Access Control Market Poised For Growth With Automakers' Interest In PKE Systems

Feb 1, 2008 12:00 PM

The North American access control system and security market has gained a fresh lease on life with the rising popularity of the high-margin passive keyless entry (PKE) system, according to Research and Markets.

Although it is only an emerging segment, participants are hopeful of its success and revenue-generating potential. This is because automakers are continually looking to differentiate their products, while suppliers are seeking ways to reduce the cost of the system. Nissan's breakthrough strategy of offering passive entry systems in most of its below-$20,000 models will greatly help in getting rid of the “luxury” tag. This will encourage other automakers to follow suit and thereby, help PKE's widespread adoption.

By 2010, all auto manufacturers in North America are expected to offer passive entry systems in at least one of their models.

“While PKE systems are likely to have only 28 percent of unit shipment contribution in 2013, it is expected to account for about 60 percent of the total North American access control market revenue,” says the analyst of the research. “Auto manufacturers, slowly realizing the higher revenue gains in passive entry system market, will further push the growth of this market.” 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 a bi-directional capability will further raise their value.

Access entry market participants are perpetually challenged to prove the value-to-cost ratio of their products. Innovation is the best way to tackle this problem, although, there are other ways to drive down the overall costs of PKE systems. “Integration of PKE with similar types of systems is the current method of reducing the overall cost,” the analyst notes. “In the future, today's mechanical latches will be replaced by electromechanical latches, which works on software logic to release the lock quickly, and thus eliminates the need of sensors on the door handles.”

The adoption rates of standalone PKE systems largely depend on their price. Remote keyless entry (RKE) systems have succeeded largely because of their low optional-package price as well as their availability as standalone systems. However, current PKE systems are mostly available as package options, costing more than $1,000 on an average. Offering standalone units will greatly help improve its uptake in future. “Mature remote entry system provides low-cost and low-value, while the nascent passive system provides high-cost and high-value,” the analyst says. “Beyond 2010, companies (automakers) providing passive entry systems will experience significant gains, due to economies of scale and innovation-driven cost reduction.”

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