Suzuki, Hyundai, Kia and others have been also impacting its market demands. These factors will help in expanding the Keyless Ignition System Market size for passenger cars in the coming time.

Keyless Ignition System Market Segment Analysis - by Geography

North America dominated the Keyless Ignition System Market with a share of 37% in 2021, attributed to rising vehicle security concerns, increasing demand for passenger cars and so on. The adoption of advanced immobilization technologies as well as a significant development of vehicles integrated with keyless entry features from major automakers like General Motors, Ford Motor and so on, have been also driving the market growth in this region. In January 2020, Kia launched the 2021 Kia Rio, as an updated version of its Kia Rio model within the U.S market, priced from $16,050. This development was meant to include cosmetic updates with technology addition like keyless entry combined with lane departure warnings, automatic climate control and others. Additionally, increased cases of passenger cars as well as commercial vehicle thefts, growing consumer inclination towards smartphone-connected devices, and many others can influence the demand for electronic locks. These factors are set to transform the North American Keyless Ignition System industry outlook in the long run.

Keyless Ignition System Market Drivers

Growing Concerns over Vehicle Security due to Surge in Rate of Car Thefts is Driving the Growth of Keyless Ignition System Market:

With the rapid rise of car thefts, there is significant growth in vehicle security concerns among consumers, making it one of the major factors driving the growth of the Keyless Ignition System Market. Factors that have been attributed to its market growth include growing penetration of immobilizers within economical cars, increasing shift towards innovations for reducing unauthorized access, and so on. In comparison to mechanical keys, keyless ignition helps in providing ease as well as better security by leveraging remote central locking technology, thus driving its market growth. The adoption of keyless ignition systems helps consumers to prevent unauthorized access or activation, ensuring higher security while minimizing the rate of car thefts. Moreover, advancements in remote keyless entry features and the growing adoption of developing vehicles with keyless ignition support can also help in mitigating theft concerns. In January 2020, Bajaj Auto launched an electric scooter, Chetak in the Indian market equipped with a keyless ignition system, alongside other features including reverse riding mode, regenerative braking system, front LED turn indicators, and so on. Being a fully connected electric scooter, its most significant feature included keyless ignition, capable of notifying owners during unauthorized movement and charging start/completed/stopped. According to the data published by Delhi Police, India, about 36,177 cases of motor vehicle theft were reported in 2021, as compared to 33,128 during the previous year. This statistical data highlighted the increase in vehicle theft incidents, which in turn emphasizes the need for better security and control systems among consumers. Such factors can be considered essential in boosting the growth of the Keyless Ignition System industry over time.

Rising Smartphone Integration to Improve Vehicle Accessibility, Control & Convenience Standards is Accelerating the Growth of Keyless Ignition System Market:

Integration of smartphones for improving vehicle accessibility, control & convenience standards can be considered a major driver influencing the market growth of Keyless Ignition Systems. Rising trends like replacing key fobs with smartphone-assisted apps to improve vehicle accessibility, control, convenience as well as comfort standards have been attributed to the market growth. Utilizing a smartphone application by the vehicle owners to ensure remote access as well as authorization, irrespective of not being in close proximity has eventually catered to its market needs. In March 2019, Hyundai Motor Corp announced its development of a digital key, which was capable of allowing users to unlock and start their vehicles using a smartphone. This was aimed at the replacement of a traditional physical key, with downloading availability through a cell phone application. Leveraging Near Field Communication (NFC) technology, this development enabled the detection of the presence of an authorized digital key-enabled cell phone within close proximity to the vehicle door. According to Cisco’s report, the total number of mobile users will increase to 966 million by 2023, accounting for about 68% of the Indian population, in comparison to 56% in 2018. Moreover, high R&D activities from major automobile players towards smartphone integrated digital keys alongside increased penetration of mobile phone users will further drive the market forward. These factors are set to help in the expansion of the Keyless Ignition System Market size in the coming time. 

Keyless Ignition System Market Challenges

Security Concerns over Data Hacking & Data Exploitation of Keyless Ignition Systems is Restraining its Market Growth:

Security concerns related to data hacking and data exploitation act as one of the major factors impeding the growth of the Keyless Ignition System industry. Due to the utilization of technologies like Bluetooth, NFC, and so on, data transmitted can be easily attacked by cybercriminals to steal personal or confidential data. Since the keyless ignition feature using smartphone applications or electronic locks includes critical information like vehicle identification number, cloning or decoding the access through computer systems or different advanced malware can create security concerns for the user. In July 2022, Security researchers from Star-V Lab revealed a vulnerability in the remote keyless entry (RKE) system of Honda vehicles which can be easily exploited by hackers for permanently unlocking as well as remotely starting the car. The “Rolling-PWN” attack is capable of exploiting Honda’s RKE system, due to transmitting authentication codes between the car and key fob. This in turn, also contributes to the rise in relay attacks, which eventually creates an adverse impact on the growth of the Keyless Ignition System Market.

Keyless Ignition System Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Keyless Ignition System Market. The top 10 companies in the Keyless Ignition System Market are:

  1. Geotab Inc.
  2. Mitsubishi Corporation
  3. Nissan Motor Company
  4. Hyundai Motor Company
  5. Denso Corporation
  6. Continental AG
  7. Robert Bosch
  8. Ford Motor Company
  9. Atmel Corporation
  10. Hitachi

Recent Developments

  • In October 2020, Geotab announced the launch of a keyless entry system, specifically for pool fleets, car sharing operations as well as rental companies. The development of this digital key was meant to provide an instant solution for businesses looking out for a contactless way of transferring keys between drivers amidst the Covid pandemic.
  • In June 2020, Continental revealed about receiving orders from three European & Asian vehicle manufacturers regarding its Cosma smartphone-based vehicle access system. This smartphone-based car key will be integrated within the architecture of their upcoming vehicles, with production to start in 2021.
  • In March 2020, Hyundai India launched the new-generation SUV, Creta with a floating roofs, LED tail lamps and so on. This car was developed incorporating key entry access as well as key ignition system functions.

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1. Keyless Ignition System Market - Market Overview
    1.1 Definitions and Scope
2. Keyless Ignition System Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends by vehicle type
    2.3 Key trends segmented by geography
3. Keyless Ignition System Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis
4. Keyless Ignition System Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Framework Overview
    4.2 New Business and Ease of Doing business index
    4.3 Case studies of successful ventures
    4.4 Customer Analysis
5. Keyless Ignition System Market – Startup Company Scenario (Premium)
    5.1 Investment Analysis
    5.2 Venture Capital Funding Scenario
6. Keyless Ignition System Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Keyless Ignition System Market – By Strategic Analysis (Market Size - $Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product/Market Life Cycle
8. Keyless Ignition System Market - By Product Type
    8.1 Passive Keyless Entry System
    8.2 Remote Keyless Entry System
9. Keyless Ignition System Market - By Technology
    9.1 Ultra-wide Band
    9.2 Near Field Communication (NFC)
    9.3 Radio Frequency Identification (RFID)
    9.4 Bluetooth
    9.5 Others
10. Keyless Ignition System Market - By Distribution Channel
    10.1 OEM
    10.2 Aftermarket
11. Keyless Ignition System Market - By Vehicle Type
    11.1 Passenger Vehicles
    11.2 Commercial Vehicles
        11.2.1 Light Commercial Vehicles
        11.2.2 Heavy Commercial Vehicles
12. Keyless Ignition System Market - By Geography (Market Size - $Million/Billion)
    12.1 North America
        12.1.1 U.S
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 U.K
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Spain
        12.2.6 Others
    12.3 APAC
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia
        12.3.6 Others
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Others
    12.5 RoW
        12.5.1 the Middle East
        12.5.2 Africa
13. Keyless Ignition System Market – Entropy
14. Keyless Ignition System Market - Industry Competition Landscape (Premium)
    14.1 Global Market Share
    14.2 Market Share by Region
    14.3 Market Share by Product Type
15. Keyless Ignition System Market - Key Company List by Country Premium (Premium)
16. Keyless Ignition System Market Company Analysis
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10
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