CAR SECURITY MARKET ANALYSIS

The Global Car Security Market was valued at US$ 12.94 Bn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period (2023-2030) to reach US$ 24.73 Bn in 2030.

A car security system, also known as a vehicle security system, is an advanced electronic device installed in automobiles to deter theft of the vehicle or its contents. The specific features and capabilities of car security systems can vary depending on the type of car. High-end luxury vehicles like the BMW 7 Series, Jaguar XK, Audi A6, and others often come equipped with state-of-the-art and sophisticated security systems. These systems encompass various types of security measures, such as immobilizers that prevent the car from being driven away by locking the steering wheel, gear lever, or pedals in position.

Global Car Security Market: Regional Insights

The car security market has a significant presence in North America due to the region's high adoption of advanced technologies and the presence of major automotive manufacturers.

In Europe, the car security market is prominent, largely due to stringent regulations related to vehicle safety and security. European countries have witnessed steady growth in the installation of car security systems, including immobilizers, keyless entry systems, and tracking devices, to comply with regulations and ensure vehicle protection.

The Asia Pacific region is experiencing rapid growth in the car security market, primarily due to increasing vehicle production and rising disposable income levels. Countries like China and India contribute significantly to market growth, driven by their expanding automotive industries and growing awareness about vehicle security

Latin America offers growth opportunities in the car security market as advanced security technologies are increasingly adopted in vehicles.

The Middle East and Africa region is witnessing gradual growth in the car security market. Factors such as improving economic conditions, increasing vehicle sales, and growing awareness of vehicle security are driving the demand for car security systems in this region.

Figure 1: Global Car Security Market Share (%), By Region, 2022

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Global Car Security Market Drivers:

Growing Awareness and Concerns:

Consumers are becoming increasingly aware of the importance of vehicle security due to heightened media coverage and public awareness campaigns focused on vehicle theft and related crimes. As news outlets report on instances of car theft and the potential consequences, it raises concerns among the general public and emphasizes the need for robust car security systems. For example, news stories highlighting high-profile car theft cases, where valuable vehicles are stolen or items inside the vehicles are targeted, create a sense of vulnerability among car owners. These incidents often receive extensive media coverage, leading to increased awareness about the risks associated with vehicle theft.

Suitable regulatory policies and laws

Governments worldwide are enacting stringent regulations pertaining to vehicle safety and security, compelling car manufacturers to integrate specific security features into their vehicles. These regulations aim to enhance vehicle protection, prevent theft, and ensure the overall safety of occupants and their belongings. For instance, in the European Union, the European Commission has established the European Whole Vehicle Type Approval (EWVTA) system, which sets comprehensive requirements for vehicle safety and security. This includes regulations related to theft prevention and vehicle immobilization. Car manufacturers must comply with these regulations by equipping their vehicles with approved immobilizer systems that meet specific standards.

Global Car Security Market Opportunities:

Integration of Advanced Technologies:

The integration of advanced technologies within the car security market offers substantial opportunities for enhanced protection and proactive security measures. By incorporating technologies such as artificial intelligence (AI), machine learning, biometrics, and the Internet of Things (IoT), car security systems can deliver more sophisticated and intelligent security solutions. For instance, the integration of facial recognition technology can revolutionize vehicle access control. Instead of traditional key-based or keyless entry systems, facial recognition can be used to identify authorized individuals and grant them access to the vehicle. This provides an additional layer of security by ensuring that only authorized users can unlock and operate the vehicle.

Expansion of production plants

The global car security market can benefit from the expansion of production plants in emerging economies, which offers a promising opportunity for growth. With the continuous growth of automotive manufacturing in countries like China, India, Brazil, and Mexico, the demand for car security systems is on the rise as it becomes crucial to protect vehicles and their valuable contents. For instance, in India, a rapidly growing automotive market, the expansion of production plants has opened up significant opportunities in the car security sector. As automotive manufacturing continues to thrive, the need for robust security systems to combat vehicle theft and ensure the safety of car owners and their possessions becomes imperative. The expansion of production plants in India provides an ideal platform for car security system manufacturers to cater to the rising demand and establish a strong presence in the market.

Global Car Security Market Trends:

Growing Demand for Vehicle Tracking Systems:

The car security market is witnessing a surge in demand for vehicle tracking systems, which utilize GPS-based tracking devices. These systems are experiencing a rise in popularity due to their ability to provide real-time monitoring and location tracking of vehicles. This enables owners to promptly recover stolen vehicles and enhance overall security. The increasing occurrence of vehicle theft incidents and the need for more efficient recovery solutions have been significant factors driving the growing demand for vehicle tracking systems. For instance, in urban areas with high rates of vehicle theft, such as metropolitan cities, the demand for vehicle tracking systems has soared. These systems offer peace of mind to vehicle owners by providing them with the means to track and locate their vehicles in case of theft. By promptly notifying the owner of any unauthorized movement or deviation from designated routes, vehicle tracking systems assist in recovering stolen vehicles and preventing potential losses.

Growing Importance of Software Security

The increasing reliance on software systems in vehicles is highlighting the growing importance of software security in the car security market. As vehicles become more interconnected and incorporate advanced technologies, manufacturers are prioritizing the security of their software systems. They are taking proactive measures to secure these systems and regularly update them to address vulnerabilities and safeguard against potential cyber threats. For instance, car manufacturers are investing in robust cyber security protocols to protect the software systems integrated into their vehicles. They are implementing encryption algorithms, secure communication protocols, and authentication mechanisms to prevent unauthorized access and data breaches. By adopting industry best practices and collaborating with cyber security experts, manufacturers can enhance the resilience of their software systems against potential threats.

Global Car Security Market Restraints:

Cost of Implementation:

The implementation of car security systems often requires the incorporation of sophisticated technologies like GPS tracking, remote keyless entry, immobilizers, and alarms. These technologies can be financially burdensome, particularly for older vehicle models that lack built-in security features. The high installation and maintenance costs associated with car security systems may dissuade certain consumers from embracing them, especially in markets where price sensitivity is prevalent.

Counterbalance: The advancements in technology have led to a gradual decline in the prices of car security systems over time. As economies of scale and competition drive prices down, the affordability of these systems is improving. Additionally, consumers often have the option to choose from a range of security solutions at different price points, allowing them to find an option that aligns with their budget.

Lack of Awareness:

A significant number of car owners may lack comprehensive knowledge regarding the risks involved in vehicle theft as well as the availability and benefits of advanced security systems. This lack of awareness can result in decreased demand for car security products and solutions. To foster market growth, it is essential to educate consumers about the advantages and significance of implementing car security measures.

Counterbalance: The rising condition of vehicle theft incidents and the media coverage surrounding them have raised awareness among consumers. Furthermore, manufacturers, industry associations, and security service providers are actively engaged in promotional activities and awareness campaigns to educate car owners about the risks and the range of security options available. As information becomes more accessible, consumers are increasingly recognizing the importance of car security and seeking appropriate measures to safeguard their vehicles.

Figure 2: Global Car Security Market Share (%), By Car Type, 2022 

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Global Car Security Market Segmentation:

The Global Car Security Market is segmented into Car Type, Sales Channel, Product Type, and Region.

Based on Car Type, the market is segmented into Economic Cars, Mid-Range Cars, and Premium cars. Based on Sales Channel, the market is segmented into OEM, and Aftermarket. Based on Product Type, the market is segmented into Immobilizer System, Remote Central Locking System, Alarm System, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

Global Car Security Market Key Developments:

December 9, 2022, Mitsubishi Motors Corporation (referred to as Mitsubishi Motors) announced a significant achievement. The company proudly revealed that it had successfully reached the remarkable milestone of exporting five Billion vehicles from Thailand. This milestone signifies a significant accomplishment for Mitsubishi Motors and showcases the company's strong presence and success in the Thai automotive market.

Mitsubishi Motors Corporation (referred to as Mitsubishi Motors) made an official announcement on August 12, 2022, regarding the release of the plug-in hybrid electric vehicle (PHEV) variant of their latest crossover SUV, the all-new Outlander, in Australia. Following the successful launches in Japan and New Zealand, the PHEV model of the Outlander was scheduled to be available for sale in Australia.

Delphi Technologies known for its expertise in Original Equipment manufacturing and innovative propulsion technologies, launched the Hartridge DPF200 Master on February 25, 2020. This advanced DPF cleaning solution offers workshops a profitable entry into the growing cleaning market. With its faster and safer performance, the DPF200 Master provides a valuable value-added service, helping workshops enhance profitability and meet customer demand for efficient DPF cleaning.

On October 2, 2020, BorgWarner Inc. (NYSE: BWA) announced the successful completion of its acquisition of Delphi Technologies. This strategic merger is set to bolster BorgWarner's portfolio in electronics and power electronics, enhancing its product offerings, capabilities, and market presence. The combined entity aims to become a leader in electrified propulsion systems, positioning itself advantageously for future advancements in propulsion technology.

Global Car Security Market: Key Companies Insights

Key companies operating in the global car security system market are Omron Corporation, Tokai Rika Co., Ltd., Valeo S.A., Continental AG, Delphi Automotive PLC, Robert Bosch GmbH, Denso Corporation, Mitsubishi Electric Corporation

*Definition: The global car security market refers to the industry involved in providing various solutions, technologies, and services aimed at protecting vehicles from theft, unauthorized access, and other security risks. It encompasses a wide range of products such as alarms, immobilizers, GPS tracking systems, remote keyless entry, biometric authentication, and surveillance systems designed to enhance the safety and security of vehicles.