The keyless vehicle entry systems market in Europe is becoming ‘commoditised’, according to researchers Frost & Sullivan.
“Currently, remote keyless entry systems are being offered as a standard feature in all cars. In this scenario, automakers and suppliers are depending on passive keyless entry systems to drive growth,” F&S concluded.
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Frost & Sullivan found that the European market for keyless vehicle entry systems earned revenues of EUR363.6m euros in 2005 and estimates this to reach EUR551.2m in 2012.
“Future growth in the keyless vehicle entry system market will stem from integrating the access system with comfort and convenience functions,” said F&S senior research analyst Karthikeyan Vijayakumar. “With these additional features, the basic vehicle access system will be designed to offer car users an enhanced driving experience.”
Future passive keyless entry and remote keyless entry systems will offer car users the option of greater personalisation in terms of seat memory and climate control, among others. Car status information such as tyre pressure and fuel level will be displayed on key fobs. Moreover, biometric systems, which are beginning to make a foray into the market, are expected to initially offer comfort and convenience functions, and subsequently provide security functions as well.
At present, the remote keyless entry system market is highly ‘commoditised’. Suppliers are under pricing pressure, and are in need of new avenues for growth. Furthermore, passive keyless entry systems are priced beyond the reach of volume segment customers.
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By GlobalData“Suppliers currently delivering remote keyless entry systems should make their presence felt in the passive keyless entry system market as well”, suggested Vijayakumar. “It is important that they enter the passive entry system market since this area offers opportunities for future growth.”
Automakers and suppliers need to work towards reducing the cost of passive keyless entry systems to reinforce positive growth trends. Besides, suppliers of both mechanical and electronic components should aim to partner with each other to offer complete access systems.
