Japan Automotive Smart Keys Market

Japan Automotive Smart Keys Market Analysis

The Japan Automotive Smart Keys Market is expected to register a CAGR of greater than 12% during the forecast period.

• The automotive smart key market in Japan is gaining traction over the last decade, owing to advantages, such as increased vehicle security. Also, the features similar to high-end luxury cars are also being implemented in budget cars by companies, such as Honda, Toyota, and Nissan which are engaged in developing smart keys for budget cars.
• Advancements in terms of automotive technology such as lightweight and eco-friendly materials used inside the chip and increasing vehicle thefts are likely to propel the development of smart keys, thus, generating a growth to the market in the coming years.
• Several leading car manufacturers in Japan such as Toyota, Lexus, Nissan, and Honda are developing compact and attractive smart keys, for instance, Honda had collaborated with Continental AG for the development of its smart key which can be even accessed with a smartphone. Such features shall provide growth opportunities for the market in the years to come.
• The smart key offers a tremendous boost in terms of user-friendliness and convenience. The convenience and driver assistance system attract huge adoption in the Japan automotive market. The increase in adoption for premium and luxury vehicles is driving the demand for smart keys in Japan.

Japan Automotive Smart Keys Market Trends

Passive Keyless Entry Segment to Experience Highest Growth

Currently, the passive keyless entry (PKE) is experiencing high growth and it is expected to continue its dominance during the forecast period. The growth is attributed to its automated technology when the user or driver is nearby to the vehicle. Many automobile manufacturers are focusing on the PKE devices to provide comfort to the customer, which in turn, is generating demand to the market. For instance,

• In September 2019, Continental AG had installed its smartphone key access solution in Honda automobiles. Continental's CoSmA solution will enable Honda owners to open the vehicle or share the key with others using just their smartphone. Using the My Honda+ App, they can unlock the vehicle remotely via Bluetooth Low Energy (BLE).

Additionally, some smart keys of vehicles such as BMW, Range Rover, Mercedes-Benz and Lexus have the ability to store or save user preferences such as seat positions, steering wheel position, mirror settings, climate control temperature settings, and stereo preferences which can be automatically adjusted by pressing a single button.

Similarly, many automobile manufacturers have introduced smart phone key technology to eliminate the use of traditional keys. Thus, the increasing focus on the advancements of PKE segment shall lead to its highest growth.

OEM Segment to Witness Significant Growth

The OEMs segment is likely to dominate the market owing to the presence of major automakers such as Toyota, Lexus, Acura, and Honda. Also, the increasing usage for smart keys is this country is gaining more demand, as many customers are opting for latest technological advancements.

The demand for smart keys in the Japan is growing rapidly, as various Japanese companies are launching vehicles with keyless entry features, which shall lead to a growth of the automotive smart key market in this country. For instance,

• In October 2018, Toyota Motor Corporation had announced that the sales of new Lexus ES begin in Japan. It continues to deliver heightened comfort, craftsmanship, and luxury as it enters its 7th generation. The Lexus ES 300h offers the latest technology developments such as intelligent mobility and advanced environment-friendly.

The increasing demand for smart keys with advanced technology in Japan is likely to propel the smart key market in the country in the years to come. Thus, such developments are expected to lead to growth in the automotive smart key market in Japan.

Japan Automotive Smart Keys Industry Overview

The Japan Automotive Smart Keys market is dominated by few players such as Denso Corporation, Continental AG, Alpha Corporation, Tokai Rika Co, Ltd., and Valeo SA. These Companies are expanding their business by offering smart key solutions, so that they can have edge over their competitors. Various initiatives, as well as product innovations done by these companies have led them to strengthen their presence in the market.

• In March 2020, Tokai Rika Co. Ltd and Kimura Unity Co., Ltd had started joint demonstration tests of a digital key system-based service for company vehicles. The digital key is installed in mobile application, which is transmitted to the user's smartphone and used to lock or unlock the doors. This allows the use of company vehicles without the need to hand over and reduce the usage of traditional keys.
• In December 2019, Denso Corporation had announced its joint venture with NTT Communications for developing vehicle security technology for connected cars.
• In July 2018, Continental AG had launched its new smart voice assistant system which enables natural dialogue, understands multiple questions in one sentence and detects logical connections. The Distraction-free operation via smart voice control enhances road safety.

Japan Automotive Smart Keys Market Leaders