LG Innotek is positioning itself as a frontrunner in the automotive communication component industry with its innovative ‘Next-Generation Digital Key solution’. This cutting-edge technology is set to revolutionise how drivers access and interact with their vehicles, aiming for mass production by 2027, and strengthening the company’s standing as a leading player in the market.
The Digital Key, which allows users to lock, unlock, and start their cars via smartphone, represents a significant leap forward in automotive convenience and security. By eliminating the need for a traditional car key, this solution reduces the risk of theft and the inconvenience of misplaced keys. As the vehicle-sharing economy expands, with car-sharing and rental services on the rise, the demand for such digital keys is increasing rapidly. Market research firm Persistence Market Research forecasts that the global automotive digital key market will grow more than fourfold from USD 3 billion in 2023 to over USD 11 billion by 2033.
Having first launched its ‘Digital Key Module for Vehicles’ in 2021, LG Innotek has continued to refine and enhance its technology. The latest iteration, the ‘Next-Generation Digital Key solution’, offers significant improvements in both safety and user convenience, providing a comprehensive package that includes both hardware—such as antennas and circuitry—and the software needed to operate the digital key.
The solution is powered by LG Innotek’s extensive expertise in wireless communication technologies, developed over the past 40 years. It integrates short-range communication technologies like Bluetooth Low Energy (BLE) and Ultra-Wideband (UWB). UWB, in particular, plays a crucial role in ensuring precise location tracking of the smartphone linked to the digital key, with an accuracy of up to 10cm. This high level of precision is expected to greatly reduce the failure rates that have plagued existing digital key solutions.
Security is another area where the Next-Generation Digital Key stands out. By relying on short-range communication, it mitigates the risk of remote hacking, a vulnerability often associated with long-range communication methods. The solution is further safeguarded by LG Innotek’s proprietary hacking prevention technology, ensuring that only an authorised smartphone can activate the digital key, addressing one of the most significant security concerns in connected vehicles.
In addition to its robust security features, the Next-Generation Digital Key adheres to the latest standards set by the Car Connectivity Consortium (CCC), a global organisation dedicated to digital key standardisation. This compliance ensures that the key can be used across different countries, terrains, and vehicle types, and is compatible with a wide range of smartphones, including both iOS and Android devices.
The solution also incorporates additional safety features, such as the ‘Child Presence Detection (CPD)’ function, which uses an in-house developed radar to detect a child left in the vehicle. This feature sends a real-time alert to the user’s smartphone, potentially saving lives in scenarios where children are left in hot cars—a situation that claimed 33 lives in the United States in 2022 alone. With CPD systems set to become mandatory in the US and Europe by 2025, LG Innotek’s solution is well-positioned to meet future regulatory requirements.
Despite its advanced capabilities, the Next-Generation Digital Key is the smallest in the industry, housing more than 60 components within a package no larger than a business card. This compact design offers greater flexibility in vehicle design and enhances user convenience.
Looking ahead, LG Innotek is targeting 2027 for the mass production of this solution and is already engaging with global automotive manufacturers. The company is also expanding its footprint in the automotive communication component market with its second-generation 5G-V2X Communication Module, which has already secured orders from a major global automaker.
CEO Moon Hyuksoo emphasised the company’s commitment to innovation in the automotive sector, stating, “LG Innotek will continue to develop automotive communication components as a core pillar of our electronic component business. We aim to offer products that provide differentiated value to our customers and to solidify our position as a leader in the global market.”