The global car security system market is estimated to garner a revenue of USD 12,000 Million by the end of 2033 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 8,000 Million in the year 2022. The growth of the market is primarily attributed to the increasing motor vehicle production around the globe. Additionally, the growing use of electric vehicles should soon raise demand for autonomous car security systems. According to the International Organization of Motor Vehicle Manufacturers (OICA), motor vehicle production rose globally from 583,74,162 units in 2000 to 917,86,861 vehicles in the year 2019.

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Car security systems are essential tools for preventing theft and keeping the vehicle protected from unauthorized individuals. In addition, car security systems have significantly reduced car thefts worldwide due to their security features such as sound alarms, shock sensors, central locking, and immobilizers. Several advanced car security systems are available on the market today that are making vehicles safer than ever. These include the Avital 5103 and Eclipse 360-degree vehicle surveillance security systems. The installation of a car security system can be accomplished in almost all types of vehicles, including low-passenger cars, heavy vehicles, and light vehicles. Moreover, increasing awareness about the benefits of security systems, technologically advanced automotive electronics, and automatic operating functions have boosted the popularity of security system installations in cars, and the rapid growth in the urban population is anticipated to drive the car security system market growth during the forecast period. According to World Bank data, 57% of the global population is designated as an urban population which is equal to nearly 4.5 million individuals. This number is expected to double shortly after 7 out of 10 people live in urban settlements.

Global Car Security System Market: Growth Drivers and Challenges

Growth Drivers

• Globally Increasing Number of Car Thefts - It was observed that more than 800,400 vehicles were stolen in the year 2020 which accounted for nearly USD 7.3 billion of total vehicle thefts. Moreover, vehicle thefts increased by 11% from the previous year.  Installation of a car security system in almost every car to keep it safe from thieves and crime is anticipated to drive market growth. Increasing car thefts in developed countries along with government and insurance companies in many countries such as Brazil and Indonesia are promoting car security systems and forcing automakers to install these security features as a standard feature in new cars to avoid crime and car thefts.

• Rapid Growth and Expansion of the Automobile Industry- For instance, over 22,930,200 units of vehicles were produced by the automobile industry from April 2021 to March 2022, comprising passenger cars, and commercial vehicles, a significant increase from 22,600,600 vehicles in March 2021.

• Rise In Personal Disposable Income - According to the Bureau of Economic Analysis, in July 2022, personal income grew by USD 47.0 billion (0.2%), and disposable personal income rose to USD 37.6 billion (0.2%).

• Introduction Advanced Car Security Systems by Key Manufacturers- For instance, in September 2020, a renowned company announced URBAN GUARD Vehicle Protection Plus and URBAN GUARD Vehicle Protection, which provides all-around monitoring of cars. This system protects against crime and can be connected with an app.

• Huge Number of Uninsured Vehicles - It was observed that as of March 2019 more than 230 million vehicles run on the road in India among them 56% of vehicles were accounted as not insured.

Challenges

• High Cost of Premium Safety Systems - An advanced vehicle security system with such a larger number and wider spectrum of sensors, an advanced computer control scheme, a greater range of success, and options such as a camera or a virtual ignition starter, or the competence to disable the ignition starter or cut off the gas supply if a hacker is detected, is typically priced between $300 and 850 or more.

• Recent Failures of Car Security Systems to Prevent Thefts

• Higher Installation Cost

The global car security system market is segmented and analyzed for demand and supply by vehicle type into passenger cars, light commercial vehicles, and premium cars. Among these segments, the passenger car segment is anticipated to capture the largest market size in the global car security system market owing to the increasing sales of passenger cars along with the rapid expansion of the passenger car market. For instance, the passenger car market in India is considered for USD 32 billion in the year 2021 and is estimated to garner revenue of USD 54 billion by the end of 2027 growing at a CAGR of over 8%. Furthermore, the growing number of passenger cars being stolen per year, and higher purchasing of passenger cars with security systems are anticipated to augment segment growth over the forecast period.