A surge in the incorporation of safety systems in vehicles is driving growth in the automotive radar market. According to an Allied Market Research report, titled "Automotive RADAR Market by Application," the global automotive radar industry is projected to grow at a compound annual growth rate (CAGR) of 11.7%, reaching $7.67 billion by 2026.
Vehicles are incorporating features such as Adaptive Cruise Control (ACC), Autonomous Emergency Braking (AEB), Blind Spot Detection (BSD), Forward Collision Warning System and Intelligent Park Assist, many of which rely on radar-based technologies, to improve driver safety and comfort. The report says the intelligent park assist segment will lead growth, currently accounting for nearly one-fourth of the global automotive radar market.
However, the study expects the autonomous emergency braking segment to grow at the fastest CAGR of 15.7% throughout the forecast period, as autonomous vehicle technology continues to pervade production cars and trucks.
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Based on frequency, the 34 GHz segment generates over half the revenue in the global automotive radar market. These automotive radars provide a cost-effective and proven solution. They are used in several safety features such as blind-spot detection, collision avoidance, and others, thereby boosting the growth of the segment.
According to Allied Research, the 77 GHz segment will exhibit the fastest CAGR of 17.2% through 2026. These systems are used in a wide range of advance driver assistance system applications and enhance automobile safety by identifying hazardous situations.
The report added that the Asia-Pacific region accounts for over half the automotive radar revenue and will continue to lead the market through the end of 2026. The European region is expected to show the fastest CAGR of 13.9%, due to the growing implementation of Euro-NCAP ratings for cars.