Allied Market Research

Automotive RADAR Market Expected to Reach $7.68 Billion by 2026


Report Code : A02097

quote Based on application, the intelligent park assist segment dominated the global automotive RADAR market in 2018, in terms of revenue. In addition, based on frequency, the 77 GHz segment is expected to exhibit lucrative growth rate during the forecast period. At present, Asia-Pacific is the highest revenue contributor, and is expected to garner the highest revenue in the global market during the forecast period, followed by Europe, North America, and LAMEA. quote

Lalit Katare & Anvay Sonpimple
Research Analyst, Automotive and Transportation at Allied Market Research

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According to a recent report published by Allied Market Research, titled, "Automotive RADAR Market by Application, Frequency, Range, and Vehicle Type: Global Opportunity Analysis and Industry Forecast, 2019–2026," the global automotive RADAR market size was valued at $3.15 billion in 2018, and is projected to reach $7.68 billion by 2026, registering a CAGR of 11.7% from 2019 to 2026.

Asia-Pacific dominates the market, followed by Europe, North America, and LAMEA. China dominated the global automotive RADAR market share in 2018, whereas Japan is expected to grow at a significant rate in the Asia-Pacific during the forecast period.

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 in demand due to increase in number of road accidents worldwide. Automobile RADAR is used in advance driver assistance systems, which can detect and classify certain objects on the road, and alert driver according to the road conditions. In addition, these systems can also automatically decelerate or stop the vehicle depending on the road conditions. Furthermore, it is observed that there is a tremendous increase in the death rates due to road accidents. For instance, according to World Health Organization’s report, nearly 1.25 million people die in road accidents each year. Moreover, road traffic injuries leading to death are higher among teenagers. These factors are leading to the rise in demand for safety features in vehicles. Automobile companies are developing and introducing the safety features to meet the needs of the customers. Thus, high demand for safety features such as advance driver assistance systems propels the growth of the automotive RADAR technology.

Countries have implemented laws and regulations for vehicles to install safety systems such as lane departure warning system and tire pressure monitoring system in their vehicles within a stipulated time period. For instance, the Indian government has made amendments to the motor vehicle act, to mandate the use of advanced brake systems in which automotive RADAR market plays a very crucial role, in all new models of commercial vehicles starting from April 2015. In addition, installation of automotive RADAR system are made mandatory in some country along with technologies such as drowsiness monitoring system, lane departure system, and driver monitoring system. Moreover, automobile manufactures need to obtain safety ratings from organizations such as the Insurance Institute of Highway Safety (IIHS), New Car Assessment Program (NCAP), and International Centre for Automotive Technology (ICAT) to access the sales license of vehicles in the market. Thus, all these safety rules and regulations made by the government are anticipated to propel the growth of the automotive RADAR market in the coming years. 

Companies are installing a wider range of features and technologies in their vehicles to provide comfort to consumers and to increase the sales. In addition, technological advancement in electronic components, such as automotive RADAR, Lidar, and smartphones which are supported with wireless communication & cloud systems provide better surrounding information and improves the safety of the consumers. The dynamic advancements in technology, which uses automotive RADAR such as intelligent parking assist system that helps cars to park smoothly without the involvement of a guide to give directions and emergency brakes at the sign of danger, have increased the sales of the automobile industry.

Adaptive cruise control system enables a vehicle to automatically adjust its speed depending on the response of the vehicle in front of it and is useful in maintaining the traction or speed of the vehicle, especially on highways. Several governments have mandated the installation of ADAS technologies as mandatory features in cars to reduce the frequency of accidents. Among all ADAS technologies, adaptive cruise control is widely used for detecting the relative speed of the vehicle in front and maintaining safe distance. These systems use a RADAR or laser sensor technology to detect an obstacle, which allows the vehicle to adjust to the speed based on the situation. The adaptive cruise control system has been gaining popularity due to its capability to reduce the frequency of accidents through add-on applications such as collision warning, mitigation, and avoidance.

Factors such as rise in demand for safety features in automobiles and increase in demand for comfortable driving drive the growth of the market. In addition, strict rules and regulations for safety features is anticipated to propel the growth of the automotive RADAR market. However, factors such as high cost & complex structure and low efficiency in bad weather conditions is anticipated to hamper the growth of the market. Further, increase in technological advancement and innovation in ADAS are expected to create numerous opportunities for the players operating in the automotive RADAR market.

Key Findings of the Study:

  • Based on application, the autonomous emergency braking (AEB) segments is anticipated to grow at a lucrative growth rate.
  • Based on vehicle type, the passenger car segment was the highest revenue contributor in 2018.
  • Based on region, Europe is anticipated to exhibit the highest CAGR during the forecast period.
  • Based on region, Asia-Pacific contributed the highest automotive RADAR market revenue in 2018, followed by Europe, North America, and LAMEA.

The key players analyzed in this report are Autoliv Inc., Continental AG, Delphi Automotive Company, DENSO Corporation, NXP Semiconductors, Robert Bosch GmbH, Texas Instruments, Valeo, ZF Friedrichshafen, Analog, and others.

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quote Automotive RADAR Market by Application (Adaptive Cruise Control (ACC), Autonomous Emergency Braking (AEB), Blind Spot Detection (BSD), Forward Collision Warning System, Intelligent Park Assist, and Other), Frequency (24 GHz, 77 GHz, and 79GHz), Range (Long Range RADAR (LRR) and Short and Medium Range RADAR (S&MRR)), and Vehicle Type (Passenger Car and Commercial Vehicles): Global Opportunity Analysis and Industry Forecast, 2019–2026 quote

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