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Valued at $2.5 billion in 2016, the global automotive radar market is projected to reach $9.5 billion by 2023, at a CAGR of 21.0% between 2017 and 2023.
Among all the regions, Asia-Pacific (APAC) is expected to witness the fastest growth in the automotive radar market during the forecast period. It is mainly due to the rising disposable income in the developing countries in the APAC region, such as India and China, which leads to an increasing demand for premium vehicles.
Fundamentals Governing Automotive Radar Market
The growing focus on vehicle safety systems is the major growth driver for the automotive radar market. According to the World Health Organization, it is expected that vehicle crashes would be among the leading causes of death by 2030. This has triggered an heightened focus on the prevention of accidents through the implementation of active safety measures, which refer to the systems or hardware that help avoid collisions and accidents.
Signal loss at high frequency is a restraining factor in the growth of automotive radar market. The safety systems, which use 77 GHz, deliver higher performance. However, at such high frequencies, the signal loss is also considerably high, thereby making it difficult to implement radar-based safety systems. Moreover, 24 GHz radars can be developed easily, but these do not comply with size requirements. Hence, it becomes difficult for vehicle manufacturers to incorporate 24 GHz radars in the safety systems as well.
Segmentation Analysis of Automotive Radar Market
When segmented on the basis of range, medium and short-range radars are expected to witness faster growth in the automotive radar market during the forecast period. It is mainly due to the higher usage of these radars in active safety systems, such as park assist, lane change assist, and blind spot detection.
In terms of vehicle type, the passenger car category accounted for the larger share in 2016, in the automotive radar market, mainly due to the higher share of such vehicles in automobile sales in developing economies, including China, along with the growing concerns regarding vehicle safety among the people here.
Based on application, the adaptive cruise control (ACC) category is expected to possess the largest share in the automotive radar market during the forecast period. Significant developments in the ACC application category have now enabled its incorporation in both luxury and mid-priced cars.
Geographical Analysis of Automotive Radar Market
Globally, Europe was the largest region in the automotive radar market in 2016, mainly due to the high demand for vehicles equipped with advance safety features and government’s vehicle safety norms in European countries. Additionally, the European Commission, the governing body of the European automotive industry, is working toward improving the driver and passenger safety while inside vehicles.
Competitive Landscape of Automotive Radar Market
The global automotive radar market consists of various players, such as Texas Instruments Inc., Continental AG, DENSO Corp., Robert Bosch GmbH, Valeo SA, Infineon Technologies AG, HELLA KGaA Hueck & Co., and Autoliv Inc.
Key Questions Answered in the Report