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North America Automotive Smart Key Market - Forecasts and Trends (2015 – 2020)

The market for Smart Key in North America is projected to reach $7.5 billion by the end of 2020 with a CAGR of 28%. Smart Keys were a critical feature only in the luxury vehicles. However, increased safety norms are expected to spike the market for these systems in low-end vehiles as well. Smart keys are an integral computerised system that uses chips and sensors to open door and start the engine of the vehicle without the use of physical keys. The critical driver of the market in smart key system of a vehicle is the convenience the key provides. The keys need not be held in the hand to enjoy the benefits and people enjoy the fact that the keys can be kept it in the pocket or bag without requiring to reach and dig around before getting into vehicle. However, the OEMs in the USA were a little reluctant to adopt the technology with regards to the extent of safety these systems provide. In some models, the tailgate gets lifted by waving a foot underneath the rear bumper making it convenient to load baggage’s when hands are occupied. Smart keys are also enabled to start the engine by just simply pressing the ignition button, located next to the steering column. Some smart keys, like those from BMW, also store individual user settings, which enables the seat, mirrors, steering wheel and even audio preferences to be automatically adjusted by pressing a single button. The smart key uses radio waves to communicate with the vehicle containing embedded antennas that identifies and validates them. On some models, like that of BMW, the key comes to an operational mode within 1.5 metres of the car. The door automatically locks or unlocks with a touch of the door handle. However these vehicles were found out to be highly vulnerable to be hacked, allowing thieves to steal a car easily. The research from the Swiss Federal Institute of Technology found that the smart key fobs, especially present in a luxury vehicles, are highly susceptible to hacking. The feature allows a driver to unlock doors and start a vehicle without touching the fob. Using radio signals, the fob and vehicle sends encrypted signals to each other over short distances, which were vulnerable. With wired and wireless connections between their antennas, the team was able to unlock and start ten different vehicles even when the distance was eight meters away from the key fob holder. Since all keyless entry systems use the same basic design, the hack easily works on millions of vehicles. The car also fails to get any signals or alarms, since the signal received is not false. Among the application type, the market for smart keys for engine start and door opening is expected to gain major traction in the market by 2020 with a share of more than 55% in the region. Among the components, the radio frequency for receiver block in smart key system would grow at the highest rate during the forecast period. Among technology type, Infrared sensor technology would have the highest CAGR till 2020. The market is significantly competitive with some of other major vendors like Valeo, Daedong, Tokai Rika, Silca, ALPHA, Denso, Shanghai Kaigao, Guangzhou Guangpai, Hyundai Mobis, ZF-TRW, and others. The market has been segmented by application (single function and multi-function), by technology ( transmitter, capacitive sensors and IR sensors), by installation (OEM and aftermarket) and by geography (US and Canada). WHAT THE REPORT OFFERS Market Definition along with identification of key drivers and restraints for the market. Market analysis with country specific assessments and competition analysis in the Global Smart key of Cars market. Identification of factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies, which can influence the market on the regional scale and at the country level. Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market shares. Identification and analysis of the Macro and Micro factors that affect the industry on both at the regional level and at the country level.

Published By: Mordor Intelligence
Published Date: Q1 2016

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