Growing concerns regarding vehicle safety among users and automotive manufacturers are facilitating the growth of the global car security system market, which is projected to surpass $ 33.8 billion by 2031.
As per the latest survey conducted by Future Market Insights, the global car security system market size is poised to reach $ 11.1 billion in 2021. A swift rise in the incidence of car thefts worldwide is the primary factor driving the market.
According to preliminary reports by the National Insurance Crime Bureau, nearly 873,080 automotive thefts were reported across the US in 2020, which is 9.2% more compared to 2019. This rise in the number of thefts increases demand for vehicle theft prevention systems such as car alarms and immobilisers.
The report said that growing automation in the automotive industry and the introduction of remote operating features in next-generation vehicles are increasing the installation of security systems such as keyless access and central locking systems.
In addition, the implementation of regulations mandating the installation of basic car security systems in vehicles is boosting the market.
Some of the players in the car security system market includeContinental, Robert Bosch, Hella, Aptiv, Denso, Tokai Rika, Alpha, Stoneridge, Mitsubishi Electric, Huf Hülsbeck & Fürst, Valeo, Marquardt, I Car, Directed, Alps Alpine and Atech Automotive.
The surging adoption of car security systems, especially across North America and Europe, will drive the sales at 11.8% CAGR over the forecast period (2021-2031).
The passenger cars segment is projected to outpace the light commercial vehicle segment in terms of product type. The segment is expected to account for more than 4/5th of sales through 2031. Surging demand for luxury cars and sport utility vehicles (SUVs) across the US, China, and India is driving the growth in the segment.
According to an analyst from Future Market Insights, the increasing adoption of advanced automotive electronics and integration of novel technologies such as telematics, artificial intelligence, and electronic control units (ECUs) by original equipment manufacturers (OEMs) are expected to accelerate the growth in the market.
Key Takeaways
According to Future Market Insights, the US is projected to dominate the North American market, accounting for nearly 3/4th of the overall sales in the region between 2021 and 2031.
Italy is forecast to emerge as one of the highly remunerative markets in Europe, creating an absolute dollar opportunity of around $ 901.8 million by 2031-end.
India is estimated to account for the largest share in South Asia & the Pacific, projecting sales at a CAGR of 13% over the assessment period.
China is expected to account for nearly 18.1% of the global revenue share, favoured by the increasing demand for passenger cars in the country.
Based on the sales channel, the aftermarket segment is anticipated to account for over 70% of the total share in the market from 2021 to 2031, the leading provider of market intelligence and consulting services said.
Key Drivers
Integration of smart electronic features and advanced sensors across older passenger vehicles is driving the sales of car security systems in the automotive aftermarket segment.
Surging demand for small-sized commercial vehicles with advanced security features from small and medium-sized enterprises, especially across the emerging economies such as India, China, Brazil, and others, is driving the sales of car security systems. However, the high cost of installing and maintaining car security systems and the need to replace the systems after every four to five years are factors expected to limit the sales.
Inadequate adoption of security systems in the entry-level vehicle segment to maintain the affordability of the cars across the targeted population is hampering the market growth.
Key companies in the global market aim to enter into partnerships, mergers, acquisitions, and strategic collaborations to expand their production facilities. In addition, some of the players emphasise research and development (R&D) to launch high quality and advanced car security systems to gain a competitive edge, the research firm said.
Courtesy: Future Market Insights. NB: Photo is representational; courtesy: Hella.