Car Security System Market Snapshot
The car security system market is expected to reach a valuation of US$ 7.60 Billion by 2021, according to the latest insights by Future Market Insights (FMI). The overall sales is expected to grow at a CAGR of 5.8% between 2021 and 2031.
As per the market research analysis, Continental AG, Valeo, Hella, Robert Bosch, and Tokai Rika are identified as key players. The sales of car security systems in Europe are anticipated to grow at 4.2% CAGR owing to presence of leading original equipment manufacturers (OEM) in the region.
Key Points Covered in Car Security System Market Study
- Market estimates and forecast 2015-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact On Car Security System Market And How To Navigate
- Recommendation on Key Winning Strategies
2016-2020 Car Security System Market Historic Sales Compared To 2021-2031 Forecast Outlook
Multiplying sales of automotive and rise in cases of car theft are driving the global car security system market in past few years. As per FMI, the car security system market grew at 1.6% CAGR between 2016 and 2020.
The increasing demand for car security system can be attributed to the surging awareness among the car owners regarding availability of these systems and implementation of government policies, mandating the presence of immobilizers in new vehicles. As per the FMI’s study, the car security system market is forecast to reach the valuation of US$ 7.6 Bn in 2021.
Presence of outdated and basic security system in economic and low end cars has led to rising theft incidents. To prevent this, manufacturers are working towards integrating multiple standalone systems that offer more robust and modern car security modules. Luxury and premium cars often come inbuilt with these high-end security systems. Thus, the incidence of luxury car theft is on the decline.
Increasing investment towards reducing cost of high tech security systems and making them available even in basic vehicles models will bode well with the market growth. Remote central locking system and keyless and push start ignition systems are gaining traction in emerging economies, which is expected to offer lucrative opportunity for the market growth.
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Why Is Remote Central Locking System Gaining Popularity?
Integration of alarms and remote sensing technology with central locking system has led to the advent of a new range of modern car security systems. Remote central locking system sends a notification to the owner while simultaneously tripping the alarm in the car when an intruder tries to forcefully break-in into the vehicle.
Some modern remote locking systems directly send the car details to the law enforcement authorities and trigger silent alarm system notifying the owner.
Original equipment manufacturers are also offering remote central locking system with biometric sensors thus offering more security to the vehicles. Rising efforts to develop cheaper car security system and rising demand for such security systems in economic cars will propel the expansion of the remote central locking system market.
How will the Demand for Vehicle Tracking Systems Affect Sales?
Increasing sales of automobile in developing countries and rising crime rate have emerged as the prime driving factor of the car security systems market. Automotive manufacturers are adopting intelligent security system to address the rising safety and security concerns within the car industry.
Adoption of vehicle tracking system due to rising advancement in real-time data monitoring and reporting will create opportunities for market growth in the future. Wide variety of security systems depending upon the consumer needs and rise in number of regional players has led to reduction in cost and has been effective in gaining new customers especially in low income countries.
Integration of 5G connectivity with the vehicle security system and development in mobile tracking, cellular tracking, and satellite tracking technologies will drive the market in upcoming years.
What Is Driving The U.S. Car Security System Market?
According to Future Market Insights, North America will continue to be one of the most lucrative markets throughout the forecast period. Growth can be attributed to rising demand for customized and vintage vehicles, increasing mid-size vehicle sales, and large aftermarket.
With the rise in cases of grand theft auto (GTA), the demand for car security system is expected to surge in the country. National Insurance Crime Bureau in its preliminary study reports that, in U.S. auto theft rose by 9.2% from 2019 to 2020 as 873,080 auto thefts were recorded in 2020 in comparison to 799,644 thefts in 2019.
The U.S. being one of the largest markets for car security system, houses some of the global leading manufacturers like Bosch and Continental AG, who offer high quality and modern security systems. Increasing demand for innovative security systems due to emergence of tech savvy car thieves, rising disposable income, high spending power will bode well for the market.
What Will Support Car Security System Market Expansion in Japan?
Demand in Japan is anticipated is anticipated to grow at more than 3% CAGR over the forecast period. High end models of Lexus and Nissan are frequently getting stolen and these cars are dissembled and parts are exported to East Asia and Middle East making it a serious concern. The market players are focusing on creating better car security system thus boosting the market growth in the country.
More than 7.70 Million cars were produced, while 362,228 cars were exported from Japan in 2019, says Japan Automobile Manufacturers Association in its recent report. Rise in automobile production rate, increasing car export across the globe will create lucrative opportunities for market growth. Presence of leading OEMs like Suzuki, Toyota, Nissan, Honda, And Mitsubishi and growing awareness among car owner will positively influence the market growth in Japan.
What Are The Factors Influencing The Car Security System Market In India?
India is one of the fastest growing markets for car security systems. Leading OEMs are setting up automotive manufacturing plants in India owing to favorable government policies and abundance of natural resources. Increasing production of automotive will create opportunity for car security system market growth.
Society of Indian Automobile Manufacturers (SIAM) states that more than 3.06 million passenger vehicles were produced in 2021. With the increase in production of automotive vehicles and integration of vehicle tracking system during the manufacturing phase of vehicles, India car security system market is anticipated to increases in the upcoming decade.
Government of India is also intending on making the car security system like vehicle trackers and geological positioning system (GPS) mandatory in every car. This will bode well with the market.
In India, the installed car security systems like anti-theft devices must be certified by the Automotive Research Association of India (ARAI) to gain benefits on the insurance premium. After installation, the insurance company must be notified about the car security device through email or call. With these policies, the demand for car security system is anticipated to increase over the years.
How Will the Car security system Market Grow in Australia?
Rapid technological advancement in automotive sector in Australia is expected to create lucrative opportunities for car security system market growth in the country. Australian government has mandated the use of vehicle immobilizers in all new cars. Rising investments towards developing modern vehicle security system is providing stimulus for market growth.
According to the Australian Bureau of Statistics, around 62,800 households experienced motor vehicle theft in 2019 out of which 87% cases were recorded by police. Surge in cases of vehicle theft and increasing demand of vehicle recovery systems like GPS trackers that can be attached under the chassis is providing impetus for the development and sales of car security system in the country.
In 2020, Australian Government Department of Industry Science and Resources allocated funds for modernizing automotive industry post COVID-19. These initiatives and funding will promote the original equipment manufacturers to develop new car security device for electric and hybrid vehicles. This is expected to fuel the market growth in upcoming years.
Which Is The Leading Segment Among The Car Type?
Despite mid-size car segment accounting for more than 56.9% of the global car security system market share, economic car segment is forecast to register highest CAGR over the forecast period. The rising sales of budget passenger cars and standardization of security system in economic cars are the key factors attributable for the rapid growth of the segment.
On the other hand, increasing demand for premium and luxury vehicles and increased consumer spending on high quality security systems will drive the sales of car security system in this segment.
As per the German Association of the Automotive Industry report, more than 224,009 units of luxury cars were produced in 2019. Increasing cases of car theft especially in luxury and premium cars segment is leading customers to greater adoption of these products.
Why Is The Demand For Immobilizers And Remote Central Locking System Continuously Rising?
An increasing number of original equipment manufacturers (OEMs) offer immobilizers as a default car security system, as they provide superior safety to the car, is highly intelligent, and has longer lifespan.
Sale of remote central locking system is forecast to grow exponentially owing to its rapid adoption in mid-size and economic cars and high reliability. Owing to advancement in car security system technology, products like vehicle trackers, perimeter sensor, ultrasonic sensor and glass break sensor are gaining popularity and is forecast to register the growth rate exceeding 6% CAGR over the forecast period.
Why are Sales via Original Equipment Manufacturers (OEM) Rising?
Increasing production of cars and presence of leading automakers in Europe, North America and Asia will create high demand in OEM segment. OEMs are establishing manufacturing facilities in emerging economies along with expanding their technical center facilities and production capacities to reap benefits offered by evolving car security system market.
Aftermarket segment is covering significant grounds especially in regions with limited car production like Middle East and Africa. Fluctuation in technology trends in the field of interactive safety system and emerging segment of electric and autonomous vehicles will promote OEMs to develop new products and gain new customers.
As per the FMI’s analysis, Valeo S.A., Continental A.G., Delphi Automotive PLC, Hella KGaA Hueck & Co., Tokai Rika Co., Ltd., Mitsubishi Electric Corporation, Denso Corporation, Robert Bosch GmbH, Lear Corporation, Omron Corporation are the leading market players operating in the car security system market.
They are focusing on new product development to gain the competitive advantage. They are also investing in research and development projects and launch novel security systems to exploit opportunities offered by emerging markets.
Dodge introduced a new owner-customized ‘double verification’ security system in March 2021, for its Charger and Challenger Muscle Cars. The new security system provides four-digit secondary encryption and helps prevent auto theft. It also limits the vehicle’s engine speed to idle (675 rpm).
In June 2021, Hella launched its digital car key with ultra-wideband technology “Smart Car Access” which will provide completely hands-free, smartphone-based vehicle access. The new system has met highest safety standards and is expected to enter into production till 2023.
Scope of Report
Historical Data Available for
USD Million for Value
Key Regions Covered
North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan, and Middle East and Africa
Key Countries Covered
U.S., Canada, Brazil, Mexico, Argentina, Rest of Latin America, EU-5, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC (Denmark, Finland, Iceland, Norway, Sweden), Rest of Western Europe, Poland, Russia, Rest of Eastern Europe, China, India, Japan, GCC Countries, South Africa, Israel, Turkey, Iran, Rest of Middle East & Africa, Australia, New Zealand, South Korea, the Philippines, Malaysia, and Thailand
Key Segments Covered
By Car type, By Product Type, By Sales Channel, and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in the Report
What is the expected valuation of car security system market?
The global car security system market is forecast reach the market valuation of around US$ 7.6 Bn in 2021. It is expected to increase at moderate pace during the forecast period.
What is the year-on-year growth rate for car security system market in 2021?
The car security system market experienced 5.4% year-on-year growth rate between 2020 and 2021.
What was the last 5 year car security system market CAGR?
Car security system market recorded CAGR of around 1.6% in terms of unit volume from 2016 until 2020.
What are the key trends prevailing in car security system market?
Growing adoption of telematics and car OEMs focusing on providing end to end solutions and keeping the aftermarket to their authorized dealer are the key trends prevailing in the car security system market.
What are the key factors fuelling the demand for car security system?
Increasing cases of car theft and increasing demand for low cost car security system in economic cars will drive the demand of car security system during the assessment period.
What is the North America car security system market outlook?
Demand registered in North America will continue rising, backed increasing sales and production in the U.S. and Canada, the North America market is anticipated to expand at 4.4% CAGR during the forecast period.
Who are the leading companies in car security system market?
Continental AG, Valeo, Hella, Robert Bosch, and Tokai Rika are the top companies operating in the market.
At what rate will car security system sales increase in Europe?
Car security system sales will increase at 4.2% CAGR in Europe, backed by rising demand in the U.K., Germany, and other countries.
What are the key statistics for spark plug market in Japan and South Korea?
Currently in 2021, Japan and South Korea collectively holds 9.0% share in the global spark plug market.
Car Security System Market by Category
By Car Type:
- Economic Cars
- Mid-Range Cars
- Premium Cars
By Product Type:
- Immobilizer system
- Remote Central Locking System
- Alarm System
- Other Systems
By Sales Channel:
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific excluding Japan (APEJ)
- Middle East and Africa (MEA)