Automotive OEM Key Market Size, Share, And Growth Report 2032

Automotive OEM Key Market Size

Zion Market Research has published a report on the global Automotive OEM Key Market, estimating its value at USD 449.07 Million in 2023, with projections indicating that it will reach USD 733.32 Million by 2032. The market is expected to expand at a compound annual growth rate (CAGR) of 5.6% over the forecast period 2024-2032. The report explores the factors fueling market growth, the hitches that could hamper this expansion, and the opportunities that may arise in the Automotive OEM Key Market industry. Additionally, it offers a detailed analysis of how these elements will affect market demand dynamics and market performance throughout the forecast period.

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Global Automotive OEM Key Market: Overview

Automotive OEMs may be defined as those manufacturers, developers, and organizations that concentrate on the production of components/devices that are used in automobiles. The components/devices manufactured by these producers are of the best standard and use high-quality commodities. These parts are used in the manufacturing of vehicles during the production and assembly of the complete vehicle.

The increase in the buying power of the global population has fueled the consumption of vehicles, boosting the production of automobiles. Subsequently, this rise in automotive production has expanded the market for automotive key solutions from auto manufacturers, driving the automotive OEM key market worldwide. Recent advancements in the automotive industry, along with the increasing popularity of self-employed vehicles and shared mobility services, have changed the conventional approach of vehicle safety solutions from physical keys to virtual keys stored in vehicle owners' smart devices. This has a negative impact on the automotive OEM key market.

Global Automotive OEM Key Market: Growth Factors

Steady growth in employment levels, industrialization, and other such factors have inflated the growth rate of the global population. This rise in disposable income has improved the sale of automobiles and, therefore, the production of vehicles. The increase in the production and consumption of vehicles around the globe has strengthened the automotive OEM key market.

Insurance firms develop their car insurance plans and insurance rates on the basis of the vehicle's model and safety standards. Several customers choose to use these lower premium rates for vehicles with high-tech key solutions, thus driving the automotive OEM key market across the globe.

A rise in vehicle safety awareness in light of an increase in vehicle theft incidents globally has contributed to an increase in spending on advanced key solutions. The increased inclination of automotive customers towards highly safe key solutions is boosting the demand for the global automotive OEM key market.

Various government policies, the decline in vehicle loan interest rates, and trade deals between different nations have led to the expansion of the automotive industry, thereby fueling the market growth globally.

Changing consumer preferences coupled with technological developments have led to the advent of contactless smart key solutions that allow vehicle owners to perform multiple activities other than opening the door and switching vehicle ignition.

Vehicles with electronic key fobs reduce the challenge of looking for keys when boarding or exiting vehicles. Automotive OEM key manufacturers are growing their research & development resources in key fobs that help the customer to unlock the vehicle from a very long distance. They are developing the engine’s push and hold start/stop buttons to avoid looking around for inserting a key in the ignition in order to get the vehicle moving.

The emergence of electric and hybrid vehicles contributes to the development of the automotive OEM key industry. On the other hand, car manufacturers such as Mercedes-Benz are gaining momentum in keyless technology by revealing their transponder installed into a vehicle that detects the driver's key.

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Impact due to the outbreak of COVID-19

Car producers across the globe are witnessing tentative signs of progress in vehicle sales following the coronavirus disease outbreak. However, stakeholders in the auto industry are also worried about the long-term demand recovery. As a result, automotive OEM key manufacturers are betting on technological advances, such as the implementation of remote keyless entry systems to limit the spread of the novel coronavirus.

Advancements in COVID-19 vaccines are continuing, stimulating vehicle sales in the first and second quarters of 2020. The re-opening of production plants and fully operating facilities with workers working at breakneck rates to strengthen car prices and demand are tactics used by car manufacturers. Such measures are becoming important to revive the growth of the automotive OEM key market, as cars and other vehicles come under the group of non-essential products.

Global Automotive OEM Key Market: Segmentation

The global automotive OEM key market has been segmented based on vehicle type, key type, key material, technology, and region. Based on the key type, the smart key segment retained a dominant market share in the automotive OEM key market in 2023, owing to its high degree of protection, flexibility in operation, and multiple functionalities provided by these smart keys.

Smart keys are one of the most prominent innovations in the automotive industry, making cars safer and highly skilled for owners. Innovative sensors play a vital role in the smart key technology market. Automotive OEM key manufacturers are increasing the production of smart key systems that can disconnect a vehicle’s immobilizer and trigger the ignition without inserting the key into the ignition.

On the basis of vehicle type, the passenger vehicles module held a significant share of the global automotive OEM key market, due to the rising development and demand for passenger vehicles across the globe

On the basis of technology, remote keyless entry systems are expected to have a higher revenue share compared to traditional key entry systems. With the advent of digital car keys, this trend is expected to increase. Thales Group—a French multinational corporation that designs and develops electrical systems, is switching its R&D focus to virtual car keys that effortlessly unlock smartphone-based vehicles.

In terms of key materials, the carbon fiber segment held a leading share in 2023. It is expected to retain its dominance over the forecast era. Carbon fiber keys are lightweight and have high strength, making them extremely convenient for carrying and handling. These attributes of carbon fiber content are boosting its share of the global automotive OEM key market.

Automotive OEM Key Market: Report Scope

Global Automotive OEM Key Market: Regional Analysis

By Geography, the automotive OEM key market is segmented into North America, Europe, Latin America, Asia Pacific, and the Middle East and Africa.

Asia - pacific dominated the global automotive OEM key market, followed by Europe. Developing countries in Asia-Pacific, such as China, Japan, India, and South Korea, generate more than 40% of overall automotive production globally, thus boosting the demand for automotive OEM key market.

The North American market is also expected to expand at a significant pace due to the growing emphasis on reducing vehicle pollution which has changed the focus of the automotive industry to electric vehicles, thereby contributing to the demand for the market. With rising environmental issues, governments and environmental agencies are introducing strict emission standards and regulations that will increase the cost of producing electric power trains and fuel-efficient diesel engines in the near future.

Global Automotive OEM Key Market: Competitive Players

The major players in the global automotive OEM key market include 

• Altuna Group
• dormakaba Holding
• Chiavit (Tornado Group)
• Credit Card Keys
• Continental AG
• Garin System Co. Ltd
• Heights Security, Inc.
• Hangzhou Zhengdian Technology Co.,Ltd.
• LOCKMASTERS INCORPORATED
• One-Tool Co., Limited
• Mitsubishi Electric Corporation
• QINGDAO EVERISE INT'L CO., LTD.
• Runking Technology Co., Ltd
• Qinuo Electronics Co., Ltd.
• Sakthi Industries and among others.

The report segment of the global automotive OEM key market are as follows:

Global Automotive OEM Key Market: Vehicle Type Segment Analysis

• Passenger Vehicles
• Commercial Vehicles

Global Automotive OEM Key Market: Technology Segment Analysis

• Conventional Key Entry System
• Remote Keyless Entry System

Global Automotive OEM Key Market: Key Material Segment Analysis

• Metal & Alloy
• Carbon Fiber

Global Automotive OEM Key Market: Key Type Segment Analysis

• Berlin Key
• Skeleton Key
• Smart Key
• Transponder Key
• Valet Key
• Others

Global Automotive OEM Key Market: Regional Segment Analysis

• North America

  • The U.S.

  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa