July 22, 2024

Automotive Radar Market: Growing Demand for Advanced Driver Assistance Systems (ADAS) to Drive Market Growth

The global Automotive Radar Market is estimated to be valued at US$ 4.40 billion in 2023 and is expected to exhibit a CAGR of 10.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights

Market Overview:

Automotive radar is an advanced driver assistance system (ADAS) technology that uses radio waves to detect and track objects around the vehicle. It provides crucial information to the driver for better situational awareness and helps in avoiding accidents. The increasing demand for ADAS systems in vehicles, along with government regulations mandating the installation of safety features, is driving the growth of the automotive radar market. The benefits of automotive radar, such as improved road safety, enhanced vehicle performance, and reduced accidents, are further fueling the market growth.

Market Key Trends:

One of the key trends in the automotive radar market is the integration of radar technology with other advanced driver assistance systems. Radar sensors are being combined with cameras and other sensors to provide a more comprehensive ADAS system. This integration allows for better object detection and tracking, especially in challenging or adverse weather conditions where cameras may be less effective. Furthermore, the integration of radar technology with vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication systems is also enhancing the capabilities of automotive radar, enabling vehicles to better communicate and cooperate with each other for improved safety and efficiency on the roads.

Automotive Radar Market: Porter’s Analysis

Threat of New Entrants: The threat of new entrants in the automotive radar market is relatively low due to the high barriers to entry. The development and manufacturing of automotive radar systems require advanced technology and significant investment, making it difficult for new players to enter the market.

Bargaining Power of Buyers: The bargaining power of buyers in the automotive radar market is moderate. While buyers have some leverage due to the presence of multiple suppliers, the high demand for advanced driver assistance systems (ADAS) and autonomous vehicles gives suppliers some bargaining power.

Bargaining Power of Suppliers: The bargaining power of suppliers in the automotive radar market is high. The market is dominated by a few major suppliers who have established relationships with automobile manufacturers. Suppliers can leverage their expertise and unique technologies to negotiate favorable contracts and pricing terms.

Threat of New Substitutes: The threat of new substitutes in the automotive radar market is relatively low. Radar technology is currently the most widely adopted sensing technology in the automotive industry for ADAS and autonomous driving applications. Other sensing technologies, such as lidar and cameras, are complementary to radar rather than direct substitutes.

Competitive Rivalry: Competitive rivalry in the automotive radar market is intense. The market is highly consolidated, with a few key players holding significant market shares. The competition is primarily driven by technological advancements, product differentiation, and cost competitiveness.

Key Takeaways

The Global Automotive Radar Market Demand is expected to witness high growth, exhibiting a compound annual growth rate (CAGR) of 10.5% over the forecast period. This growth is attributed to the increasing adoption of ADAS and autonomous vehicles, as well as the growing emphasis on vehicle safety.

Regionally, Asia Pacific is expected to be the fastest-growing and dominating region in the automotive radar market. The region is witnessing a rapid increase in vehicle production and sales, along with government regulations mandating the installation of ADAS features, thus driving the demand for automotive radar systems.

Key players operating in the automotive radar market include Continental AG, Denso Corporation, Robert Bosch GmbH, Infineon Technologies AG, Valeo, NXP Semiconductors, HELLA KGaA Hueck & Co., Texas Instruments Incorporated (TI), Autoliv Inc., and ZF Friedrichshafen AG. These key players are investing in research and development activities, partnerships, and collaborations to enhance their product portfolios and gain a competitive edge in the market.

In conclusion, the automotive radar market is poised for significant growth, driven by the increasing adoption of ADAS and autonomous driving technologies. However, the market is highly competitive, and key players need to focus on innovation and strategic collaborations to maintain their market positions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it