Why Carmakers Are Switching To Digital Keys

The days of carrying around a physical key to unlock and start your car may soon be behind us. Now, carmakers are switching to digital keys housed on smartphones. You can even store car keys on your smartwatch if both are connected, or use the car manufacturer's app on your phone and pair it with your vehicle. From there, you can lock and unlock your car, start the engine, and perform other actions, depending on the car model and what features it offers.

Some car brands believe digital keys have an edge over traditional metal keys and key fobs because of their perceived customer value. Some of these automakers include Rivian, Audi, Chevrolet, Toyota, Jeep, Porsche, Ford, BMW, and more. This trend toward digital may continue to grow as the technology becomes more widely adopted by automakers worldwide.

Using digital keys offers clear benefits that car manufacturers like to promote. One of which is the convenience of having your car keys on your smartphone, as we often carry our devices everywhere. However, digital keys have drawbacks and raise concerns, such as how easily potential car thieves can hack these apps. 

The head of LG Innotek's Automotive Components Business Unit, Byaeng-kuk Yoo, spoke about the company's digital car key technology at a private event in August 2025. He stated, as recorded by PR Newswire, that "the 'Next-generation Digital Key Solution' is an innovative component that integrates LG Innotek's unrivaled wireless communication technology to provide exceptional customer value." Yoo also highlights that the benefit of digital keys is that they can't be lost like physical ones, and they can be integrated with sensors to open doors with kicking motions if the driver's hands are busy.

Providing value that lets customers overcome the common pain points of using a physical key is at the heart of this innovation. With digital keys, you can unlock your car by approaching it with your device. That means that you don't have to fish your keys out of your pocket when you're also carrying grocery bags to your trunk. You can also start your car remotely through the app to warm it up during the winter months or cool it down during the hot summer before you actually get into the car.

The digital car key also lets you share access to your car with family or friends more easily than exchanging physical keys and waiting for them to be returned. This can be especially handy in unexpected situations, such as when you need someone without a key to drive or if you need a house sitter to move your car. The technology is so useful that even Apple is pushing for a ramp-up of digital car key adoption.

Despite the benefits of this technology, there are some concerns around it. Carmaker Hyundai is facing legal action because a U.K. man had his Hyundai Ioniq 5 stolen by a car thief who used a device that mimics a digital key signature. The thief took less than 20 seconds to steal the car.

This type of hacking and cybercrime is one of the top concerns about digital car keys. Criminals can use a type of relay signal interception to attempt to steal your car, in a similar manner to the NGate ATM scam. You may also be concerned that if you lose your phone, someone may easily get into your car, depending on the strength of your password and other verification steps to open the digital key app, as well as the skill of the hacker who has your phone.

Cybercrime isn't the only concern with these digital keys. Your phone running out of battery or losing the necessary signal to access the app can potentially lock you out of your car. Also, issues with the car app itself or the app where it is stored, such as Google Wallet, can become annoying if it needs to update or crashes when you need to get in the car. So, despite developer optimism about the value this tech delivers to customers, there are still inherent risks to be aware of.