Automotive Radar Market

[277 Pages Report] The global automotive radar market is projected to grow from USD 6.6 billion in 2024 to USD 33.6 billion by 2030, registering a CAGR of 31.1%. The increasing demand for advanced driver assistance systems (ADAS) and autonomous vehicles rely heavily on radar technology for functions such as collision avoidance, adaptive cruise control, and parking assistance. Stringent safety regulations and the push for safer roadways have accelerated the adoption of radar systems in vehicles. Additionally, technological advancements in radar sensors, such as improved accuracy, range, resolution, and decreasing costs, have made radar solutions more attractive for automakers. The growing trend of connected vehicles and integrating radar with other sensor technologies, like cameras and LiDAR, to enhance overall system reliability and performance further propel market growth.

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Market Dynamics:

Driver: Advancements in radar technology

The shift to higher frequency bands, particularly 77 GHz and 79 GHz, allows for higher-resolution imaging. mmWave radars provide finer detail and better discrimination between objects, which is crucial for applications like pedestrian detection and lane change assistance. Modern radar systems employ advanced signal processing techniques like Fast Fourier Transform (FFT) and Multiple-Input Multiple-Output (MIMO) technology. These techniques improve the radar's ability to detect, track, and classify objects at greater distances and with higher accuracy.

Advances in semiconductor technology and integration techniques have led to smaller, more compact radar modules. These can be seamlessly integrated into various vehicle parts, including bumpers, grills, and side mirrors, without affecting the vehicle’s aesthetics or aerodynamics. Improved radar technology allows for better integration with other sensor systems, such as cameras and LiDAR. This sensor fusion is critical for creating a comprehensive and reliable perception system for advanced ADAS and autonomous driving capabilities. New algorithms and techniques have been developed to mitigate interference from other radar-equipped vehicles and external sources. This ensures consistent performance in densely populated areas where multiple radar systems may operate simultaneously.

Adopting advanced manufacturing techniques, such as silicon-germanium (SiGe) processes and system-on-chip (SoC) integration, has reduced the cost of producing high-performance radar sensors. This makes it economically viable to include radar systems in a broader range of vehicle models. Developing industry standards for radar components and systems has facilitated mass production and scalability. This standardization helps reduce costs and simplify the integration process for automakers. Incorporating machine learning algorithms into radar data processing enhances the ability to interpret complex driving environments accurately. AI-driven radar systems can better distinguish between different objects and predict their movements, contributing to more effective decision-making in ADAS and autonomous systems.

Restraint: Different climate conditions

The automotive sector is currently facing significant challenges with the reliability of radar systems due to changing climate conditions. Radar, a critical component for ADAS and autonomous driving, relies heavily on the environment for accurate detection and measurement. Climate changes, such as increased precipitation, fog, and extreme temperatures, have been found to affect radar performance adversely. For instance, heavy rain or snow can create signal noise, reducing the radar's ability to accurately detect obstacles and calculate distances. Similarly, fog can scatter radar waves, leading to incorrect readings or missed detections. These environmental factors compromise the effectiveness of radar systems, potentially leading to safety risks on the road. Manufacturers have had to reconsider deploying and relying on radar technology, exploring alternative or supplementary solutions such as LiDAR, cameras, and ultrasonic sensors to ensure consistent performance under diverse weather conditions.

Different climate conditions across regions have made it difficult for manufacturers to standardize radar systems. In regions prone to extreme weather conditions, such as frequent snowstorms or heavy, the effectiveness of radar technology becomes highly unpredictable. This inconsistency necessitates more robust testing and development protocols to ensure that radar systems can withstand a wide range of environmental conditions. This has prompted regulatory bodies to push for stricter standards and guidelines, compelling automakers to invest more in R&D to meet these requirements.

Opportunity: 4D imaging radar

4D imaging radar is an attractive opportunity, as it can offer better safety to the vehicle by providing precise information on range, velocity, elevation, and others. This can be attributed to its ability to capture 4D data points per frame. The use of dense and high-resolution point clouds will significantly affect the development of object classification, detection, and tracking based on radar data. 4D imaging radar does not have any performance limitations based on the weather and light conditions. This is not properly addressed by normal radar, which has led to LiDAR technology occupying the market. Object detection and classification will play a crucial role in offering safety to vehicles. The application of 4D imaging radar is expected to offer better performance for the detection and classification of objects, and this is likely to create opportunities in the automotive radar market.

Challenge: Competition from alternate technologies

The automotive radar market faces significant competition from alternative technologies, each with its own strengths and applications. These alternative technologies include LiDAR. Even though automotive radar offers many benefits for driver assistance systems and autonomous vehicles, some factors limit its adoption. LiDAR is known for its high granularity and exceptional accuracy. It emits laser pulses and meticulously measures the time it takes for the light to return. This results in highly accurate 3D point clouds, making LiDAR ideal for applications demanding precise spatial information. Its accuracy can reach centimeter-level precision, providing intricate details about the environment.

LiDAR excels in short to medium-range applications. Its effective range is limited by the speed of light, typically up to a few kilometers. While some LiDAR systems have extended ranges, they are less common and may come at a higher cost. Therefore, it is well-suited for applications like autonomous vehicles, environmental monitoring, and infrastructure assessment. LiDAR sensors, typically mounted on a vehicle's roof or sides, emit laser pulses that bounce off objects, and the time it takes for the light to return is used to calculate distances. This, coupled with data from other sensors like GPS and cameras, creates a real-time 3D map of the surroundings.

Market Ecosystem

Long-range Radar is largest and growing market during the forecast period.

The long-range segment is projected to register the highest CAGR during the forecast period. Long-range radar is critical for collision avoidance systems, enabling vehicles to detect obstacles or other vehicles at greater distances. This early detection is crucial for high-speed driving and highway conditions, providing sufficient time for the vehicle to react and avoid collisions. Governments and regulatory bodies worldwide are increasing regulations for advanced safety features in vehicles. Long-range radar systems are often a key component of the technologies required to meet these safety standards, such as automatic emergency braking and lane-keeping assistance. Robert Bosch GmbH (Germany), Continental AG (Germany), and others provide long-range radar. Startup companies are also launching long-range radar. For instance, in January 2024, Altos Radar, a pioneer startup led by industry experts, unveiled its groundbreaking 4D imaging radar at CES 2024. Such development will drive the long-range radar segment during the forecast period.

Passenger car hold the largest market share during the forecast period.

The passenger car segment of the automotive radar market is expected to experience the most significant growth during the forecast period. A key reason for this expansion is the increasing emphasis on ADAS and safety features. Vehicle models such as Model S, Model 3, Model X, and Model Y by Tesla use radar with cameras and ultrasonic sensors for their autopilot driver assistance system. Autopilot features include adaptive cruise control, lane departure warning, and automatic lane changing. Additionally, Nissan ProPILOT Assist uses radar and cameras to offer features like adaptive cruise control, lane departure warning, and traffic sign recognition on several Nissan models, including the Rogue, Pathfinder, and Altima. In December 2023, BYD (China) launched Song L (2024), a mid-size electric SUV with Front mmWave radar and front corner radar supplied by Shenzhen Cheng-Tech Co., Ltd. (China). These advancements highlight the growing demand and integration of sophisticated radar systems in passenger cars, underscoring the segment's significant growth trajectory in the automotive radar market.

Europe is the largest market for automotive radar during the forecast period.

The European automotive radar market is growing due to the region's stringent safety regulations and a strong emphasis on vehicle safety standards. The European Union (EU) has implemented rigorous safety mandates that require new vehicles to be equipped with advanced driver assistance systems (ADAS), which heavily rely on radar technology. For instance, the General Safety Regulation, which came into effect in 2022, mandates the inclusion of features such as automatic emergency braking, lane keeping assistance, and advanced emergency braking systems in all new cars. These regulations are designed to reduce traffic accidents and enhance road safety, significantly driving the demand for automotive radar systems. Germany is projected to be the largest European automotive radar market due to the high demand for high-end premium cars equipped with ADAS features and technologies such as adaptive cruise control, adaptive braking system, blind spot detection, forward collision system, and lane departure warning, which all depends heavily on radar system for efficient functioning. In February 2024, Audi announced that it would update its Q2 SUV model with a new infotainment system and safety features, including ADAS. The vehicle is set to launch in the mid of 2024. Thus, rising government regulation towards safety and launching new vehicles will drive the automotive radar market in Europe during the forecast period.

Key Market Players

The automotive radar market is primarily dominated by globally recognized players such as Robert Bosch GmbH (Germany), Continental AG (Germany), Aptiv (Ireland), Denso Corporation (Japan), and NXP Semiconductors (Netherlands). These companies have introduced new products and formed strategic alliances to enhance their position in the market.

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Scope of the Report

This research report categorizes the automotive radar market based on range, vehicle type, frequency, propulsion, application, and region.

Based on Range:

• Short-range Radar
• Medium-range Radar
• Long-range Radar

Based on Vehicle Type:

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

Based on Frequency:

• 2X-GHz
• 7X-GHz

Based on Propulsion:

• ICE
• Electric

Based on Application:

• Adaptive Cruise Control (ACC)
• Autonomous Emergency Braking (AEB)
• Blind Spot Detection (BSD)
• Forward Collision Warning System (FCWS)
• Intelligent Parking Assistance (IPA)
• Cross Traffic Alert (CTA)
• Lane Departure Warning System (LDW)
• Traffic Jam Assist (TJA)

Based on the Region:

• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Indonesia
  • Rest of Asia Pacific
• North America
  • Canada
  • US
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Turkiye
  • Russia
  • Rest of Europe
• Rest of the World
  • Brazil
  • Iran
  • Others

Recent Developments

• In January 2024, NXP introduced a new 28 nm RFCMOS radar chip for advanced driver-assistance systems in modern vehicles. This chip supports distributed radar setups and helps transition from current smart sensors to future streaming sensors. NXP's solution includes 360-degree sensor fusion, better resolution, and AI-based object classification. HELLA will use these chips for their latest radar technology.
• In January 2024, Texas Instruments launched new radar sensor chips designed to create smarter and safer vehicles. The AWR2544 77GHz mmWave radar sensor chips enhance autonomy by improving sensor fusion and decision-making in ADAS.
• In September 2023, Mobileye and Valeo collaborated to bring high-definition imaging radars to global automakers. Mobileye's imaging radars utilize advanced architecture, including Massive multiple-input, multiple-output (MIMO) antenna design, an in-house developed high-end radio frequency design, and high-fidelity sampling. This combination allows for precise object detection and a higher dynamic range. The integrated system-on-chip design maximizes processor efficiency while world-leading algorithms interpret radar data to deliver a detailed, four-dimensional image of surroundings up to 300 meters away and beyond. With a 140-degree field-of-view at medium range and a 170-degree field-of-view at close range, the radar offers more accurate detection of pedestrians, vehicles, or obstructions, even on crowded urban streets.
• In May 2023, NXP Semiconductors partnered with NIO and announced that NIO Inc. will use NXP's advanced automotive radar technology, including its innovative 4D imaging radar solution. This technology significantly enhances front radar performance, enabling vehicles to detect and classify objects up to 300 meters away. This improvement increases safety and driving comfort in both highway and complex urban environments.
• In April 2023, Continental and Aurora partnered to develop, manufacture, and assemble Aurora Driver hardware kits, which include LiDAR, radar, cameras, and high-performance computers. Continental will industrialize these systems for large-scale production. It will also provide a redundant fallback system to ensure driverless trucks can safely continue in case of primary system failure. Both companies will work with vehicle manufacturers to produce vehicles integrated with the Aurora Driver kits and fallback systems, coordinating production schedules and installation processes. Additionally, Continental will handle customer service, maintenance, warranty needs, and the decommissioning and replacing the hardware kits at the end of their lifecycle.

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