#712

Digital Key GuideCYB

TABLE OF CONTENTS
Introduction
Bird’s Eye View

Cyber Security

Executive Summary

The increased presence of software-based features and systems inside the vehicle has led to a rise in thenumber of experiences hosted on a smartphone. The most notable of these is the digital key, which sees theuser’s smartphone leveraged to unlock/lock and start the vehicle. Today, it is widely seen as a premiumfeature – with select luxury OEMs offering it as standard and mass market automakers providing it as anoptional feature in premium packages or higher trim models.

The Basics
What’s NewAnalysis

In the future, however, digital key systems – especially those that utilize a smartphone – could become anincreasingly common user experience. Likewise, as they become more accessible through native vehicle
integrations, alongside new partnerships between OEMs and consumer electronics firms, digital keys could
replace current passive smart key systems and potentially replace the key fob altogether.

Summary Tables
Ecosystem

Future Outlook

Updated annually in .PPT and .XLS formats, the Digital Key Guide tracks the latest trends and offerings fromOEMs across three major regions. Similarly tracked are the features and pricing models of each system as wellas the technologies used to produce them. Through dedicated releases for the USA, Europe, and China, thereport understands how the fitment and maturity of digital keys can vary around the world.

Next Steps
Contact Us

RELATED SBD REPORTS
554 – E-Theft Threat Guide
A growing number of intelligent systems andtechnologies are being installed as standard in newvehicles today, with even more in development andset for installation in the near future. While the mostcommonly marketed innovations by OEMs stemfrom the vehicle's HMI and infotainment systems,
this innovation extends to safety and security.

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#712/Digital Key Guide

Key questions answered> Which models offer Digital
Keys and by what
technologies?

> What are the latest
developments from theDigital Key ecosystem?

This research supports

Do I have access?

> What features and pricing
models are being launched byOEMs?
PRODUCT PLANNERSIT

M A R K E T I NGE NGI NE E R I NG

> What are the maintechnologies being deployed
to support Digital Key
technologies?

Portal accessView Excel Data Sheet Sample
Digital Key Guide
Track the latest digital key system trends and offerings from OEMs

Digital Key Guide

Contents
712 - Digital Key Guide
Introduction ≫4

Summary Tables ≫53

Next Step ≫82

Contact Us ≫88▪ Understanding Summary Table

Birds Eye View ≫7

Executive Summary ≫15

The Basics ≫22

What’s New? ≫31▪ New Models Launched▪ Types of System▪ Aftermarket Digital Key▪ BMW Group▪ BYD Group▪ Ford Group▪ Geely Group▪ Honda Group▪ Notable announcements▪ Hyundai Group▪ Case StudyAnalysis ≫▪ Digital Key Scoring▪ Mercedes-Benz Group37▪ NIO▪ SAIC Motors▪ State-of-the-art▪ Tesla Motors

Data Deep Dive

▪ Statistics▪ Volkswagen GroupView and analyze deep
data in your own way▪ Partnerships▪ Start-ups▪ System Trends▪ Explore▪ Vehicle access trends▪ Key sharing trends

Ecosystem ≫70

Future Outlook ≫75▪ Challenges▪ Explore

Total number of pages - 88

Introduction

Introduction

Introduction
Digital key systems are not just seen as an attractive replacement for key fobs, but alsooffer a method of sharing and revoking keys over the air. Since the introduction ofpassive entry passive start (PEPS) systems, customers have grown used to convenient
ways to unlock and start the vehicle without having to operate the key fob. For the digital
key systems to be seen as a long-term option, OEMs must develop systems that offer
more features, be as easy and as simple to use as what they are replacing and besecure.

SectionContent

Bird Eye View

An overview of the key findings from SBD’s view of what’s important
on Digital Key, Consumer Experience landscape of mobility services
today and positive security culture within OEMs, suppliers

ExecutiveSummary

The 712-Digital Key Guide details how this can happen, what technologies are currently
being used and the standard changes, best practice guidance and systemdevelopments that will likely shape future system designs. Through these considerations,this report identifies the major drivers and barriers for the FOUR key OEM motivations for
digital key space.

Digital key standards, technologies , the evolution of digital key,
future predictions on what types of features may be available, themain challenges, and a snapshot of the current market landscape.

The Basics

Overview of the digital regulations, standards and the different
technologies implemented by the OEMs

What’s New?

Focusing on the new partnerships completed by the OEMs, the latest
technology being used for developing Digital Keys and which OEMs
have introduced or launched them.

Shared Usage

Simplifying
Complexity

Revenue
Flexibility

New
Experiences

What are the key findings of this report?
How do the OEM-based digital key offerings fare against the aftermarket systems?
What are the associated features/attributes of digital key technology being offered byOEM groups/brands?
• 6 Where are OEMs positioned in terms of features(NFC/BLE/UWB) and security of thedigital key feature?
••

Market Analysis

In-depth information on the trends and features of digital keys,
offered by the OEMs.

Summary Tables

Summarizing the trends identified in the associated Excel
spreadsheet database and a score is given to each system.

Ecosystem

Offering, acquisition and patent insights for key non-OEM
stakeholders

Future Outlook

Next Steps

Four OEM personas are considered against drivers and barriers intothe future to understand when Digital Key benefits will be truly
realized
Can SBD help you with any unanswered questions?

6Introduction

We Listened and Invested In Our Report to Align to Your Goals

You Said...
“I sometimes struggle to relate conclusions from research reports
to the Outcomes and KPIs that we are working towards...”“I would like to see what has recently changed within a forecast or
domain to help decide if any changes to strategy need to be made...”“I want to know where we stand ‘head-to-head’ against
the competition on major industry trends….”“I can find it difficult to take actionable next steps on Guides
without assessing the future direction of the industry...”“It would be helpful to identify disruptive companies and startups to keep an eye for partnerships in the future...”We Did...
Added a Birds-Eye View chapter with a high-level
overview of all our Automotive app guide, Cyber
Security, Connected Services, and Cockpit reports.
Enhanced CROSS-REFERENCING withconsiderations of our Cyber security principles andinsights from our Connected Services Forecast.
Introduced a FUTURE OUTLOOK chapter
with motivations such as operationalefficiency, and its drivers and barriers.
More DATA-DRIVEN ANALYSIS through ourSummary Table analysis, and ExecutiveSummary.
Created a DIGITAL KEY OEM RANKING and an
ECOSYSTEM chapter with offering, acquisition and patentinsights for key non-OEM stakeholders.

“I would like the topics to be more ‘forward looking’ to help withfuture planning and take advantage of enabling technologies.”

77

New For 2024
1. Birds-Eye View
Macro level summary of insights and So-What analysis to customers.

2. Ranking & Ecosystems
Analysts view on OEM positioning within guides and rankings as part of generations of technology
alongside Assessment of key partners, enablers.

Example slides
from the report

Executive Summary

Key Takeaway 1

Getting consumers to trust digital key

When the mega volume OEMs roll out digital key, consumers will start toget accustomed to using it.

Systems must be reliable to gain consumer trust.

OEM with Digital key + Backup System
90%
80%

OEM level availability

Digital key needs to gain consumer
confidence in order to replace the key fob asthe default vehicle key.

70%
60%
50%
40%
30%
20%
10%

Having a back-up system will greatly improve consumer confidence.

0%
ChinaEUUSA

Opportunities

Best Practices

In the long term, digital key could become thedefault key allowing OEMs to save costs on keyfobs.

The CCC is playing a vital role in winningcustomers' trust by making systems a morereliable, compatible and consistent user
experience. This know-how could also filter
through to OEM proprietary systems.

1010

The Basics

iOS & Android Compatibility
Apple phones and Android phone are compatible with the digital key technology. In order to promote greater platform compatibility, industry alliancessuch as the Car Connectivity Consortium (CCC) are striving to create uniform standards for digital keys.
Compatibility between iOS and Android devices is anticipated to increase as standardization efforts advance and automakers prioritize wider reach.

•The digital automotive industry is dependent on iOS andAndroid phones, which provide a multitude of applications that
improve convenience and user experience.

•Convenience, security, and a peek into a future where ourcellphones serve as our primary vehicle key are all provided bydigital key technology.

•BYD Introduces its New Smart Watch with Built-In
Car Key Source: gizmochina

Development stage:

Use cases:•With the certain apps, vehicle owners can remotely check thebattery life, tire pressure, and fuel level of your vehicle.

•Customizable permissions let users do more than just unlock
items; they can even start the engine.

•Create user profiles with specific access levels.

11Pre-production

Launch/Niche

WidelyadoptedMainstream

3-5years+5 years

BMW digital key now compatible with Androiddevices. Source: BMW Group

Timeline to wide adoption:

Present

1-3years

11Analysis

Challenges

What? are the challenges faced in digital key adoption
UWB technology is more precise in calculating the proximity of your smartphone's digital car key. Despite its security benefits, not all cars that are compatible
with digital car keys have implemented UWB technology. Some car manufacturers like Tesla, Hyundai, and Lincoln use digital car keys that rely on Bluetooth
Low Energy (BLE) or Near-Field Communication (NFC) systems. The problem is, it could be a while before most cars are compatible with UWB technology
because it is more expensive to install compared to BLE systems. It goes without saying that cost is a major challenge, however, some of the main technicalchallenges that system developers should be asking about are summarized below.

SELECTING A STANDARDRELIABILITYDo OEMs aim for standard compliance or goit alone?

Reliability is crucial to the success of digitalkey. However, even the latest systems
have issues.

The main trade-offs are cost Vs security andInteroperability.

APP AWAKEREPLACING THE KEY FOB

Keeping the app awake so the digital key
can be used without accessing the phone
is a challenge and is out of the vehicle
OEM’s control.

In the long term, OEMs will be considering
replacing the key fob. In the short term,
there is an additional upfront cost in
supplying vehicles with both systems.

1212

Analysis

Vehicle access trends

Vehicle access trends
OEMs tend to offer Approach and/or passive unlock are premium features. BLE+UWB offers the most secure method of PEPS and approach unlock,while BLE systems offer the same level of convenience but are generally less secure. Contactless (NFC) systems are generally very secure but lessconvenient because the user must handle their smartphone.
Approachunlock
21%
Contactless
29%

Passive Unlock
25%

Remote25%

Entry MethodOverview

13

percentage of brands with these features, counting the most convenient feature (starting with approach unlock) for each brand.

Hyundai Motors Group has introduced Digital Key 2 touch convivence feature which has cross-platform facility for contactless sharing of digital key
capabilities between smartphones. Kia has added the Digital Key 2 technology to the EV9, offering its users improved consumer convenience and in-car
connection.
Note: Vehicle failure information is not available for all the OEMs

13

Start-ups

Summary Tables

Start-ups
Overview

User Experience Index
StrongAverage

SystemLucidPhone KeyXpeng
Smartphone Key

14•

Among the start-up OEMs, Xpeng offers digital key systems across its model range and Lucid offer a more advanced UWBpowered system.

StrongAverage

Key Highlights

Weak

Security Index

Poor

Xpeng

•All the start-up OEMs score poorly for security. However, this is partly due to the lack of information. These items will be
updated in the next revision of this report when more information is available.

•Lucid, Nio and X-Peng score highly in terms of UX and their respective security scores are expected to be above average whenthe information becomes available.

•Notably, the Lucid system features BLE+UWB and is compatible with both iOS and Android devices.

Original key
needed for
pairing

Offboarding
featurePreventslocking key
inside thecabin

Range
controlStandards
compliance

Passiveunlock /start

Advancedfeatures

Shared keys

Multiple key
sharingchannels

Phonebattery low
back up

Vehiclefailure backup

IOP

XXX

X

XX

X

X---

BLE+UWBTBC

BothBothTBC-

NFC phone/ card

TBC

TBC



XXXX

X---NFC

IIFAA

PassiveUnlock

BothTBCApp only

NFC phone/ card

Mech Key

TBC

X

X

X

X

X

X

X

X

X

X

X

X

----TBC

TBC

TBC

TBC

TBC

TBC

TBC

TBC
14

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If you have any questions or feedback about thisresearch report or SBD Automotive’s consulting services,
you can email us at info@sbdautomotive.com or discusswith your local account manager below.

info@sbdautomotive.com

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USAGarren Carr
North America
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