Market Trends of Automotive Radar Industry
Rising deployment of ADAS
- With the discovery of radio waves and their ability to reflect on objects being understood, engineers are looking for newer applications based on their detection & ranging properties. The technique, referred to as Radar (Radio Detection and Ranging), primarily works on the principle of a source transmitting the radio wave, being reflected by a surface, and received and processed by a receiver system. The automotive application is one such major application where RADAR is seeing an unprecedented uptake.
- More specifically, with autonomous driving gaining traction and regulatory bodies across countries mandating the inclusion of certain security features, the adoption of advanced driver assistance systems (ADAS) is on the rise. Thus, various sensing technologies currently use radar, infrared (IR), LiDAR (Light detection and ranging), ultrasonic, and camera-based. Each of these technologies has pros and cons, and most ADAS systems today rely on such technologies to facilitate reliable solutions to the market.
- One of the significant applications of Radar in ADAS is object detection, blind spot monitoring, and collision warning and mitigation. Both blind spot monitoring and object detection are based on radar technology, whereas collision mitigation systems utilize radar-based system data and adopt preventive measures like counter steering and braking to avoid accidents.
- Moreover, the rising use of electric vehicles (EVs) further drives vehicle digitization. This endeavor could act as a demand accelerator for more security functions and rising expectations for more Advanced Driver Assistance Systems (ADAS) functions.
- It could be assumed that advancing electrification can result in rising synergies in the further development of ADAS technology. Both EV and ADAS bring significant efficiency and sustainability advantages. For instance, as per a paper released in the MDPI Energies Journal, EV drivetrains are far more efficient than the internal combustion engines used in most cars and trucks today. The paper further states that electric power generation and delivery is comparatively more efficient than oil extraction, production, and delivery required to fuel gasoline-powered vehicles. This decreases greenhouse gas emissions and pollutants at every level, thus further taking up the scope of Radar technology in the automotive sector.
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Asia-Pacific Dominates the market
- Asia-Pacific held a major market share in revenue during the forecast period. A rise in vehicle sales across the region is likely to increase the demand for sensors in the vehicle. The rise in demand for electric vehicles across the region also propels the market's growth. The major presence of manufacturing industries across China, India, and Japan is creating market growth opportunities.
- Due to increasing urbanization and stable economic conditions, automotive production in developing economies is growing faster than in developed economies. According to the China Association of Automobile Manufacturers, China's automobile production topped 2.67 million units last month, up 28.1% from 2021. Moreover, as per Forbes, India surpassed Japan in new auto sales in 2022, making it the third-largest market. Additionally, Southeast Asia is also becoming a powerhouse for the automotive industry in Asia, recording significant production in Cambodia, Indonesia, Laon, Malaysia, Myanmar, Philippines, Thailand, and Vietnam,
- With increased safety concerns among consumers in the developing economies of India and the ASEAN countries, automobile manufacturers are incorporating more sensors in low-cost vehicles. It is expected to drive the demand for automotive sensors in the foreseeable future.
- Some of the world's fastest-growing economies are in the APAC region, with China and India leading the way. As a result, consumers in the middle class are more likely to purchase vehicles with advanced features like ADAS because they have more money to spend, thus driving the growth of the Automotive radar market in the region.
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