COVID-19 IMPACT ANALYSIS ON THE NORTH AMERICA AUTOMOTIVE DIGITAL KEY MARKET
The exclusive COVID-19 impact analysis report by Axiom MRC provides a 360-degree analysis of micro and macro-economic factors in the NA 3-D Printer market. In addition, complete analysis of changes in the NA 3 D Printer market expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of a pandemic on NA economies, international trade, business investments, GDP, and marketing strategies of key players present in the market. The pandemic has had a great economic impact, and the automotive industry. For instance, automotive industry in the United States continues to remain fragile. Vehicle sales in August 2020 declined approximately to 20% (YoY), reaching 1.33 million units. Total January-August 2020 sales reached approximately 8.8 million units, down 23%. During the month, Toyota witnessed a sharp drop of 24.6%, followed by Honda (-23%). Hyundai, on the other side, performed relatively better with only an 8.4% decline.
MARKET OVERVIEW- NORTH AMERICA AUTOMOTIVE DIGITAL KEY MARKET
The automotive digital key market covers the comprehensive analysis of the market based on connectivity, hardware, technology, application, and Country. In this digital era, in the automotive sector, one of the most popular technology features users can find with new cars is the digital key. The automotive digital key is a fundamental component of digitization in the automotive space and the world of connected cars. It is simple and easy to use. In addition, the benefits of the digital car key particularly usability are obvious. Furthermore, the increasing digitization and automation of products and processes across sectors have surged the effectiveness & production efficiency of the businesses. Likewise, the automotive sector is also looking at diverse aspects of its assembly, production, and aftersales service to gain customer loyalty and improve brand reputation. Thus, the aforementioned factors are expected to improve the growth of the market.
MARKET DRIVERS
The NA Automotive Digital Key market is driven by improving the Lifestyle of Individuals and increasing the 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 further expand 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. Also, various market players are working on connecting smartphones as a smart key, which is also expanding the market growth.
MARKET OPPORTUNITIES
The market is expected to have new opportunities such as digitalization in Automotive Industry. The automotive sector is almost fully automated. However, OEMs and suppliers are under enormous pressure to transform. Autonomous driving, networking, the e-car, and changing consumer behavior are making manufacturers transform themselves into mobility service providers. Autonomous, electric, connected, and shared are the four major ingredients of the digital strategy for the future of the automotive sector. The automotive sector must be able to deal with the growing product complexity of the vehicle, IT backend, infrastructure and networking, security and safety requirements, Car2X, 5G, the switch to the e-car, and cloud solutions.
MARKET RESTRAINTS
The market has major restraining factors like the High Cost of Replacement. 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.
MARKET GROWTH CHALLENGES
The difficulties in insurance claims. According to the Society of Motor Manufacturers and Traders, as the signal between the key fob and the vehicle can be hacked, it becomes easy for thieves to bypass the security. This has raised concerns about vehicle security not only among consumers but also among insurance providers. Insurance providers have to add additional requirements in insurance terms of vehicles equipped with keyless entry systems and digital key systems to be major hampering the market growth over the forecast period.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the NA 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 2021-2028.
NORTH AMERICA AUTOMOTIVE DIGITAL KEY MARKET SEGMENTAL OVERVIEW
The North America Automotive Digital Key market comprises the different market segments like connectivity, hardware, technology, application and Country.
NORTH AMERICA AUTOMOTIVE DIGITAL KEY MARKET BY Connectivity
By connectivity, the Automotive Digital Key includes a key segment of
- Remote Cloud Key Access
- Biometric
- Bluetooth
- Wifi
- Ultra-wideband (UWB)
- Others
Based on different technology 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 it 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 automotive manufacturers in developing countries are also introducing Bluetooth connectivity in their automobiles.
NORTH AMERICA 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.
NORTH AMERICA 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 the market growth.
NORTH AMERICA 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 to have access to the vehicles, moreover, as the technological advancements are growing rapidly, the manufacturers are also enabling more advancements in these keys so that the cases of vehicle theft can be minimized.
NORTH AMERICA AUTOMOTIVE DIGITAL KEY MARKET BY COUNTRY
The NA Automotive Digital Key market is studied for the following region
- United States
- Canada
- Mexico
The United States is anticipated to witness increasing demand for Automotive Digital Key owing to the presence of well-established market players. Currently, the United States region dominates the market, and it will continue its dominance during the forecast period. The growth is mainly attributed as there is the presence of many automobile manufacturers in this region such as Ford Motor Company, General Motors, and Fiat Chrysler Automobiles. Also, the demand for smart keys in the United States is rapidly growing, as many customers prefer the latest technology advancements. The accessibility of the digital key through a smartphone is in the innovation phase. However, some OEMs have started providing digital key accessibility with smart wearables. For instance, Jaguar Land Rover has come up with a new smart wearable and named it Activity key.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Automotive Digital Key market is majorly focused on expanding the NA 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 led to the growing demand for the market. The recent outbreak of the COVID-19 pandemic hampered the majority of businesses across the globe owing to the forced lockdown, which caused people to stay at home. The forced lockdown led to a decline in vehicle sales; subsequently, contracting the global automotive digital key. However, the global automotive digital key is expected to expand from 2021, owing to economic measures taken by governments to recover from financial losses caused by the forced shutdown of business activities during the COVID-19 pandemic in 2020.
The key players studied in the market are
- Continental AG
- Denso Corporation
- HELLA GmbH & Co. KGaA
- Tokai Rika Co. Ltd
- ZF Friedrichshafen AG
RECENT DEVELOPMENT:
February 2020: HELLA GmbH & Co. KGaA introduced the latest 77 GHz radar technology into series production in spring 2020. This concept enables the efficient implementation of NCAP applications and automated driving functions. The radar sensor technology is a key technology for the realization of assisted and automated driving functions.
