The automotive radar market is anticipated to flourish at a steady CAGR of 13.2% between 2023 and 2033. The market is expected to hold a market share of USD 18.0 billion by 2033, while the market is likely to reach a value of USD 5.2 billion in 2023.
The growing emphasis on active safety to minimize road accidents has shifted OEMs' attention to developing and incorporating new and advanced automotive radar systems. According to the 'Association for Safe International Road Travel (ASIRT), nearly 3,287 people are killed in road accidents every day around the world.
The advancement of automotive technology, as well as the desire to prevent traffic accidents, has raised expectations for advanced systems in vehicles, such as automotive radar, to improve vehicle safety. These systems transmit electromagnetic (EM) waves at microwave frequencies and gather information about obstructions in the vehicle's vicinity using an electronic control unit.
| Attributes | Details |
|---|---|
| Automotive Radar Market CAGR (2023 to 2033) | 13.2% |
| Automotive Radar Market Size (2023) | USD 5.2 billion |
| Automotive Radar Market Size (2033) | USD 18.0 billion |
According to a survey by the 'Insurance Institute for Highway Safety,' using a radar system in a vehicle can save one out of every three lives. Implementation of automotive radar systems in passenger and commercial vehicles began in the early 1990s, but due to technological constraints, evolution has slowed over time.
However, in the last decade, influential safety technology has emerged as a key research hotspot, bringing automotive radar systems into the spotlight. Smaller, higher-frequency devices are being implemented to serve various applications.
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As per Future Market Insights, the global demand for automotive radars is anticipated to record a healthy CAGR of 13.2% during the forecast period between 2023 and 2033, in comparison to the 12.9% CAGR registered from 2018 to 2022.
Leading automakers are attempting to develop next-generation vehicle models featuring up to ten radar sensors. This permits a 360-degree surround view, which is obligatory for semi-autonomous operation and sophisticated driver assistance.
As a result of the automotive industry's consumption of multi-functional systems, research and development in the field of these radar systems has accelerated.
For example, Huawei increased investments in its optoelectronics research and development center in Wuhan, China, in August 2020, with a concentration on creating low-cost LiDAR technology and radar sensors.
As a result, elevated investments in strengthening the sensor and functionality capabilities of automotive radar, as well as minimizing the expenses of this technology, are expected to fuel market growth.
Consumers' rising concerns about vehicle safety have prompted a rise in demand for features like cruise control and blind-spot detection that can aid drivers and decrease collisions.
Furthermore, the alarming rise in fatalities as a result of vehicular accidents has obliged various governments to impose strict regulations and assertively promote the development of vehicle safety protocols. As a result, the utilization of radar-based technology in automobiles is anticipated during the forecast period as a means of improving vehicle safety.
Country-wise Revenue Share
| Country | United States |
|---|---|
| Revenue Share % (2022) | 27.8% |
| Country | Germany |
|---|---|
| Revenue Share % (2022) | 14.7% |
| Country | Japan |
|---|---|
| Revenue Share % (2022) | 7.0% |
| Country | Australia |
|---|---|
| Revenue Share % (2022) | 3.1% |
Country-wise CAGR
| Country | China |
|---|---|
| CAGR % (2023 to 2033) | 11.9% |
| Country | India |
|---|---|
| CAGR % (2023 to 2033) | 14.3% |
| Country | United Kingdom |
|---|---|
| CAGR % (2023 to 2033) | 10.7% |
During the forthcoming years, Asia Pacific is expected to expand at a rapid pace, creating new opportunities for the industry. Moderate manufacturing costs, combined with rising automotive sales, are expected to spur the expansion of the Asia Pacific automotive radar market.
The Asia Pacific market was worth USD 1.3 billion in 2020 and is anticipated to expand rapidly over the next few years. The Asia Pacific region is distinguished by rising disposable income, which has resulted in a surge in automobile sales in recent years, particularly in India and China.
The surge in vehicle accidents and elevated emphasis has been placed on driving assistance features such as brake assist, and collision warning systems are sparking the growth of automotive radars in this region. As a result of these factors, Asia Pacific is expected to dominate this market over the forecast period.
Europe is expected to emerge as the most promising region in terms of regions owing to the presence of large OEMs. Furthermore, the European Commission's 79 GHz project to use relatively brief radar equipment for European countries aided in the invasion of automotive radar systems in the European market. Europe accounts for a market share of 25% of the global automotive radar market.
Early adoption of sophisticated driver assistance technologies in countries such as Germany and the United Kingdom describes the European market. Furthermore, the government's implementation of stringent vehicle safety regulations in comparison to other regions is expected to positively influence demand for advanced radar-based systems.
For example, in 2020, Euro NCAP may ascertain the functionality of AEB car-to-car systems using a specially designed testing system known as the global vehicle target. As a result, these factors are to be held responsible for the significant growth of the market in this region.
North America is also predicted to experience significant market growth. Factors including strong demand for hybrid vehicles and constricting vehicle safety regulations may drive the region's market growth. From 2023 to 2033, the North American automotive radar market is predicted to expand at a 15.08% CAGR. As of 2022, the market is slated to accumulate a market share of 34%.
As the level 2+ vehicles on the road develop, so does the demand for advanced and more accurate automotive radar sensors. This is an enormous opportunity for OEMs to sell entry-level radar sensors. North America is accounting for a market share of 34% of the global automotive radar market.
For example, Xilinx and Continental announced the first commercially available 4D imaging radar. In theory, 4D imaging radar captures a 3D space using echolocation and the time-of-flight measurement principle.
Furthermore, these radar systems are created to accommodate the imaging necessities of a fast-moving automobile or a zooming drone. As a result, the fourth dimension ensures better accuracy in a self-driving system.
The 4D imaging radar altimeter in all weather and environmental conditions, including fog, darkness, and heavy rains. Many firms are investing in Research and Development to launch such advanced radar-based imaging technologies and capture a significant share of the North American automotive radar market.
| Category | By Type |
|---|---|
| Leading Segment | Short and Medium Range Radar |
| Market Share% (2022) | 47.3% |
| Category | By Application |
|---|---|
| Leading Segment | FCWS |
| Market Share% (2022) | 29.8% |
The market is expected to be led by the short-range radar segment throughout the forecast period. By frequency, 24 GHz dominated the market in 2019, but 77 GHz is expected to have the highest market share by 2032.
The market is divided into four applications: adaptive cruise control (ACC), intelligent park assistance, forward-collision warning system (FCWS), blind spot detection (BSD), and autonomous emergency braking (AEB). Due to the early adoption of this feature in passenger cars in countries such as Germany and the USA, ACC held the largest market share in 2020.
The FCWS segment is projected to expand at a rapid CAGR during the forecast period. The segment held a market share of 29.8% in 2022. The positive perspective of this segment is attributed to the widespread adoption of cars in countries such as China and India as a consequence of the rise in traffic accidents.
Manufacturers are adopting various marketing strategies such as new product launches, geographical expansion, mergers and acquisitions, partnerships, and collaboration to identify the interest of potential buyers and create a larger customer base. For instance,
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These key Automotive Radar system providers are adopting various strategies, such as new product launches and approvals, partnerships, collaborations, acquisitions, mergers, etc., to increase their sales and gain a competitive edge in the global market.
Recent Developments
Key Players
The growth potential of this market is 13.2% through 2033.
North America is projected to emerge as a lucrative market.
From 2018 to 2022, the market expands at 12.9% CAGR.
Europe accounts for a market share of 25%.
Rising focus on safety drives OEMs for creating advanced automotive radars.
| Market Size (2023) | USD 10.1 billion |
|---|---|
| Market Size (2033) | USD 84.11 billion |
| Market CAGR (2023 to 2033) | 23.61% |
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Automotive Radar Market
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