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Automotive Radar Market Overview
The Automotive Radar Market size is estimated to reach $8.5 billion by 2027, growing at a CAGR of 9.6% during the forecast period 2022-2027. Stringent government mandates for improving vehicle safety standards are driving the demand for Automotive Radars as they are being utilized for enhancing safety features such as blind-spot identification, adaptive cruise control, collision warning, lane change assistance, and so on. Growing consumer demand for vehicle comfort and safety, as well as alarming rise in road accidents due to vehicle collision, traffic, and others, is catering to the market growth of such sensor systems. Additionally, rising trend toward autonomous driving and electric vehicles, significant adoption of advanced driver assistance systems (ADAS) technologies by automotive OEMs, alongside growing demand for a premium segment of luxury vehicles, can also help in accelerating its market growth. Moreover, high investment on R&D activities for radar sensors to be used in automotive applications, technological advancements like integration of artificial intelligence within Automotive Radar systems, and many others is also set to influence the market growth in the long run.
Automotive Radar Market Report Coverage
The
report: “Automotive Radar Outlook – Forecast (2022-2027)”, by
IndustryARC covers an in-depth analysis of the following segments of the Automotive Radar industry.
Key Takeaways
- Short & Medium Range segment is analyzed to Witness the fastest growth in the Automotive Radar Market during 2022-2027, owing to surge in demand for ADAS based vehicles, as well as
growing emphasis on integration more than two radars within automotives.
- Adaptive Cruise Control application dominated the Automotive Radar Market in 2021, attributed to rising number of road accidents or fatalities, and significant adoption of automakers towards integrating vehicles with adaptive cruise control features.
- Europe Automotive Radar Market held the largest share in 2021, owing to government regulations towards improving vehicle safety standards, rising production of passenger and commercial vehicles and so on.
- Stringent government mandates for improving vehicle safety standards along with growing trend towards autonomous and electric vehicles is analyzed to significantly drive the market growth of automotive radars during 2022-2027.
Global Automotive Radar Market Value Share, by Region, 2021 (%)
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Automotive Radar Market Segment Analysis - By Range
Short & Medium Range segment is analyzed
to grow with the highest CAGR of 10.5% in the Automotive Radar Market during the forecast period
2022-2027. Growing demand for vehicles with advanced driver assistance
functionalities, pricing flexibility, and increased emphasis on the integration
of more than two radars within automotive, can be considered vital factors
attributing to its market growth. Since both short and mid-range radars can be
placed on all four corners of the vehicle, enabling early obstacle or
pedestrian detection, compared to long-range radars which are generally used in
the front section, they have been gaining wide popularity across automotive
markets over time. High investments in R&D activities, growing shift
towards autonomous vehicles, as well as increased utilization of blind-spot
detection systems for enhancing automotive safety, can also drive the market
growth forward. In September 2021, ZF in partnership with Dongfeng Motor
announced the launch of its next-generation mid-range radar, to support
advanced ADAS safety functions as well as enhance the existing assist
semi-automated system on the Dongfeng’s Aelous Yixuan Max. This development was
done to meet 2022+Euro NCAP 5-star safety ratings, with three operation modes
to help semi-automated driving functions. Such factors are set to propel the
demand for short and mid-range radars within automotive markets in the long run.
Automotive Radar Market Segment Analysis - By Application
Automotive
radars for adaptive cruise control application dominated with a share of around
34% in 2021, owing to factors like rising number of road accidents or
fatalities, along with increased adoption of automakers towards integrating
adaptive cruise control features. Government regulations or mandates regarding
the installation of braking control systems, along with growing concerns for
vehicle safety among consumers can be considered as some crucial factors
driving the market growth. As per the study conducted by the U.S Department of
Transportation, application of adaptive cruise control technologies in vehicles
can contribute towards 10% average fuel saving. Additionally, the study further
stated that adaptive cruise control technology ensures smooth driving with less
braking as well as reduced hard acceleration. Moreover, government emphasis on
monitoring vehicle over speeding, significant dominance of speed-related road
crashes, and increase in demand for premium vehicles are also set to cater to
its market growth. In September 2020, MG Motor revealed its plans on the launch
of a premium SUV, MG Gloster, in India, making it country’s first L1 autonomous
premium SUV. This vehicle will be equipped with adaptive cruise control, in
order to allow the car keep a steady pace irrespective of the driver's input as
well as modify speeds according to the speed of the vehicles ahead. Integration
of such advanced features in these vehicles is set to boost the market growth
of automotive radars in the long run.
Automotive Radar Market Segment Analysis - By Geography
Europe region dominated the Automotive Radar Market with a share of around 36% in 2021, owing to varied factors including rising production of commercial and passenger vehicles, government regulations towards improving vehicle safety standards, and so on. Growing installation of corner radars, rising demand for emergency braking solutions, alongside increased demand for the premium segment, luxury or high-end vehicles have been driving the market growth forward. In addition, significant initiatives or incentives towards supporting the electric vehicle shift as well as higher emphasis of automotive OEMs on advanced driver assistance systems is further catering to the market growth in the region. Moreover, rising number of roadside fatalities, stringent mandates on the installation of collision avoidance, emergency braking, and related ADAS applications, along with high R&D activities over time will also help in positively impacting its market growth. In September 2021, a Germany-based automotive giant, Continental announced the launch of an affordable radar based ADAS solution for entry-level and mid-segment passenger cars. Built with robust hardware and state-of-the-art software, this radar sensor was developed to reemphasize automotive safety standards. These factors are set to contribute to the growth of automotive radars within European markets.
Automotive Radar Market Drivers
Stringent government regulations or mandates on improving vehicle safety standards is driving the demand for automotive radars:
Stringent government mandates for
improving vehicle safety standards act as one of the major drivers boosting the
market growth of automotive radars. Due to alarming rise in mortality rates
caused by road accidents, governmental organizations or authorities have
started focusing highly on improving vehicle safety standards. This in turn,
had led to stringent government policies, mandates or regulations related to
installation of vehicle safety systems like ADAS, thus driving the need for
radars. According to the Ministry of Road Transport and Highways, about 3564
road accidents were reported in 2020, in comparison to 4775 accidents during
2019, within the country. In February 2022, the Ministry of Road Transport and
Highways (MoRHT) in a press conference had revealed about improving road safety
in India, as well as reducing the number of deaths caused by road accidents to
half by the year 2025. Following this, the Ministry had
also mentioned its plans on making ADAS mandatory for cars, while stressing on driver
assistance systems, like advanced emergency braking systems, blind spot
information systems, forward collision warning, and so on. Such factors
are set to accelerate the demand for Automotive Radars in the long run.
Growing trend towards autonomous and electric vehicles is positively impacting the market growth of automotive radars:
Growing trend toward autonomous and electric vehicles can also be considered as a prime factor boosting the Automotive Radar Market growth. Government emphasis on adoption of electric vehicles (EVs), high R&D activities related to autonomous cars, and growing initiatives from major automotive giants on the integration of millimeter-wave radars in electric cars have been driving the market forward. In addition, growing demand for advanced navigation and driving features in semi-autonomous vehicles, increasing penetration of these vehicles, and many others will also cater to its market growth. In January 2021, Engineers at the University of California, San Diego revealed its development of an upgrade to radar sensors, to make self-driving car operation comparatively safer during bad weather conditions. The addition of two radar sensors to the hood of a car, placed about 1.5 meters apart, was done to upgrade the functionality of radar sensors. Furthermore, according to the Federation of Automotive Dealership Associations of India (FADAI), about 4,29,217 units of EVs were sold in FY22, in comparison to 1,34,821 in FY21. Such factors are set to assist the demand for automotive radars in the coming time.
Automotive Radar Market Challenges
Security concerns related to automotive radar sensor is hampering its market growth:
Security concerns related to automotive radars act
as a major factor restraining its market growth. With the shift towards vehicle
automation, there is significant rise in adoption of digital technologies to
improve driver assistance functionalities. Due to incapability of radar systems
in addressing inter-radar interferences, there can be potential security
threats including jamming and spoofing, reducing its market adoptability. Since
these radar sensors using location data through GPS technologies to provide an
insight related to traffic congestion, parking slot availability, pedestrian or
obstacle detection and so on, there are high chances of data hacking, and
related cybersecurity threats. Through dependency on connected technology,
there is access to driver’s data, which in turn can impact driver’s safety,
create traffic rule violations and many others.
These factors have been eventually creating an adverse impact on the
adoptability of automotive radars overtime.
Automotive Radar Market Landscape
Product launches, acquisitions and R&D activities are key
strategies adopted by players in the Automotive Radar Market. The Automotive Radar Market top 10 companies include:
- Analog Devices Inc.
- Aptiv plc
- Autoliv Inc.
- Continental AG
- Denso Corporation
- HELLA GmbH & Co. KGaA
- Infineon Technologies AG
- NXP Semiconductors
- Texas Instruments Incorporated
- ZF Friedrichshafen AG
Recent Developments
- In January 2022, Texas Instruments had launched its second-generation chip for vehicle radar sensors which extends from short to long range. Development of this IC was done to offer 33% higher resolution and 40% longer range, thus allowing it to locate obstructions on the road ahead more precisely as well as distinguish between automobiles, motorcycles, and people.
- In January 2022, NXP Semiconductors announced about updating its industry-leading Automotive Radar portfolio with the launch of NXP S32R41, thus extending 4D imaging radar benefits for a much larger number of vehicles. NXP S32R45 and S32R41 radar processors combining with the NXP TEF82xx RFCMOS transceivers provide the angular resolution, processing power, and range required for production-ready imaging radar solutions.
- In April 2021, Continental AG had introduced 6th generation radar sensors
for autonomous vehicles, which are capable of enabling predictive applications
for Euro NCAP criteria with better automated driving functions such as
automated lane changes.
Relevant Report Titles:
Advanced Driver Assistance Systems (ADAS) Market - Forecast(2022 - 2027)
Report Code: ATR
0008
Automotive Sensors Market - Forecast(2022 - 2027)
Report Code: ATR
0016
Automotive LIDAR Market - Forecast(2022 - 2027)
Report Code: ATR
0043
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