The global automotive RADAR market size was valued at USD 3.50 billion in 2019 and expected to reach USD 8.30 billion by 2027, with a compound annual growth rate (CAGR) of 11.4% during the forecast period 2020 to 2027.
Factors such as rising demand for confortable driving along with incorporated safety features in the vehicle drive the market growth significantly. Increasing demand for vehicle safety features such as collision avoidance systems, parking assistance, traction control, lane departure warnings, tire pressure monitors, airbags, electronic stability control, and telematics is mainly due significant growth in number of accidents. For the same, governing bodies in some regions have imposed strict rules and regulations for the implementation of advanced safety features in the autonomous and semi-autonomous vehicles are projected to propel the market growth. For instance, National Highway Traffic Safety Administration (NHTSA) has imposed strict regulations on the vehicle safety such as air brake systems, and air bag deactivation. Similarly, European Union has regulated the use of short range radar in automotive application. As per the regulation the 79 GHz radio spectrum means the frequency range between 77 and 81 GHz.
However, high cost of devices and solutions installation restricts the growth of automotive RADAR as it increases the overall cost of the vehicle. Besides this, introduction to Advanced Driver Assistance System (ADAS) expected to propel the market growth during the forecast period. Technological advancements and innovation in ADAS are the prime factors that attracts large consumer base owing to the benefits offered by the system.
Short & Medium Range RADAR (S&MRR) held the largest revenue share in the global automotive RADAR market in the year 2019 and analyzed to grow at the fastest rate in the coming years. These radars are prominently used in the vehicle safety system. The S&MRR system offers various benefits such as lane change assist, blind spot detection, and park assist. Declining prices along with need to implement more than two RADARs per vehicle to enhance the safety are likely to accelerate the segment growth prominently in the coming years.
Intelligent park assist application is the major revenue contributor accounting to nearly 50% of the overall market revenue in the year 2019. Increasing demand for parking assistance to avoid back side collision boosts the demand for parking sensors. The smart driver assistance systems are very common in advanced and electric vehicles; however, parking sensors can be installed externally in the running vehicles to enhance its features. This attributed to the segment’s lucrative growth in the past few years.
On the other hand, adaptive cruise control (ACC) poised to grow at a prominent rate over the analysis period owing to widespread adoption in significant automotive markets such as Germany, U.S., UK, and China among others. In addition, it offers prominent benefits in vehicle safety and level of automation in vehicle. National Transport Safety Board, U.S. has incorporated the ACC systems in its ten most rated safety improvements for vehicle. Similarly, Europe, has also considered ACC system under mandatory safety solutions for advanced vehicle safety.
In 2019, Europe dominated the global automotive RADAR market and expected to flourish prominently in the coming years. The significant growth of the region is mainly due to government initiatives taken in Germany, UK, and other European countries for green and smart mobility. The government in the region aimed to reduce the air pollution along with number of accident cases. For the same, incentives to the public for adoption of electric and smart mobility triggered the growth of electric and hybrid vehicles in the region. Presently, electric vehicles are the most prominent application of advanced vehicle safety solutions and devices.
On the other hand, the Asia Pacific exhibits lucrative growth over the forecast period owing to increased purchasing power coupled with green revolution transforming the mobility in the region. China, India, South Korea, and Japan are some of the Asian countries that significantly adopt the smart mobility solution for enhancing vehicle safety and reducing pollution in the environment.
Key Companies & Market Share Insights
The global automotive RADAR market has large number of international and regional players operating globally; however, some of the top players lead the market revenue in 2019. Increased focus of industry participants on developing high-performance RADAR systems for automotive application is changing the face of market competition. In addition, companies also invest significantly in the research & development sector to develop attractive solution and gain strategic benefits over the competitors. For instance, in October 2016, Robert Bosch introduced Tesla Model S self-driving prototype. It was the first self-driving car developed in Australia. The self-driving car comprises one stereo video camera, six laser sensors (LiDAR), six RADARs, and one high precision GPS.
Some of the prominent players in the automotive RADAR market include:
Segments Covered in the Report
This research report includes complete assessment of the market with the help of extensive qualitative and quantitative insights, and projections regarding the market. This report offers breakdown of market into prospective and niche sectors. Further, this research study calculates market revenue and its growth trend at global, regional, and country from 2016 to 2027. This report includes global automotive RADAR market segmentation and its revenue estimation by classifying iton the basis of frequency, range, vehicle type, application, and region:
By Vehicle Type
By Regional Outlook
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