Automotive Digital Key Market size is forecasted to grow by more than at USD 29.58 billion, with a CAGR of 20.6% over the period from 2025 to 2037. By 2025, the industry size for automotive digital key is projected to reach USD 3.31 billion.
The automotive digital key market growth is owing to rising preference for keyless vehicle access. Rapid advancements in Near Field Communication (NFC), Ultra-wideband (UWB), Bluetooth, and Radio Frequency Identification (RFID), have significantly enhanced the functionality and security of keyless entry systems. This has increased its adoption in recent years. In addition, advancements in the connectivity of vehicles such as cars to the internet, offer enhanced convenience, comfort, and control to the drivers, allowing them to remotely lock and unlock their cars, track their vehicles, and start and stop the engine. For instance, in 2022, the travel and tourism sector made up over USD 7 trillion USD in direct contributions to the global gross domestic product (GDP).
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
20.6% |
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Base Year Market Size (2024) |
USD 2.84 billion |
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Forecast Year Market Size (2037) |
USD 32.42 billion |
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Regional Scope |
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Connectivity (Remote, Near-field, Bluetooth)
Based on connectivity, the remote segment in the automotive digital key market is estimated to gain a robust revenue share of 43% by 2037 owing to high preference for remote connectivity to unlock/lock the car at a distance and the growing popularity of remote digital keys for enhanced convenience, safety, versatility, and efficiency. In addition, high demand for app-based vehicle control is expected to boost segment growth between 2025 and 2037. To cater to this demand, key players are investing in R&D activities. For instance, in June 2021, HELLA announced the launch of a digital, smartphone-based car key that offers completely hands-free vehicle access. Innovations like these are expected to support market growth going ahead.
Vehicle Type (Passenger, Commercial)
Based on vehicle type, the passenger segment is expected to register massive automotive digital key market share during the forecast period led by increasing sales of passenger vehicles, growing consumer demand for connected car features, and rising adoption of advanced technologies and ADAS in modern passenger cars. According to data released by the International Council on Clean Transportation (ICCT), around 66 million passenger cars were sold globally in 2020. This has resulted in a growing need for advanced digital technologies, including digital keys.
Our in-depth analysis of the automotive digital key market includes the following segments:
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Connectivity |
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Key Type |
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Application |
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Vehicle Type |
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North America Market Forecast
The North America automotive digital key market is expected to account for the largest revenue share of 43% by the end of 2037 impelled by rising adoption of connected vehicles with advanced features such as keyless entry and app-based vehicle control, rapid advancements in digital key solutions, and presence of robust key players. Moreover, high reliance on smartphones for daily activities, rising concerns about passenger safety and vehicle security, and supportive norms for vehicle safety are other factors expected to boost market growth in this region.
The awareness of vehicle safety is a key driver for the automotive digital key market in the U.S., as digital keys are gaining popularity amongst rental fleet owners as they can receive or deliver the vehicle without any physical meeting. Increasing penetration of EVs in the U.S., high focus on enhancing driver experience, and rising investments in developing advanced secure digital key solutions are expected to boost market revenue growth.
In Canada, the market is likely to account for significant growth due to rising adoption of connected technology, increasing adoption of EVs with advanced features, including digital keys, and high preference for car sharing and car rentals in areas such as Toronto, Vancouver, and Montreal. According to a recent survey, more than 43% of Canadians have a connected car and the number is expected to drastically increase in the coming years. The market growth is also expected to fuel as automakers and technological firms are collaborating to develop and deploy digital key solutions in the Canada market.
APAC Market Statistics
The Asia Pacific automotive digital key market is estimated to register rapid revenue growth through 2037, propelled by increasing adoption of electric vehicles in countries such as China, India, Japan, and South Korea, rising collaborations between OEMs and tech giants, and growing penetration of digital key solutions. Moreover, rising disposable income in this region fuels the demand for premium vehicles with advanced features, including digital keys.
China is one of the largest automotive industries in the world and key players are heavily investing in connected and smart car technologies. Local automotive players in China such as BYD, Great Wall Motors, and Geely are focused on integrating these technologies to cater to the rising demand. According to a study conducted by Research Nester, in 2021, more than 2 million passenger cars in China were equipped with digital keys, and the number is expected to reach 7.8 million cars by 2025.
Automotive giants in India are focused on incorporating modern technologies like digital keys in vehicles. This is expected to fuel market growth. In addition, the growth of ride-sharing platforms such as Ola, Uber and car subscriptions, and favorable government initiatives to support the adoption of vehicles with advanced digital technologies will impel market size.
The automotive digital key market is highly competitive, comprising key players operating at global and regional levels. Automotive manufacturers like Hyundai Mobis, Volkswagen AG, BMW AG, and Telsa Inc. are focused on integrating digital key technologies into their vehicles to enhance user experience and stay competitive, while firms such as Samsung Electronics, Valeo SA, and Continental AG provide essential components and systems for digital key functionalities. In addition, many industry giants are developing digital keys that allow vehicles to operate via smartphones and other electronic gadgets. Manufacturers and technological firms are often seen adopting strategic partnerships and alliances to meet evolving consumer demands and enhance vehicle functionality. Here is a list of key players operating in the global market:
Author Credits: Saima Khursheed
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