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Why are Sales of Automotive Radar Systems Booming?

Automotive Radar Market Size and Growth Analysis

by PramodKr

The mushrooming demand for the incorporation of advanced driver assistance systems (ADAS) in automobiles, on account of the growing prevalence of road accidents, is one of the major factors driving the sales of automotive radars across the world. According to the World Health Organization (WHO), around 1.3 million deaths are recorded every year because of road accidents. Moreover, road accidents cost most nations as much as 3% of the gross domestic product (GDP). Furthermore, the organization also reported that road accidents are the leading cause of deaths in young individuals aged 5-29 years and children.

Besides the above-mentioned factor, the soaring deployment of autonomous vehicles is also pushing up the worldwide demand for automotive radars. This is because these vehicles are equipped with various features such as speech recognition, driver monitoring, eye tracking, virtual assistance, gesture recognition, and natural language interface, which are highly reliant on advanced radar systems for efficient performance. The increasing adoption of these vehicles under the mobility as a service (MaaS) model, is also creating lucrative growth opportunities for the players operating in the automotive radar market.

As per experts, the MaaS industry value will rise from $197.8 billion in 2019 to $346.9 billion by 2024. This will be because of the fact that this model is rapidly becoming a highly crucial component in the public transportation ecosystem. Moreover, autonomous vehicles will be adopted extensively by shared mobility service providers in the upcoming years, on account of the fact that these vehicles provide rides which are more cost-effective than the ones offered by conventional vehicles.

Furthermore, the rapid production of ADAS, which include radar-enabled detection systems, is also boosting the sales of automotive radars, which is, in turn, fueling the expansion of the automotive radar market. As a result, the market reached a revenue of $5,839.0 million in 2019, and it is predicted to exhibit a CAGR of 8.4% from 2020 to 2030 (forecast period). Depending on vehicle autonomy, the market is divided into fully autonomous and semi-autonomous categories.

Between these, the fully autonomous category is expected to register faster growth in the market in the forthcoming years, owing to the increasing adoption of fully autonomous vehicles in shared mobility services, particularly the ones offered through robotaxis. Geographically, the automotive radar market will demonstrate the fastest growth in the Asia-Pacific (APAC) region during the forecast period, as per the estimates of the market research firm, P&S Intelligence. This will be because of the surging manufacturing of automobiles and rapid advancements being made in the automotive radar technology in the region.

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