APAC Automotive Smart Keys Industry

APAC Automotive Smart Key Market Analysis

The Asia-Pacific Automotive Smart Key Market is expected to register a CAGR of greater than 9% during the forecast period.

• The automotive smart key market in gaining demand in Asia-Pacific countries like India, China, and Japan. The increasing demand is mainly attributed to the factors such as increasing vehicle security, advanced technology keys such as lightweight and eco-friendly materials used inside the chip.
• Advancements in terms of automotive technology and rapidly growing 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 this region such as BMW, Mercedes-Benz, Volvo, and Volkswagen are developing compact and attractive smart keys, which shall provide growth opportunities for the market in the years to come.
• Additionally, features which are likely in high-end luxury cars are also being implemented in budget cars. Companies such as Honda, Hyundai, and KIA which are engaged in developing smart keys even for budget cars.
• Also, the increasing demand for premium vehicles in this region from the past three years would effectively affect the demand for smart keys in Asia-Pacific.

APAC Automotive Smart Key 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 growing demand in PKE is mainly due to its automated technology when the user or driver is nearby to the vehicle. Majority ok PKE devices can be operated while stored in the user's pocket or bag, unlike a standard remote keyless entry (RKE) device, which requires the user to hold the device and push a button to lock or unlock the vehicle.

Many automobile company manufacturers are focusing on the PKE devices to provide comfort to the customer, which is generating demand to the market. For instance,

• In March 2019, Xiaopeng Motors, a Chinese electric vehicle manufacturer have selected G+D Mobile Security for their smart digital car key solution. It allows the drivers to receive and share their digital car keys via their Xiaomi smartphone and mobile network.

Additionally, some smart keys of vehicles such as BMW, Range Rover and Mercedes-Benz have the ability to store 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. For instance,

• In January 2020, Range Rover had launched its Second Generation Range Rover Evoque in New Delhi, India. It includes all the latest features such as Activity Key, which is a fully waterproof wristband and can perform all the activities like locking and unlocking the door with a single touch.

Similarly, many automobile companies 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.

China to Dominate the Market

The OEMs in China are dominating the market currently. The growth is mainly attributed as there is presence of many OEMS in this region such as Fiat Chrysler Automobiles, FAW Group, and Cadillac. Also, the demand for smart keys is the China is rapidly growing, as many customers are opting for latest technology advancements. For instance,

• In September 2019, Xpeng Motors had become the first smart car equipped with Alibaba In-Car Mini APP. It includes real-time vehicle-to-app interaction with digital smart key. Also, it includes AI-powered vision and voice interaction and individual user setting, which enables the seat, mirrors, steering wheel and even audio preferences to be automatically adjusted.

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

• In November 2018, FAW Group, a Chinese state-owned automotive manufacturing company, had launched Hongqi R Flag model with latest technology developments such as intelligent mobility and advanced environment-friendly.

The increasing demand for smart keys with advanced technology in this region is likely to propel the smart key market in the years to come.

APAC Automotive Smart Key Industry Overview

The Asia-Pacific Automotive Smart Key market is dominated by players such as Denso Corporation, Tokai Rika Co, Ltd., Continental AG, ZF Friedrichshafen AG, 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 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).
• In December 2019, Denso Corporation has announced its joint venture with NTT Communications for developing vehicle security technology for connected cars.

APAC Automotive Smart Key Market Leaders