China Automotive Smart Keys Market Size

China Automotive Smart Keys Market Analysis

The China Automotive Smart Keys Market size is estimated at USD 4.45 billion in 2024, and is expected to reach USD 6.28 billion by 2029, growing at a CAGR of 18.25% during the forecast period (2024-2029).

Smart Keys were a critical feature in luxury vehicles, but now they are even becoming part of entry-level cars. With the change in vehicle owner expectations for their vehicles to perform tasks that would involve a minor physical effort on their part, the smart key became a mainstay of the vehicle model design. Here, the driver is not required to insert a metal key into the tumbler. In addition, push-button ignition switches also became common, eliminating the requirement to rotate the mechanical key in an ignition switch cylinder.

Furthermore, with the advancement in smart keys, virtual smart keys are also being preferred. These keys use technology that can turn a smartphone into a smart key. It can be used for controlling functions like vehicle unlock, turning the ignition on, and various other features.

Over the medium term, factors such as rising demand for cars with advanced features, rising vehicle thefts, and a surge in demand for safety, comfort, and convenience features are fueling the automotive smart keys market in China. Moreover, due to increased demand for advanced features in automobiles, automotive companies are implementing features of high-end cars in budget cars to boost their sales and cater to the demand.

• For instance, in March 2023, a BYD smartwatch with a built-in car key was launched in April. It had features such as smart ignition, comfortable entry, smart locking, raising and lowering windows, and could open the tailgate. The smartwatch is lined up to replace BYD car keys.

The above factors, coupled with new launches and technological advances, will drive the market growth.