February 25, 2024
Automotive Radar Market

The Automotive Radar Market is Expected to be Flourished by Growth in Autonomous Vehicle Technology

Automotive radar is a system installed in vehicles to detect nearby moving objects and determine their speed and position through radio waves. These radars are primarily used for adaptive cruise control, blind spot detection, forward-collision warning, and autonomous emergency braking systems. The rising demand for active safety features and advanced driver assistance systems (ADAS) is driving the growth of the automotive radar market. Furthermore, with greater adoption of autonomous and semi-autonomous vehicles, the role of automotive radars is expected to increase significantly as they provide critical information to various autonomous driving technologies. The global automotive radar market is estimated to be valued at US$ 4.86 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The growth of the automotive radar market is expected to be driven by increasing penetration of Advanced Driver Assistance Systems (ADAS) and autonomous vehicles. ADAS features such as adaptive cruise control, blind-spot detection, parking assistance, and lane departure warning systems are becoming increasingly common on production vehicles. These systems use radar technology to detect nearby objects and monitor traffic conditions. As adoption of semi-autonomous and self-driving vehicles grows rapidly over the coming years, the role of automotive radar technology will become more important. Autonomous vehicles need high-resolution, long range radars to safely sense their surroundings. This is driving automotive manufacturers to develop more advanced radar technologies with higher range and resolution capabilities to support full autonomy. Another factor fueling the demand for automotive radars is the implementation of regulatory mandates on vehicle safety by various regions and countries. For instance, the European Union has made emergency braking and lane departure warning systems mandatory on all new vehicle types from 2022. Such regulations are expanding the scope of radar technology in the automotive industry.

Segment Analysis

The automotive radar market is dominated by the 77GHz segment. The 77GHz sub-segment accounts for over 60% share of the automotive radar market owing to its strong performance in both long and mid-range object detection applications. The 77GHz radars have ability to detect obstacles at a range of 200m and delivers superior clarity in images compared to other frequency variants like 24GHz radars.

PEST Analysis

Political: Automotive radar is facing regulatory challenges in certain regions due to usage of spectrum bands reserved for other critical applications. However, favorable vehicle safety regulations worldwide are helping automotive radar adoption.

Economic: Strong growth in automobile production and rising demand for advanced driver assistance systems are fueling automotive radar market growth. Further, increased research funding for development of autonomous vehicles present new opportunities.

Social: Changing consumer preference towards safety, driver convenience and autonomous driving features are driving demand for automotive radar sensors. However, cyber security challenges need to be addressed to gain consumer confidence in automated driving technologies.

Technological: Advancements in semiconductor technologies, computing power and algorithms are helping improve radar resolution, range and accuracy for enabling applications like automatic emergency braking and adaptive cruise control. However, reliability and cost challenges need to be addressed for widespread adoption.

Key Takeaways

The global Automotive Radar Market Growth is expected to witness high growth over the forecast period supported by rising vehicle production and stringent safety regulations worldwide.

Regional analysis:

The Asia Pacific region accounted for over 40% of the global automotive radar market share in 2024 led by countries like China, Japan and South Korea. China has emerged as the largest producer of passenger and commercial vehicles globally and witnessed over 20% year-on-year growth in automobile sales in last few years. This is positively influencing the adoption of advanced driver assistance systems including radars in China.

Key players operating in the automotive radar market are Banner Engineering Corporation, Rockwell Automation Inc., Pepperl+Fuchs SE. Banner Engineering Corporation is one of the leading players with wide range of automotive radar sensors for applications like adaptive cruise control, autonomous emergency braking etc. Rockwell Automation Inc. offers radar sensors and solutions for collision avoidance and mitigation.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it