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The global automotive radar market size was USD 2313.1 million in 2019 and is projected to reach USD 3131.5 million by 2027, exhibiting a CAGR of 6.5% during the forecast period.
Modern vehicle safety and comfort systems utilize a variety of radiofrequency (RF) technologies to make driving more automated and secure. Automobiles are increasingly being equipped with radar sensors where RF signals are used for safety features such as blind-spot detection, adaptive cruise control, and forward-collision warning, among other features. Automotive radar enables precise and swift measurement of the range, velocity, and direction of surrounding vehicles. Therefore, it is widely used across advanced driver assistance systems as they support drivers and help to reduce the number of accidents.
Reduced Funding in R&D amid COVID-19 to Hinder Growth
The pandemic induced lockdown has been primarily characterized by initial supply chain disruption for Chinese parts. The large-scale factory closures and just-in-time manufacturing approach of manufacturers across Europe and the U.S. have further compounded the existing downshift in demand for vehicles, with a substantial collapse in demand for passenger cars. Presently, $50 - $100 is the estimated cost for this radar and the continual downfall in vehicle sales impacts the ability of manufacturers to cater to the demand for affordable radars.
The adoption of imaging radars is another key area of focus for leading players in the market. An extensive R&D is required for this technology that can enable manufacturers to reduce costs in future designs. However, many companies are expected to be compelled to divert capital to maintain operations and hence reduce investment in advanced technology initiatives such as imaging radars and signal bandwidth expansion.
Several startups are operating in this market such as Oculii that provide proprietary software processing such as its Virtual Aperture technology for this type of radar. Furthermore, in January 2020, Oculii announced collaboration with an electronics company, Hella GmbH, for the mass production of radar beginning in 2023. However, the continual decline in vehicle sales significantly impacts its long-term profitability and may lead to a delay in development efforts and subsequent production of radars. Hence, the pandemic is expected to reduce investment in advanced technological initiatives by key players in the market.
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Advancement of Signal Bandwidth Capabilities to Enhance Radar Functionality
Currently, the majority of the commercial automotive radars operate with a signal bandwidth smaller than 1 GHz. However, many chip manufacturers are actively providing support for a signal bandwidth from 4 GHz to 5 GHz. The increased numbers of transmitting and receiving antennas enable these radars to provide 3D imaging capabilities. Hence, there is a growing trend to enhance the range resolution and signal bandwidth of radars for the automotive sector.
Increasing R&D Investment to Propel the Adoption of Automotive Radars
Leading vehicle manufacturers are focusing on developing next-generation car models that would be equipped with up to ten radar sensors. This enables a radar-based 360-degree surround-view that is essential for semi-autonomous operation, as well as advanced driver assistance. Hence, the demand for multi-functional radar systems from the automotive industry is increasing exponentially. The growing requirements have led to a greater R&D in the field of radar systems of the automotive sector.
For instance, in August 2020, Huawei increased investment in its optoelectronics R&D center in Wuhan, China with a focus on developing low-cost LiDAR technology and radar sensors. Hence, larger investments in improving the sensor and functionality capabilities of automotive radar as well as reducing the cost of radar technology are likely to drive the growth of the market.
Stringent Government Regulations Regarding Vehicle Safety Systems to Augment Growth
The growing awareness regarding vehicle safety among consumers has led to an increased demand for features such as cruise control and blind-spot detection that can support drivers and reduce the number of accidents. Furthermore, the alarming increase in fatalities owing to vehicular accidents has compelled various governments to implement stringent regulations and actively promote the development of vehicle safety systems. Hence, as a means of ensuring better vehicle safety, the widespread adoption of radar-based technology in automobiles is anticipated during the forecast period.
Security Risks Associated with Radar-Based Technology to Limit Adoption
Automotive radar operates on a specific signal structure. However, they lack any inherent authentication that makes the technology susceptible to spoofing attacks. A successful spoofing attack can severely influence the integrity of vehicle occupants by potentially causing the vehicle to stop, change direction, or collide by breaching target radar within a short time.
The current radar technology is largely based on frequency-modulated continuous-wave radar (FMCW). However, with the increasing number of vehicles equipped with radar-sensors, FMCW radar interference in dense traffic situations is expected to pose a challenge as it can lead to considerable performance degradation. Hence, security risks associated with radar for automotive such as spoofing & interference are likely to restrain the adoption of this technology during the forecast period.
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Medium Range Radar Held the Largest Market Share in 2019
By range, the market is segmented into short-range, medium-range, and long-range.
Medium range radar held the largest share of the market in 2019 and is expected to show significant growth over the forecast period. Safety systems are equipped with these radars to provide features such as park assist, cross-traffic alert and lane change assist among other features. The reduction in radar cost and greater need to enhance functionality by using more than two radars are factors attributed to the dominance of this segment.
Long-range radars are primarily used for adaptive cruise control (ACC). Hence, greater adoption of ACC features in smaller and mid-range vehicles is likely to drive the growth of this segment.
Forward-Collision Warning System Segment to Grow at a Faster CAGR
Based on application, the market is segmented into adaptive cruise control (ACC), intelligent park assistance, forward-collision warning system (FCWS), blind-spot detection (BSD), and autonomous emergency braking (AEB).
ACC held the largest automotive radar market share in 2019 owing to the early adoption of this feature in passenger cars in countries such as Germany and the U.S.
The FCWS segment is projected to grow at a significant CAGR over the forecast period. The widespread adoption in cars in countries such as China and India owing to the increasing number of traffic accidents is attributed to the positive outlook of this segment.
Asia Pacific Automotive Radar Market Size, 2016-2027 (USD Million)
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The European market is characterized by the early adoption of advanced driver assistance technologies in countries such as Germany and the UK. Furthermore, the stringent vehicle safety regulations compared to other regions, implemented by the government, is expected to favor the demand for advanced radar-based systems. For instance, from 2020 onwards Euro NCAP is assessing the functionality of AEB car-to-car systems and has developed a specially designed testing system known as the Global Vehicle Target for this purpose. Hence, these factors are responsible for the substantial growth of the market in this region.
The market size in Asia Pacific stood at USD 1456.6 million in 2019. Asia Pacific is characterized by the rise in disposable income that has led to a surge in automobile sales in recent years, especially in India and China. Moreover, the increasing frequency of vehicular accidents and greater awareness regarding the benefits associated with driving assistance features such as brake assist and collision warning systems are fueling the demand for these radars for the automotive industry in this region. Hence, these factors are expected to lead to the dominance of Asia Pacific in this market over the forecast period.
NXP Semiconductors and Robert Bosch GmbH developing Innovative Radars to Consolidate their Market Positions
Key players in the global market include NXP Semiconductors, Robert Bosch GmbH, Autoliv Inc., and Continental AG, among others. The integration of radar is becoming difficult owing to a greater number of electrical components implemented in the car. Hence, various market players are primarily focused on developing compact yet high-performance radars.
The geographic expansion, via partnerships, is a key strategy of the dominant market players. For instance, in April 2019, NXP Semiconductors announced an investment agreement and strategic collaboration with Hawkeye Technology Co. Ltd., a leading company in the automotive radar industry in China. The partnership allows NXP access to Hawkeye's extensive 77 GHz expertise and strengthens its position in the Chinese market, where the growth of the automotive radar is as near as twice the rest of the world. Hence, strategic partnerships are a key area of focus for the majority of the players.
An Infographic Representation of Automotive Radar Market
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The market research report covers a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and the leading applications of the product. Besides this, the analysis report offers insights into the automotive radar market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers in-depth market analysis of several factors that have contributed to its growth over recent years.
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Value (USD Million) & Volume (Thousand Units)
Fortune Business Insights says that the global market size was USD 2313.1 million in 2019 and is projected to reach USD 3131.5 million by 2027.
In 2019, the Asia Pacific market value stood at USD 1456.6 million.
Registering a CAGR of 6.5%, the market will exhibit good growth in the forecast period (2020-2027).
The medium-range segment is expected to be the leading segment in this market during the forecast period.
The stringent government regulation in regard to vehicle safety systems is the key factor driving the growth of the market.
Robert Bosch GmbH, NXP Semiconductors, and Continental AG are the major players in the global market.
Asia Pacific held the largest share in the market in 2019.
The growing awareness regarding the safety benefits of advanced driver assistance technologies has increased the demand for features such as rear cross-traffic detection and precise environmental mapping, which in turn drives the adoption of these systems.
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