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Vehicle Access Control and Security System Market to Expand

January 17, 2008

Automakers recognize passive keyless entry systems' potential as a product differentiator.


DUBLIN, Ireland /BUSINESS WIRE/ -- Research and Markets has announced the addition of "North American Keyless Vehicle Access Control Systems Markets" to their offering.

The mature North American access control system and security market has gained a fresh lease on life with the rising popularity of the high-margin passive keyless entry (PKE) system. Although it is only an emerging segment, participants are hopeful of its success and revenue-generating potential. This is because automakers are continually looking to differentiate their products, while suppliers are seeking ways to reduce the cost of the system. Nissan's breakthrough strategy of offering passive entry systems in most of its below $20,000 models will greatly help in getting rid of the luxury tag. This will encourage other automakers to follow suit and help PKE's widespread adoption. By 2010, all auto manufacturers in North America are expected to offer passive entry system at least in one of their models.

"While PKE systems are likely to have only 28% of unit shipment contribution in 2013, it is expected to account for about 60% of the total North American access control market revenue," says the analyst of this research. "Auto manufacturers, slowly realizing the higher revenue gains in passive entry system market, will further push the growth of this market." Passive entry systems will stand a greater chance of expanding their opportunities in the market if it incorporates more sophisticated features. Value-added features such as bi-directional capability will further raise their value.

Balance in Ratio of Value to Cost Will Drive Adoption of Passive Entry Systems in the Future
Access entry market participants are perpetually challenged to prove the value-to-cost ratio of their products. Innovation is the best way to tackle this problem, although there are other ways to drive down the overall costs of PKE systems. "Integration of PKE with similar types of systems is the current method of reducing the overall cost," notes the analyst. "In future, today's mechanical latches will be replaced by electromechanical latches, which work on software logic to release the lock quickly and thus eliminate the need of sensors on the door handles."

The adoption rates of stand-alone PKE systems largely depend on price. Remote keyless entry (RKE) systems have succeeded largely because of their low optional-package price, as well as their availability as stand-alone systems. However, current PKE systems are mostly available as package options, costing more than $1000 on an average. Offering stand-alone units will greatly help improve its uptake in future. "Mature remote entry systems provide low-cost low-value, while the nascent passive system provides high-cost high-value," remarks the analyst. "Beyond 2010, companies (automakers) providing passive entry systems will experience significant gains due to economies of scale and innovation-driven cost reduction."


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