LG Innotek Promotes 'Next-generation Digital Key Solution', Aiming to Nurture Its Automotive Communication Components into a 1.08 billion USD Business over the next 30 Years

SEOUL, South Korea, Aug. 25, 2025 /PRNewswire/ -- LG Innotek recently held an event to unveil its newly developed 'Next-generation Digital Key Solution' for the first time to the media.

The 'Next-generation Digital Key Solution' is a flagship product of LG Innotek's automotive connectivity business, a key pillar of its automotive components business, along with 5G communication modules and automotive AP modules.

The digital key is touted as a next-generation car key that connects a smartphone to a car through wireless communication technology, enabling the user to lock and unlock the doors and start the engine. Not only is there no chance of losing the key since it is not a physical object that can be carried, but there is also little risk of vehicle theft because the engine can be started with only the smartphone on which the digital key is installed.

With the recent growth of the vehicle-sharing industry, including car sharing and car rentals, the demand for digital keys is increasing rapidly. According to industry estimates, the vehicle digital key market is expected to grow more than fivefold, from USD 431.65 million in 2025 to USD 2.37 billion by 2030.

Quickly recognizing this market trend, LG Innotek began developing digital key modules in 2017 and unveiled its Digital Key Module for automobiles in 2019. It has since continued to enhance product performance. With the development of the 'Next-generation Digital Key Solution' in 2024, the company has significantly improved passenger safety and convenience, emerging as a leader in the digital key market.

Byaeng kuk Yoo, head of LG Innotek's Automotive Components Business Unit, commented, "The 'Next-generation Digital Key Solution' is an innovative component that integrates LG Innotek's unrivaled wireless communication technology to provide exceptional customer value." He went on to add, "We will accelerate our penetration of the market with the goal of becoming a global leader by 2030." This illustrates LG Innotek's strategy to grow its vehicle communication components business into a business with an annual revenue of 1.08 billion USD.

■ Car flashes lights to welcome driver, and doors unlock by simply approaching the car, without having to take out one's smartphone

The digital key is activated when the user enters a five-meter radius around the vehicle with a smartphone equipped with the digital key in his or her pocket.

Sungjun Bae, leader of LG Innotek's Convenience Control Communication Software Development Team, explained, "Depending on customer needs, the welcome function can be implemented in various ways, such as flashing lights or automatically unfolding side mirrors."

With LG Innotek's 'Next-generation Digital Key Solution', there is no need for the user to put down shopping bags or take out a smartphone to open the trunk door. The driver is detected by placing a foot near the kick sensor installed at the bottom of the trunk. The vehicle detects the kicking motion of the driver's foot with the digital key, causing the trunk door to open automatically.

When the digital key is activated, the vehicle doors can be opened and closed automatically. The front doors open when the user approaches the front of the vehicle, while the rear doors unlock when approached from the rear.

Bae said, "The technology to accurately measure the physical distance between the user and the vehicle has already been applied to existing commercial products, but the situation changes when the smartphone is placed in a pocket or bag." He added, "If a smartphone is in a pocket, its recognition distance may decrease or it may think it is indoors rather than outdoors. As a result, the digital key may not be activated." He further noted, "LG Innotek's 'Next-generation Digital Key Solution' is a product that addresses these challenges and is gaining attention in the industry."

■ High-precision 3D positioning algorithm improves location accuracy by more than 30% compared to existing technologies, achieving the "highest level in the industry"

LG Innotek's 'Next-generation Digital Key Solution' combines BLE (Bluetooth Low Energy) with UWB (ultra-wideband), a wireless communication technology that uses broadband frequencies. This compensates for the weakness of BLE, which is vulnerable to radio interference, and minimizes security risks, such as hacking.

Hyoungki Nam, head of LG Innotek's Connectivity Development Department, explained, "The company has additionally applied its own high-precision 3D positioning algorithm using AI that has learned 3D coordinates, enabling it to accurately detect the location of a smartphone within a margin of error of 10 centimeters." With accuracy improved by more than 30% compared to existing products, LG Innotek's 'Next-generation Digital Key Solution' boasts the highest level of positioning accuracy in the industry.

For example, with existing products, the vehicle door opening/closing function would activate from a distance of 20 to 30 centimeters. This sometimes causes malfunctions, such as the front door opening when the user is at the rear of the vehicle. In contrast, LG Innotek's 'Next-generation Digital Key Solution' is designed to activate the function only when the user is within 10 centimeters of the vehicle door, eliminating situations where the wrong door opens or the digital key does not activate due to positioning error.

Nam explained, "To achieve this level of positioning accuracy, LG Innotek leveraged AI to develop and tune 3D positioning algorithms optimized for each vehicle model. Thanks to the use of AI, we were able to significantly reduce the algorithm development time and cut the resources required for development by more than 50%."

■ Equipped with an independently developed radar, offering various additional features such as CPD (Child Presence Detection)

LG Innotek plans to add its own radar technology to its 'Next-generation Digital Key Solution' to provide customers with a variety of additional features that enhance safety and convenience.

A major example is the child presence detection (CPD) feature, which detects children left behind in vehicles. The radar immediately detects a child's movement or breathing and sends a real-time alert to the driver's smartphone.

According to statistics from the National Security Council, 39 children left alone in vehicles in the United States died of heatstroke in 2024. In response to these accidents, the United States and Europe are moving to formally regulate the installation of CPD in vehicles. The European New Car Assessment Programme (Euro NCAP), a European automotive safety evaluation agency, implemented a policy this year to award bonus points to vehicles equipped with CPD. Since vehicles that fail to secure the highest Euro NCAP rating of five stars risk being shunned by European consumers, automakers are likely to continue adopting CPD.

The CPD function incorporated into LG Innotek's 'Next-generation Digital Key Solution' detects the subtle breathing of children aged six and under left alone in a locked vehicle and sends an alarm to the driver within 10 seconds. Euro NCAP has established a function that detects the presence of children and sends an alarm within 15 seconds as an evaluation criterion.

Previous CPD devices detected the presence of a child based on changes in seat weight. However, placing a bag similar in weight to a child in the seat often caused the device to send a false alarm. In contrast, the CPD in LG Innotek's Digital Key uses radar to detect the unique subtle breathing patterns of children, which are different from those of adults, resulting in very high accuracy. 

In addition, radar technology allows the 'Next-generation Digital Key Solution' to immediately send an alarm when a robber attempts to forcefully open the car door as well as provide various additional services such as rear collision prevention and seatbelt warning alarms.

■ Customer promotion for global automobile, boasting the smallest size in the industry and high compatibility

LG Innotek's 'Next-generation Digital Key Solution' is the smallest in the industry—smaller than a business card. Typically about six digital key solutions are installed in a single vehicle depending on customer requirements.

The solution integrates over 60 components and modules, including radio frequency (RF) and power block devices that support BLE and UWB wireless communication, along with proprietary software, all into a single solution. This enables enhanced design flexibility and delivers exceptional customer value.

As it complies with the latest standards of the Car Connectivity Consortium (CCC), a global digital key standardization organization, it can be used regardless of country, terrain, or vehicle type and is highly compatible with various smartphone models. It is also designed to be compatible with both iOS and Android operating systems, enhancing user convenience.

Hongphill Kim, head of LG Innotek's Connectivity Business Division, commented, "Last year alone, we secured orders for digital key solutions to be installed in 14 vehicle models, domestically and internationally. We will actively promote our solutions to North American and European automotive customers to further expand our order volume. Through this, we aim to solidify our position as a leading company in the digital key market."

About LG Innotek Co.,Ltd.

LG Innotek is a cutting-edge materials and components manufacturer and an affiliate of the LG group. The company's business units include core components for mobiles, automotive, display, semiconductors, and IoT. Furthermore, the company has cooperated closely with the mobile devices, home appliances, and automotive companies, producing camera modules, automotive electronic components, wireless communication modules, and substrate materials.

LG Innotek is headquartered in Seoul, Korea and its sales subsidiaries are located in Germany, USA, China, Japan, and Taiwan with production subsidiaries in China, Vietnam, Indonesia, Mexico, and Poland. For more information, please refer to the website: www.lginnotek.com 

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