Automotive Radar Market Report

Automotive Radar Market Analysis By Range (Long Range, Medium & Short Range), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Application, By Frequency, By Region, And Segment Forecasts, 2014 - 2025

Published: August 2017  |  90 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-584-7

Industry Insights

The global automotive RADAR market size was valued at USD 2,253.8 million in 2016 and is expected to grow at a CAGR of 20.8% over the forecast period. The rising number of accidents and growing need for safer mobility are the primary factors driving growth of the automotive radar market. In addition, the growing trend of autonomous vehicles coupled with increasing vehicle electrification is expected to foster the growth prospects for automotive radar.

Stringent government regulations and favorable initiatives in the field of radar systems have promoted the development of vehicle safety systems and are, thus, expected to drive the widespread adoption of radar-based safety systems over the forecast period. Additionally, the decreasing vehicle electronic prices and advancements in the automotive technology are likely to support the usage of automotive radar. Its implementation enables the accurate detection of objects and ensures better vehicle safety.

U.S. automotive radar market, by application, 2014 - 2025 (USD Million)

U.S. automotive radar market

According to the World Health Organization (WHO), if the global vehicle safety standards is not strengthened by 2030, road traffic crashes will be the seventh leading cause of death. Approximately 90% of accidents on roads occur in developing countries with low- and middle-income capacities, which also represents 54% of the world's vehicle population. The absence of enhanced radar-based vehicle safety systems in these countries presents automakers with a unique opportunity to grow in the near future. The implementation of radar-based safety systems, including Adaptive Cruise Control (ACC), Autonomous Emergency Braking (AEB), Forward Collision Warning (FCW), Blind Spot Detection (BSD), and intelligent park assist, among others, would not only increase vehicle safety but also assist in achieving a higher level of vehicle automation.

Range Insights

Medium & short range radar held the largest market share in 2016 and is expected to be the fastest-growing segment. These radars are prominently used in safety systems to detect objects in the vicinity of a vehicle. The systems include features such as blind spot detection, lane change assist, and park assist. The decreasing radar prices and increasing need to use more than two radars per system for enhanced performance are likely to drive the market over the forecast period.

Since long range radars are prominently used in ACC, the increasing adoption of ACC in mid-priced vehicles is expected to drive growth of the long range radar segment over the forecast period. The segment accounted for a market share of approximately 46% in 2016.

Vehicle Type Insights

The passenger cars segment is expected to grow at a faster rate than the commercial vehicles segment. The primary factor driving growth of this segment is the increasing awareness regarding vehicle safety among mid-priced vehicle owners. According to OICA, globally, the passenger cars segment witnessed an increase of 4.5% in 2016 from 2015. In addition, prominent luxury car manufacturers, such as Mercedes-Benz and BMW, observed a significant increase in sales with a unit sale of 2.08 million and 2.3 million cars respectively in 2016. As passenger cars are equipped radar-based safety systems, the automotive radar market is expected to gain traction over the forecast period.

Additionally, the growing logistics industry and booming e-commerce have triggered the sales for commercial vehicles. The growing customer expectations for vehicle autonomy among commercial vehicles is also expected to trigger the growth of the segment.

Application Insights

On the basis of applications, the automotive radar market has been divided into Adaptive Cruise Control (ACC), Autonomous Emergency Braking (AEB), Blind Spot Detection (BSD), Forward Collision Warning, Intelligent Park Assist, and other Advanced Driving Assistance Systems (ADAS). The market share for ACC was the largest in 2016, owing to the widespread adoption in prominent automotive markets, such as U.S., Germany, and China, among others.

However, the AEB segment is projected to grow at one of the fastest CAGRs over the forecast period. Favorable government initiatives, such as the delicensing of radar frequencies and increased investment by automakers for the development of low-cost radar-based safety systems, are expected to foster growth over the forecast period.

Automotive radar market, by vehicle type, 2016 (%)

Automotive radar market

Regional Insights

Europe dominated the global market in terms value and is expected to grow at a CAGR of 17.8% over the forecast period. This can be attributed to the increasing stringency of vehicle safety norms by the European Commission (EC). German automakers hold approximately 70% of the premium cars production. Moreover, the automotive industry in the country spends approximately one-third of the revenue in R&D development. Hence, the German market of automotive radar is expected to account for the largest share by 2025.

However, the Asia Pacific region is expected to emerge as the highest growing region, owing to the low-cost benefits involved in the manufacture of vehicles. The Asia Pacific region has witnessed a surge in automobile sales in the recent years, owing to the rising disposable income. The growing awareness about vehicle safety systems and their resultant benefits are some of the factors propelling growth of the market of automotive radar. The Latin American market is showing positive growth signs owing to the strong support for the use of the 79 GHz band for vehicular short-range radar.

Competitive Insights

Prominent players operating in the automotive radar market include Continental AG, Robert Bosch GmbH, Infineon Technologies AG, and Texas Instruments, among others.

Players in the automotive radar market are primarily focusing on developing high-performance compact radars. Companies have also increased their R&D spending in order to develop innovative solutions and gain strategic advantages over competitors. Apart from new product developments and partnerships, dominant market players have adopted mergers & acquisitions as the key strategy to gain traction in the market. For instance, in 2016, Infineon Technologies AG completed the acquisition of Innoluce BV, which is a fabless semiconductor company located in the Netherlands. The acquisition is expected to help the company in minimizing the size of the radar system and reducing the manufacturing cost.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, and South America

Country scope

U.S., Mexico, Canada, UK, Germany, India, Japan, China, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each sub-segment from 2014 to 2025. For this study, Grand View Research has segmented the global automotive radar market on the basis of range, frequency, vehicle type, application, and region:

  • Range Outlook (Revenue, USD Million; 2014 - 2025)

    • Long Range

    • Medium & Short Range

  • Vehicle Type Outlook (Revenue, USD Million; 2014 - 2025)

    • Passenger Cars

    • Commercial Vehicles

  • Application Outlook (Revenue, USD Million; 2014 - 2025)

    • Adaptive Cruise Control (ACC)

    • Autonomous Emergency Braking (AEB)

    • Blind Spot Detection (BSD)

    • Forward Collision Warning (FCW)

    • Intelligent Park Assist

    • Other ADAS Systems     

  • Regional Outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Mexico

      • Canada

    • Europe

      • UK

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

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