Why are Sales of Automotive Radar Systems Booming?
The mushrooming demand for the incorporation of advanced driver assistance systems (ADAS) in automobiles, on account of the growing prevalence of road accidents, is one of the major factors driving the sales of automotive radars across the world. According to the World Health Organization (WHO), around 1.3 million deaths are recorded every year because of road accidents. Moreover, road accidents cost most nations as much as 3% of the gross domestic product (GDP). Furthermore, the organization also reported that road accidents are the leading cause of deaths in young individuals aged 5–29 years and children.
Besides the above-mentioned factor, the soaring deployment of autonomous vehicles is also pushing up the worldwide demand for automotive radars. This is because these vehicles are equipped with various features such as speech recognition, driver monitoring, eye tracking, virtual assistance, gesture recognition, and natural language interface, which are highly reliant on advanced radar systems for efficient performance. The increasing adoption of these vehicles under the mobility as a service (MaaS) model, is also creating lucrative growth opportunities for the players operating in the automotive radar market.
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.