Automotive RADAR Market

Automotive RADAR Market Statistics 2021-2028:

The global automotive RADAR market was valued at $4.08 billion in 2020, and is projected to reach $10.06 billion by 2028, registering a CAGR of 12.6% from 2021 to 2028.

The COVID-19 pandemic proved quite detrimental for the automotive sector. It has had a sudden impact on the global unified automotive industry. Indications include the interruption in export of Chinese automotive parts, huge manufacturing disruptions across Europe, and the shutting down of assembly plants in the U.S. This is placing an extreme pressure on an industry that is already managing a downshift in the global demand. This impacted the revenue streams allocated towards the R&D and adoption of new technologies like automotive radar. However, with the growing vaccination numbers globally, the pandemic’s impact on the automotive industry is expected to come down gradually. Post pandemic demand for automotive radar-backed solutions is expected to grow appreciably as they offer superior safety and comfort to the vehicles.

Automotive RADAR is one of the leading technologies owing to its high precision and accuracy information content, including speed and range detection when compared to many other alternative sensors especially visual sensors. Automotive RADAR systems are the primary sensor adaptive cruise controls and play a very crucial role in the advance driver assistance system. In addition, automotive RADAR is one of the crucial sensors for collision avoidance, vehicle & pedestrian avoidance, and others. The automotive RADAR market is anticipated to exhibit remarkable growth rate during the forecast period owing to rise in demand for vehicle with safety features.

The key sensors used today on automobiles are RADAR and cameras, with ultrasonic technology playing a key role in short spans at lower velocities and LiDAR being utilized in autonomous driving. RADAR is extensively used as it has some exceptional features. RADAR can accurately detect the distance of an object. Long-range automotive RADARs can offer distance calculations on objects that are as far as 300 to 500 meters. RADAR enables essential measurements of parameters such as relative speed. Therefore, at the same time it delivers a measurement for speed and range..

The coronavirus pandemic significantly impacted the supply chain of automotive RADAR components to be used in safety systems across different vehicle types such as passenger and commercial.

In many aspects, the automotive industry is crucial for a robust global economy and the prosperity of a nation. The automotive industry is an essential component of economic growth of a nation and has extensive interconnections to upstream industries, such as chemicals, textiles, and steel, along with downstream industries such as mobility services, repair, and others. The automotive industry is labor-intensive and provides employment to thousands of workers. The automotive industry provides employment to around 14 million people in Europe, about 8 million in the U.S., and to approximately 5 million people in China.

This signifies the importance of the industry for a nation. The COVID-19 pandemic proved quite detrimental for the automotive sector. It has had a sudden impact on the global unified automotive industry. Indications include the interruption in export of Chinese automotive parts, huge manufacturing disruptions across Europe, and the shutting down of assembly plants in the U.S. This is placing an extreme pressure on an industry that is already managing a downshift in global demand.

The widespread outbreak of the novel coronavirus led to the sudden drop in import-export of non-essential items and only a small fraction of workforce was allowed to function in the factories. Further, the testing of systems was also impacted by the strict pandemic regulations. These caused a large supply-demand gap in the products and services related to automotive RADAR. The sales of automotive industry witnessed a drop.

COVID-19 Impact Analysis:

After a miserable year for automotive industry (2019), which already witnessed a significant drop of approximately 5% in global auto production and that ended the upward trend of 10 years of progress, the global auto industry encountered a new, unique situation in 2020 owing to the COVID pandemic. The sales figures went all-time low in the recent years, as both the demand for new vehicles and their production was impacted severely. This impacted the revenue streams allocated towards the R&D and adoption of new technologies like automotive RADAR. However, with the rise in vaccination numbers globally, the pandemic’s impact on the automotive industry is expected to come down gradually over the span of a couple of years. The post pandemic demand for automotive RADAR-backed solutions is expected to grow appreciably as they offer superior comfort and safety to the vehicles.

The automotive RADAR market is segmented on the basis of application, frequency, range, vehicle type, and region. Application segment includes adaptive cruise control (ACC), autonomous emergency braking (AEB), blind spot detection (BSD), forward collision warning system, intelligent park assists, and others. Further, on the basis of frequency, the market is categorized into 24 GHz, 77 GHz, and 79 GHz. By range, the market is classified into long-range RADAR (LRR), and short & medium range RADAR (S&MRR). Vehicle type includes passenger car and commercial vehicles. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key automotive RADAR market players profiled in the report include Key players including Analog Devices, Inc., BorgWarner Inc., Continental AG, DENSO Corporation, NXP Semiconductors, Robert Bosch GmbH, Texas Instruments, Valeo, Veoneer Inc. ZF Friedrichshafen AG, and others.

Rise in demand for safety features in automobiles

The demand for safety features, such as parking assistance, collision avoidance systems, lane departure warnings, traction control, electronic stability control, tire pressure monitors, airbags, and telematics is experiencing an upward trend owing to increase in number of road accidents worldwide. Automotive radar is a major component of the advance driver assistance systems (ADAS), which can detect and classify certain objects on the road, and accordingly, alert the driver of the nearby surroundings and road conditions. In addition, these systems can also automatically decelerate or stop the vehicle depending on the road conditions. Road accidents are a major cause of death globally. Tremendous increase in the death rates due to road accidents has been observed. For instance, according to World Health Organization’s report, nearly 1.3 million people die in road traffic crashes each year. Moreover, road traffic injuries leading to death are higher among teenagers. These factors are leading to the surge in demand for safety features in vehicles. Companies operating in the automobile sector are developing and introducing the safety features to meet the needs of the customers. For instance, in February 2020, HELLA (company that manufacturers cutting-edge lighting and electronics components) announced the production plan for the latest 77 GHz radar technology.

As a crucial application of complementary metal oxide semiconductors (CMOS) radar, automotive radar is evolving as a key technology supporting the functioning of smart and autonomous features in modern vehicles, for instance, reducing driver stress, relieving drivers from repetitive tasks, and adding life-saving automatic interventions. These benefits are expected to increase the penetration of automotive radars during the forecast timeframe.

Increase in demand for comfortable driving

Today, consumers are fairly inclined toward comfort while driving. Safety features, such as adaptive cruise control and parking aid systems, which use automotive radars are being introduced by manufacturers in high-end cars to offer greater comfort to drivers. However, the driver can overrule the system any time. Other systems such as night vision system, and others, that support the driver for lateral control of the vehicle are in continuous development phase. Automotive radar is used in these systems to detect the surrounding of the vehicle with high accuracy and precision. In addition, the demand for driver assistance applications has significantly increased in the recent years due to surge in the purchasing power of consumers and has influenced consumers to shift to more comfortable driving experience. Moreover, the per capita income of consumers has increased due to improvement in the economic condition of several developed countries like the U.S. and various European countries. Superior comfort offered by automotive radar assisted systems is expected to fuel the growth of the automotive RADAR market during the forecast timeframe.

Key Benefits For Stakeholders

• This study presents analytical depiction of the automotive RADAR market analysis along with the current trends and future estimations to depict the imminent investment pockets.
• The overall market potential is determined to understand the profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
• The current automotive RADAR market size is quantitatively analyzed from 2020 to 2028 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the automotive RADAR industry.

 Automotive RADAR Market Report Highlights