COVID-19 IMPACT ANALYSIS ON ASIA PACIFIC AUTOMOTIVE DIGITAL KEY MARKET
The exclusive COVID-19 impact analysis report by Axiom MRC provides a 360-degree analysis of micro and macroeconomic factors in the APAC Automotive Digital Key market. In addition, complete analysis of changes in the APAC Automotive Digital Key market expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of a pandemic on APAC economies, international trade, business investments, GDP, and marketing strategies of key players present in the market. The economies of the country have weakened as there is a significant decline in the demand for products. The decrease in consumer demand for passenger vehicles is attributed to a loss in revenue and a severe liquidity crisis in the sector. In addition, according to the Society of Indian Automobile Manufacturers, the industry recorded negative growth in sales of all vehicle categories in FY21 (2.24% drop in sales of passenger vehicles, 20.77% fall in sales of commercial vehicles). Likewise, production cuts owing to a slump in demand negatively impacted employment growth in the automotive sector in the country.
MARKET OVERVIEW- ASIA PACIFIC AUTOMOTIVE DIGITAL KEY MARKET
MARKET DRIVERS
The APAC Automotive Digital Key market is driven by the Improving Lifestyle of the Individuals and increasing adoption of smartphones. Improving the lifestyle of the people in developing economies, the rising population across the globe along with the increasing use of smartphones is further expanding the growth of the market. In addition, the increasing desire of owning a personal car is propelling the market growth. Furthermore, the rising use of smartphones as smart keys for connected cars is again impelling the market growth.
MARKET OPPORTUNITIES
The market is expected to have new opportunities such as a rise in the Integration of Luxury Features in Vehicles. Increasing sales and production of luxury cars in both developing, as well as developed economies, is further boosting the market growth. For instance, according to IBEF, with sales of about 40,000 luxury cars in 2017, India became the 27th most attractive luxury market in the globe. The sale of luxury cars stood at 33,279 units in 2016. In addition, in December 2021, the luxury car market recorded sales of 2,259 units, a YoY growth of 19.7%, with Mercedes Benz being the highest-selling luxury car manufacturer.
MARKET RESTRAINTS
The market has major restraining factors like drawbacks of automotive digital keys. While keyless fobs are undoubtedly safer from traditional forms of theft, such as lock picking, the major concern stems from the possibility of hackers manipulating the technology and stealing the vehicle. Owing to the means that keyless technology works, hackers can use special programs to trick the vehicles into thinking that the correct fob is nearby, enabling them easy access.
MARKET GROWTH CHALLENGES
High Cost of Replacement to a major extent which has created a major challenge for the market growth. Replacement costs of the lost fob are much more than a traditional key. Furthermore, electronic components wear down over time, which then means replacement of either the system or key repair. Therefore, this is a pretty heavy price to pay just to unlock the car. In addition, it's worth noticing that some additional costs come with owning a car with digital key technology.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the APAC Automotive Digital Key market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. With the increasing demand for various Automotive Digital keys in various applications has led to the increasing demand for the market and is expected to witness growth at a CAGR at specific CAGR from 2022-2028.
ASIA PACIFIC AUTOMOTIVE DIGITAL KEY MARKET SEGMENTAL OVERVIEW
The Asia Pacific Automotive Digital Key market comprises different market segments like connectivity, hardware, technology, application and Country.
AUTOMOTIVE DIGITAL KEY MARKET BY CONNECTIVITY
By connectivity, the Automotive Digital Key includes the key segment of
- Remote Cloud Key Access
- Biometric
- Bluetooth
- Wifi
- Ultra-wideband (UWB)
- Others
Based on different technology of connectivity, Bluetooth technology holds the major share in the market, since it is one of the most common connecting platforms which is available in almost every class of vehicles, also manufacturers prefer it owing to its easy set-up, less-costly installation, and provides secure connectivity as well. On the other hand, Bluetooth is considered to be very popular for connectivity, since it doesn’t require the internet to connect and it is very easy to pair with vehicles and electronic devices. Moreover, many of automotive manufacturers in developing countries are also introducing Bluetooth connectivity in their automobiles.
AUTOMOTIVE DIGITAL KEY MARKET BY HARDWARE
The Automotive Digital Key market has major hardware in
- Remote Key Entry Devices
- Mobile Phones
- Others
The remote key entry devices segment is having the largest share among the others. The automotive industry has seen significant growth with the adoption of advanced technologies such as ADAS systems, self-driving, and connected mobility. This is the reason for growing the market for remote key entry devices. This integration of smart technology creates demand for advanced vehicle access management solutions for efficient operation, improved vehicle safety, and more convenient solutions. The remote keyless entry (RKE) system is the standard solution for convenient remote locking and unlocking of doors and cargo compartments. Anti-theft and immobilization systems that can be switched on and off in the same way. Continental car keys and identifiers provide maximum safety and comfort for all vehicle classes. It also includes other features such as extra comfort when opening and closing windows, hatches, sliding doors, and tailgates. An "emergency button" is integrated into the key for added security.
AUTOMOTIVE DIGITAL KEY MARKET BY TECHNOLOGY
The Automotive Digital Key market has technology like
- Passive Keyless Entry System
- Remote Keyless Entry System
The remote keyless entry system segment dominated the market in 2021 and is expected to maintain its dominance during the forecast period. The most cutting-edge remote keyless entry systems are normally named smart keys or advanced keys. These keys employ radio frequency identification (RFID) technology. A vehicle with a digital key can detect when the key is within a particular range of the vehicle and then will lock and unlock the driver’s car door or wait till the driver touches a specific section of the door. Nowadays some remote entry systems enable the user to use their smartphone to replace their key fob or key. In addition, some novel smart key fobs offer users with remote access to vehicle data while assisting to confirm the security of the data exchange. In some cases, this data can be accessed through a portable device such as a smartwatch or a smartphone. Thus, increasing the benefits of the remote keyless entry system is propelling market growth.
AUTOMOTIVE DIGITAL KEY MARKET BY END USERS
The Automotive Digital Key market has major end users like
- Vehicle Engine
- Fleet Management
- Others
In recent years, the use of digital keys is gradually increasing in almost every class of vehicle to provide a smooth start to the engine, and as the demand for premium features in cars is increasing, it is expected that the automotive digital keys to be used for vehicle engine would grow further. Apart from that, the market has been followed by vehicle security, as the cases of vehicle theft are increasing in almost various parts of the globe, automotive manufacturers, as well as end-users, are looking for the effective solution to avoid car theft, thus the popularity of automotive digital key has been increased drastically. These keys are protected with passcodes or biometrics due to which only authorized people have vehicle access, moreover, as technological advancements are growing rapidly, manufacturers are also enabling more advancements in these keys so that cases of vehicle theft can be minimized.
AUTOMOTIVE DIGITAL KEY MARKET BY COUNTRY
The APAC Automotive Digital Key market is studied for the following region
- China
- Japan
- India
- Rest of the APAC
The Asia Pacific is anticipated to witness increasing demand for Automotive Digital Key owing to the presence of well-established market players. The Asia-Pacific region is considered to be the major market since this market is growing to a significant economic development phase. Owing to technological adoption, a large population, growing domestic income, and the availability of cheap labor, the automotive industry is growing in this region. In the Asia-Pacific region, China is the largest contributor to the growth of automotive digital key, since the country is one of the largest manufacturers of commercial as well as passenger vehicles. Along with that, Japan is known to be the home to many automotive manufacturers and one of the largest manufacturers of vehicles which is why there is a great opportunity for the automotive digital key to grow. Additionally, with the growing online rental business sector and the growing safety concerns in India, commercial vehicles are increasing in the country, which is why the market for automotive digital keys is growing in the country.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Automotive Digital Key market is majorly focused on expanding the APAC growth of Automotive Digital Key with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in Automotive Digital Key has led to the growing demand for the market. Besides, the market offers a range of products in different applications to fulfill the required demand of consumers which is further contributing to healthy growth in the market.
The key players studied in the market are
- ALPHA Corporation
- Denso Corporation
- Hyundai Mobis
- Mitsubishi Electric Corporation
- Samsung
- Silca
RECENT DEVELOPMENT:
May 2022: Hyundai Mobis Co. has launched the "bring&T" product that allows users to convert an existing smart key to a digital key via a Bluetooth-based smartphone connection. A smart key can be used as a digital key when the user attaches the smart key to the Bring&T product body, connects it to a smartphone via Bluetooth, downloads the product app to the connected smartphone, and registers the vehicle. According to Hyundai Mobis, the most outstanding feature of the Bring&T product is the automatic door function, which opens or closes the door automatically by detecting users' distance, even if they do not carry a smart key with them.
