Automotive Digital Key Market Regional Analysis:
North America Market Insights
The North America automotive digital key market is expected to account for the largest revenue share of 43% by the end of 2035 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 Insights
The Asia Pacific automotive digital key market is estimated to register rapid revenue growth through 2035, 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.
