The global Automotive Radar Market is anticipated to reach nearly USD 9 billion by 2024. The introduction of fully automated vehicles is projected to drive the industry during the forecast period (from 2016 to 2024). Worldwide demand for automobiles and greater user expectations concerning automation features & safety are the key factors that drive this market.
Automotive radars help control traffic jams by aiding drivers with effective decision support systems. Also, these devices aim at minimizing human errors while driving; and thus lower the frequency of road accidents. This in turn decreases fatalities and related monetary losses. Furthermore, they increase fuel efficiency indirectly by streamlining traffic control. This may spur industry demand during the next eight years.
Automotive radars are the main speed & range sensors installed in vehicles. They emit electromagnetic waves (of radio-frequency) and then absorb other waves that are reflected back by nearby vehicles & objects. It is the electronic control unit (ECU) that helps in determining the speed & distance of the objects in the surrounding area. Based on the output processed by the ECU, the system sends collision warnings & alerts to the drivers.
Higher vehicular sales (particularly luxury cars) have led to significant market revenues. Other factors that drive the demand for vehicles are high disposable incomes and low interest rates. The introduction of Advanced Driver Assistance Systems (ADAS) in vehicles may lead to multiple growth prospects for the global Automotive Radar Market. ADA systems can endure and work in extreme conditions, like bad weather, bad light, and fluctuating temperatures. These factors make ADA systems a widely preferred choice in the automobile industry. Such a trend can significantly add to the demand for automotive radars in the forecast period.
Depending on application utilities and range coverage, there are three categories of automotive radars; Medium Range Radar (MRR), Short Range Radar (SRR), and Long Range Radar (LRR). Long range radars are utilized mostly for Adaptive Cruise Control (ACC). LRRs offer improved functional efficiency as compared to LiDARs (Light Imaging, Detection, And Ranging) and camera systems. Owing to the capacity of automotive radars to detect distance & velocity, the LRR segment can witness tremendous growth in the forthcoming years.
Short range radar systems are the “ultrasonic” radars that possess identifying capabilities less than 5 m. These systems are generally used to detect side impact & blind spots. They also offer parking assistance solutions. Strict governmental regulations regarding automotive safety may spur the demand for ultrasonic radars. This segment comprises 77 GHz and 24 GHz chips. The 24 GHz variants are mostly applied in systems, such as Lane Change Assist (LCA), traffic jam assist, and Rear Pre-crash System (RPS). They help drivers cross or change lanes by alerting them about the vehicles behind.
The 77 GHz variants are mainly utilized in Autonomous Emergency Braking (AEB) and adaptive cruise control systems. The stop & go adaptive cruise control system has 77 GHz radar towards the center and two 24 GHz chips on either side. Such an arrangement helps detect distance and objects in the border of around 100 to 150 m from the vehicle. However, inaccuracies in recognition and object classification may hinder the growth of the Automotive Radar Market in the future.
A number of companies are focusing on developing next generation radars. For instance, the 79 GHz radar allows drivers to execute autonomous & semi-autonomous decisions effectively. This system efficiently recognizes bicycle & pedestrian crossings and thus delivers high-quality functional precision. These high frequency radar devices perform better since they are more accurate and reliable.
One of the many advantages of the 79 GHz radars is that these devices are much smaller in size. Moreover, just a single technology could be utilized in all applications. These devices exhibit low mutual interference since lesser emission power is needed. At present, automobile radar applications utilize various frequency ranges depending on the type of application. A flexible and holistic system can be established using the universal 79 GHz technology platform. This makes for easier development and individual sensors may be utilized for several uses.
Rising safety needs of customers and stringent safety norms can positively affect the global industry in the near future. Camera-based systems may witness positive growth because of strict governmental regulations that mandate the installation of these systems in vehicles. With a view to reduce vehicle crashes, the U. S. Federal Motor Carrier Safety Administration (FMCSA) with the truck industry evaluates and tests the usage of on-board safety systems. The decreasing costs of cameras and innovations in image sensing technology are fueling the global adoption of camera-based sensors. Rapid technical changes are also stimulating the demand for systems, such as automatic emergency braking and distance warning.
Based on ranges, the Automotive Radar Market is bifurcated into Ultra-Wide Band (UWB) and Narrowband (NB). These tools offer greater accuracy when it comes to tracking and object detection. In addition to this, they provide a superior autonomy via the 3 dimensional digital modeling. Due to excellent functional efficiency and brilliant performance, the market for these devices may expand robustly during the forecast period.
The global Automotive Radar Market is segmented on the basis of applications and geographies. On the basis of applications, this industry is divided into FCWS (forward collision warning system), PA (parking assistance), LDWS (lane departure warning system), BSD (blind spot detection), and ACC (adaptive cruise control). The ACC segment contributes to 34% of the total market shares. It is projected to expand at a CAGR exceeding 17% during the forecast period.
Geographies include Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa. Europe can grow substantially over the coming years. This market is driven by the high concentration of automotive manufacturing companies in the region. The Asia-Pacific market is propelled by low manufacturing costs and surging demand for automobiles. Owing to extensive research & development activities in the U.S., the North America market may witness exponential growth in the years ahead. Key companies operating in the global market are Robert Bosch GmbH; Delphi Automotive PLC.; Continental A. G.; Hella KGaA Hueck & Co.; and Fujitsu Ten Ltd.
Research Support Specialist, USA