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2020-2026 global automotive radar market

2019-12-11 16:30:45

The global automotive radar market volume stood at 21.0 million units in 2018 and is projected to reach 43.6 million units by 2026, exhibiting a CAGR of 8.9% during the forecast period.

Economic factors, such as a rise in disposable income and low-interest rates, are increasingly contributing to the increase in the sales of cars.  Increasing investment in the automotive electronics sector in developing as well as developed countries is expected to propel the demand in the automotive radar market. In passenger cars, the introduction of advanced driver assistance systems could give rise to substantial growth opportunities for the market. The ADAS radar enabled systems provide profound visions regarding vehicle surroundings and benefit occupants to recognize possible hazards in advance. The increasing installation of ADAS systems in automobiles has ensured good growth potential over the forecast period.

Road accidents are one of the leading causes of death of people worldwide. The alarming number of deaths caused by road accidents have forced governments to impose stringent regulation for safety and security on automobile manufacturing.  As a result, many organizing bodies worldwide are compelled to come up with stringent regulations to minimize the number of road accidents and death toll. Further, it has become mandatory for companies to manufacture vehicles with safety features preinstalled. Many automotive companies are coming up with advanced radar system that makes driving safer and more comfortable for the occupants.

Based on range type, the automotive radar market is segmented into short-range radar, medium-range radar, and long-range radar. Medium range radar (MRR) is expected to dominate the market during the forecast period owing to the increasing inclination of consumers towards applications such as Adaptive Cruise Control (ACC) and heading distance indicator. The mid-range radar consists of digital beam-forming (DBF) and receive channels. This helps the system to be configured with independent receive channels for different directions and in turn, increases its measurement accuracy. MRR gives accurate information about users’ blind spots along with traffic coming forward from the rear side of the vehicle.

urope is projected to dominate the automotive radar market over the forecast period. Europe holds the second largest market share in terms of volume and the fastest growth in the market. The good growth is owing to supporting initiatives such as the Euro NCAP, which is encouraging the ease of fitment of the safety features in the vehicle. The majority of the automobile companies in Germany invest almost one-third of revenue in research and development. Hence Germany, with the presence of the advanced infrastructure, is expected to hold the largest market share in this region during the forecast period. The rapid growth in the autonomous cars market will also support the growth in the market.