by Automotive radar systems utilize radio waves to detect objects in a vehicle’s path and determine their location, speed, and direction of movement. These systems play a vital role in advanced driver assistance systems (ADAS) such as adaptive cruise control, autonomous emergency braking, blind-spot detection, and parking assistance. The adoption of ADAS has been increasing significantly driven by regulatory mandates for safety features and consumer demand for convenience technologies. Automotive radar allows vehicles to have a 360-degree awareness of their surroundings and provides accurate real-time input to various safety and autonomous driving systems. The technology also works reliably in adverse weather and lighting conditions unlike cameras and lidar sensors.
The global Automotive Radar market is estimated to be valued at US$ 5.6 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
ADAS has become increasingly common even in mainstream vehicles, and radar sensors play a major role in various ADAS applications. Original equipment manufacturers are also rapidly enhancing the advanced safety and driving features in their offerings, which is fueling the demand for automotive radars. Furthermore, the development of fully self-driving vehicles relies on sensor fusion technology where radar provides vital input for perception.
Market key trends:
One of the key trends in the automotive radar market size is the rise of higher resolution radars with more antennas. Traditional radars used to have low resolution which could detect objects but not identify them clearly. However, automakers are now focusing on radars with higher resolution upto 100 meters which can precisely detect objects on the road like vehicles, pedestrians, lane markings etc. This higher resolution enables radars to work with other sensors like cameras for sensor fusion and deliver advanced features. Higher resolution radars will become more common as autonomous driving penetrates the market in the coming years. In addition, research is ongoing to develop wider field of view and multi-beam radars to enhance object detection coverage around the vehicle.
Porter’s Analysis
Threat of new entrants: The automotive radar market has moderate threat of new entrants due to high R&D costs and brand recognition associated with key players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and price comparison of automotive radars with different specifications from different manufacturers.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitutes and dependence of automotive manufacturers on a limited number of technology and component suppliers.
Threat of new substitutes: Threat from new substitutes is moderate as alternatives like cameras, ultrasonic sensors have limited capabilities compared with radar.
Competitive rivalry: The market is fairly consolidated with presence of top players holding major market share.
Key Takeaways
The global automotive radar market is expected to witness high growth. The global Automotive Radar market is estimated to be valued at US$ 5.6 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.
Regional analysis related content comprises North America is expected to dominate the global automotive radar market over the forecast period. Advancements in autonomous vehicles and collaborations between automotive companies and technology providers have increased adoption of radars in this region.
Key players related content comprises Key players operating in the automotive radar market are Robert Bosch GmbH, Continental AG, Denso Corporation, Aptiv, Valeo.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
