The automotive radar market in MEA is expected to grow from US$ 207.3 million in 2019 to US$ 499.4 million by 2027; it is estimated to grow at a CAGR of 15.5% from 2020 to 2027.
The radar technology is used in automobiles to operate and enable various ADAS functions. There is a significant shift toward smaller node complementary metal-oxide semiconductor (CMOS) or silicon-on-insulator (SOI) chips, which enable higher monolithic functions. The operational frequency of the radar technology is increasing with enhanced velocity and angular resolution. Moreover, the range resolution of the technology is increasing with the improvement in its overall bandwidth. There are number of startups that are in the forefront of some of these trends. For instance, Arbe, an Israel-based company, has designed its own chip and developed its own algorithm for radar signal processing. Furthermore, Uhnder Inc., US, has collaborated with Magna International for the supply of its high-resolution radar systems to a wider clientele. The radar systems, made available from 2019, are developed for level 3 to level 5 autonomous driving vehicles. The systems scan the environment to gain understanding about the distance, speed, height, and depth of the object around the vicinity of the car. GhostWave Inc. is another startup that offers radar solutions that eliminate/avoid unintentional jamming. Oculli, a Canadian company, has 4D radar systems that can follow 200 targets simultaneously for mapping and localization. Thus, the growing focus on high-resolutions radar systems is emerging as a key trend in the MEA automotive radar market. Additionally, rising demand for technologically enhanced imaging radar is among the other factors expected to fuel the demand for automotive radar in MEA during 2020–2027.
Based on vehicle type, passenger cars segment led the MEA automotive radar market in 2019. There are five level of autonomy as described by Society of Automotive Engineers (SAE). The autonomy describes the extent to which vehicle can take over the task of a driver. In level 0 autonomy, the driver is fully responsible for all the aspect of driving task. In level 1 autonomy, the driver can delegate either steering or accelerating/braking to the system. In level2, the system performs several driving tasks. In level 3 autonomy, the system can automatically control the vehicle on a defined route. In level 4 autonomy, the system is able to perform all driving tasks. In level 5 autonomy, no driver is needed as the system controls the vehicle autonomously under all condition (popularly known as driverless car). From level 2 onward, the use of sensor to automate tasks is necessary; hence the requirement of ADAS comes into picture, where automotive radar sensors are heavily used. For instance, in level 2 cars, one long range radar is installed in front space of the car and two short range radar are installed in left and right side of the car’s back area. The number of radar sensors keeps on increasing with the advancements in the level of autonomy. In developed countries such as the US, Canada, Germany, and the UK, the number of level 2 autonomy cars sold in 2019 increased significantly. For instance, ~10% of the new car sales in quarter 2 of 2019 had level 2 automation. Therefore, with significant growth in sales of level 2+ cars in MEA, demand for such sensors is expected to boost up.
The ongoing COVID-19 outbreak is adversely affecting the MEA. Among the MEA countries, Iran has recorded the highest number of COVID-19 confirmed cases. Other countries facing the economic impact of the outbreak are Turkey, Saudi Arabia, the UAE, Egypt, Morocco, and Kuwait. Due to their heavy reliance on Europe and Asia for various automotive OEMs and their aftermarket products, the countries in MEA witnessed a sharp decline in the regions. Turkey is one of the key automotive producer in the region. The exports of passenger cars have witnessed a sharp decline. As per the Uluda? Automotive Industry Exporters' Association UiB, the car exports in Turkey declined by 77% compared to 2019. Turkey majorly export cars to the EU. By April 2020 itself, the export of cars to EU dropped by 81%. The COVID–19 pandemics would have a short-term impact on the MEA automotive radar market; however, it is anticipated that the market will recover in the coming years.
The overall MEA 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 MEA 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 MEA automotive radar market. Aptiv Plc, Continental AG, Denso Corporation, HELLA KGaA Hueck & Co., Robert Bosch GmbH, Valeo, Veoneer Inc, and ZF Friedrichshafen AG are among the key players operating in the market.