ID: MRFR/AM/2745-CR | 136 Pages | Published By Swapnil Palwe on September 2021
Vehicle Security Market To Reach USD 10,168 Million By 2030, Registering a 6.90% CAGR During The Forecast period.
The vehicle security market in terms of value is estimated to reach USD 10,168 million by 2030, registering a 6.90% CAGR during the forecast period 2022 to 2030.
A vehicle security system is a defense system for a vehicle against external, malicious threats to secure it in all possible ways. This vehicle security system includes detection, prevention, and response to threats through the use of various technologies, such as radio frequency identification and ultrasonic.The global vehicle security market is expected to grow substantially during the forecast period owing to the adoption of biometric technology in vehicle security and the increasing number of advanced vehicle security technologies. Moreover, the scope for adoption in semi-autonomous and autonomous vehicle systems is expected to create an opportunity for the vendors operating in the global market. However, the potential failure of electronic components in the global market is expected to restrain growth during the forecast period.
With the continuous spread of the novel coronavirus across the world in early 2020, automakers had to take extreme measures in the form of plant closures to halt the spread of COVID-19. The situation was uncertain as many European companies suspended work and the US and Asia-Pacific automakers extended shutdown periods. In contrast, the global lockdown helped to limit the effect of COVID-19. However, it severely affected the entire value chain of the automotive industry. In the US and Canada, the government's response has been a combination of state or provincial, federal, and local measures. In other regions, governments have applied seemingly ever-more stringent actions on social interaction, travel, and workplace attendance.
The COVID-19 pandemic has proved how vulnerable automotive supply chains are to disruption, hampering the global supply strategies. The abrupt closure of production centers in China and its domino impact, causing widespread chaos among global auto manufacturers, were felt progressively in the European countries, the US, India, and South America. Having relocated their manufacturing activities to low-cost countries, many automotive OEMs and suppliers are now trying to establish shorter or localized regional supply chains.
Automotive manufacturing involves complex processes, with subcomponents required to assemble a single product sourced from several countries across the world. The raw materials required to manufacture these subcomponents can also be sourced from different countries and continents, and the finished products will again be transported all over the globe. Aluminum, glass, and steel are the main raw material used for the production of vehicle security components such as car alarms, smart keys, and steering wheel locks. Thus, the demand for these raw materials for processing is rapidly increasing. Some processing plants that previously closed are now opened. The dependence on vehicle security components makes the import and export of raw materials and finished products more complex due to disruption in the supply chain.
According to the Federal Bureau of Investigation (FBI), in 2019, about USD 6.4 billion was lost due to vehicle theft, and the average loss per vehicle theft was approximately USD 8,886. Moreover, in 2019, vehicles were being stolen at a rate of 219.9 per 100,000 people, down from 230.2 in 2018. Moreover, in 2019, 721,885 vehicles were stolen in the US. Moreover, New Zealand is considered as the top country by private car theft rate in the world. As of 2018, the private car theft rate in New Zealand was 1,172 cases per 100,000 population.Furthermore, over the last few years, vehicle thieves and unauthorized vehicle users have been making sophisticated means of stealing vehicles, such as switching vehicle identification numbers, acquiring smart keys, and using stolen identities to secure loans for expensive vehicles.To restrict the rising number of vehicle thefts, there has been an increasing demand for vehicle security systems. A vehicle security system comprises multiple subsystems, such as ultrasonic intruder protection (UIP) system, central locking system, backup battery siren (BBS), automatic collision detection system, automatic driver recognition system (ADRS), and remote keyless entry system. It offers intelligent, reliable, and effective vehicle security. Thus, the rise in incidents of vehicle theft is expected to drive the growth of the global vehicle security market during the study period.
The vehicle manufacturing companies were initially focused on using phones to improve convenience in vehicles. However, this entailed exposing the keys to the Internet, creating new risks for driver safety and cybersecurity. Hence, automotive manufacturers are working on developing alternative technologies that facilitate vehicle use without connecting to the Internet.
A biometric system, being a potential substitute for a cell phone security system, is a method of identifying a human by their unique characteristics. There are various biometric patterns such as fingerprint, retina, palm, face, voice, and iris. There are mainly three types of biometric modules within vehicle security systems: fingerprint recognition technique, embedded mainboard with various components, and human-machine communication module.
Fingerprint biometrics is used for personal detection in terms of security and reliability. Mainly, live fingerprint readers based on optical, thermal, and ultrasound approach are used. The two commonly used fingerprint matching techniques used are minutiae-based matching and pattern matching. Minutiae matching generally relies on minutiae matching, i.e., the location and direction of each point. On the other hand, pattern matching techniques involve the similarity and comparison between two images.
A vehicle security system comprises several electronic components, such as microcontrollers, GSM modules, GPS modems, level shifter ICs, GSM modems, LEDs, LCD, relay drivers, proximity sensors, and motion sensors. It also comprises self-contained modules of complex interconnected electronic elements, such as capacitors, resistors, transistors, diodes, and fuses. The increasing number of components will increase the probability of system failure. Moreover, poor quality control during the manufacturing and assembly process may result in improper manufacturing of electronic components, which may cause failure. Such failures in the electronic components reduce the efficiency of the vehicle security system. Thus, the risk of potential operational failure is expected to limit the growth of the global vehicle security market during the forecast period.
The major automotive and technology providing companies, such as AB Volvo, Apple Inc., Baidu Inc., BMW AG, Daimler AG, Nvidia Corporation, Shift5, Delphi Automotive PLC, Ford Motor Company, General Motors Company, Google, and Apple Inc., are investing in the development of autonomous vehicles. For instance, in November 2020, Shift5, a cybersecurity company, was awarded a contract by the Army's Rapid Capabilities and Critical Technologies Office (RCCTO) to deliver a prototype vehicle security system for a critical ground vehicle platform. To ensure reliability and safety even in the event of a system malfunction and reduce accidents and deaths, the security of semi-autonomous and autonomous vehicles is a growing concern.
The global market for vehicle security has been segmented based on component, technology, vehicle type, and sales channel.
Based on component, the global vehicle security market has been segmented into central locking systems, remote keyless entry systems, ultrasonic intruder protection systems, automatic collision detection systems, automatic driver recognition systems, backup battery sirens, and others.Ultrasonic Intruder Protection System (UIP) refers to an intrusion detection sensor mounted on vehicles for security purposes. The system detects unauthorized access into the vehicle and activates an alarm or other notice to notify the people and the surroundings. Battery backup sirens are those in which the backup battery system supplies power to the alarm installed in vehicles when there is no power on the main car battery. Central locking system refers to the locking system in the vehicle, which grants access to lock and unlock the vehicle doors access only to authorized persons. This type of locking system is the one that locks and unlocks all doors of the vehicle with only one door, usually the driver's door. The growing concerns regarding automobile and passenger safety have led to the integration of automatic collision detection systems in vehicles. It comprises sensors and several other components that monitor the vehicle's speed, the speed of the vehicle in front of it, and the gap between the vehicles. A remote keyless entry system differs from a conventional key system as it performs the locking and unlocking of vehicle doors using the remote-control mechanism. Vehicle security systems rely on smart card systems or electronic alarms to avert vehicle thefts. To counter these attempts, the automotive component manufacturers developed a biometric driver recognition system that utilizes the driver's behavior to form a multimodal recognition system.
Based on technology, the global vehicle security market has been segmented into radio frequency identification, ultrasonic, and others.Ultrasonic sensors are generally used to trigger the alarm if a change in the air pressure is detected in the cabin of the vehicle. It does so by transmitting ultrasonic sound waves around the interior of the vehicle. Radiofrequency identification is a wireless non-contact use of radiofrequency waves to transfer data. The use of radio frequency identification systems for vehicle security purposes is becoming popular owing to its cost-effectiveness. The others segment includes break-in sensors, motion & tilt sensors, and window controller systems. Break-in sensors are designed to trigger an alarm when the glass is broken. These sensors are available in two types: glass break detectors and shock sensors.
Based on vehicle type, the global vehicle security market is bifurcated into passenger cars and commercial vehicles. Passenger cars refer to road motor vehicles used to carry passengers rather than goods. According to the Organisation for Economic Co-operation and Development (OECD), passenger cars are vehicles that have the capacity of carrying not more than nine persons, including the driver. Commercial vehicles include mini-vans, trucks, coaches, buses, and other vehicles used to transport goods and passengers. The increasing demand for commercial vehicles in the processing, manufacturing, and logistics sectors and the continuous growth in the tourism and hospitality sectors propels commercial vehicles' demand.
Based on sales channel, the global vehicle security market has been segmented into Original equipment manufacturers (OEMs) and aftermarket.OEMs are engaged in the production of parts and equipment that are being marketed by some other manufacturers. The major automotive component manufacturers are investing in research & development to offer vehicle security systems and modules and upgrade new technologies. Aftermarket is associated with the manufacture, remanufacture, and installation of vehicle security system parts after the vehicle is being retailed by an OEM. Aftermarket vehicle security parts are more cost-effective than OEM parts, which increases the preference for aftermarket vehicle security parts and components.
Based on region, the report on the Vehicle security market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World.
The growth of Asia-Pacific can be attributed to the increase in the adoption of premium and luxury vehicles. The market for vehicle security is expected to grow at the highest rate in Asia-Pacific during the study period due to an increase in demand for automobiles, primarily in China and India. The existence of major manufacturers and operating units of global players in this region, combined with the availability of sophisticated technologies, enables the market to flourish. The market is also expected to grow during the forecast period due to an increasing population, industrialization, and rapid growth of the manufacturing industry. Owing to all these factors, Asia-Pacific is expected to register a CAGR of 7.45% during the forecast period. However, this demand was hampered by the widespread global pandemic. The demand dropped by a considerable amount due to the shutdown of all major offices, resulting in a lack of demand. In the subsequent years, the demand is expected to increase as the industries have started their manufacturing activities according to national rules and regulations.
Europe comprises various countries, including the UK, Germany, France, Spain, and Italy. The European Union has introduced several norms regarding vehicle safety, which prompt the automotive OEMs to consistently integrate electronics technology such as biometric systems, ultrasonic intruder protection systems, automatic collision detection systems, automatic driver recognition systems, and others into automobiles. The region is a major hub for automobile manufacturers, who offer passenger and commercial vehicles embedded with vehicle security systems. According to the European Automobile Manufacturers' Association (ACEA), stringent government regulations and standards are expected to increase the demand for next-generation vehicles, such as electric and hybrid vehicles, leading to the need for vehicle security systems during the study period.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Denso Corporation, Robert Bosch GmbH, Valeo, Continental AG, and Lear Corporation are some of the key players operating in the market. These companies compete in terms of availability, price, quality, and technology and consider product development as their key strategy in the market. Although the international players dominate the market, regional and foreign players with small shares also have a significant market presence. The international players may strengthen their market presence by heavily investing in product development during the forecast period.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Denso Corporation, Robert Bosch GmbH, Valeo, Continental AG, and Lear Corporation are some key players operating in the global market.
The global vehicle security market has been segmented based on component, technology, vehicle type, sales channel.The vehicle security market is driven by factors such as the adoption of biometric technology in vehicle security and the increasing number of advanced vehicle security technologies. Moreover, the scope for adoption in semi-autonomous and autonomous vehicle systems is expected to create an opportunity for the vendors operating in the global market. However, the potential failure of electronic components in the global market is expected to restrain growth during the forecast period.
|Market Size||USD 10,168 million 2030|
|CAGR||6.90% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Technology, By Component, By Remote, By Vehicle Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Denso Corporation (Japan), Robert Bosch GmbH (Germany), HELLA GmbH & Co. KGaA (Germany), Valeo (France), Mitsubishi Electric Corporation (Japan), Continental AG (Germany), Lear Corporation (US), Tokairika, Co, Ltd (Japan), Omron Corporation (Japan), and Alps Alpine Co., Ltd (Japan).|
|Key Market Opportunities||Advanced safety features|
|Key Market Drivers||
The global vehicle security market is expected to record a substantial market valuation of USD 10,168 million during the forecast period 2022 to 2030
The global vehicle security market is projected to register a moderate 6.90% CAGR in the forecast period.
Rising demand for new commercial vehicles and increasing vehicle theft activity are driving the growth of the market.
The central locking system segment is slated to expand as the fastest-growing segment.
The commercial vehicle segment is slated to expand as the fastest-growing segment.
A few major market players operating in the global vehicle security market are Denso Corporation (Japan), HELLA GmbH & Co. KGaA (Germany), Robert Bosch GmbH (Germany), among others.