Automotive Radar Market Size (2024 - 2029)

Automotive Radar Market Analysis

The Automotive Radar market was valued at USD 6.56 billion in 2022. It is expected to register a CAGR of 11% over the forecast period. The growth is significantly driven by the growing purchasing power of consumers leading to surging car sales, autonomous driving gaining traction, and regulatory bodies across countries mandating the inclusion of certain safety features and the adoption of advanced driver assistance systems on the rise. However, the impact of COVID-19 was severe on the automotive industry, leading to low manufacturing and sales recorded in 2020 due to the shutdown of manufacturing plans due to nationwide lockdowns and supply chain disruptions. While the early effects of the COVID-19 crisis presented a dip in the road, car sales and production are roaring back.

• Safety for drivers, passengers, and other road users has become of major interest during the last decades owing to the growing rate of road accidents globally. For instance, according to National Highway Traffic Safety Administration (NHTSA), an estimated 31785 people died in traffic crashes in the US in the first nine months of 2022. To this end, radar sensors were essential to detecting other vehicles, pedestrians, or bicyclists and the road environment. Radar is insensitive to bad light and severe weather conditions and can directly measure distance, radial velocity, and with a suitable antenna system, also the angle of remote objects.
• Moreover, government regulation in the automotive industry directly impacts the way cars look, the design of their components, the safety features incorporated, and the overall performance of any given vehicle. As a result, government regulation also significantly affects the automotive business. For instance, in October 2022, the Transport Department in India made many amendments to vehicle safety by including various vehicle safety features in two broad categories: active and passive safety. Hence, all carmakers must introduce these safety features to sell their cars in India. These factors have further promoted the role of the automotive radars market.
• For instance, in the beginning, the focus was on distance warning and crash avoidance, but with increasing maturity and complexity, functions included adaptive cruise control (ACC), automatic emergency brake (AEB), blind spot detection (BSD), or lane change assist (LCA). Nowadays, safety functions protecting passengers and vulnerable road users play a major role.
• Moreover, there is a significant rise in luxury and electric vehicle sales as, along with providing traditional comfort, convenience, entertainment, and safety features, luxury cars bristle with advanced connectivity elements, autonomous-driving options, and the latest powertrain electrification technologies. They also have some of the strongest brands in the industry. Moreover, automotive manufacturers' growing focus on seeing fleet of driverless cars efficiently delivering people to their destinations has captured and fueled billions of dollars in investment in recent years. Even after some setbacks that have been pushing out timelines for autonomous vehicle (AV) launches and delayed customer adoption, the mobility community still broadly agrees that autonomous driving (AD) has the potential to transform transportation, consumer behavior, and society at large.

Automotive Radar Industry Segmentation

The Radar (Radio Detection and Ranging) technique works on the principle of a source transmitting the radio wave, being reflected by a surface, and receiving and processing by a receiver system. One such application where RADAR is seeing an unprecedented uptake is the automotive application and, more specifically, ADAS solutions that deliver enhanced safety and comfort.

The Automotive Radar Market is segmented by Type of Product (Short-Range, Mid-Range, Long-Range), by Application (ADAS/Autonomous Driving, Occupancy Monitoring, Robotaxis Autonomous Driving), and by Geography (North America, Europe, Asia-Pacific, Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.