Automotive Digital Key Market Research, Trends and Forecast

Automotive Digital Key Market Disruptive Trends and Future Potential

The automotive digital key market size is expected to increase from USD 4.14 billion in 2025 to USD 14.03 billion by 2034, growing at a CAGR of 14.54% throughout the forecast period from 2025 to 2034.

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Introduction

The automotive digital key market is a crucial sector of the automotive components industry. This industry deals in manufacturing and distribution of digital keys for automotives. There are several types of products developed in this industry consisting of passive keyless entry and remote keyless entry. It is designed for different types of vehicles comprising of passenger cars and commercial vehicles. These keys use various kinds of technologies including bluetooth, biometric, wi-fi, remote cloud access, NFC and some others.

The digital keys can be purchased from OEMs and aftermarket platforms. The rising sales of passenger cars in various parts of the world is driving the growth of the automotive digital key market. This market is projected to grow drastically with the rise in automotive sector in different parts of the world.

• According to the OICA, around 260822 passenger cars were sold in Argentina during 2022 that increased to 274728 in 2023.

Highlights of the Automotive Digital Key Market

• Asia Pacific held the largest share of the automotive digital key market due to growing sales of EVs along with presence of numerous automotive accessories companies in this region.
• North America is expected to grow with a significant CAGR due to the rising demand for luxury vehicles coupled with technological advancements in automotive sector.
• The remote keyless entry segment held the dominant share of the market due to its several advantages such as enhanced security, remote access, easy administration and some others.
• The passenger cars segment led the industry due to the increasing demand for SUVs in developing nations.

Trends in Digital Keys

• According to the SIAM, around 6.72 lakhs passenger cars were exported from India during the FY 2023-24.
• According to the SMMT, around 120,357 commercial vehicles were manufactured in UK in 2023.
• According to the Statistics Canada, around 253453 passenger cars were sold in Canada during 2023.
• According to the International Energy Agency, around 1.1 million PHEVs were sold in Europe in 2023.

Industry Leader Announcement

In February 2024, Matthias Sekinger, the Managing Partner Connected Mobility of DoubleSlash announced that, “With our development partnership, we are optimally combining our expertise in software and hardware. In addition to the best possible user experience, many other exciting use cases are opening up for the entire vehicle market, such as sharing vehicle keys or parameterizing vehicle settings – thanks to the digital key.”

Competitive Landscape

The automotive digital key market is a fragmented industry with the presence of several dominant players. Some of the prominent companies of this industry consists of Tokai Rika Co. Ltd., Silca S.p.A, Samsung Telefonaktiebolaget LM Ericsson, Hyundai Mobis, Volkswagen AG, Robert Bosch GmbH, Hella, Tesla Inc. and some others. These companies are investing heavily for developing high-quality automotive keys and adopting numerous strategies such as product launches, investment, collaborations and some others to maintain their dominance in this industry.

• According to the annual report of Hella, the revenue of electronics segment in 2022 was 1899 million euros in 2022 that increased to 3372 million euros in 2023.

Market Segmentations

By Product Type

• Smart Key
• Key Card
• Smart Watch

By Vehicle Type

• Passenger Cars (Compact Cars, Mid-Sized Cars, Luxury Cars)
• SUVS
• LCVS
• HCVs

By Technology

• Remote Keyless Entry (RKE)
• Passive Keyless Entry (PKE)
• Near Field Communication (NFC) Keyless Entry
• Others

By Key Type

• Single-Function
• Multi-Function

By Sales Channel

• OEM
• Aftermarket

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa