The automotive radar market provides a variety of solutions such as adaptive cruise control, blind spot detection, emergency braking, parking assistance, and others. Radar sensors enable vehicular radar systems to detect and determine the range, angle, velocity of targets such as other vehicles, bikes, and pedestrians in almost all weather conditions and traffic scenarios.

The global automotive radar market is estimated to be valued at US$ 5.6 Bn in 2024 and is expected to exhibit a CAGR of 11 % over the forecast period 2024 to 2031.



Key Takeaways

Key players operating in the automotive radar market are Banner Engineering Corporation, Rockwell Automation Inc., Pepperl+Fuchs SE, Emerson Electric Company, Panasonic Industry Europe GmbH (Panasonic Corporation), Honeywell International Inc., Sick AG, Yokogawa Electric Corporation, Omron Corporation, ABB Ltd., General Electric Company, Schneider Electric SE, and Siemens AG.



The key opportunities in the market include increasing requirement for advanced driver assistance systems and necessity to enhance road safety. Regulatory norms mandated by organizations such as NCAP are also driving the demand for radar sensors in vehicles.



Technological advancements such as the development of 77GHz radar sensors, multi-beam radars, and AI-powered radars are expanding the scope of applications of automotive radars. Newer variants provide high accuracy in sensing objects and enable advanced functionalities such as hands-free driving.



Market drivers

Rising demand for luxury and premium vehicles equipped with advanced driver assistance systems is a major factor driving the Automotive Radar Market Demand. Radar sensors play a crucial role in ADAS and autonomous driving applications. Stringent safety regulations and consumer demand for safety features are also propelling the incorporation of radars in modern vehicles.

Current Challenges in Automotive Radar Market

The automotive radar market is currently facing challenges related to the high development cost involved in making advanced driver-assistance systems (ADAS) more efficient and affordable. Extensive research and development is required to integrate radars efficiently within autonomous vehicles while bringing down the price points. Automakers also need to overcome design complexities to optimize radar performance for diverse driving conditions. Another area of challenge is achieving higher levels of data accuracy from radars despite noise interferences and ensuring safety against potential cybersecurity threats.



SWOT Analysis

Strength: Radar sensors offer reliable detection capabilities irrespective of weather conditions. They have a long detection range to perceive surroundings.

Weakness: High power consumption affects battery life of electric vehicles. Setting up mass production of advanced radar chips involves large investments.

Opportunity: Growing demand for advanced safety features and autonomous driving capabilities will spur investments. Integration of radars with AI/ML systems can enhance perception abilities.

Threats: Stiff competition from camera and lidar sensor manufacturers. Stringent regulations around product reliability and data privacy add compliance burdens.



Geographical Regions

In terms of value, the automotive radar market is highly concentrated in North America and Europe, which collectively account for over 60% share currently. This is owing to the strong presence of automotive giants and radar technology leaders in countries such as the US, Germany, France and the UK. The Asia Pacific region has emerged as the fastest growing market for automotive radar driven by rising vehicle production and sales in China, Japan and India along with efforts to develop autonomous and electric mobility ecosystems.



Fastest Growing Geographical Region

The Asia Pacific region is poised to become the fastest growing market for automotive radar during the forecast period from 2024 to 2031, projected to expand at a CAGR exceeding 12%. This impressive growth can be attributed to the rapidly developing automotive industries across major Asian economies spearheading innovations in next-gen vehicles. Increasing investments by international OEMs and radar manufacturers to establish R&D and manufacturing facilities further strengthen the region's status as a hotspot for future mobility technologies and solutions.

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