Automotive Digital Key Market Analysis

Automotive Digital Key Industry Insights

Key Type Insights

• The remote keyless entry category holds the larger share of the market, of 65%, in 2024, and it is expected to grow at the higher CAGR of 14.8%. Cost-effectiveness is one of the main factors that contributes to the rising demand for remote keyless entry systems.
• A broader range of consumers can access this key type because of its affordability and low maintenance costs.
• These variants are simpler in design, easy to operate, and available for different models of vehicles made by different OEMs.

On the basis of key type, the market has the following categories:

• Remote Keyless Entry (Larger and Faster-Growing Category)
• Passive Keyless Entry

Vehicle Type Insights

• Passenger cars hold the larger share of the market, of 70%, in 2024. The increasing global population is one of the main factors that contribute to the rising demand for passenger vehicles with new digital features.
• Consumers are investing in luxury cars with automated features, to improve their social status, which is significantly boosting the growth of the automotive digital key market in this category.
• Commercial vehicles are expected to grow at the higher CAGR. This is due to the increasing focus of commercial vehicle manufacturers on minimizing downtime, preventing accidents, and ensuring drivers’ safety.

On the basis of vehicle type, the market has the following categories:

• Passenger Cars (Larger Category)
• Commercial Vehicles (Faster-Growing Category)

Technology Analysis

• The near-field communication category holds the largest share, of 45%, and it is expected to grow at the highest CAGR, of 14.8%, during the forecast period.
• It provides higher efficiency and stronger security in comparison to others, and it is easy to deploy and use.

The following technologies have been analyzed in the report:

• Bluetooth
• Biometric
• Wi-Fi
• Remote Cloud Access
• Near-Field Communication (Largest and Fastest-Growing Category)

Sales Channel

• The OEMs category dominates the market in 2024. This is due to the fact that OEMs integrate the digital key technology into cars during the production process. These systems are frequently included as standard or optional options for new models.
• The aftermarket category is expected to grow at the higher CAGR, of 15.0%, during the forecast period.
• With technological advancements and the rising awareness of vehicle safety, many people are having this technology retrofitted into older vehicles.
• Aftermarket entities provide more options of the technology for one vehicle model, along with offering the advantage of cost-effectiveness.

On the basis of technology, the market has the following categories:

• OEMs (Largest Category)
• Aftermarket (Fastest-Growing Category)

Functionality Analysis

• The multi-function bifurcation dominates the market, and it is expected to grow at the higher CAGR, of 14.7%, during the forecast period.
• This is due to the rise in the demand for digital keys that are able to perform multiple tasks, such as vehicle locking/unlocking and engine on/off.

On the basis of functionality, the market has the following categories:

• Single-Function
• Multi-Function (Larger and Faster-Growing Category)

Application Analysis

• The personal category dominates the market with 55% revenue.
• Automotive digital keys offer a wide number of advantages over normal keys, which leads to more convenience for people.
• The growing sale of high-end cars with modern features for personal transportation propels the market.

On the basis of application, the market has the following categories:

• Personal Use (Largest and Fastest-Growing Category)
• Car Sharing
• Car Rental