Automotive Radar Market Overview
The global automotive radar market size is estimated to be valued at $3,023.0 million in 2017, and is expected to witness a CAGR of 21.0% during the forecast period. The increasing frequency of accidents, government regulation for vehicle safety, and increasing sales of premium cars are the major factors driving the market. In addition, the introduction of advanced driver assistance systems (ADAS) and growing trend of autonomous vehicles is further expected to drive the market during the forecast period. The radar technology prominently finds applications in various active systems such as adaptive cruise control (ACC), collision avoidance systems, blind spot detection, and automated emergency braking systems, among others.
Global Automotive Radar Market, BY Application, $M (2016-2023)
On the basis of range, the automotive radar market is categorized into long range radars, and medium and short-range radars. Medium and short-range radars are predominantly used in numerous systems including cross traffic alert, park assist, blind spot detection, and so on. As these systems require at least two radar sensors for delivering enhanced performance, the medium and short-range radar category is expected to hold larger share, with around 55% contribution in automotive radar market 2017.
Based on vehicle type, the passenger car category is estimated to hold the maximum share in the automotive radar market, with a contribution of more than 70% in 2017. This can be attributed to the growing passenger car sales in developing economies such as India and China. In addition, with advancements in technology and reduction in radar sensor prices, it has now become possible for automakers to incorporate radar-based safety systems in mid-priced vehicles.
In terms of application, the automotive radar market is categorized into ACC, intelligent park assists (IPA), blind spot detection (BSD), autonomous emergency braking (AEB), forward collision warning (FCW), and others. The ACC is expected to be the dominant application category during the forecast period. It has witnessed a significant increase in adoption owing to the reduction in system prices. Its ability to function during adverse weather conditions is leading to its growing sales.
Globally, Europe is estimated to hold the largest share in the automotive radar market, with more than 35% contribution in 2017. Europe held approximately 26% share of the global passenger car production in 2017. The region is strongly governed by the European Commission, which works toward building vehicle safety standards. It not only focuses on improving the driver and passenger safety but keenly works toward improving road safety for pedestrians. Furthermore, the presence of prominent luxury carmakers, such as Daimler AG, BMW AG, AUDI AG, and so on, is expected to drive the European market.
However, the fastest growing market during the forecast period is expected to be Asia-Pacific. The growing disposable income of developing economies such as India and China, has stimulated the demand for premium vehicles in the region. Additionally, increasing vehicle production coupled with growing investments in the field of automotive safety technology are expected to drive the growth of the Asia-Pacific automotive radar market.
Automotive Radar Market Dynamics
The growing focus on vehicle safety and systems by governments and customers, and increasing vehicle production and sales are the major drivers fueling the growth of the automotive radar market. However, design challenges related to radar is expected to retrain the market growth.
The increasing vehicle sales and vehicle production is one of the major factors driving the growth of the automotive radar market during the forecast period. The advancements in manufacturing techniques, availability of low cost labor and raw materials, growing population, increasing disposable incomes, and growing consumer needs has led to an increase in sales of these radars.
In addition, the demand for premium and luxury vehicles has grown substantially, especially in developing economies such as India and China. For instance, in 2017, the sales of Mercedes-Benz cars increased to 2.29 millionunits. Similarly, the sales of BMW cars increased by 4.2% in 2017. The global sales of other high-end cars including Lexus, Land Rover, Volvo Cars, Cadillac, Infiniti, and Audi and Porsche increased by nearly 5% in 2017. As radar-based ADAS systems are prominently installed in premium and luxury vehicles, the increasing sales of premium vehicles is expected to benefit the automotive radar market during the forecast period.
Design challenges related to automotive radar is restraining the growth of the automotive radar market. Currently, automotive radars work on two different frequency bands which are 77GHz and 24GHz. The safety systems using 77GHz deliver higher performance. However, at such higher frequencies, the signal loss is also considerably high, thus making it difficult to implement radar-based safety systems. 24GHz radars can be developed easily, but do not comply with size requirements. In order to deliver a performance equivalent to the 77GHz radar, the 24GHz radar requires approximately three times larger antennas. Hence, it becomes difficult for vehicle manufacturers to incorporate 24GHz radars as part of the safety system, which restrains the market growth.
Automotive Radar Market Competitive Landscape
The key players in the automotive radar industry are Continental AG, Denso Corporation, Robert Bosch GmbH, Infineon Technologies AG, Valeo SA, NXP Semiconductors N.V., HELLA KGaA Hueck & Co., Texas Instruments Incorporated, Autoliv Inc., and ZF Friedrichshafen AG.