Automotive Radar Market is Estimated to Witness High Growth Owing to Increased Adoption of Advanced

Author : Raj Dhote | Published On : 15 Jan 2024

Automotive radar is a sensor technology used in various vehicle safety and autonomous driving applications. It uses radio waves in the microwave band to detect the speed and distance of other vehicles or obstacles. Automotive radars help drivers avoid collisions by monitoring vehicles and pedestrians around the vehicle. It plays a crucial role in advanced driver assistance systems such as adaptive cruise control, automatic emergency braking, lane change assistance, blind-spot monitoring, and parking assistance. The growing demand for advanced safety features and rising focus on autonomous vehicles are projected to drive the adoption of automotive radar systems in the coming years. The global automotive radar market is estimated to be valued at US$ 4.86 Mn in 2023 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.

Market Opportunity
Increased adoption of advanced driver assistance systems: With the growing awareness about road safety, advanced driver assistance systems are gaining widespread acceptance in the automotive industry. Automotive radar plays a vital role in ADAS by providing the sensor technology required for functions like automatic emergency braking, adaptive cruise control, blind-spot monitoring, etc. As OEMs focus on incorporating more ADAS features in vehicles for enhanced safety and driving experience, the demand for high-precision automotive radars is expected to rise significantly over the forecast period. This growing focus on ADAS offers lucrative opportunities for automotive radar manufacturers in the coming years.

Porter's Analysis
Threat of new entrants: The automotive radar market requires high investment for research and development which creates entry barriers for new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of established automotive radar manufacturers.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to the availability of substitute components.

Threat of new substitutes: There exists a threat from new emerging sensing technologies like camera and ultrasonic sensors that can be substitutes for radar.

Competitive rivalry: The market is moderately competitive with the presence of international brands.

SWOT Analysis
Strength: Automotive radars offer high accuracy and reliability for advanced driver assistance systems. They can detect objects regardless of weather conditions.

Weakness: High initial costs and complexity in design are weaknesses. Implementation of regulations regarding automotive sensors also poses challenges.

Opportunity: Growing demand for advanced safety systems from automakers provides an opportunity for radar manufacturers. Development of low-cost short-range radars expands the addressable market.

Threats: Stiff competition from alternative sensing technologies increases pricing pressure. Slow adoption of advanced driver assistance systems in developing nations is also a threat.

Key Takeaways
The global Automotive Radar Market Growth is expected to witness high growth. Advancements in autonomous driving and stringent safety norms will drive the demand.

The Asia Pacific region dominates the market currently due to the presence of automotive manufacturing hubs and developing autonomous vehicle programs. China, Japan and South Korea are major markets in the region.

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. Long-range radar systems offering wider detection range will see increased adoption. Product innovation focusing on cost reduction will help manufacturers gain share. Partnerships for technology development are on the rise to tap emerging opportunities.

For more insights, read- https://www.ukwebwire.com/automotive-radar-market-trends-size-and-share-analysis/