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Automotive Radar Market Size, Share & COVID-19 Impact Analysis, By Range (Short-Range, Medium-Range, Long-Range), By Application (Adaptive Cruise Control (ACC), Autonomous Emergency Braking (AEB), Forward-Collision Warning System (FCWS), Blind Spot Detection (BSD), Intelligent Parking Assistance), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI101688

 

KEY MARKET INSIGHTS

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The global automotive radar market size was USD 2.01 billion in 2020. The market is expected to grow from USD 2.07 billion in 2021 to USD 3.95 billion in 2028 at a CAGR of 9.7% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 12.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market's demand and growth, returning to pre-pandemic levels once the pandemic is over.


Modern vehicle comfort systems and safety systems utilize a variety of radiofrequency (RF) technologies to make driving more secure and automated. 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. These sensors enable precise and swift measurement of the range, velocity, and direction of surrounding vehicles. Therefore, it is extensively used across advanced driver assistance systems as they support drivers and help to reduce the number of accidents.


Short to Mid-Term Funding Delays for Autonomous Vehicles due to COVID-19 to Hinder Growth


The downturn in automotive sales caused by the pandemic has led several major automakers to recalibrate their plans with regards to autonomous vehicles (AVs). Radar is essential for high-level automated driving, as it provides vital data related to parameters such as motion prediction, object tracking, and object detection, among others. However, the severe revenue loss caused by the pandemic and the subsequent semiconductor shortage (a result of the unexpected sudden rebound in Q4 2020) will delay the development of AVs over the short to mid-term.


For instance, Volvo originally intended to introduce a fully autonomous Level 4 AV by 2024. However, the company has delayed the original target date for Level 4 to 2027 and is now aiming to produce a Level 3 model by 2024. Similarly, in 2020, Ford announced the delay of the launch of its autonomous commercial vehicle service to 2022 due to Q2 revenue losses. Hence, the pandemic will lead to short to mid-term delays in funding for autonomous vehicles. This, in turn, will impact the demand in the automotive industry.


LATEST TRENDS


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Advancement of Signal Bandwidth Capabilities to Enhance Radar Functionality


Currently, the majority of 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 3D imaging capabilities. Hence, there is a growing trend to enhance the range resolution and signal bandwidth of automotive type of radars.


DRIVING FACTORS


Increasing R&D Investments to Propel Automotive Radar Market Growth


Leading vehicle manufacturers are focusing on developing next-generation car models that would be equipped with up to ten radar sensors. This enables a 360-degree surround-view that is essential for semi-autonomous operation, as well as advanced driver assistance. Hence, the demand for multi-functional systems from the automotive industry has led to increased R&D in the field of these radar systems.


For instance, in August 2020, Huawei increased investments 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 and reducing the cost of this technology are likely to drive the market growth.


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.


RESTRAINING FACTORS


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 technology is largely based on frequency-modulated continuous-wave (FMCW) systems. However, with the increasing number of vehicles equipped with such systems, FMCW interference in dense traffic situations is expected to pose a challenge as it can lead to considerable performance degradation. Hence, security risks associated with automotive radar, such as spoofing & interference, are likely to limit the adoption of this technology during the forecast period.


SEGMENTATION


By Range Analysis


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Medium-Range Radar Held the Largest Automotive Radar Market Share in 2020 Due to Reduction in Costs


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 2020 and is expected to show significant growth over the forecast period. Safety systems are equipped with these systems to provide features such as park assist, cross-traffic alert, and lane change assist, among other features. The reduction in cost and the greater need to enhance functionality by using more than two radars are factors attributed to the dominance of this segment.


On the other hand, 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.


By Application Analysis


Forward-Collision Warning System Segment to Grow at a Faster CAGR Owing to Widespread Adoption of Cars


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 market share in 2020 owing to the early adoption of this feature in passenger cars in countries such as Germany and the U.S. Moreover, the FCWS segment is projected to grow at a significant CAGR over the forecast period. The widespread adoption of 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.


REGIONAL INSIGHTS


Asia Pacific Automotive Radar Market Size, 2020 (USD Billion)

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The market size in the Asia Pacific stood at USD 1.27 billion in 2020 and will exhibit stellar growth during the projected timeline. The 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 automotive radars in this region. Hence, these factors are expected to lead to the dominance of Asia Pacific in this market over the forecast period.


The European market is characterized by the early adoption of advanced driver assistance technologies in countries such as Germany and the U.K. Furthermore, the stringent vehicle safety regulations compared to other regions, implemented by the government, are 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.


North America is also expected to exhibit substantial growth in the market. Factors such as high demand for hybrid vehicles and increasing stringency of vehicle safety regulations will drive the growth of the market in the region.


KEY INDUSTRY PLAYERS


NXP Semiconductors and Robert Bosch GmbH are Developing Innovative Technologies to consolidate their Market Positions


Key players in the global market include Robert Bosch GmbH, NXP Semiconductors, Continental AG, and Autoliv Inc., 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 solutions.


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 this 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 demand for automotive radars 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.


LIST OF KEY COMPANIES PROFILED:



  • Robert Bosch GmbH (Gerlingen, Germany)

  • Continental AG (Hanover, Germany)

  • Denso Corporation (Kariya, Japan)

  • Autoliv Inc. (Stockholm, Sweden)

  • Valeo SA (Paris, France)

  • Aptiv (Dublin, Ireland)

  • NXP Semiconductors (Eindhoven, Netherlands)

  • Texas Instruments Incorporated (Dallas, US)

  • ZF Friedrichshafen AG (Friedrichshafen, Germany)

  • Infineon Technologies AG (Neubiberg, Germany)


KEY INDUSTRY DEVELOPMENTS:



  • July 2021 – Continental is integrating AEye's long-range LiDAR technology into its full sensor stack solution to create the first full-stack automotive-grade system for Level 2+ up to Level 4 automated and autonomous driving applications.

  • April 2021 – At Auto Shanghai 2021, Continental presented the sixth generation of surround radar and long-range radar. Both sensors share a hardware and software platform, reducing complexity and thus costs.


REPORT COVERAGE


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 report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that have contributed to its growth over recent years.


Report Scope & Segmentation












































  ATTRIBUTE



  DETAILS



Study Period



2017-2028



Base Year



2020



Estimated Year



 2021



Forecast Period



2021-2028



Historical Period



2017-2019



Unit



Value (USD Billion) & Volume (Thousand Units)



Segmentation



By Range



  • Short Range

  • Medium Range

  • Long Range



By Application



  • Adaptive Cruise Control (ACC)

  • Autonomous Emergency Braking (AEB)

  • Forward-Collision Warning System (FCWS)

  • Blind Spot Detection (BSD)

  • Intelligent Parking Assistance



By Geography



  • North America (U.S., Canada, and Mexico)

  • Europe (U.K., Germany, France, and Rest of Europe)

  • Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia- Pacific)

  • Rest of the World



Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 2.01 billion in 2020 and is projected to reach USD 3.95 billion by 2028.

In 2020, the Asia Pacific market value stood at USD 1.27 billion.

Registering a CAGR of 9.7%, the market will exhibit robust growth over 2021-2028.

The medium-range segment is expected to be the leading segment in this market during the forecast period.

The stringent government regulation in regards to vehicle safety systems is the key factor driving the demand for radars in the automotive sector.

Robert Bosch GmbH, NXP Semiconductors, and Continental AG are the major players in the global market.

The Asia Pacific held the largest share in the market in 2020.

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, thatis expected to drive the growth of the market.

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