Models promote LG Innotek's digital key in this undated handout photo. Courtesy of LG Innotek

LG Innotek seeks to grab a bigger share of the automotive communication components market with its next-generation digital key, the company said, Monday.

Digital keys use wireless technology to connect smartphones with vehicles, enabling functions such as locking and unlocking doors and starting the engine. Carmakers are paying greater attention to digital keys in the wake of the ride-sharing industry.

The company said it recently developed a next-generation digital key comprised of a digital key module and software required to operate the digital key.

The new module is powered by a number of short-range communication technologies, including Bluetooth Low Energy, near-field communication (NFC) within 10 centimeters and ultra-wideband (UWB). Compared to existing products that operate via long-distance cellular communication, the new module significantly improves digital key security as well as reducing malfunctions.

LG Innotek aims to start mass production of the next-generation digital key by 2027 and is actively promoting it to global carmakers.

"LG Innotek will continue nurturing its vehicle communication components business based on its distinguished wireless communication technology as a core pillar of our automotive component sales," LG Innotek CEO Moon Hyuk-soo said.

"We will continue to introduce products that offer differentiated customer value and consolidate our position as a leading global company in the vehicle communication components market."

The recent growth in car-sharing and rental car industries is resulting in increasing demand for vehicular digital keys. According to market tracker Persistence Market Research, the market for vehicular digital keys is expected to nearly quadruple from $3.02 billion in 2023 to $11.38 billion by 2033.