Automotive Radar Market Growth Analys Forecast 2028 – The Insight Partners.
Posted by niket gore on August 2nd, 2022
The Automotive Radar Market Forecast to 2028 – COVID-19 Impact and Global Analysis –the market was valued at US$ 5,019.01 million in 2020 and is projected to reach US$ 11,640.77 million by 2028; it is expected to grow at a CAGR of 14.9% from 2020 to 2028.
APAC led the global Automotive radar market with over 30% revenue share in 2019, followed by Europe. The automotive radar market in APAC is sub segmented into China, India, Japan, South Korea, and the Rest of APAC. The Asia Pacific automotive radar market is expected to grow at a significantly higher CAGR during 2020–2028. Government initiatives—such as “Made in China 2025” and “Make in India”—are catalyzing the growth of the automotive sector in the region. Improvements in infrastructure, increase in domestic consumption, and low labor costs in Southeast Asian countries are the key factors attracting automotive companies to this region. Increasing efforts by automotive giants in the optimization of automated cars is expected to significantly drive the sale of electric vehicles in APAC countries such as India, Malaysia, Singapore, and Thailand. APAC comprises major automotive manufacturers such as Hyundai-Kia, Suzuki, Mitsubishi, Tata Motors Limited, Lexus, and Toyota. Moreover, the governments of various countries in APAC are taking initiatives for the development of the automotive sector; for instance, under Union Budget 2019–2020, the Government of India announced its plans to set up R&D centers at an expenditure of US$ 388.5 million to enable the automotive sector to meet the global standards. Such government initiatives and strong automotive manufacturing sector in different countries are expected to support the growth of the automotive radar market in the region in the coming years. APAC countries are increasingly implementing intelligent transport systems (ITS) as they improve road safety, ensure smoother traffic, reduce environmental burdens, and stimulate regional economic activity. The advancements in transportation systems, along with the mounting importance of car safety, are propelling the adoption of advanced technologies such as automotive radar in vehicles.
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In 2019, Germany and rest of European countries estimated to be the key countries contributing to the European automotive radar market growth. In 2019, the region witnessed promising results of tech investments despite the economic slowdowns in the UK and EU. Over the past 5 years, capital investments in the European technology sector has grown by 124%, with a 39% increase in 2018–2019 alone; in 2019, the investments reached US$ 34.3 billion. Western Europe is characterized by the high standards of living, and it is one of the richest regions on the continent. The automotive manufacturers have 304 vehicle assembly plants and production plants in 27 countries in Europe. In 2019, more than 3 million units of commercial and passenger vehicles were produced at these sites. Thus, the growing production of commercial and passenger vehicles is boosting the demand for radar systems.
A disciplined approach by EU through the reinforcement of measures for halving the total road accidents and deaths is another factor escalating the adoption of automotive radar systems in the region. Short range radar systems are being extensively used in luxury cars that are on road in the region. Additionally, the EU is now promoting 76–79 GHz radar frequency, thereby creating extended growth opportunities for OEM manufacturers. As per spectrum regulations and standards developed by the ETSI and the FCC, c the UWB band of 24 GHz frequency range would be phased out of Europe by the beginning of 2022.
Impact of COVID-19 Pandemic on Automotive Radar Market
Automotive sales profoundly influence the overall growth of several associated vehicle sub-systems and components market, including the automotive radar market. As the COVID-19 pandemic affected numerous industrial verticals and global business conditions, automotive sales observed a sharp decline during the April–June period across various geographical regions. Factors such as nationwide lockdown, plummeting demand for passenger vehicles, and restrictions on import & export of goods created a slowdown in several automotive OEMs' production capabilities, therefore affected the market growth. However, the market did register a steady and favorable recovery following the subsequent months upon sales of passenger vehicles picking up the growth, especially in the recent months. Hence, the global market witnessed a moderate to a high contraction in demand across various countries globally during the pandemic.
Automotive Radar Market — Geographic Breakdown, 2019 (%)