Automotive Radar Market size was over USD 4.83 Billion in 2023 and is likely to reach USD 16.94 Billion by the end of 2036, witnessing around 10.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of automotive radar is assessed at USD 5.2 Billion. The growth of the market can primarily be attributed to the growing number of vehicles on the road, along with rising concern over the increasing incidence of road accidents worldwide, and surging demand for features related to the safety of the vehicles. For instance, according to World Health Organization data, road traffic crashes result in nearly 1.3 million deaths each year.
Automotive radar systems are critical sensor systems in advanced driving assistance systems and primary sensors that are used in adaptive cruise control. Radars provide evident benefits such as detecting motion, measuring speed, distance, and the angle of arrival as well as the direction of movement that serve various purposes such as collision avoidance, and pedestrian & cyclist detection. Radar complements vision-based camera-sensing systems that can work in adverse conditions such as rain, fog, and dust, enabling the coverage of long-range as well as close distances. With the recent advancements in radar sensors as well as steering assistance, the demand for automotive radar is on the rise among vehicle users, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive radar market during the forecast period. For instance, steering assistance features used to keep a vehicle in its lane were installed in almost 63% and 56% of new cars sold in United States and Europe in 2021.
Growth Drivers
Growing Demand Radar in Autonomous Vehicles – Radar operates at frequencies of 24, 74, 77, and 79 GHz in autonomous vehicles. There are two types of radar for autonomous vehicular applications, impulse and frequency-modulated continuous wave (FMCW). With the rising demand for autonomous vehicles, the automotive radar market is expected to boost in the projected period. It is estimated that autonomous vehicles will account for approximately 12 percent of total car registrations by 2030 globally.
Increasing Demand for Cars – With the burgeoning population, the need for individualized and personalized transportation has generated a high demand for cars. With the increasing production of cars, the demand for automotive radars is also expected to grow and bring profitable opportunities for the market in the forecast period. The sales of the car are expected to reach more than 100 million units by 2030 worldwide.
Upsurge in the Installations of Advanced Driver Assistance System (ADAS) – Recent statistics revealed that advanced driver assistance system (ADAS) features were installed in about 1 billion cars in use in 2020 across the world.
Rising Penetration of Connected Cars – For instance, there were over 200 million connected cars in 2021, and this ratio is expected to expand to nearly 400 million connected cars by 2025 worldwide.
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024-2036 |
|
CAGR |
10.4% |
|
Base Year Market Size (2023) |
USD 4.83 Billion |
|
Forecast Year Market Size (2036) |
USD 16.94 Billion |
|
Regional Scope |
|
Vehicle Type (Passenger Vehicles, Commercial Vehicles)
The global automotive radar market is segmented and analyzed for demand and supply by vehicle type into passenger, and commercial vehicles. Amongst these segments, the commercial vehicles segment is anticipated to garner the largest revenue by the end of 2036, as some radar sensors are specially adapted for commercial vehicle to enable fast, robust, and highly accurate object detection. Furthermore, the growing demand for commercial vehicles, along with the radical surge in the sale of commercial vehicles worldwide, is further anticipated to boost the market’s growth. For instance, the sale of commercial vehicles in the United States exceeded around 12,050,000 units in 2021.
Application {Blind Spot Detection (BSD), Forward Collision Warning System, Autonomous Emergency Braking (AEB), Adaptive Cruise Control (ACC), Intelligent Park Assist, Other Advanced Driver Assistance System (ADAS) Applications}
The global automotive radar market is also segmented and analyzed for demand and supply by application into blind spot detection (BSD), forward collision warning system, autonomous emergency braking (AEB), adaptive cruise control (ACC), intelligent park assist, and other advanced driver assistance system (ADAS). Out of these, the intelligent park assist segment is attributed to garner the highest revenue by the end of the forecast period. The major factor contributing to the high demand for intelligent park assist applications is the need for parking assistance by the population to avoid backside collisions and accidents. Further, the demand for luxury vehicles, sports cars, and advanced vehicles also needs intelligent park assist features to enhance safety. Also, another factor contributing positively to the segment’s growth is the installation of intelligent park assist in electric vehicles. On the other hand, the adaptive cruise control (ACC) segment is also expected to hold a significant share over the analysis period. The high utilization rate of adaptive cruise control in significant automotive markets such as Germany, the U.S., the UK, and China, among others, is considered to create a positive outlook for segment growth. In addition, the various advantages and prominent benefits offered by adaptive cruise control in vehicle safety and the level of automation in a vehicle make it an ideal option in the automotive industry for improving vehicles.
Our in-depth analysis of the global market includes the following segments:
|
By Range |
|
|
By Application |
|
|
By Vehicle Type |
|
APAC Market Statistics
The Asia Pacific automotive radar market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2036. The rising economies in the Asia Pacific region have increased the per capita income and spending capacity of the population has led to a surge in automobile production. This trend is anticipated to fuel the demand for automotive radars in the region, especially in India and China. The total production of vehicles in the region was 46 million in 2021, whereas, the total sales in the region was 42 million in 2021 as per statistics released by the International Organization of Motor Vehicles. Further, the prevalence of a high number of car accidents and rising awareness about the benefits of automotive radar such as driving assistance features, brake assist, collision warning systems, and others are anticipated to drive the global automotive radars market’s growth.
Europe Market Forecast
On the other hand, the market in the Europe region is also projected to grow steadily with a notable CAGR. Moreover, the rising governmental regulations for vehicle safety implemented by the government are anticipated to increase the utilization rate of automotive radars in the automotive sector. Other factors such as high demand for hybrid vehicles and increasing road accidents are also anticipated to positively contribute to market expansion.
Infineon Technologies AG revealed that Teraki has selected Infineon AURIX TC4x for ML-based radar detection software to increase the accuracy and safety of overall ADAS and AD applications.
Volvo Car Group announced its new interior radar feature designed to be accurate and sensitive enough to detect the tiniest movements at the sub-millimeter scale and which will be included in the forthcoming Volvo EX90 all-electric SUV.
Author Credits: Saima Khursheed
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?