Steady Gains in Automobile Production to Drive the Market for Keyless Vehicle Access Control Systems, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Keyless Vehicle Access Control Systems markets. Global market for Keyless Vehicle Access Control Systems is projected to reach 63.5 million units by the year 2017, driven by steady gains in production of commercial and passenger cars. Growing demand for intelligent automotive security technologies, rising incidences of automobile theft, and increased penetration of passive keyless entry (PKE) systems into the mid-market tier represent other factors poised to drive growth in the marketplace.

Keyless Vehicle Access Control Systems: A Global Strategic Business Report

Follow us on LinkedIn – Keyless Vehicle Access Control System represents a keyless entry system that facilitates unlocking of vehicle doors from a distance, without the use of a key. Push-button key fobs, also called Remote Keyless Entry (RKE) control systems for locking and unlocking doors of an automobile represent the most popular type of keyless vehicle access control systems. Remote keyless entry (RKE) systems are now a standard feature in most new vehicles produced across the globe. The system is currently deployed in all cars ranging from the low-end compact economy cars to mid-to-high-end cars. Market for these systems is extremely competitive, commoditized and saturated. Shrinking profit margins as a result of intense competition, and pricing pressures characterizes the RKE market worldwide.

Higher-up in the automotive security and access systems are Passive Keyless Entry (PKE) systems, which currently remains a niche market segment with applications mostly revolving around high-end, expensive vehicle models, such as, SUVs, and sports cars. PKE systems offer the convenience of keyless entry without the need to press buttons. Although currently still a niche technology used largely in high-end automobile models, passive keyless entry (PKE) is nevertheless poised for a period of strong growth, as the technology steadily makes it way towards the mainstream market. Presently, a small percentage of high-end or luxury cars come pre-installed with PKE systems. Although still a small market in terms of unit installations, higher average prices make for a lucrative dollar market, thus explaining manufacturers’ growing interest in this space.

The automobile industry worldwide witnessed a strong rebound in production and demand following the decline witnessed during the 2007-2009 recession. Resurgence in growth fundamentals, such as, recovery in GDP growth, rise in employment rates, incomes levels, discretionary incomes and consumer confidence, drove up sales of new cars in the world market. While the industry in most regions across the world is continuing to recover, the industry in Europe is running into fresh set of challenges. The European automobile industry currently continues to vacillate between optimism and fear, marring sentiments in an otherwise recovering auto industry in the region. Nervous over the play out of the sovereign debt crisis drama, the domestic industry is facing immediate hurdles, such as, credit restriction, consumer indecisiveness, fears of slowing vehicle sales, high labor costs, and possible collapse of consumer confidence in the event of escalation in the severity of the debt crisis. The heat raised by the Euro debt crisis in the auto industry in the EU is reflected by the growing concerns voiced by auto majors like Ford, General Motors, Fiat, over the volatile and fluctuating profits being recorded in the region. Bearish market sentiments indicate that in the event of multiple defaults by debt ridden economies, the Euro could collapse as a common currency. The return to local currency, although currently not seen as likely, can spell doom pushing the automobile industry into a complete meltdown like the one witnessed during the 2007-2009 recession.

The crisis has also sparked fears that tough government spending cuts and increase in taxes as part of the austerity measures could bring consumer spending under pressure in debt ridden economies. Although the Greek government under the leadership of Lucas Papademos, voiced intentions of implementing fiscal austerity packages to reduce the country’s widening deficits, similar measures are currently not seen as likely in relatively stronger economies with lower debt loads like in Germany and Italy. Another key reason why an overly hasty stand on spending cuts is not seen as likely is the growing acceptance of the counterproductive implications of such a strategy. For instance, spending cuts can curtail GDP growth and further reduce revenues and weaken the government’s ability to repay its debts while simultaneously resulting in larger fiscal deficits accumulating into higher public debts.

Market sentiments are additionally strengthened by the fact that the sovereign debt crisis has not yet been transmitted to the real economy as is indicated by the relative stability of the value of the Euro currency. The intrinsic value of the euro has been stable despite fears of massive inflation, and the Euro continues to remain the dominant world currency in comparison to the dollar. Germany’s relative resilience in handling the euro zone crisis is also helping strengthen confidence levels. Given the yet encouraging outlook for the German economy, the largest in the euro zone, it is not all gloom and doom as pessimists might view. Encouraging economic data such as comparatively lower levels of unemployment, better trade surplus accounts, and stable industrial output and manufacturing indices, indicate that the real German economy has not yet been impacted by the crisis as feared. This thereby discounts an across the board impact of a possible eurozone crisis which is still not confirmed as a technical recession.

Under this backdrop, immediate production cutbacks in the region are not seen as likely, given the yet patchy slowdown in auto sales. For instance, there pockets of strength continue to exist in the region, such as in Germany and the UK alongside the quarterly weakness witnessed in France, Spain and Portugal. Also, the 2007-2009 recession inspired adoption of leaner inventory holding strategies and restructured cost bases, and shrewd expansion into developing countries to minimize risk exposure in domestic markets, now has the automotive industry in the region better equipped to weather a possible Eurozone slowdown. Nevertheless, auto makers in the region remain concerned and are continuing to lobby for a quicker intervention of the European leaders in resolving the debt crisis. Currently, however production continues to hold up even in the face of weaker than expected growth and optimism remains with no downgrade in the outlook for auto production. Although short-termed, concerns of the automobile industry are currently alleviated with news about the governments in EU legislating additional bailouts which in effect kicks the EU debt can further down the road. Although these short-term solutions do not provide a permanent solution to the crisis and in reality indicates deferring of conclusive, corrective action, market sentiments are nevertheless encouraged.

As stated by the new market research report on Keyless Vehicle Access Control Systems, Rest of World comprising Asia-Pacific, Latin America, and Middle East, represent the largest market worldwide. These regions together also represent the fastest growing market with a consolidated projected CAGR of 11% over the analysis period.

Major players in the marketplace include Alps Electric Co., Ltd., Atmel® Corporation, Calsonic Kansei Corporation, Continental Automotive GmbH, Delphi Automotive LLP, Denso Corporation, Lear Corporation, Marquardt Switches Inc., Mitsubishi Electric Group, Omron Automotive Electronics Co., Ltd., Panasonic Corporation of North America, Tokai Rika Co., Ltd., TRW Automotive Holdings Corp., Valeo S.A., among others.

The research report titled “Keyless Vehicle Access Control Systems: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, and key strategic industry activities. Market estimates and projections are presented for major geographic markets including North America, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe) and Rest of World. Product segments analyzed include - Remote Keyless Vehicle Access Control Systems and Passive Keyless Vehicle Access Control Systems.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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