The automotive radar market comprises products such as short-range radar (SRR), mid-range radar (MRR), and long-range radar (LRR) utilized in advanced driver assistance systems (ADAS) for accident avoidance, parking assistance, and other safety features. Automotive radars offer capabilities like object detection, blind spot identification, collision mitigation, and adaptive cruise control. The growing demand for self-driving vehicles worldwide is a key factor driving the need for such radars to complement camera, lidar, and other sensors for building a detailed perception of the vehicle's surroundings.
The Global Automotive Radar Market is estimated to be valued at US$ 5.6 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the automotive radar market are Banner Engineering Corporation, Rockwell Automation Inc., Pepperl+Fuchs SE, Emerson Electric Company, Panasonic Industry Europe GmbH (Panasonic Corporation), Honeywell International Inc., Sick AG, Yokogawa Electric Corporation, Omron Corporation, ABB Ltd., General Electric Company, Schneider Electric SE, and Siemens AG. With growing demand for advanced driver assistance systems, key market players are focusing on developing high-resolution radars with enhanced detection capabilities. The increasing demand for autonomous vehicles globally is another major factor driving the need for automotive radars. Major automotive giants are investing heavily in developing self-driving cars which is promoting the integration of more precision radars in vehicles. The automotive radar market is witnessing significant expansion worldwide with growing research and development activities. Key players are enhancing their global footprint with new product launches and expanded geographical presence.
Market Key Trends
One of the key trends in the Automotive Radar Market Demand is the shift towards higher bandwidth radars to support advanced applications like automatic emergency braking and blind spot detection. Earlier automotive radars had bandwidth ranging from 24-80 GHz but now higher bandwidth radars operating from 77-81GHz are gaining prominence. They provide enhanced resolution, improved target separation and fine Doppler measurements required for autonomous driving. With growing focus on developing affordable self-driving solutions, companies are also working on chip-scale radars and millimeter wave radar technology to reduce costs. The integration of AI and deep learning capabilities is another emerging trend helping automotive radars identify objects more accurately and minimize false collision warnings.
Porter's Analysis
Threat of new entrants: The automotive radar market requires high R&D investments and technology which acts as a barrier for new players.
Bargaining power of buyers: Buyers have low bargaining power due to limited options and proprietary technologies used by key players.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of components from multiple sources.
Threat of new substitutes: Substitutes have low threat as automotive radars provide safety and are mandated in many countries.
Competitive rivalry: The market is highly competitive with focus on new technologies, integrations and pricing.
Geographical Regions
North America region accounts for around 35% value share in automotive radar market led by the US and Canada. Stringent safety norms regarding advanced driver assistance systems (ADAS) and presence of major automakers drive the market. Asia Pacific holds the second largest share and is predicted to witness highest growth during the forecast period due to increasing vehicle production in China, Japan and India along with formulation of new regulations for active safety systems. Europe holds over 25% market share with strong demand from Germany, UK, France and Italy on back of developed automotive industry and stringent EU safety rules for new vehicles.
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