The automotive radar market consists of radars used in automobiles to enhance vehicle and road safety. Automotive radars detect objects nearby the vehicle using radio waves and provides real-time 3D imaging of the surrounding environment. Being a crucial component of advanced driver assistance systems (ADAS), radars can detect and identify pedestrians, vehicles, road signs, hazards, and more, improving driver awareness and mitigating accidents. The global automotive radar market is estimated to be valued at US$ 4.86 Mn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The need for automotive radars has increased significantly owing to the rising consumer demand for advanced safety features. As radars can detect potential collision risks in all directions around the vehicle through adverse weather and low-light conditions, they are being increasingly incorporated in driver assistance functions like adaptive cruise control, blind-spot detection, parking assistance and automatic emergency braking. With growing awareness about road safety, major automakers are making such ADAS standard even in affordable vehicle segments. The global Automotive Radar Market is driven by stringent government regulations mandating safety features and rising vehicle automation.

Market Key Trends

One of the key trends in the automotive radar market is the development of higher resolution radars with improved detection range and accuracy. With the progression of vehicle automation towards self-driving capabilities, automakers are focusing on designing radars that can efficiently map the vehicle surroundings from longer distances with clear differentiation between static and moving objects. Another significant trend is the integration of radars with camera and LiDAR sensors to leverage their combined benefits through sensor fusion. This is allowing radar-camera-LiDAR systems to build a comprehensive dynamic 3D image of the vehicle environment with centimeter-level positioning.

Porter’s Analysis

Threat of new entrants: The high capital requirements and strong economy of scale make the entry of new players difficult in this market.

Bargaining power of buyers: The presence of many established players makes automotive OEMs and buyers have strong bargaining power over suppliers.

Bargaining power of suppliers: Key components like chips and sensors are highly specialized with few global players having bargaining power over automotive radar manufacturers.

Threat of new substitutes: Though alternative technologies exist, automotive radars have established themselves as crucial safety systems with no close substitute currently.

Competitive rivalry: The global automotive radar market is consolidated with top players competing on technology, product features and pricing.

Key Takeaways

The global Automotive Radar Market Growth is expected to witness high growth. Rising vehicle safety standards and demand for advanced driver-assistance systems (ADAS) features are driving the need for automotive radars across major automobile markets.

Regional analysis 

North America currently dominates the market for automotive radars due to stringent safety norms in the US and Canada. However, Asia Pacific is witnessing fastest growth led by China due to huge vehicle production and sales. Countries like India are also pushing vehicles safety and ADAS adoption.

Key players 

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. These players are focusing on product development and partnerships to gain market share in this growing space.

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