Car Security Systems Market Growth Expected to Reach USD 40 Billion by 2033, Growing at an 11.4% CAGR

The global car security system market is projected to reach a valuation of USD 13.5 billion in 2023 and is expected to grow to USD 40 billion by 2033, reflecting a compound annual growth rate (CAGR) of 11.4% over the forecast period.

This growth is driven by stringent vehicle security regulations imposed by governments and the continuous advancement in both passive and active safety and security technologies. The market has benefited greatly from these technological advancements in recent decades.

Additionally, the proliferation of high-speed internet and the increased use of global positioning systems (GPS) and other connectivity technologies are fueling market expansion. These technologies offer advanced security features that enhance vehicle protection, contributing to the growth of the car security system market. As the automotive industry undergoes significant transformation with the digitization of in-car systems for automation, connectivity, and shared mobility, the demand for sophisticated car security solutions is increasing.

The presence of outdated and basic security systems in lower-end vehicles has led to a rise in keyless entry theft incidents. In response, manufacturers are integrating advanced security modules into both budget and premium vehicles to combat this issue.

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A notable test conducted by the German General Automobile Club (ADAC) in July 2019 on 237 vehicles with keyless entry revealed that nearly 230 of these vehicles were highly vulnerable to break-ins using inexpensive electronic devices called relay boxes.

The escalating demand for incorporating cutting-edge technologies into car security systems is driven by the rising incidents of car theft and the increasing threat of cyber-attacks. This growing need for enhanced security measures is expected to drive further market growth in the coming years.

Key Takeaways

Italy’s car security system industry is projected to expand with a CAGR of 11.3% during the forecast period.
The demand for car security systems in the United States is expected to capture a CAGR of 11.1% from 2023 to 2033.
By vehicle type, the passenger car segment is projected to secure a CAGR of 14.2% during the forecast period.
India is expected to expand with an impressive CAGR of 11.7% throughout the forecast period.

Competitive Landscape

The market for car security systems is highly competitive, with numerous prominent industry players making substantial investments in increasing their manufacturing capabilities.

The key industry players in the market include Continental AG, Robert Bosch GmbH, HELLA GmbH & Co. Stoneridge Inc., Mitsubishi Electric Corporation, Huf Hülsbeck & Fürst GmbH & Co. KG, Valeo S.A., KGaA, Aptiv plc, Denso Corporation, Tokai Rika Co., Ltd., ALPHA Corporation, Marquardt GmbH, I Car Srl, Directed Inc., ALPS ALPINE CO. LTD, Atech Automotive (Wuhu) Co., Ltd.

Some Recent Developments in the Car Security System Market

In July 2021, ZF unveiled the ZF ProAI supercomputer at IAA 2021 in Germany. This advanced system combines control units, software, sensors, and actuators to enable software-defined vehicles. It provides customized computing power for vehicles at any level of automation and incorporates cutting-edge security features to counter cyber threats.
In March 2021, Hella inaugurated a new software and electronics development center in Craiova, Romania. This facility aims to support company expansion and conduct product testing.
In February 2021, Bosch Mobility Solutions and Microsoft joined forces to develop a “software-defined vehicle” featuring enhanced digitalization, connectivity, automation, and advanced cybersecurity.
In January 2021, Alps Alpine collaborated with Qualcomm Technologies Inc. to create an advanced in-vehicle camera positioning system, enhancing vehicle security and surveillance capabilities.

Key Segments Profiled in the Car Security System Market

By Product Type: