The “Global Car Security Market, by Car Type (Economic Cars, Mid-Range Cars, Premium cars), by Sales Channel (OEM, Aftermarket), by Product Type (Immobilizer system, Remote Central Locking System, Alarm System, Other Systems) and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Forecast to 2027”, is expected to exhibit a CAGR of 6.0% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights
A car security system is an innovative anti-theft security technology, installed in vehicles to discourage theft attempt of the vehicle or content or both. Generally, high-end vehicles are equipped with car security system with basic anti-theft solutions in mid-range cars. Over the years, automakers have introduced innovative vehicle security systems such as alarm system, which produces an audible albeit loud sound when there is an attempt of unauthorized entry. Furthermore, high-end luxury cars have immobilizer system, wherein the security system restricts the car’s movement by locking gear, steering wheel, lever or electronics systems.
The global forklift truck market is estimated to account for US$ 47,764.8 Mn in terms of value and 1,401,499 units in terms of volume by the end of 2019.
Rising sales of new vehicles worldwide are expected to drive the global car security system market growth during the forecast period
Increasing disposable incomes, growing consumer focus on adoption of novel technologies, and increased vehicle production are major factors supporting the demand for security systems. Furthermore, rising urban population and growing adoption of technology-efficient automobiles, automakers are now providing in-built cutting-edge security systems. According to Coherent Market Insights’ analysis, the global automotive production output is expected to witness a CAGR of 2.9% between 2016 and 2026. According to the same source, the global annual production is expected to reach 122.1 million units by 2026, which in turn, will boost the demand for vehicle security systems. Furthermore, according to the International Organization of Motor Vehicle Manufacturers (OICA), global automotive vehicle production output in 2015 was pegged at 90.1 million units, with Asia Pacific and Oceania accounting for 51.9% of the total global production. According to CMI’s analysis, increasing demand for passenger vehicles is expected to increase vehicle production in countries such as China, Mexico, India, South Korea, and South Africa. This, in turn, is expected to present lucrative growth opportunities for automotive component manufacturers and suppliers in these regions.
Business and capacity expansion of production plants is expected to pose lucrative business opportunity
Key automotive manufacturers in the market are focused on business and capacity expansion, in order to increase production capacity and capitalize untapped potential in emerging markets. Such expansions of production plants are expected to provide significant business opportunities for local component suppliers since global market players prefer domestic vendors only for component supplies. For instance, in 2015, Kai Motors, a South Korea-based automotive company, established its new production facility in Mexico. Moreover, in 2015, Daimler and the Renault-Nissan established a joint-venture manufacturing complex called COMPAS (Cooperation Manufacturing Plant Aguascalientes) in Aguascalientes in Central Mexico. The plant is expected to produce premium compact vehicles for brands such as Mercedes-Benz and Infiniti and is expected to commence production in 2017.
Low awareness related to advantages of vehicle security system is expected to restrain growth of the global car security system market
Low awareness regarding advantages offered by vehicle security systems, especially in emerging economies such as Brazil, India, China, and South Africa, are expected to hinder the adoption of security system. This is typically due to low disposable income, major preference towards economic-class cars, and high cost of car security system. Generally, economic-class cars are not equipped with vehicle security system, which in turn, is expected to hamper the global car security system market growth over the forecast period.
Automobile manufacturers in the market are providing emphasis on end-to-end solutions for car security systems. These car makers’ authorized dealers provide installation and maintenance services for car security services. However, these dealers and vendors are not authorized to replace these systems, in order to capitalize the aftermarket growth opportunities in the car security system area. This attempt by OEMs is to gain significant revenue share in the car security system aftermarket. According to an interview conducted with a U.S.-based dealer of Directed Electronics Inc., installing security systems has become challenging in new vehicles. Some of the cars are authorized only to deploy company approved security systems. This compels customers to seek the services of an authorized car service center.
Advancements in technology in vehicle security technology and increasing preference towards connected cars have compelled automakers to provide sophisticated and efficiently security systems. Furthermore modern cars are now being equipped with telematics system that enables the car owner to observe their vehicle from remote place and map their location. The system can send information to owners about unauthorized entry, theft attempt, and even actual theft. This, in turn, is expected to enhance the car security system. Moreover, manufacturers are providing smartphones integrated system where car owners can monitor their vehicles 24x7x365.
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, and Panasonic Corporation
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.