What Has Been the Growth of the Vehicle Security System Market So Far?
The vehicle security system market has seen considerable growth due to a variety of factors.
• In recent times, the vehicle security system market has seen significant expansion. The size of the market is set to increase from $9.88 billion in 2024 to $10.64 billion in 2025, reflecting a compound annual growth rate (CAGR) of 7.6%.
The expansion seen in the historic period is linked to several factors. These include a climb in vehicle theft rates, better awareness of vehicle security among consumers, the adoption of immobilizers, mandates from the insurance industry, and technological advancements in keyless entry systems.
What Are the Future Growth Projections for the Vehicle Security System Market?
The vehicle security system market is expected to maintain its strong growth trajectory in upcoming years.
• The market for vehicle security systems is anticipated to experience substantial growth in the forthcoming years, predicted to rise to $14.57 billion by 2029 with a compound annual growth rate (CAGR) of 8.2%.
This anticipated growth during the forecast period is due to the escalating advancements in connected car technologies, the increase in vehicle digitization, the adoption of biometric access to vehicles, mandatory regulations for vehicle safety, and growing worries over cybersecurity for connected vehicles. Key trends projected during this period include the progress of advanced vehicle encryption systems, the incorporation of artificial intelligence in security protocols, the broadening of remote vehicle monitoring, the use of blockchain technology for vehicle data security, and the emergence of multi-layered authentication in vehicle access systems.
What Factors Are Driving Growth In The Vehicle Security System Market?
The vehicle security system market is anticipated to expand due to the rise in cyberattacks. Cyberattacks are deliberate intrusions initiated by an entity with an intention to compromise the information system of another entity. As progress in automotive technology continues, cybersecurity emerges as a significant concern. The vehicle security system safeguards the electronic systems, software, communication networks, and the data produced by the newest generation smart cars. If a vehicle's computer systems are not adequately secured, hackers have the potential to hijack data or even take over the vehicle. For example, in July 2024, the National Automobile Dealers Association (NADA), a non-profit organization in the US, reported that cybersecurity threats in the automobile industry have amplified, with a 72% increase in data breaches from 2021 to 2023, a 68% surge in ransomware attacks in 2023, and 40% of the afflicted companies paying ransoms exceeding $1 million, resulting in more than six days of downtime. Hence, the rise in cyberattacks is fuelling the growth of the vehicle security system market.
What Are The Main Segments Of The Global Vehicle Security System Market?
The vehicle security system market covered in this report is segmented –
1) By Product Type: Immobilizers, Alarm System, Tracking System, Central Locking System, Remote Keyless Entry And Other Product Types
2) By Technology: Global Positioning System, Global System For Mobile Communication, Face Detection System, Real-Time Location System And Other Technologies
3) By Vehicle Type: Passenger Car, Commercial Vehicles And Other Vehicle Types
Subsegments:
1) By Immobilizers: Engine Immobilizers, Transponder Key Systems
2) By Alarm System: Passive Alarm Systems, Active Alarm Systems, Smart Alarm Systems
3) By Tracking System: GPS Tracking Systems, Cellular Tracking Systems, RFID Tracking Systems
4) By Central Locking System: Manual Central Locking Systems, Electronic Central Locking Systems
5) By Remote Keyless Entry: Key Fob Entry Systems, Smartphone-Based Entry Systems
6) By Other Product Types: Steering Wheel Locks, Tire Locking Devices, Window Security Films
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What Emerging Trends Are Influencing The Growth Of The Vehicle Security System Market?
The surge in technological innovations has become a significant trend in the vehicle security system market. The key industry players are concentrating on introducing new technology-based solutions to strengthen their foothold. For example, in January 2022, the US-based car manufacturer, Ford, and ADT Security Services, a US-based security firm, unveiled a $100 million standalone joint venture named Canopy, which aims to deter vehicle theft through AI and sensor technology. According to the firms, by 2023, Canopy will initially offer an aftermarket security gadget that enables customers to install a camera in a cargo vehicle or pickup, looking rearward. This system uses AI to detect and report potential threats and trigger an alarm upon detecting signs like metal cutting noises, breaking glass, or suspect movements near the vehicle. The joint venture and this technology aim mainly to preempt vehicle theft.
Who Are the Key Players in the Vehicle Security System Market?
Major companies operating in the vehicle security system market include:
• Continental AG
• Delphi Technologies
• Denso Corporation
• Hella Kgaa Hueck & Co
• Lear Corporation
• Mitsubishi Electric Corporation
• Robert Bosch GmbH
• Tokairika Co. Ltd.
• Valeo SA
• TRW Automotive India Private Limited
• ZF Friedrichshafen AG
• Aptiv plc
• Omron Corporation
• Clifford
• Viper Security Systems
• Stoneridge Inc.
• Marquardt GmbH
• I Car Systems
• NXP Semiconductors Inc.
• Panasonic Corporation
• Autoliv Inc.
• Johnson Controls Inc.
• Magna International Inc.
• Mobileye NV
• WABCO Vehicle Control Systems
• Gentex Corporation
• Nippon Seiki Co. Ltd.
• Visteon Corporation
• Harman International Industries Inc.
• TomTom International BV
What Is The Most Dominant Region In The Vehicle Security System Market?
Asia-Pacific was the largest region in the vehicle security system market in 2024.The regions covered in the vehicle security system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
