AUTOMOTIVE RADAR MARKET ANALYSIS

Market Challenges And Opportunities

The key factor restraining growth of the automotive radar market is the high cost of these radar systems. For instance, according to the Coherent Market Insights, in 2017, the costs for 24GHz, 77GHz, and 79GHz automotive millimetre-wave radar sensor modules were around US$ 50, US$ 150-220, and US$ 100-200, respectively. The cost of radars vary based on the range of detection, namely short range, medium range, and long range. Automakers thus refrain from using radar sensors in their vehicles, as it increases the overall cost of the vehicle, which negatively impacts sales and overall revenue. This in turn, is hampering growth of the market for automotive radars.

Increasing demand for advanced safety system, comfort, and convenience systems, and increasing number of road accidents are expected to fuel growth of the automotive radar market. For instance, according to World Health Organization (WHO), an estimated 1.25 million road accidents were reported worldwide in 2013, out of which around 93% road traffic deaths were reported in low- and middle-income economies and over 50 million people were injured due to road accidents. Radar sensors are responsible for collecting vital information such as range, angle, and Doppler velocity, which is then used to determine the driving situation and warn drivers regarding potential collisions to avoid blind spot crashes. Thus, automotive radars increase safety, lower the risk of road accidents, and help manage road traffic, which in turn, influencing vehicle manufacturers to integrate advanced radar systems in vehicles. These factors are thus, expected to propel growth of the automotive radar market in the near future.