The automotive radar market consists of radar sensors that are installed in vehicles to assist with driver safety features such as adaptive cruise control, blind-spot monitoring, forward-collision warning, and parking assistance. Automotive radar enhances driving experience and safety by detecting obstacles and alerting drivers.
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, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increased vehicle safety regulations across markets have driven the adoption of advanced driver-assistance systems that use automotive radar. Stringent safety norms introduced by regulatory bodies such as NCAP and FMVSS in countries like the US, Canada, Europe, and Japan now mandate the inclusion of basic driver-assistance features such as forward-collision warning and autonomous emergency braking in new vehicles. This is largely propelling the demand for automotive radars from automakers to comply with evolving safety standards. Further, the development of highly accurate short-range and long-range radars by leading radar manufacturers is supporting OEMs in developing advanced driver-assistance and semi-autonomous vehicles with improved perception capabilities.
SWOT Analysis
Strength: Automotive radar technology offers improved safety by detecting objects and alerting drivers. It enables advanced driver assistance systems like adaptive cruise control.
Weakness: High manufacturing costs make automotive radar expensive to integrate in entry-level vehicles. Dependence on semiconductor supply poses constraints.
Opportunity: Growing demand for autonomous and semi-autonomous vehicles will boost radar adoption across luxury and premium vehicle segments. Connected vehicles require advanced driver assistance features supported by radar.
Threats: Alternative sensor technologies like camera, lidar and ultrasonic sensors can perform some functions of radar. Stringent regulations around radio spectrum allocation impact radar design.
Key Takeaways
The global automotive radar market size is expected to witness high growth. 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.
Regional analysis comprises the Asia Pacific region currently dominates the global market due to high vehicle production across China, Japan and South Korea. Automotive manufacturers are rapidly adopting advanced driver assistance systems favored by regional regulatory mandates on safety.
Key players operating in the automotive radar market are Continental AG, Robert Bosch GmbH, Denso Corporation, Autoliv Inc., Valeo SA. These companies offer a wide portfolio of short, mid-range and long-range radar solutions catering to different vehicle classes. They are investing in next-gen technologies like MIMO and 77GHz bands to deliver higher resolution, enhanced detection abilities and meet future autonomous driving needs. OEMs and Tier 1 suppliers prefer sourcing complete radar systems from major sensor vendors owing to their technical expertise.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
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