Automotive Digital Key Market Size & Share, by Connectivity (Remote, Near-field, Bluetooth); Key Type (Electric, Non-Electric); Application (Single-Function, Multi-Function); Vehicle Type (Passenger, Commercial); Platform (IOS, Android) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 2892
  • Published Date: Mar 11, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Automotive Digital Key Market size is expected to reach USD 15.7 Billion by the end of 2036, growing at a CAGR of 14.5% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of automotive digital key was USD 13.1 Billion. The reason behind the growth is impelled by the growing demand for innovations that help users access their vehicle’s security data through the smartphone application. Over the past century, with the increase in the awareness of vehicle security, along with the rise in per capita disposable income, there has been a surge in the development of initiatives for electro and autonomous mobility. According to the report by Statista, smartphone ownership has increased from 35% to 77% in the US, which is expected to surpass 7 billion by 2023.

The growing advancements in the connectivity of vehicles such as cars to the internet, high convenience, and control for drivers, allowing them to remotely lock and unlock their cars, track their vehicles, and start and stop the engine as well. Such, an increase in recent developments in automotive technology will make these vehicles perfect for usage in the future perspective is expected to boost the growth of the market. For instance, in 2022, travel and tourism made up over USD 7 trillion USD in direct contributions to the global gross domestic product (GDP). This acts as a major growth factor for advanced features in the automobile industry.

Automotive Digital Key Market
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Automotive Digital Key Market: Growth Drivers and Challenges

Growth Drivers

  • Increased Global Production of Luxury Cars- The increasing demand for premium vehicles and the rising technological advancements in the automotive sector, help in increasing the automotive digital key market. It enables advanced features such as vehicle diagnostic data, geofencing, and remote start, which can appeal to luxury car owners. As the market for premium vehicle ownership continues to grow, the demand for digital key technologies will also likely increase.
  • Emergence of IOT Technology- This provides the feature to integrate the vehicle and its systems, such as the infotainment systems, engine control unit (ECU), navigation, and advanced driver assistance systems (ADAS). IoT also allows more real-time data sharing between the vehicle and the cloud, enabling advanced features that can improve cybersecurity in vehicles, making the overall driving experience safer and more reliable.
  • Consumer Changing Demands- Consumers are now more tech-savvy than ever, and they are willing to adopt new technologies, including digital key systems, due to their high concern about vehicle safety, digital key systems provide an added layer of security and protection. The features like luxury cars are being provided by companies such as Honda, which develops smart keys for budget cars, which acts as a major reason for the increase in automotive digital key market


  • Data Security and Cyberhackers concerns- The digital key creates potential vulnerabilities in vehicle security, which can facilitate hacking or unauthorized access to the vehicle’s system. Also, digital technology can collect personal data from the users, such concerns create a barrier to widespread adoption of the automotive digital key market.
  • Increased Price Sensitivity.
  • Increasingly Complex Technology.
  • Regulatory Changes.

Automotive Digital Key Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2023)

~ USD 13.1 Billion

Forecast Year Market Size (2036)

~ USD 15.7 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Automobile Digital Key Segmentation

Connectivity (Remote, Near-field, Bluetooth)

The remote segment in the automotive digital key market is estimated to gain a robust revenue share of 43% in the coming years owing to the remote access or control of the vehicle, which can be used to lock and unlock the vehicle’s doors, start the ignition, and the track the location of the vehicle. Near-field communication technology enables communication between two devices that are within a short range of each other. Bluetooth provides wireless connectivity between the vehicles and the user’s phone.

Key Type (Electric, Non-Electric)

The electric segment is set to garner a notable share shortly and is likely to remain the largest sub-segment in the application of the automotive digital key market. They use wireless communication technology such as Bluetooth Low Energy (BLE), cellular (4G or 5G), GPS, Wi-Fi, and others to communicate with the car. According to the Bluetooth Market Update 2020, it is expected that 13 million annual shipments of Bluetooth-enabled key fobs and accessories will be seen by 2024. On the other side, non—electric Keys refer to traditional keys that use a mechanical system to operate the vehicle. They do not use electronics or wireless technology to unlock and start the vehicle.

Application (Multi-Function, Single-Function)

The multi-function segment in automotive digital key market is estimated to hold a noteworthy share as this offers a broader range of features, including remote entry, engine start, vehicle diagnostics, and geofencing. While, single-function keys offer a limited number of functionalities, such as remote entry or engine start.

Vehicle Type (Passenger, Commercial)

The demand for passenger vehicles, such as cars and SUVs, is increasing, and therefore the demand for convenience features such as remote entry and engine start would also increase. The demand for digital key technology in commercial vehicles, such as trucks, buses, and delivery vehicles is increasing, as this can provide safety, and security in managing and operating these types of vehicles.

Our in-depth analysis of the global market includes the following segments:


  • Remote
  • Near-field
  • Bluetooth

     Key Type

  • Electric,
  • Non-Electric


  • Single-Function
  • Multi-Function

     Vehicle Type

  • Passenger
  • Commercial

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Automotive Digital Key Industry- Regional Synopsis

North American Market Forecast

The automotive digital key market in North America was valued at USD 386 million by 2023 and is predicted to account for the largest share of 43% during the forecasted period. The awareness of vehicle safety is a main growth driver for this market in the U.S., and this market is expected to increase as the popularity of digital keys amongst rental fleet owners so that they can receive or deliver the vehicle without any physical meet. As the occupant fatality rate for passenger cars increased from 1.22 in 2020 to 1.26 in 2021, this shows the requirement for vehicle safety in the region.

APAC Market Statistics

The Asia Pacific automotive digital key market is estimated to be the second largest, during the forecast timeframe, with a 35.7% share of revenue in 2021, led by the higher demand for passenger vehicles, along with the increase in the income of consumers. Asia-Pacific is also expected to further continue its growth in the forecasted period due to the adoption of new norms and policies by the government which encourages the consumption and production of the digital automotive industry.

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Automotive Digital Key Market Size
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Companies Dominating the Automotive Digital Key Landscape

    • Daimler AG
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Heights Security Inc.
    • HELLA GmbH and Co. KG
    • Robert Bosch GmbH
    • Tesla Inc.
    • BMW AG
    • Hyundai Motor Co.
    • ALPHA Corporation
    • Continental AG
    • DENSO Corporation
    • IDEMIA

In the News

  • Samsung and Apple, collaborated with top leading car manufacturers in 2021, to develop applications that allow users to use their smartphones as digital keys to lock/unlock their vehicles or even turn on/off their engines. This project was carried out while focusing on the global market of automotive digital keys market.
  • IDEMIA’s, allows their car makers to manage digital key generation that would work with security storage of keys on Android and iOS smartphones, which would allow the users to use NFC on their smartphone-to-vehicle interface and also enables handsfree vehicle access using Bluetooth (BLE).

Author Credits:  Harshita Srivastava, Saima Khursheed

  • Report ID: 2892
  • Published Date: Mar 11, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The emergence of IoT technology and the increasing demand for digital automobiles are the major factors driving the growth of the market.

The market size of automotive digital key is anticipated to attain a CAGR of 14.5% over the forecast period, i.e., 2024-2036.

The major players in the market are Heights Security Inc., HELLA GmbH and Co. KG, Robert Bosch GmbH, Tesla Inc., BMW AG, Hyundai Motor Co., ALPHA Corporation, Continental AG, DENSO Corporation, Hyundai Mobis, Tokai Rika Co. Ltd., and others.

The remote segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Automotive Digital Key Market Report Scope

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