Revenue Forecast by Region

The revenue estimate for the base year is $33.1 million for Europe and $64.5 million for North America. The CAGR for the study period is 28.2% for North America and 35.6% for Europe.

The Impact of the Top 3 Strategic Imperatives on the Automotive Digital Key Industry

Disruptive Technologies

Why:

• UWB offers centimeter-level accuracy for precise localization to enhance security against unauthorized access.
• Compatible with existing technologies such as BLE and NFC, UWB integrates smoothly into digital key ecosystems across different vehicles.
• UWB enables hands-free vehicle access when users approach with their digital key-enabled device, improving user experience.

Frost Perspective:

• UWB digital keys will gain traction for their enhanced security and convenience, combined with BLE and NFC as backup, surpassing reliance solely on BLE or NFC.
• The potential of UWB technology will extend beyond digital car keys into applications such as vehicle-to-everything (V2X) communication, smart home integration, and indoor navigation.
• Technology suppliers will explore use cases such as detection of a child in vehicles, as well as automated car opening and remote parking facilitation.

Transformative Megatrends

Why:

• Connected vehicles have driven up demand for seamless integration between smart devices and vehicle systems.
• Autonomous vehicles require robust security measures, making digital keys essential for secure vehicle access while enhancing user convenience with hands-free entry and start.
• Shared mobility requires simplified access management for multiple users, enabling the tracking and management of vehicles.

Frost Perspective:

• OEMs will integrate digital keys with connected vehicle systems for remote access, monitoring, control via smartphones, personalized settings, automatic updates, and IoT device integration.
• Digital keys will allow easy granting and revoking of access for shared mobility services while facilitating tracking and monitoring of vehicle use.
• Digital keys will offer encrypted, secure access to autonomous vehicles, allowing users to unlock and start vehicles without physical keys.

Innovative Business Models

Why:

• The rise of features on demand and enhanced connectivity has spurred the emergence of new subscription-based business models. These services enable users to select and pay for specific features as needed, either on-demand or through annual subscriptions.
• OEMs are now introducing digital key services in subscription models, either independently or bundled with other connected car features.

Frost Perspective:

• Companies offering subscription-based services may attract a different segment of customers than those offering one-time purchase options.
• Integrating connected car features into bundled subscriptions will generate additional revenue for OEMs.
• Digital keys will provide a secure and convenient access solution for a diverse range of vehicles in car-sharing and rental services, which will expand the digital key market significantly.

Scope of Analysis

• Automotive digital key refers to advanced electronic alternatives to traditional mechanical keys used to access vehicles via smart devices such as smartphones and smart watches.
• This analysis provides an overview of the automotive digital key space in the European and North American digital car key markets and their related technological advancements.
• Frost & Sullivan presents digital key market penetration and evaluation in these regions.
• This study emphasizes the main market players and factors such as their product offerings and technological standpoints.

Questions This Study Will Answer

• What is automotive digital key? What is the supply chain structure for automotive digital key technology?
• What are the primary drivers and restraints for this market?
• How will this market grow? What is the adoption trend among OEMs? Who are the technology players?
• How do Europe and North America’s automotive digital key market sizes differ? Which region will see the highest growth?
• What are the growth avenues for the automotive digital key market in Europe and North America until 2030? How will they help important stakeholders in the automotive digital key industry?

Segmentation

Automotive Car Key

• Basic Key
• Classic Key
• Digital Key
  • BLE
    • Bluetooth Low-energy
  • NFC
    • Near Field Communication
  • UWB
    • Ultra-Wideband

Competitive Environment

Key Competitors

OEMs

• Hyundai
• BMW
• Mercedes-Benz
• Toyota
• Tesla
• Tata Motors
• General Motors
• Volkswagen
• Volvo
• Audi
• Renault
• Nissan
• Mitsubishi

Technology Providers

• Continental AG
• Forvia Hella
• Valeo
• HUF
• Denso
• Bosch

Enablers

• NXP Semiconductors
• Infineon Technologies
• Thales
• Giesecke+Devrient
• Gemalto
• STMicroelectronics
• Qualcomm
• Ericsson
• Harman International

Digital Wallet Providers

• Apple
• Samsung
• Google
• Huawei

Revenue Forecast