Automobile manufacturers across the world are increasingly deploying radars, as speech recognition, eye tracking, driver monitoring, virtual assistance, gesture recognition, and natural language interface features are extensively dependent on them. As the inclusion of these features improves vehicle safety, several government organizations and international bodies are mandating the integration of advanced driver assistance systems (ADAS). For instance, the revised General Safety Regulation of the European Union (EU) mandates the installation of new safety technologies in European vehicles by 2022, to protect passengers, cyclists, and pedestrians.
Thus, the burgeoning demand for ADAS, on account of the implementation of stringent vehicle safety policies, along with the surging deployment of autonomous vehicles in the mobility as a service (MaaS) model, will help the automotive radar market advance at a CAGR of 8.4% during 2020–2030. According to P&S Intelligence, the market generated $5,839.0 million revenue in 2019. In the coming years, a large number of autonomous vehicles will be integrated into the fleet of shared mobility companies, as the cost incurred by such automobiles is lower than that of conventional vehicles.
These radars have a short-to-medium range or a long range (LRR). Of these, short-and-medium-range variants are utilized in higher numbers, as for any level of vehicle autonomy, more of these are required than LRRs. For instance, level 1 vehicles have one LRR to two short-and-medium-range radars, while in a level 2 autonomous vehicle, there is one LRR to three short-and-medium-range variants. Even in higher levels of autonomy, more short-and-medium-range radars are required compared to LRRs.
Furthermore, with huge investments being made in the development of better automobile safety features and the increasing disposable income of people in emerging economies such as China and India, the sales of premium automobiles are shooting up, which is, in turn, propelling the expansion of the automotive radar market in the region. On the other hand, the market will be dominated by North America throughout the forecast period. This is attributed to the growing adoption of autonomous vehicles in the region.
Hence, the sales of automotive radars will surge in the coming years, primarily because of the rising deployment of autonomous vehicles, growing incorporation of ADAS in vehicles, and mushrooming usage of premium vehicles all over the world.
