Published: May 18, 2016 | London, UK
Technavio has published a report on the global automotive passive keyless entry (PKE) system market, which provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Siddharth Jaiswal, a lead analyst from Technavio, specializing in research on automotive electronics sector says, “The evolution of PKE systems has led to a new round of enhancement in vehicle security and driver convenience. This technology, which was earlier restricted to high-end luxury vehicles, has now witnessed rapid adoption among mid-segment vehicles due to a significant reduction in price.”
According to the report, the top three emerging trends impacting the global automotive PKE systems market according to Technavio automotive research analysts are:
- Growing demand for entry and go
- Advancements in semiconductor and wireless technology
- Increasing adoption of automatic vehicle identification system in transit junctions
Growing demand for entry and go
The traditional ignition system requires a mechanical key to connect two electric circuits that initiate the spark in the engine block, which serves the purpose of security and engine ignition. However, with the evolution of electronics, modern ignition system has transformed into a push button, which enhances the convenience factor.
This system was largely used in high-end and luxury vehicles due to its high price. However, post 2008, OEMs have been adopting push button ignition in their mid-segment vehicles. For instance, GM introduced keyless entry-and-go systems only in Cadillac models initially, but gradually this technology made its way into mass mid-segment vehicles like Volt and Malibu. Similarly, Nissan began offering the PKE and go system in its mid-size vehicles such as Altima in late 2008 and gradually introduced this technology in all its vehicles offered in the US.
This system has gained major traction in North America where over 42% of the vehicles manufactured are equipped with the push button ignition system. The US is expected to remain a major market for the PKE and go system during the forecast period due to the wide acceptance of this technology. “Apart from North America, emerging markets like India, Vietnam, Thailand, and China may witness high adoption rates of the entry-and-go system during the forecast period,” says Siddharth.
Advancements in semiconductor and wireless technology
Automotive electronics have rapidly evolved over the past decade with electrification of mechanical components and introduction of electronics in safety, security, and propulsion technologies.
The automotive industry is witnessing a drive of innovation in the field of infotainment, safety systems, driver assistance systems, in-dash controls, telematics, and lately autonomous vehicles. Although these features were largely included in luxury segment vehicles in the past, OEMs and Tier 1 suppliers have been actively investing in exploring means to reduce the cost of these features to introduce them in mass mid-segment vehicles.
This structural shift has pushed semiconductor and integrated circuit companies to focus on the automotive industry and cater to its requirements. Hence, a significant amount of innovation in auto semiconductors has taken place in the past couple of years, which has influenced the PKE system.
Manufacturers are exploring the integration of other functions such as linking PKE system with onboard diagnostics system. This is expected to be introduced in high-end vehicles and gradually adopted in mass mid-segment vehicles during the forecast period. Such integration and advancements will make PKE systems fast processing, low power consuming, and easy to integrate. It will make data communication more reliable and sophisticated.
Increasing adoption of automatic vehicle identification system in transit junctions
Traditionally, the combination of a mechanical lock and key was used for accessing a vehicle. However, this system could not authenticate whether the vehicles were driven by the rightful owner of the vehicle.
With the increasing threat from organized criminals, governments and law-enforcing agencies have been implementing advanced automatic vehicle identification (AVI) system, which identifies not only the vehicle but also the credentials of the driver. These systems have started gaining traction and have been installed at entry junctions of various cities, buildings, and other barricades.
Regions that have already adopted this technology are the US, Germany, Japan, France, the UK, Spain, the Netherlands, and Canada. In the developing world, countries such as Thailand, China, India, Turkey, Mexico, Russia, and Nigeria have active projects implementing AVI technologies.
With the increasing adoption of this technology, PKE system manufacturers are expected to focus on embedding the vehicle and driver data into the system. Experts expect that this technology will gain importance from government and security regulators, which will drive the demand for PKE systems embedded with AVI system.