Vehicle Access Control Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Vehicle Access Control Market Size

Vehicle Access Control Market Trends and Growth Drivers

Development of Smart Cities Is Significant Market Trend

• Smart city initiatives are a result of the rapid urbanization globally, and they are enabled by technological advancements in various domains, including communications and automotive.
• Smart city projects emphasize smart building and transportation networks and the security and privacy concerns of consumers.
• Integrating vehicle access control system with other pieces of civic infrastructure, such as traffic management centers and electric vehicle charging systems, can contribute to creating a sustainable urban environment.

Vehicle Thefts Are Raising Demand for Vehicle Access Control Systems

• Due to the rising number of vehicle thefts globally, the growth of the vehicle access control market will be swift. The expansion of the black market for the vehicles and their parts in developed and developing countries is a key factor because of which car thefts are growing in number.
• Fingerprint sensors and facial recognition are keyless car access technologies for vehicle ignition, which improve security.
• As per the National Insurance Crime Bureau, vehicle thefts are a major concern for people, and major law enforcement agencies are trying to reduce this trend globally. The NCIB is responsible for identifying, investigating, and preventing insurance fraud and crime. It says that vehicle thefts increased from 1,008,756 in 2022 to 1,020,729 in 2023.

High Cost of Vehicle Access Control System and Data Security Concerns Hamper Market Growth

• The high cost for implementing the vehicle access control system is the main challenge for the market growth. Small and medium-sized manufacturers of vehicle-access control system are price-sensitive and find it hard to produce high-tech components.
• The installation of this system demands pricy hardware, software, and maintenance.
• Data privacy is an added concern with this technology since the system is connected to the internet, thereby making the entire vehicle a potential target for a data breach.

Vehicle Access Control System Market Analysis

Type Insights

• The non-biometric category holds the larger share of the market, of 65%. This is due to the cost-effectiveness of non-biometric systems in comparison to biometric systems.
• It is easier for OEMs to integrate non-biometric systems in all types of vehicles.
• The biometric bifurcation is expected to showcase the higher CAGR, of 12.0%, over the forecast period.
• This will be because of the increased security it creates by creating a layer of verification.

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

• Biometric (Faster-Growing Category)
• Non-Biometric (Larger Category)

Vehicle Type Insights

• Passenger vehicles dominate the market in 2024 with 70% revenue share. This is due to the rise in the pace of technological advancements in the automotive industry.
• Additionally, consumers are spending more money for the security of their vehicles.
• The commercial vehicles category is expected to grow at the higher CAGR, during the forecast period.
• The rise in the demand for LCVs in Germany, the U.S., France, and the U.K. is the major factor behind the rapid growth of this category.
• Advanced safety features, such as alarms, immobilizers, and central locking system, are offered as a standard by the LCV OEMs in these countries.

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

• Passenger Vehicles (Larger Category)
• Commercial Vehicles (Faster-Growing Category)
  • Heavy commercial vehicles
  • Light commercial vehicles

Technology Insights

• The RFID category dominates the market with 55% revenue generation in 2024. This is due to the low cost of the technology, easy deployment in vehicles, and quick access for vehicle owners.
• The NFC category is expected to grow at the highest CAGR, during the forecast period. This is due to the fact that the near-field communication technology provides stronger security in comparison to others and is easy to deploy and use.
• In addition, manufacturers of vehicle access control system are introducing NFC-enabled smartphones or card-based access for mainstream vehicles, to increase security.

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

• Bluetooth
• NFC (Fastest-Growing Category)
• RFID (Largest Category)
• Wi-Fi

Geographical Analysis

North America Holds Largest Share

• Geographically, North America holds the largest share of the market in terms of revenue generation, of 45%. Vehicle access control systems play a crucial role in tollways across North America in controlling traffic and collecting fare with more efficiency.
• Asia-Pacific is expected to grow at the highest CAGR, of 12.1%, during the forecast period. Automotive manufacturers in this particular region are investing in research and development to reduce the cost for setting up the vehicle access-control system and make it accessible to low-end and mid-end car users.
• Automotive manufacturers in developing nations, such as India, have large number of low-end and mid-end car users.
• Governments in the region are developing access-controlled highways and setting up toll plazas for revenue generation.

The regions and countries analyzed in this report include:

North America (Largest Regional Market)

• U.S. (Larger and Faster-Growing Country Market)
• Canada

Europe

• Germany (Largest Country Market)
• U.K. (Fastest-Growing Country Market)
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific (APAC) (Fastest-Growing Regional Market)

• China (Largest Country Market)
• Japan
• India (Fastest-Growing Country Market)
• South Korea
• Australia
• Rest of APAC

Latin America (LATAM)

• Brazil (Largest and Fastest-Growing Country Market)
• Mexico
• Rest of LATAM

Middle East and Africa (MEA)

• Saudi Arabia (Largest Country Market)
• South Africa
• U.A.E. (Fastest-Growing Country Market)
• Rest of MEA

Vehicle Access Control System Market Share

Market Concentration – Fragmented

The vehicle access control market is fragmented due to the presence of several major players and several smaller manufacturers and startups. Different OEMs have contracts with different component providers, while an even larger number of companies sell through aftermarket entities.

Vehicle Access Control Market News

• In January 2024, Continental AG launched the Face Authentication Display, a two-stage biometric user recognition access control system that employs camera systems hidden under the driver's console and those mounted on the B-pillar of the car. With it, the car unlocks and begins operating as soon as it recognizes a registered user, post biometric face authentication.
• In March 2023, Dormakaba entered in to a collaboration with Scheidt & Bachmann on the development of a comprehensive parking and building access control system. The Dormakaba access systems MATRIXs and Exos have been equipped with the Scheidt & Bachmann access solution Parkoneer.
• August 2023, Godrej Security Solutions won a contract for its scanners, vehicle access control systems, people access control systems, and barriers to be deployed along the Central Vista in Delhi.