Automotive Radar Market
According to the World Health Organization (WHO), approximately 1.35 million people die each year
due to road traffic crashes, and by 2030, road traffic accidents are projected to be the seventh
leading cause of death globally. The African region leads with the highest road traffic fatality rate at
26.6 per 100,000 population, followed by Europe at 9.3. In response to these alarming statistics, the
automotive radar market is set to experience significant growth as automakers increasingly invest in
safety technologies to enhance vehicle safety and reduce road traffic fatalities.
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Rising Consumer Awareness and Safety Demand
Reports indicating a rise in road traffic injuries have heightened consumer awareness regarding the
necessity of vehicle safety. As passengers and pedestrians demand greater protection, the
automotive industry is responding with an accelerated integration of safety features. With
consumers' growing spending capacity and evolving lifestyle preferences, the demand for
automotive radar systems is rapidly increasing. Enhanced safety features in vehicles, including
adaptive cruise control and autonomous emergency braking, are driving this trend.
Demand Surge for Premium Vehicles and Financial Accessibility
The Organization of Motor Vehicle (OICA) projects that the demand for premium vehicles will surge
to $566 billion by 2026, driven by the availability of favorable financial schemes. Banks and financial
institutions are now offering up to 100% funding for premium vehicle loans. This surge in premium
vehicle sales is expected to significantly benefit the automotive radar market, as these high-end
vehicles are increasingly equipped with advanced radar systems.
Urbanization and Commutation Drive Radar Adoption
Urban sprawl and the development of hub-and-spoke transportation networks have led to increased
commutation between rural and urban areas. The OICA reports that 5,934,467 new vehicles were
registered by the end of Q1 2021 alone. Many of these vehicles are equipped with advanced safety
features such as adaptive cruise control and collision avoidance systems, which utilize automotive
radar. This trend is contributing to the growth of the automotive radar market.
Technological Innovations Fuel Market Expansion
Technological advancements and the integration of Artificial Intelligence (AI) in electronic
components such as lidar and automotive radar are enhancing vehicle safety. Innovations in wireless
communication and cloud storage are also playing a role. The growing use of park assistance, safety
alarms, and collision avoidance systems is increasing the demand for ultrasonic and proximity
sensors. Applications like adaptive cruise control (ACC), blind spot detection, and lane change assist
are becoming more prevalent, driving sustained growth in the non-imaging radar segment. These
advancements are expected to further boost automotive radar sales and benefit key industry
players.
Challenges: High Costs and Complexity
Despite its potential, the automotive radar market faces challenges. The high cost of installing
premium radar systems in vehicles contributes to an increased overall vehicle price, which can
hinder market growth. Additionally, the complexity of installing and maintaining these systems
requires skilled technicians, which can deter consumers. The COVID-19 pandemic and subsequent
lockdowns have also impacted the automotive industry, causing a temporary decline in demand for
advanced technologies such as automotive radar. As consumers continue to navigate economic
uncertainties, the market may face short-term setbacks.
Favorable Regulations and Regional Market Dynamics
In Europe, stringent vehicle safety regulations imposed by the European Commission are expected
to drive growth in the automotive radar market. The expansion of the premium vehicle segment
across Europe is also contributing to market growth. Additionally, the Asia Pacific region is
anticipated to experience notable developments in automotive radar, driven by increasing vehicle
sales and growing consumer awareness in developing countries.
Market Segmentation: Medium vs. Long-Range Radars
The automotive radar market can be segmented by radar range, frequency, vehicle type, and
application. Medium-range radars, which are commonly used for park assist and traffic alerts, are
expected to see increased demand. Long-range radars, used primarily for adaptive cruise control
(ACC), are projected to benefit from rising ACC adoption in mid- and entry-level vehicles. Radar
systems operating at 79 GHz are expected to dominate due to their capabilities in blind spot
monitoring and comprehensive vehicle surroundings mapping.
Passenger Vehicles and Commercial Growth
The passenger car segment has seen growth, with a 4.5% increase from 2015 to 2016, driven by
heightened road safety awareness among mid-level car owners. As more passenger vehicles are
equipped with radar systems, the market for automotive radar is expected to grow further. Ecommerce expansion and logistical developments will also fuel growth in commercial vehicles.
Increased vehicle autonomy in commercial vehicles will further drive demand for automotive radar
systems.
Autonomous Emergency Braking: A Key Growth Area
Among various automotive radar applications, autonomous emergency braking is expected to be the
most in-demand. Government initiatives and increased investments by automobile companies in
affordable radar-based safety systems are anticipated to support market growth.
Key Players and Future Prospects
Leading industry players such as NXP Semiconductors, Robert Bosch GmbH, Autoliv Inc., and
Continental AG are focusing on developing compact and high-performance radars in response to
growing vehicle electrification. Recent partnerships, such as the collaboration between NXP
Semiconductors and Hawkeye Technology, and innovations like the domain controller for front
sensors developed by Audi and Aptiv, are expected to bolster the global automotive radar market.
Collaboration with premium automakers is likely to accelerate the adoption of advanced radar
systems.