December 3, 2020

CAR SECURITY SYSTEM MARKET ANALYSIS

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) - Size, Share, Outlook, and Opportunity Analysis, 2019 - 2027

Market Insight- Global Car Security System Market

Market Overview

Car security system or vehicle security system is an intelligent electronic device installed in the car, in order to dissuade theft of the vehicle itself, the content in it or both. Car security system varies according to the type of car. For instance, premium cars such as BMW 7 Series, Jaguar XK, Audi A6, and more are equipped with high-end and cutting-edge security system. Different types of security systems are installed in a car such as immobilizer system where the system stops the car from being driven away by locking the steering wheel, gear, lever, or pedals in positions. It can also disable electronics system of the car. One of the most commonly used car security method is the alarm system where the device produces an audible and visual warning if the car notices an unauthorized entry. This system works differently for different cars including ultrasonic sensors, glass break sensors, perimeter sensors, door locks, etc.

The global car security market was valued at US$ 7,971.5 Mn in terms of value in 2019. The market is estimated to grow at a CAGR of 6.0% during the forecast period.

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Market Dynamics- Drivers

  1. Increasing awareness among car owners regarding benefits of advanced security system is expected to drive the global car security system market during the forecast period

Increasing car thefts worldwide has compelled the car owners to deploy advanced security systems in their vehicles. The increase in car theft has increased the demand for automotive spare parts, as cars are dismantled and parts are sold in the aftermarket. Enhanced security measures and technologies have encouraged car owners to adopt anti-theft solutions for their cars. Thus, improved security system and growing awareness among consumers regarding benefits of car security systems are expected to boost the global car security system market growth over the forecast period. According to Germany’s BKA Federal Police, in 2015, around 18,500 stolen vehicles were not recovered. According to Federal Bureau of Investigation (FBI), in 2012, around 721,053 motor vehicle thefts were reported. This was a 0.6% Y-o-Y increase in vehicle theft and a loss of US$ 4.3 Bn worth of vehicles.

  1. Suitable regulatory policies and laws are expected to propel the global car security system market growth over the forecast period

Various government agencies are promoting car security systems, which is expected to boost the demand for the same. Use of basic systems such as immobilizers has been made mandatory in various countries namely Australia, in order to reduce car theft instances. Implementation of such as regulations is expected to boost the demand for vehicle security system. According to Government of Western Australia, Department of Transport, it is mandatory to fit government approved immobilizers before licensing or transferring a vehicle in the territory. If the vehicle to be licensed is already fitted with an immobilizer, confirmation about the government’s approval must be done. Moreover, various insurance companies have sustained major losses due to increased incidences of car theft. Installing vehicle security system decreases the probability of car theft. In fact, some companies refuse to provide insurance to vehicles that are without security system. According to German Insurance Association, in 2014, insurance companies in Germany provided car-theft claims equivalent to US$ 280 million. These factors are expected to accelerate the market growth over the forecast period.

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Asia Pacific region is expected to dominate the global car security market in 2019, accounting for 28.8% share in terms of value, followed by North America and Europe respectively.

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. High initial installation cost is expected to restrain growth of the global car security system market during the forecast period

Installing vehicle security system is relatively expensive, which is averting automakers from making it as a standard feature for all cars. Some carmakers offer this feature as an optional accessory, while some offer only for high-end models. Moreover, security systems require timely maintenance, which is another factor hindering its adoption and thereby restraining the global car security system market growth in the near future. For instance, BMW India offers alarms and ultrasonic sensors, which are option in model 320d. Furthermore, Toyota Yaris (U.S.), a midrange passenger is not equipped with is not equipped with engine immobilizer in its ‘L’ model – which is the base variant. Furthermore, high installation costs in aftermarket is another factor hampering the market growth. Different security systems require different installation techniques, which can further increase the installation cost.

  1. Lack of awareness regarding benefits of vehicle security system is expected to hinder the global car security system market growth over the forecast period

Although car security system is provided with certain high-end models, car owners are still unaware of the benefits of this system. This pattern is quite prevalent in emerging economies where economic and mid-range cars are preferred due to limited purchase power. Generally, these types of 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.

Market Opportunity

  1. Expansion of production plants in emerging economies is expected to offer lucrative growth opportunity

Key car manufacturers in the market are focused on shifting production plants or expanding existing plants in emerging economies, in order to capitalize growing demand for automobiles and benefit lower capital and labor costs in these regions. Domestic component suppliers have significant growth opportunity as global automakers prefer local manufacturers for component supplies. Automotive component markets in the Latin American countries such as Mexico are expected to benefit significantly from demand for aftermarket and OEM products. For instance, in September 2016, Audi AG, a Germany-based carmaker, inaugurated a production plant of Audi Q5 in San Jose, Mexico. In April 2016, Ford Motor Company invested US$ 1.6 billion on a new production plant in Luis Potosi, Mexico. Furthermore, in 2015, BMW AG, the Germany-based leading automobile manufacturer, announced the establishment of a new plant in San Luis Potosí, Mexico. The plant is expected to start production in 2019.

  1. Investing research and development activities, in order to offer affordable vehicle security system

Vehicle security system requires high installation cost, which restricts its adoption economic and mid-range cars. Manufacturers can invest in research and development activities, in order to innovate cost-efficient security system. This way, vehicle security system can be incorporated into economic as well as mid-range cars thereby providing excellent growth opportunities for market players.

Source: Coherent Market Insights

Market Trends

  1. High adoption of telematics systems

Development of novel technologies and increasing inclination towards connected cars, consumers are increasingly preferring convenient, sophisticated, and efficient security systems. Modern car models are being equipped with telematics, which allows car owners to monitors their vehicle and map their location. These systems can send notification/alert to owners regarding forced vehicle entry, theft attempts, and actual theft. Moreover, manufacturers are providing monitoring systems that can be integrated with smartphones. These systems provide easy monitoring and remote access to the vehicle 24x7x365.

  1. Growing focus of OEMs on end-to-end solutions

Key manufacturers in the market are providing end-to-end solutions for car security systems. The authorized dealers also provide installation and maintenance services for vehicle security systems. However, local dealers and suppliers are not authorized to replace the security systems. This is done to gain strategic advantage and capitalize growth opportunities.

The Mid-range cars segment of global car security market is accounted for 57.8% in 2019 and is expected to grow at a CAGR of 6.4% during the forecast period.

Source: Coherent Market Insights

Value Chain Analysis

Competitive Section

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 Tokai Rika Co., Ltd.

Key Developments

  1. Key companies in the market are focused on product launch, in order to gain competitive advantage edge in the market. For instance, in January 2018, OMRON Corporation showcased its artificial intelligence (AI), robotics, automation and sensing and control at the 2018 Consumer Electronics Show (CES) in Las Vegas, U.S.
  2. Major market players are focused on partnerships and collaborations, in order to enhance their market presence. For instance, in September 2016, Valeo S.A. partnered with Gemalto, a provider of digital security, to provide security by virtual car key system called Valeo InBlue, which will connected to smartphone.

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