By 2027, the global automotive radar market is estimated to be worth USD 14.6 billion, with a CAGR of 21.5 percent. Strong legislation and favourable policies in the field of radar systems have been in place to encourage the widespread adoption of radar-based safety systems and this trend will continue over the forecast era. Safer mobility of vehicles is, therefore, the primary concern of every government. The introduction of automotive radar allows objects to be tracked reliably and ensures improved protection for automobiles. Factors driving the growth of the automotive radar market are the increasing number of accidents and the increasing need for updated vehicles, which can minimize the accident rate.
Asia-Pacific (APAC) will see the fastest demand advance in the coming years, led by China, which boasts the region's largest manufacturing capacity for automobiles and the highest rate of technological change. Moreover, the popularity of premium vehicles is growing with the increasing buying power and increasing funding for the production of advanced vehicle safety features in India and China, thus propelling the procurement of radars here.
The market expansion is driven by factors such as an increase in demand for safety characteristics in automobiles and an increase in demand for relaxed driving. In addition, the stringent safety feature rules and regulations are likely to fuel the growth of the automotive RADAR industry. Nevertheless, it is anticipated that factors such as low performance in bad weather conditions and high cost & complex structure would impede the market growth. In addition, it is expected that the rise in industrial growth and modernization of the ADAS (Advanced Driver Assistance System) would create many opportunities for competitors in the RADAR automotive industry.
Demand for premium segment vehicles with better equipment and advanced technology worldwide is all set to fuel the growth of the global RADAR automotive industry. Well-equipped and applied high-end technology vehicles are most in-demand around the world. At the same time, the need for greater passenger and driver safety in cars is generating immense demand for vehicles with the latest technology, urging manufacturers of automobiles around the world to implement technical solutions that meet advanced standards.
In addition, the key factors that are expected to further boost the global automotive RADAR market in the forecast period are strict automotive requirements for the adoption of ADAS technology by OEMs set by governments of several countries and the increasing rate of road accidents (2021-2027). In fast-developing economies such as the Asia Pacific, continuous growth in the automotive sector and an increase in the number of RADAR sensors used per vehicle are also further boosting the market growth.
The market is expected to expand due to factors such as an increase in demand for safety features in automobiles and an increase in demand for relaxed driving. Furthermore, the automotive RADAR market is expected to expand due to strict rules and regulations for safety features. Moreover, the increased technical development and innovation in ADAS is expected to open up a plethora of opportunities for the industry.
As a market challenge, the high cost of the automotive RADAR system usually leads to an overall rise in the cost of the vehicle. Also, the use of RADAR detectors is considered illegal in some countries. There are several challenges faced by the industry in maintaining the cost-quality balance that every player in the market aims to resolve. Similarly, the biggest issue that can also arise as a security threat is electromagnetic jamming and device issues.
The Major Market Key Players are:
Global Automotive Radar Market Coverage
Application Insight and Forecast 2015-2027
Frequency Insight and Forecast 2015-2027
Global Automotive Radar Market by Region
Rest of the World (RoW)