Vehicle Access Control Market Size, Share, Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Vehicle Access Control Market


The global vehicle access control market size was valued at USD 8,624.5 million in 2018 and is expected to exhibit a CAGR of 10.6% over the forecast period. The increase in the rate of vehicle theft across developing and developed countries is emerging as one of the major factors that are anticipated to drive the market growth over the forecast period. Technological innovations that have led to the development of advanced vehicle access control systems to provide an exceptional driving platform are also encouraging consumers to opt for a vehicle boasting the latest access control system. Moreover, aggressive investments being made by automotive companies to reduce the deployment cost of vehicle access control systems is expected to increase the penetration of these systems across low- and mid-end automobiles, thereby contributing to the market growth.

The need for advanced safety features that can control any unauthorized access to a vehicle is growing. At the same time, the security requirements at the entry gates of commercial and residential buildings are also growing. Research & development centers, power plants, and nuclear power zones, among other establishments, happen to be vital for the economy of a nation. Such establishments often house confidential information and hence they need to be protected from any unauthorized vehicular entry. These are the major factors that are driving the demand for advanced vehicle access control systems.

Apart from commercial and residential buildings, vehicle access control systems can also be installed across tollways. The traffic management capabilities of these systems can help in reducing traffic congestion at tollways. Moreover, advances in technology are helping in increasing the acceptability of vehicle access control systems by enabling various combinations of non-biometric systems and biometric systems. The growing acceptability of these systems bodes well for the market growth over the forecast period.

While vehicle access control systems are proliferating in developed economies, they are being gradually adopted in developing economies as well. However, there exist a few restraints that are hindering the adoption of these systems. First, while incorporating access control systems based on biometrics in a vehicle can be a challenging task for automobile companies, end users can also find it challenging to get acquainted with latest and innovative vehicle access control systems. However, the growing popularity of vehicle access control systems can help new users in easily getting acquainted with these systems. Second, the costs incurred in repairing these systems are also very high. Nevertheless, aggressive efforts by the market players aimed at reducing the deployment and implementation costs are expected to annul these concerns, thereby driving the market growth.

Technology Insights of Vehicle Access Control Market

The non-biometric segment accounted for the largest market share in 2018. Non-biometric vehicle access control systems offer the basic safety and security features, such as keyless entry, intrusion alarm, and stolen car assists, among others, that can help owners in accessing, protecting, and tracking their automobiles easily. These systems are common among low-end and mid-end cars as well as premium cars owing to the ease of implementation and use associated with them. However, non-biometric vehicle access control systems cannot be considered as highly reliable systems, particularly because there have been several instances where thieves have managed to bypass non-biometric vehicle access control systems.

The biometric segment is expected to emerge as the fastest-growing segment over the forecast period. The rapid growth can be attributed to the increasing adoption of biometrics-based access control systems in automobiles. Biometric systems can thwart vehicle theft attempts and ensure easy access to the owner of the automobile. Biometric systems can also be configured to offer a personalized experience to the users, thereby adding to their popularity.  As a result, the adoption of biometrics-based vehicle access control systems, particularly in premium cars, is anticipated to grow over the forecast period.

Application Insights of Vehicle Access Control Market

Based on application, the vehicle access control market has been further segmented into tollways, commercial buildings, residential buildings, and others. Conventionally, vehicle access control systems have been implemented extensively in tollways. These systems leverage the RFID technology and are used to grant entry of vehicles on tollways and highways. These systems can help in managing traffic on various toll roads that are prone to congestion. However, the growing acceptability and awareness about these systems are leading to their gradual implementation in commercial and residential buildings to restrict the entry of unauthorized vehicles.

The tollways segment held the largest market share in 2018. The segment is also expected to register a healthy CAGR of 11.0% over the forecast period. This is primarily due to the rising preference for using vehicle access control systems to ensure controlled access across tollways all over the world. The commercial buildings segment is expected to register the highest CAGR of 11.9% from 2019 to 2025 owing to the continued implementation of access control systems in commercial buildings. The segment growth can also be attributed to the growing concerns over restricting unauthorized vehicular entry and the safety and security of automobiles parked in commercial buildings.

Regional Insights of Vehicle Access Control Market

North America dominated the global market in 2018 with a revenue share of more than 30%. North America has been witnessing rising sales of premium cars, which feature built-in advanced access control systems. Subsequently, automakers in the region are also aggressively adopting the latest and innovative vehicle access control systems. Vehicle access control systems are also used extensively on tollways across North America to manage the traffic on highways efficiently.

However, Asia Pacific is expected to emerge as the fastest-growing regional market registering a CAGR of over 12% over the forecast period. Automotive companies are spending aggressively on research and development to reduce the deployment costs so that these systems are no more limited only to high-end cars and can also be installed in low-end and mid-end cars. Low-end and mid-end cars are particularly popular in the developing economies of Asia Pacific. As a result, automakers in the region are emphasizing on installing access control systems in low-end and mid-end cars without increasing the prices of these cars beyond a certain extent.

Market Share Insights of Vehicle Access Control Market

Key players in the market include Continental AG, Robert Bosch GmbH, Hella GmbH, Nuance Communication, Smartrac N.V., and Lear Corporation, among others. All these players are trying to defend their market share and expand it further. Initiatives being pursued and strategies being adopted toward this end include striking strategic partnerships, making strategic investments, and engaging in mergers and acquisitions. Market players are also launching new products and services and maintaining competitive prices.

For instance, in February 2019, Continental AG acquired Kathrein Automotive GmbH of Germany. Kathrein Automotive GmbH happens to be a provider of antenna and satellite technology. Continental AG envisages leveraging the acquisition to strengthen its vehicle connectivity business. Continental AG has also expanded its portfolio to include various products from rod antennas to the intelligent antenna modules. Intelligent antennas can be used for various applications, including remote access keys and telematics solutions.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Vehicle Access Control Market Research Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 for each of the sub-segments. For the purpose of this study, this market research report has segmented the global vehicle access control market report on the basis of technology, application, and region:

Technology Outlook (Revenue, USD Million, 2019 - 2030)

  
Biometric
  
Non-Biometric
  
RFID
  
Others

Application Outlook (Revenue, USD Million, 2019 - 2030)

  
Tollways
  
Commercial Buildings
  
Residential Buildings
  
Others