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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Growing Trend for Car Security Systems in Market

The increase in vehicle sales, customer’s preference for sophisticated and reliable vehicle security systems and government regulations are the major growth drivers for the global car security systems market. The growing consumer awareness about sophisticated vehicle security features, and vehicle security regulations are the other factors driving the growth of the global market. Owing to the worldwide increase in the production and sales of cars, the global car security systems market is anticipated to witness extraordinary growth during the forecast period. The increasing demand for engine start security and keyless access systems, and growing use of smart mobile applications in vehicle security systems are some of the opportunities, which are expected to give a major boost to the growth of the global market for car security systems in the future.

Car security systems are the systems used to protect the vehicle and prevent the car from getting stolen. Due to the highest population in developing countries, such as China and India, the car sales are also increasing, which is also driving the growth of the global car security systems market.  Western Europe is anticipated to be the second largest market and is likely to show strong potential for car security system in the near future. Car security system has become mandatory for newly produced cars in some of the Western European countries, such as the U.K. and Finland. The German market of car security systems is driven by the compulsory integration of security systems, such as alarms, immobilizers, and remote keyless entry in the cars. North America is poised to show strong growth opportunities for the car security system market, especially in the United States. According to federal bureau of investigation (FBI), in 2013, 699,594 motor vehicles were reported to be stolen in the U.S.  The growing vehicle thefts is a major factor, driving the growth of the global vehicle security systems market.

However, high cost of car security systems and failure of vehicle security systems are some of the factors restraining the growth of the market. The different types of anti-theft security systems are used by vehicle manufacturers; for example, General Motors have a system called content theft deterrent (CTD) system, which starts an alarm if the doors are opened without the key. However, the system does not prevent a thief from driving the car away. As compared to aftermarket anti-theft systems, the factory installed security systems are more reliable and have less probability to misbehave. Another concern with some of the aftermarket anti-theft systems is the durability of the Chinese electronics used in the anti-theft module. The aftermarket systems are mostly equipped with recycled chips or other components of poor quality, which fail in an year or two, while the system starts to cause problems. 

Mitsubishi Electric Corporation, Robert Bosch GmbH, HELLA KGaA Hueck & Co., Lear Corporation, Tokai Rika Co. Ltd., ALPS ELECTRIC CO. LTD., Delphi Automotive LLP are some of the competitors in the global car security systems market.

Market Segmentation:
By Type

• Alarm
• Immobilizer
• Remote Keyless Entry (RKE)
• Central Locking System

By Technology

• Global Positioning System (GPS)
• Face Detection System(FDS)
• Real Time Location System (RTLS)
• Global System for Mobile Communication (GSM)
• Radio Frequency Identification (RFID)
• Others

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