Smartphone as a key – A must have investment in some markets, a potential cost saving in others?

The idea of being able to start, lock, unlock your car from a smartphone isn’t new. But, due to market security concerns, the introduction of specific UNECE requirements and UK and German insurance requirements around digital keys, the implementation of smartphone as a key in Europe has been slow compared to other markets around the world.

Many OEMs offer European customers a mobile app that allows users to connect to their car and receive specific status information such as, are the doors locked, are the windows closed or open, how much fuel / charge does the car have, mileage etc. Additionally, some also offer active remote functions like preheat / cooling and a ‘find your car’ feature. None of these features though, pose any direct risk to the theft of the car.

However, due to the high numbers of reported Relay Attacks across Europe, the introduction of passive Digital Key systems has been delayed. The thought being, that OEMs mustn’t release a second key technology that’s not proven against attack.

Relay Attack on conventional passive key fob systems was a European PR disaster. Organised Crime Groups operating across Europe invested in tools that could bypass passive ‘smart key’ systems, by extending the signal from the key to the car.  It turned into a well-publicised theft risk and an embarrassment with no easy fix.

This risk of allowing another insecure system into he market, pushed regulators to introduce amendments to the current UNECE R116 Theft Prevention Legislation. This meant that any OEM wishing to homologate a vehicle in Europe fitted with Digital Key, needed to meet accurate distance measurement requirements. Currently, the only way to achieve these requirements with a fully passive system, is to use Ultra-Wide Band (UWB) technology.

In addition to R116, industry partners (automotive, smartphone OEMs, tier 1 suppliers, telecoms industry etc) have introduced a set of security standards through an international organisation called the CCC (Car Connectivity Consortium). Due to its millimeter accuracy, security, speed and low power usage, the current CCC requirements also champions the use of UWB.  

There are other potentially low cost solutions being studied in China, such as Channel Sounding (CS). But although they promise similar performance, it is not as precise or secure as UWB, so cannot achieve all of the requirements and currently, it is not supported by Apple or Samsung.

So what’s stopping OEMs pushing ahead?

Technology and development costs are the main reasons preventing widespread fitment in some high security risk markets.

Some premium OEMs have included UWB into their model line ups, these include JLR, VAG, BMW, Mercedes, Lexus, Genesis. Although some use it to enable smartphone digital keys, it was initially introduced to prevent their ‘smart key fobs’ from being vulnerable to Relay Attack.

As for the majority of mainstream manufacturers, UWB technology is still considered too expensive to justify the investment to adopt across their model line ups.

Tesla and some Chinese models do offer digital key options and to countermeasure the security risks, they have introduced an additional PIN code system as a form of 2FA (two factor authentication). Introducing 2FA may well resolve some of the security issues, but surely the purpose of a digital key system should be to offer the user the same fully passive features of the current smart key fob, anything else is a different and less convenient method of what is already available.   

Opportunities

In these financially constrained times of cut backs, job losses, cost reductions and restructuring, OEMs should possibly ask the question, who actually wants digital smartphone keys? How will this boost vehicle sales

According to a recent feature survey carried out by SBD Automotive, interest in Digital Key systems (smartphone as a key) is high in Asian and Central / South American markets and of low to little importance in Europe, USA and Japan.

Another reason for not offering Digital Key, could be a lack of new car buyer interest in the feature in Europe, USA and Japan.

At the end of 2025, SBD surveyed 3,943 people from a cross section of current vehicle owners and they were asked, “Imagine you are seriously considering buying or leasing a new car. How important would a smartphone key system be in deciding which car to choose?”

Unfortunately the question asked here only highlights the desire for a feature and does get to the reason behind it. But it does show that it would be wise to understand reasons, before any major investment or change in strategy is made.

Importance of solid market and user data.

The above doesn’t just show that customers in some markets are or are not interested in specific features, it also shows that deeper research and additional data is often required to understand the full story and confirm a strategy.

For example, if Digital Key is only viewed as a Must Have / High Importance feature in Asian, Central and South American markets, but is considered only as a Nice To Have / Not Important in other large markets, does this mean there’s still a business case to offer the system globally? High parts volume could lead to lower system costs, so potential savings, however, without all of the information and an understanding of specific legislative requirements, the additional costs of UWB protection and secure back end and registration processes to ensure the system and data is protected, it is impossible to get a complete picture and business case.

Understanding the complete picture is especially interesting when considering a separate SBD Automotive survey. In a survey in 2025, SBD asked 525 UK car buyers a series of questions around which areas are important to them, when purchasing a new vehicle. Interestingly, vehicle security and theft concerns features in the top 3 along with reliability and service and maintenance costs.

If you were to ask the if security and theft concerns rank highly to a Chinese buyer, my guess would be not as high, this is because China has a very low number of reported thefts and is considered safe.

When considering both sets of data and the known risks around passive key systems, key programming, immobiliser emulator devices and the growing threat of CAN BUS attacks, possibly OEMs should consider focusing on countermeasures for these weaknesses in Europe and North America, rather than introducing smartphone as a key and a set of new attack vectors.

Added Investment Into Securing Current Systems

Rather than developing potential additional weaknesses, far greater consideration should be given to ensuring systems comply with UNECE R115 Cyber Resilience legislation, which includes attacks such as Relay Attack and Man in the Middle techniques and attacks on OEM servers and the supply chain.

Along with UNECE R115, system designers and engineers need to be fully aware of the risks surrounding the new Euro 7 regulation. This new legislation goes beyond current tail pipe emission limits and introduces a series of robust, new anti-tamper requirements.

This doesn’t only include new emission and performance for passenger cars, but introduces a new set of anti-manipulation standards, tyre and brake emissions, odometer readings, EV battery security and health and requires tamper-proof monitoring over a vehicles lifetime across all vehicle types. Euro 7 integrates environmental integrity, with cyber and physical security and interlinks with UNECE R115. These areas need study and investment to protect the consumer as well as the OEM.

A Final Thought

Although a Digital Key system gives the user some new features, has anyone asked if buyers want it? So, it is now possible to send and share keys between iOS and Android systems and the above features are not only possible, but easy to use. but so what?

Is anybody asking how many car owners want to share keys remotely (rather than hand them a key fob) or rent their personal car to a stranger (peer to peer rental)?

Some people are intimating that digital keys (smartphone as a key or a wearable) will replace physical keys altogether and will save OEMs cost. I’m not sure this strategy will happen in the short to medium term, as  it would lead to new problems to overcome. Fleet customers may find an ‘only digital key’ system difficult to manage, it would also add complexities to the used car sales market, ensuring all digital keys have been deleted, transferring cars from one customers portal account to another, etc. etc.

For this reason I can only see digital key being offered as an addition or an option and physical keys remaining the primary methos of entering and starting your car. I also haven’t mentioned the need for an additional secure emergency method of entry and start in case the smartphone or the car is out of power (currently, key fobs include a physical key blade).

Yes it can be done, but similar to hands free automated parking systems, who is asking for it and who is using it? If it is part of a well thought out strategy, what markets should take priority? Which models should take priority? What customer demographic wants the feature? Should OEMs develop a smartphone system with two levels of security? A lower cost version for markets with low vehicle crime and a more secure version for others and how will this look to the buying public or the media?

“The introduction of Digital Keys into smartphones has always appeared to me as a marketing want rather than solving any problem or specific need. However, looking at the consumer survey data, it is a clear want in certain countries, in fact if you were to dive deeper into wider trends, you could say that it is a must have in some markets.

This just proves that understanding the user and the market is essential when developing a technology strategy.

Smartphones have become an essential part of our lives however, our attitudes and the way we are using mobile technology varies greatly on your age and where you live. In the ‘west’ for example, many see the over use and reliance on smartphones and digital technology (especially in education and by the young), as a negative. There seems to be a yearning in some quarters to a return to a more analogue existence, or at least a more equal mix.

China on the other hand, like many new fast growth markets, have fully embraced the digital world. As an example, cash and debit/credit cards have been completely replaced by contactless payment apps. The old and the young all use smartphones for payment, identification, travel etc. so it is a natural progression to connect it to your car and use it as a key.

One final thought, smartphones are anonymous, so it should also be remembered that a well-designed, visually appealing, quality feel key fob can be seen as a physical connection to an owners car and brand, even when they are not actually driving it.

The convenience of a physical key over a digital key must also not be forgotten. It also needs to Servicing, valet parking, large fleets, use cases where a vehicle needs to be moved by many people. In these cases a physical key fob is far easier to manage (rather than logging in to an account, adding a key, remembering to delete the key again etc. etc.).”

“Digital keys have their place, The tricky part is understanding where that place is, who to offer it to and putting together a strong business case”

Rob Hare – Manager - EMEIA Anti-Theft and Cost of Ownership.

How SBD can help

SBD Automotive can help benchmark your position against the wider industry and identify where action is needed most. To explore how these trends impact your strategy, architecture and supplier roadmap, get in touch with SBD Automotive for a deeper discussion. Email info@sbdautomotive.com