Vehicle Security Systems Market

The global Vehicle Security Systems Market is valued at USD 9.5 Billion in 2024 and is projected to reach a value of USD 19.8 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 6.95% between 2025 and 2035.

Key highlights of Vehicle Security Systems Market

• North America dominated the Vehicle Security Systems market in 2024, obtaining the largest revenue share of 39.2%
• The Asia Pacific is expected to witness remarkable growth during the forecast period
• In 2024, the passenger vehicle segment dominated the Vehicle Security Systems market with revenue share of 69.2%
• The keyless entry segment asserted its dominance in the Vehicle Security Systems Market, capturing the largest revenue share of 28.5% in 2024
• Face Detection System segment accounted to have the largest growth of the Vehicle Security Systems Market in 2024
• In 2024, the OEM segment mentioned largest revenue share of 67.4% in the Vehicle Security Systems Market
• The rising focus on the advancements of keyless entry in vehicles. In September 2022, Audi India introduced the Q7 model with a limited edition in India. The Audi Q7 Limited edition consists of a comfort key for keyless entry.

Vehicle Security Systems Market: Regional Overview

North America dominated the Vehicle Security Systems Market with revenue share of 39.2% in 2024. The region is home to a large number of vehicle manufacturers, which has led to increased demand for vehicle security solutions. Additionally, the increase in number of on road vehicle which also increases the requirement for the security solutions is fueling the growth of the Vehicle Security Systems Market in coming years. According to sources, during the first quarter of 2023, approximately 286 million vehicles were in operation on roads across the United States. The requirement for the advance security features due to the growing number of connected vehicles is increases, thus, resulted in the development of new technologies such as biometrics, facial recognition, and vehicle tracking systems. For instance, ATrack Tracker Inc. released the AK300 LTE, a vehicle tracker with multiple interfaces that can be used for various commercial vehicles. Also, Qualcomm Technologies, Inc. and Alps Alpine Co., Ltd. collaborated to deliver the Digital Cabin. The Digital Cabin utilizes the High-Performance Reference Architecture (HPRA), which is Alps Alpine’s proprietary integrated electronic control unit (ECU) powered by the 3rd Generation Snapdragon® Cockpit Platforms.

China Vehicle Security Systems Market Overview

The integration of digital security and smart technology features in vehicle is fueling the sales of Vehicle Security Systems. In addition, increasing customer demand, especially for aftermarket installations, is creating various opportunities for the Vehicle Security Systems market growth. Furthermore, the increasing investment by leading players for the development of advanced technologies such as GPS tracking, biometric authentication, and connected car security to strengthen the security features of the vehicle is fueling the growth of the Vehicle Security Systems Market in recent years. For instance, Mojio, a leading connected mobility platform and SaaS solutions provider, launched its newest connected vehicle solution designed specifically for small business fleets.

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The global Vehicle Security Systems market can be categorized as Vehicle Type, Product, Technology, Sales Channel and Region.

Vehicle Security Systems Market: Vehicle Type Overview

In 2024, Passenger Vehicle generated a significant revenue share of 62.2% in the Vehicle Security Systems Market. The Vehicle Type segment is divided into Passenger Vehicle, Light Duty Vehicle, and Medium & Heavy-Duty Vehicle. Increasing number of passenger car also increases the requirement for security features in the vehicle, thus augmenting the segmental growth of the Vehicle Security Systems Market. According to SIAM, In the fiscal year 2022-23, Total Passenger Vehicle Sales surged from 3,069,523 to 3,890,114 units. This increase comprised a rise in sales of Passenger Cars from 1,467,039 to 1,747,376 units, Utility Vehicles from 1,489,219 to 2,003,718 units, and Vans from 113,265 to 139,020 units, compared to the preceding year. Passenger cars are equipped with various security features to protect the vehicle from any kind of theft. Thus, it increases the demand for the passenger vehicles.

Vehicle Security Systems Market: Product Overview

The Keyless Entry segment held a significant revenue share of 28.5% in 2024. The product segment is classified into Alarm, Immobilizers, Keyless Entry, Central Locking System, and Others. Keyless entry systems enable vehicle access without the necessity of inserting a physical key. This mechanism operates through a radio-frequency identification (RFID) chip, transmitting signals to the vehicle’s receiver, granting entry if the chip is authenticated. Offering enhanced security, this system mitigates the risk of losing or having the physical key stolen. The increasing number of connected and autonomous vehicles is expected to boost the growth in the automotive smart keys during the projected time period. For instance, 30 million new connected vehicles were sold in 2020, making up around 41% of new car sales worldwide.

Key Trends

• The integration of Internet of Things (IoT) platforms and connected car technology into security systems for real-time monitoring, remote access, and control of vehicle security features through mobile applications and cloud-based platforms is revolutionizing trend in the growth of the Vehicle Security Systems Market in recent years. For example, companies like Viper Smart offer smartphone-controlled security systems that allow users to remotely lock/unlock doors, start the engine, and track the vehicles location.
• Integration of biometric authentication applications such as fingerprint recognition and facial recognition into Vehicle Security Systems to enhance protection against unauthorized access is augmenting the growth of the Vehicle Security Systems Market in recent years. For instance, Hyundais fingerprint recognition system allows drivers to unlock and start their vehicles without using a traditional key.
• The utilization of machine learning and artificial intelligence (AI) technologies in to security systems to develop predictive security solutions which can detect potential security threats in real-time is a revolutionary traction in the growth of the Vehicle Security Systems Market. For example, companies like Cognosos use AI to analyze data from connected vehicles and identify anomalies that may indicate theft or unauthorized access.

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The surge in advancements in technology such as, biometrics, artificial intelligence, and connectivity is anticipated to bolster the growth of the Vehicle Security Systems Market during projected period. For instance, Continental introduces the "Face Authentication Display," a two-step access control system reliant on biometric user identification. This innovative system employs specialized camera systems discreetly installed externally on the vehicles B-pillar and behind the driver display console. Leveraging biometric face authentication, the vehicle unlocks and initiates as soon as it recognizes a registered user. Enhanced by trinamiXs liveness detection, a subsidiary of BASF SE and a prominent biometric solutions provider, the system effectively detects any attempted deceit.

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Market Dynamics

The Vehicle Security Systems market is driven by the integration of smart features to minimize cyber threats

The use of advance technologies in connected cars has created the emphasis on safeguarding vehicle data and minimizing cyber threats is accelerated a significant expansion of the Vehicle Security Systems Market. In addition, incorporation of the advance technologies creates various opportunities in the growth of the Vehicle Security Systems Market. As an example, Argus Cyber Security, a global frontrunner in automotive cybersecurity, has introduced its latest innovation, the Argus vDome product. This groundbreaking aftermarket anti-theft solution is uniquely designed to safeguard vehicles from CAN injection attacks, marking a significant advancement in automotive security technology. The connection of car security and AI-driven threat detection reflects a pivotal shift towards more robust, intelligent, and proactive measures to ensure the safety and integrity of modern vehicular technologies which are anticipated to create more lucrative opportunities for the market growth during this projection timeframe.

Technological advancement in vehicle security fuels the Vehicle Security Systems market

The alarming statistics from the 2023 Annual Report on ‘Road Accidents in India-2022’ underscore the urgent need for robust Vehicle Security Systems in India. With a staggering total of 461,312 road accidents reported and 168,491 lives lost, road safety has become a paramount concern. This growing number of accidents increases the requirement for the vehicle security features. Thus, various players have deployed advance features in the growth of the Vehicle Security Systems Market. For instance, Continental provides key components and products for the latest Mercedes-Benz E-Class. Featuring Continentals smart device-based access solution (known as CoSmA), this technology transforms mobile devices like smartphones or smartwatches into car keys. This advancement fosters a user-friendly experience aligned with the digital era.

Competitive Landscape

In the Vehicle Security Systems Market, STMicroelectronics and Alps Alpine Co., Ltd. have emerged as key players with significant innovations in secure car access technology. In June 2022, STMicroelectronics introduced a cutting-edge system-on-chip solution compliant with Car Connectivity Consortium (CCC) Digital Key release 3.0 standards, enhancing keyless access via mobile devices. Similarly, in May 2022, Alps Alpine Co., Ltd. announced a strategic collaboration with Giesecke+Devrient GmbH to develop a wireless digital key system, aligning with the CCC global standard, showcasing their commitment to advancing vehicle security technology.

The key players in the global Vehicle Security Systems market include - Hella Group among others.

Recent Market Developments

• In October 2023, DENSO Corporation and KOITO Manufacturing Co. Ltd. announced a collaborative initiative to improve the object recognition capabilities of vehicle image sensors. Their joint efforts involve coordinating lamps and sensors to enhance safety during nighttime driving. The companies share a common objective of elevating overall vehicle safety and reducing the incidence of traffic accidents and fatalities.
• In September 2023, Denso, the prominent Japanese automotive company, introduced an innovative cooling system named 'Everycool.' This advanced system is designed to enhance driver comfort and energy efficiency when the engine of a commercial vehicle is not in operation. Everycool aims to achieve a dual purpose: improving working conditions for drivers during hot summer seasons while simultaneously contributing to environmental sustainability. The system achieves this by reducing fuel consumption, promoting efficient energy utilization, and minimizing the overall environmental impact of commercial vehicle operations.