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Adoption of Passive Entry Systems Driven by Balance in Value to Cost Ratio - New analysis from Frost & Sullivan, North American Keyless Vehicle Access Control Systems Markets, finds that the market earned revenues of $376.5 million in 2006 and estimates this to reach $514.9 million in 2013
Adoption of Passive Entry Systems Driven by Balance in Value to Cost Ratio

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2008/02/05 - New analysis from Frost & Sullivan, North American Keyless Vehicle Access Control Systems Markets, finds that the market earned revenues of $376.5 million in 2006 and estimates this to reach $514.9 million in 2013.

   
 
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Access control and security system market participants regularly face the challenge of proving their products' value-to-cost ratios. While innovation represents the best way to tackle this problem, alternative means of cost reduction, such as intelligent passive keyless entry (PKE) systems, do exist.

New analysis from Frost & Sullivan (automotive.frost.com), North American Keyless Vehicle Access Control Systems Markets, finds that the market earned revenues of $376.5 million in 2006 and estimates this to reach $514.9 million in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the North American Keyless Vehicle Access Control Systems Markets, then send an email to Sara Villarruel - Corporate Communications at sara.villarruel[.]frost.com with the following information: your full name, company name, title, telephone number, email address, city, state, and country. We will send you the information via email upon receipt of the above information.

"Integrating PKE with similar types of systems is the current method for overall cost reduction," says Frost & Sullivan Senior Research Analyst K. Sathyanarayana. "In the future, mechanical latches will be replaced by electromechanical latches that utilize software logic to release the lock quickly, thereby eliminating the need for door handle sensors."

The adoption rates of stand-alone PKE systems largely depend on their price. Remote keyless entry (RKE) systems have succeeded due to their low optional-package price as well as their availability as stand-alone systems.

On the other hand, current PKE systems are mostly available as expensive package options, costing on average more than $1,000. Offering stand-alone or low-priced packages will greatly help improve its uptake in the future.

Market participants hope this emerging segment will demonstrate strong revenue-generating potential as automakers look to differentiate their products and suppliers aim to reduce the system's cost.

Nissan's breakthrough strategy of offering passive entry systems in most of its models priced below $20,000 will greatly help to eliminate the "luxury" tag. This will encourage other automakers to follow suit and assist the widespread adoption of PKE.

The high-margin passive entry system will stand a greater chance of expanding its opportunities in the market if it incorporates more sophisticated features. Value-added features, such as bidirectional capability, will further improve their attractiveness to car makers. For instance, Volvo has already adopted a bidirectional key fob with a light emitting diode (LED) display in its S80 model.

As of 2006, less than 3 percent of the vehicles sold in North America had passive entry systems. Once this technology gains popularity in the lower-end segment, this number will improve considerably.

By 2010, all North American auto manufacturers will likely offer passive entry systems in at least one of their models. They will find significant revenue gains by incorporating these systems due to economies of scale and innovation-driven cost reduction.

North American Keyless Vehicle Access Control Systems Markets is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: United States remanufactured rack and pinion steering gear aftermarket, strategic analysis of the North American OE car audio system markets, and analysis of the North American automotive navigation systems market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

 
 
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Adoption of Passive Entry Systems Driven by Balance in Value to Cost Ratio

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