Car Security System Market By Product Type (Central Locking System, Car Alarm, Immobilizer, Remote Keyless Entry), Vehicle Type (Passenger Car, Light Commercial Vehicle), Sales Channel (OEM, Aftermarket) & Region – Forecast 2021 - 2031
Car Security System Market - Analysis, Outlook, Growth, Trends, Forecasts
- November 2021
- 306 pages
Car Security System Market Snapshot
[306 Pages Report] Demand in the car security system market is projected to expand at a robust 11.8% CAGR between 2021 and 2031. Future Market Insights (FMI) has forecast the market value to top US$ 11.1 Bn in 2021.
Rising concerns regarding vehicle safety among automakers and end users have positively impacted demand for passenger car security systems across the globe. Advancements in automotive electronics and remote operating features have increased the importance of security system installations including car alarms, central locking and keyless access systems.
Future Market Insights has forecast the global car security system sales to reach a valuation of US$ 33.8 Bn by 2031. As of 2020, car security system market comprised nearly 5% of overall automotive electronics market.
Base Year Value (2020A)
US$ 10.1 Bn
Estimated Year Value (2021E)
US$ 11.1 Bn
Projected Year Value (2031F)
US$ 33.8 Bn
Value CAGR (2021-2031)
Collective Value Share: Top 3 Countries (2021)
2016-2020 Car Security System Market Outlook Compared to 2021-2031 Forecast
Sales of car security systems increased at a 4.1% CAGR between 2016 and 2020, with countries such as the U.S., India, Germany, Japan, and China accounting for a substantial share in the global market.
Augmented growth in automotive aftermarket is pushing the car security system market. Introduction of digital security and smart electronic features in the automobile is further aiding to sales of car security systems.
Demand from customers, especially for aftermarket installations, will create scope for sales of passenger car security systems. Driven by these factors, the car security system market is projected to grow at a 10.7% CAGR in terms of volume sales during the forecast period of 2021 to 2031.
How are Favourable Policies Boosting the Car Security System Market?
Installation of car security systems is increasingly encouraged across various countries. Use of basic security systems such as immobilizers have been made mandatory in regions such as Europe and North America. This has been done primarily to prevent instances of vehicle theft. Implementation of such regulations will increase the demand for vehicle security systems.
Furthermore, many insurers across the globe have incurred huge losses owing to the increased cases of vehicle theft. Since the probability of car theft declines once an anti-theft device is successfully installed into the car, some of the insurance companies have stopped insuring vehicles with no security system.
Some insurers, on the other hand, offer huge discount for cars that are equipped with vehicle security systems. New regulations demand car manufacturers worldwide to install basic security systems, even in entry-level economic passenger cars, which hold a major share of overall passenger car market. This in turn, will boost the growth of global car security systems market.
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How will Automation of Vehicles Impact Car Security System Market?
Technology has advanced remarkably in the last few years, following the advent of artificial intelligence (AI), the internet of things (IOT), and machine learning. Consequently, car security systems are becoming more advanced on account of the integration of sensors, ECU, switches and other cutting-edge features.
Installation of sensors in vehicles allow easy detection of potential attempts of theft. This has propelled the sales of in car security system products. Technological advancements in sensor optimization, IOT and controller is further anticipated to push the global car security system market growth.
What is the Impact of COVID-19 Crisis on Car Security System Market?
Suspension of production due to global shutdown has adversely impacted various industries. However, as restrictions were eased, industrial operations started getting back on track and so did the demand for advanced road safety solutions.
Car security system manufacturers were severely impacted during the pandemic owing to the decreasing demand for automobiles. However, the demand of automobiles increased following unlock drives, which has pushed sales in the global car security system market.
What Is the Demand Outlook for Car Security System in U.S.?
As per Future Market Insights, the U.S. is projected to account for nearly three-fourth of the North America market share, and expected to create incremental dollar opportunity of more than US$ 2.6 Billion in the forecast period 2021-31. The U.S. is the strongest economy in the world owing to which, it boasts a higher presence of leading car security system manufacturers.
The U.S. is one of the largest consumers of commercial vehicles and is recording a rapid growth in sales in the light commercial vehicle segment. Favorable vehicle taxation policy in this country is boosting the U.S. automotive market considerably. This may have an optimistic impact on the U.S. car security system market. Demand for sports car, luxury cars and commercial vehicles from this country is expected to push the market.
How Will the Italy Car Security System Market Fare in the Forecast Period?
Italy is expected to create US$ 901.8 Mn absolute dollar opportunity in the Europe car security system market. Manufacturers from this country are launching different innovative products in the market. Italy has been forecast to remain a lucrative pocket for start-ups, which is strengthening the potential of market.
Growth of the car security system market in Italy can also be attributed to the increasing vehicle fleet, supported by smart automotive electronics adoption. Apart from this, high demand for luxury cars from this country is anticipated to continue pushing sales of car security system in the forthcoming years.
Why is India Considered a Lucrative Car Security System Market?
India is one of the leading countries in South Asia & Pacific market and is projected to grow at an impressive pace over the assessment period. The expansion of the India aftermarket is expected to push the demand for car security systems.
As per the report, the demand in India is expected to grow at CAGR of more than 13%. Surge in passenger car sales in this country is expected to push the sales of car security system. Growing population and urbanization also will drive the India car security system market.
Which Product Type is Register High Demand?
Sales in the others segment, which includes smart car control, biometric car access, and electronic steering lock, are anticipated to grow at a remarkable CAGR of more than 15% over the forecast period of 2021 to 2031.
Rising adoption of advanced automotive electronics, digitization, and IOT and AI (artificial intelligence) integration will drive growth in the category.
Others segment is estimated to contribute more than one-tenth of the market share in year 2021. Share held by this category will reach nearly one-fifth of the market by the end of forecast period.
Why is Demand for Car Security System High in Passenger Cars Segment?
More than four-fifth of the car security system market share is contributed by the passenger cars segment. Growth in per year stolen number of vehicles worldwide, particularly in the passenger car segment, is higher in comparison to light commercial vehicles. Passenger cars’ sub-segments such as luxury cars and SUV which come with high price tag are often inbuilt with cutting edge security systems to prevent theft.
The luxury cars segment is anticipated to create an absolute dollar opportunity of around US$ 4 Bn during the period of 2021 to 2031, gaining popularity as they have premium features. Therefore, the increasing sales of passenger vehicles will push demand for car security systems in the coming years.
Which is the Preferred Sales Channel for Car Security Systems?
The aftermarket segment is projected to account for more than 70.0% of the total sales in the market by 2031. Increase in number of older vehicles on the road, digitalization, and demand for luxury cars expected to bolster the demand for aftersales services.
Car security systems are electronics products and average lifespan of electronics products is 4 to 5 years. It is necessary to replace car security systems after this lifespan. Consequently, the car security systems sales via aftersales channel will account for maximum share in the global market.
Leading players operating in the car security system market are investing in strategic collaborations, mergers, and acquisitions to expand their production facilities across the globe. Apart from this, players are focusing on research and development to launch high quality and durable Car security system to gain a competitive edge. For instance:
- In 2021, Tokai Rika and Dai Nippon Printing Announce a Jointly Developed Digital Key Platform for Smart Phones with a variety of locking and unlocking capabilities. In addition to vehicles and the mobility sector, this platform can be used to distribute and manage digital keys across a wide range of fields.
- In 2020, In February, the Mitsubishi Electric Corporation launched a sensor-security technology to detect which detects malicious attacks through its algorithm in sensor fusion algorithms.
Scope of Report
Historical Data Available for
USD Million for Value and ‘000 Units for Volume
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa
Key Countries Covered
US, Canada, Brazil, Mexico, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Australia & New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa
Key Segments Covered
Product Type, Vehicle Type, Sales Channel, and Region
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Car Security Systems Markey by Category
By Product Type:
- Central Locking System
- Car Alarm
- Remote Keyless Entry
By Vehicle Type:
- Passenger Car
- Light Commercial Vehicle
By Sales Channel:
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East & Africa