The automotive radar market in APAC is expected to grow from US$ 1,722.3 million in 2019 to US$ 4,261.7 million by 2027; it is estimated to grow at a CAGR of 15.9% from 2020 to 2027.
With the mounting number of level 2+ vehicles on road, the need for advanced and more accurate automotive radar sensors is increasing. This acts as a huge opportunity for OEMs offering basic-level radar sensors. For instance, Xilinx and Continental announced the first production-ready 4D imaging radar. Theoretically, 4D imaging radar uses echolocation (mechanism that is observed in dolphins, bats, and several humans) and the time-of-flight measurement principle to capture a space in 3D. Furthermore, these radar systems are designed to fulfill the imaging requirements within the time scale of a fast-moving automobile or a zooming drone. Therefore, the fourth dimension enhances the overall accuracy in a self-driving system. The 4D imaging radar is operational in all types of weather/environment conditions, such as fog, darkness, and heavy rains. Numerous companies are investing in R&D to introduce such advanced radar-based imaging technologies and gain a maximum share in the APAC automotive radar market. Additionally, high resolution radar systems coming into limelight is among the other factors expected to fuel the demand for automotive radars in APAC during the forecast period.
Based on application, adaptive cruise control segment led the APAC automotive radar market in 2019. Radar sensor is usually the core of adaptive cruise control (ACC). It is installed at the front of the vehicle. The system continuously monitors a road and an object ahead. If the ACC system spots a slower vehicle within its detection range, it reduces the speed by actively engaging the brake control system. A typical system is capable to operate from speeds of around 30 km/h upward and supports the driver, primarily on cross-country journeys or on freeways.
The ongoing COVID-19 outbreak is negatively impacting APAC. The region comprises the world’s two most populated countries as well as manufacturing hubs—India and China. China virtually imposed strict lockdown and social isolation, which almost halted the manufacturing and production of numerous automotive OEMs and OESs for several weeks resulting in shrinking market demand. Moreover, the country restricted the import and export of critical raw materials and components for numerous automotive vehicles that disrupted the supply chain of various end-user industries. Similarly, India imposed a nationwide lockdown to control the outbreak across the country. As a result, the subsequent lockdown and disruption of numerous industrial equipment across China and India hinder the growth of the automotive radar market across APAC. The closure of several wholesalers, distributors, and sales representatives has also witnessed limited availability of automotive aftermarket products or their related components from other European and North American-based market players. After a prolonged lockdown, various countries have started easing the restrictions. For instance, the government of India started the unlock phase in which it allowed the manufacturing activities to resume. The COVID–19 pandemics would have a short-term impact on the APAC automotive radar market; however, it is anticipated that the market will recover in the coming years.
The overall APAC automotive radar market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the APAC automotive radar market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the APAC automotive RADAR market. Aptiv Plc, Continental AG, Denso Corporation, HELLA KGaA Hueck & Co., Infineon Technologies AG, Nidec Corporation, Robert Bosch GmbH, Tung Thih Electronic Co Ltd, Valeo, Veoneer Inc, and ZF Friedrichshafen AG are among the key players operating in the market.