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.
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.
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"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.
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