How Are Government Regulations Encouraging Car Security System Adoption?

According to the International Organization of Motor Vehicle Manufacturers (OICA), 53,598,846 passenger cars were sold and 55,834,456 were manufactured in 2020. The surging sales and production of vehicles are creating a huge requirement for security systems, such as immobilizers, central locking systems, alarms, and remote keyless entry (RKE) systems. The installation of these systems ensures the safety of passengers and vehicles, owing to which automakers are inking contracts with auto component companies, such as ALPS ELECTRIC CO. LTD., HELLA KGaA Hueck & Co., Delphi Automotive LLP, Robert Bosch GmbH, Mitsubishi Electric Corporation, and Tokai Rika Co. Ltd., for them.

Additionally, the toughening government regulations on vehicle security will steer the car security systems market toward prosperity. For instance, the Central Motor Vehicle Rules (CMVR) of the Indian government mandate the installation of door locks in cars manufactured in the country. Furthermore, the National Highway Traffic Safety Administration (NHTSA) under the Department of Transportation (DOT) has laid down the Federal Motor Vehicle Theft Prevention Standard to ensure the installation of advanced security systems in cars.


According to P&S Intelligence, China and India also hold significant positions in the car security systems market due to the rising car sales in these countries owing to their vast population. The Society of Indian Automobile Manufacturers (SIAM) states that 2,711,457 passenger vehicles were sold in India during 2020–2021. Similarly, the China Association of Automobile Manufacturers (CAAM) reveals that 2,297,000 passenger cars were sold in China in November 2020.

Furthermore, Western European countries, such as Finland, Germany, and the U.K., are expected to create an extensive requirement for car security systems in the foreseeable future, as their governments mandate the integration of such systems in newly manufactured cars. Likewise, North America is expected to record large-scale installations of these components in the cars manufactured here. Of the North American countries, the U.S. will see their higher sales due to the high incidence of vehicle thefts in the country, primarily due to the developed chop shop ecosystem, a part of the broader category of organized crime.

Thus, the soaring car sales, rising cases of vehicle thefts, and increasing implementation of government laws mandating the installation of security features in vehicles will facilitate their adoption worldwide.


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