Analysis of Vehicle Access Control Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global vehicle access control market is valued at US$ 10 billion in 2023 and is projected to garner US$ 25 billion in revenue by 2033, rising at an impressive CAGR of 9.6% during the forecast period (2023 to 2033).
Vehicle access control is a system that removes the requirement of human input and allows vehicles to enter the premises. Vehicle access control allows for automatic access to vehicles as well as approved access to vehicles via gates, doors, shutters, and barriers.
The outbreak of COVID-19 had a negative impact on the worldwide market for vehicle access control devices. The outbreak resulted in limitations on the import and export of electronic items such as RFID devices and sensors employed in developing vehicle access control systems. Moreover, a drop in the sales of vehicles hampered the market growth. Lockdown limitations and tollway closures also had an adverse impact on the expansion of vehicle access control systems. However, mounting security and safety concerns about vehicle theft attempts during lockdown pushed manufacturers to create efficient biometric technology-based solutions.
Demand for enhanced safety systems to control unauthorized vehicle access is increasing. Simultaneously, security requirements at the residential and commercial facility entrance gates are escalating. Power plants, R&D facilities, and nuclear power centers, among other establishments, are critical to a country's economy. Since such establishments commonly store sensitive information, they must be guarded against unauthorized vehicular entrance. These aspects are spurring the demand for advanced vehicle access control systems.
Vehicle access control systems can be implemented across tollways in addition to residential and commercial buildings. The traffic control abilities of these systems can help alleviate traffic issues on tollways. Furthermore, technological improvements are aiding in the adoption of vehicle access control systems by allowing for different combinations of biometric and non-biometric systems. The widespread adoption of these technologies is propelling market growth.
The development of a standardized framework for keyless vehicle access is an important trend in the global market.
The digital key design is based on a standard interface that uses near-field communication (NFC) to allow interoperability between various mobile devices and vehicles. Moreover, the 2.0 design enables vehicle owners to access their cars even when they are not connected to the internet.
The CCC is also working on the Release 3.0 specification to enhance vehicle security by utilizing Bluetooth low-energy and ultra-wideband (UWB). The use of standardized interface technology by major automakers such as BMW, Hyundai, and Honda (all CCC members), among others, improves user convenience and increases the financial viability of such passive vehicle access control devices. As a result, the development of a standardized framework for vehicle access via digital keys is favorably influencing market growth.
Vehicle Access Control Market Size 2023
US$ 10 Billion
Projected Market Value (2033)
US$ 25 Billion
Global Market Growth Rate (2023 to 2033)
United States Market Size (2022)
US$ 3 Billion
Leading System Segment
Key Companies Profiled
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“Rising Vehicle Thefts to Raise Demand for Vehicle Access Control Solutions”
The global market is expanding significantly due to rising vehicle thefts. The expanding black market for vehicles in developed and developing countries is substantially responsible for the growth in car thefts and crime. Furthermore, the ease with which stolen automotive parts, such as engines, gearboxes, radios, airbags, GPS systems, radios, front/rear bumpers, batteries, and so on, can be liquidated is fueling the increase in crime rates.
Car thieves can dismantle an automobile in less than 45 minutes and sell the separate pieces for three times the vehicle's value. Despite technological advancements in automobile security systems and the increasing sophistication of theft-deterrent measures, vehicle crime continues to cost billions of dollars worldwide.
Keyless car access and more sophisticated procedures for vehicle ignition, such as fingerprint authorization and facial recognition, can improve security and greatly reduce vehicle theft. As a result, rising motor vehicle theft is driving the demand for vehicle access control systems.
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“High Cost of Advanced Systems”
Advanced systems, including biometric access (fingerprint recognition and iris recognition) and fully keyless systems (smartphone-powered access), raise component needs as well as design difficulties in terms of incorporating with the vehicle structure. The growing production, installation, and total cost of these systems can limit their uptake among vehicle owners, negatively impacting the market expansion.
“Increase in Car Thefts across the Country”
North America is dominating the global market for vehicle access control systems. Premium vehicles with built-in advanced access control systems and biometric driver identification systems have sold well in North America. As a result, automakers in the region are actively embracing the most advanced and creative vehicle access control systems. Vehicle access control systems are also widely employed on tollways throughout North America to effectively manage traffic on highways.
As per Fact.MR, a market research and competitive intelligence provider, the United States market garnered US$ 3 billion in 2022. Car theft has increased considerably in the United States.
As a result, manufacturers are incorporating new features like keyless entry, vehicle theft assists, electronic immobilizers, and others to improve vehicle safety and security. Furthermore, increasing demand for electric vehicles and light commercial vehicles in the United States is pushing the market forward.
“Strong Focus on Developing New Vehicle Access Control Technologies”
The Asia Pacific market is projected to grow substantially during the projection period due to increased production and demand for automobiles as a result of factors such as rising population and income levels in the region.
Automotive businesses are rapidly investing in R&D to lower installation expenses so that vehicle access control systems are no longer limited to premium vehicles but can also be deployed in low- and mid-end vehicles. Low- and mid-priced vehicles are prevalent in Asia Pacific's developing countries. Consequently, automakers in the region are focusing on installing access control systems in low-end and mid-range vehicles while keeping pricing as low as possible.
The market in South Korea and Japan is experiencing strong growth. Manufacturers in these countries are heavily spending on developing new vehicle access control technologies, accelerating market growth. Manufacturers are partnering with biometric manufacturers to create car authentication systems.
“Early Use of Sophisticated Systems and Heavy Investments“
Europe is projected to see strong market growth during the forecast period. Germany is dominating the regional market growth as a result of the early use of sophisticated vehicle access control systems such as fingerprint and facial recognition in high-end vehicles, as well as greater investment by major regional manufacturers such as BMW and Mercedes-Benz in the growth of such sophisticated technologies.
“Great Accuracy Provided by Biometric Systems”
Demand for biometric systems is surging. Passenger vehicles are typically outfitted with locks that can be activated remotely. However, this technology poses the risk of keys and remotes being stolen, allowing unauthorized access to the car. The benefit of biometric systems is that the credentials needed for vehicle access cannot be stolen from the user.
The great accuracy of biometric systems is one of the main reasons for their increasing rise. Manufacturers are using this technology not only to lock and unlock vehicles but also to start engines.
The global market is highly competitive. Key players in the vehicle access control market are focusing on strategic collaborations and expanding R&D initiatives targeted at developing cost-efficient but highly secure vehicle access solutions. Furthermore, various start-ups are emerging in the global market.
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The global vehicle access control market stands at US$ 10 billion in 2023.
Worldwide demand for vehicle access control systems is expected to rise at a CAGR of 9.6% from 2023 to 2033.
The market for vehicle access control systems is anticipated to touch US$ 25 billion by 2033.
The United States market was valued at US$ 3 billion in 2022.
Denso Corporation, dormakaba International Holding AG, Continental AG, Axis Communications AB, CalAmp Corporation, Alps Alpine Co., Ltd, and Automatic Systems S.A are key players in the market.
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