The automotive radar market in North America is expected to grow from US$ 982.2 million in 2019 to US$ 2,304.9 million by 2027; it is estimated to grow at a CAGR of 15.1% from 2020 to 2027.
In 2021, the North America automotive sector is expected to witness a low demand for passenger cars due to the strict lockdowns in most of the countries across the region. However, various governments in the region are easing the lockdown restrictions with the COVID-19 vaccination that is likely to accelerate production operations in coming months. Therefore, the demand and sale of automotive vehicles would also increase in coming months, spurring the need for the radar technology. Additionally, North America is witnessing technological changes in the area of connected car, e-mobility, and autonomous driving. These changes are providing growth impetus to the automotive radar market as a radar system is one of the key elements in autonomous vehicles because it helps enable safe and consistent vehicle operations. The surging popularity of autonomous vehicles is expected to boost the sales of radar sensors in the coming years.
Many key developed and developing countries are part of the Paris Agreement—an agreement signed within the United Nations Framework Convention on Climate Change in 2016. As a part of the sustainability mission, governments of the countries engaged in this agreement are promoting the use of elective vehicles (EVs). This has led to a rise in the on-road application of electric cars, scooters, and rickshaws, among other EVs. With the projected rise in the use of EVs, the adoption of automotive radar systems would also increase in the coming years. Further, governments in many countries are promoting the use of radar technology in automobiles. Additionally, growing road accidents and fatalities is among the other factors expected to fuel the demand for automotive radars in North America during the forecast period.
Based on range, the short range radar segment led the North America automotive RADAR market in 2019. Short range radar helps driver detect and avoid danger around the vicinity of the vehicle. High performance 24 GHz radar sensor is installed at both ends of the rear bumper. Two beams constantly monitor the blind spot in the rear and next to the vehicle. A few key manufacturers such as Continental AG and NXP Semiconductor are offering these sensors.
The ongoing COVID-19 outbreak is adversely affecting North America. North America is one of the most important regions for the adoption and growth of new technologies owing to favorable government policies to boost innovation, the presence of a high-tech companies, and high purchasing power—especially in developed countries such as the US and Canada. The US is the worst-hit country in North America with thousands of infected individuals facing severe health conditions across the country. North America is greatly influenced by the strong presence of the US owing to its considerable penetration of passenger vehicles per capita and large presence of automobile manufacturing capabilities in the region. Though the US witnessed a notable surge in the number of COVID-19 cases, the lack of stringent government measures and restrictions slightly impacted the overall automotive industry; hence the market experienced a moderate impact of the pandemic. However, the ongoing trade war between the US and China influences the availability of materials and components for various automotive OEMs following the pandemic. Mexico and Canada witnessed a decline in the demand for automotive sales and witnessed a notable decline in their overall market growth for various automotive components, such as automotive RADARs. However, the impact of the COVID-19 outbreak is short term and it is likely to decrease by mid-2021.
The overall North America 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 North America 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 North America automotive RADAR market. Aptiv Plc, Continental AG, Denso Corporation, HELLA KGaA Hueck & Co., Infineon Technologies AG, Nidec Corporation, Robert Bosch GmbH, Valeo, Veoneer Inc, and ZF Friedrichshafen AG are among the key players operating in the market.