While cars offer features for its security purposes, however, they offer insufficient promises and can be breached various times. With increasing insecurity in the vehicles in parallel to growing awareness regarding insecurity among various car owners have led to an upsurge in demand for car security system.
OEM will retain dominance in the global car security system market among other channels of sales in the span of next ten years. Midrange cars among other types of cars will retain dominance in the global car security system market over the following decade. Whereas, the remote central locking system will retain dominance in the global car security market in the span of next ten years. However, APEJ will retain dominance in the global car security market by 2018 and escalate its shares in future.
Various trends propelling growth of the global car security market include,
- Government Regulations:
Due to surge in insecurity of theft, governments in various countries have imposed strict rules and regulations regarding car security system. Security-related facilities such as speed warning systems, antilock braking (ABS) and airbags will be incorporated as standard security equipment in various cars from October 2018. Imposition of such regulations of road and cars safety by the government is likely to rev up demand for the car security system over the following decade.
- Enhanced Telematics:
In a bid to offer end users tight security and such other services, various companies such as Mahindra Reva Electric Vehicles Pvt. Ltd offers machine to machine communication based security. For instance, e2o can be operated by lock security configured with smartphones and enables the users to lock and unlock their car through their smartphones.
The OEM and customers are likely to benefit from the trending developments in telematics. Moreover, various automobile companies are incorporating GPS-based location tracking system through various SIM cards. In addition, various telecommunication companies such as Vodaphone is working in coordination with the leading OEMs in the machine-to-machine space in order to provide OEMs with smart machine-to-machine services and incorporate connectivity among vehicles.
- Regional Analysis:
APEJ among other regions will retain dominance in the global car security system market in the span of next ten years. In addition, APEJ will grow at the highest CAGR of 8.7% with major markets in South Korea and China and accounted for 11.5% and 65.8% in 2015. Whereas, North America will account for the largest market due to high cost of production and relatively large aftermarket. Moreover, Western Europe will account for 19.9% market share of the global car security system market in the span of next ten years. Germany is likely to remain a leading company, while France, Spain and U.K. will account for 13.2%, 13.0% and 13.4% in the car security system market of Western Europe respectively. Furthermore, recent decline in production of car in Japan has adversely impacted the car production. However, with an upsurge in car exports and surge in vehicle fleet will propel growth of the global car security system market over the following decade. The car security system market will grow at a 3% CAGR in the span of next ten years.
New market players in the global car security system market are mainly focussing on a highly fragmented aftermarket segments. Moreover, car OEMs are shifting their focus towards growing economies and manufacturers operating in the car security system, and will mainly focus on regions where car OEMs are likely to establish new production plants. Furthermore, economic cars will now be equipped with various security systems as a standard over the following decade.