The automotive radar market in SAM is expected to grow from US$ 751.5 million in 2019 to US$ 1,634.4 million by 2027; it is estimated to grow at a CAGR of 14.0% from 2020 to 2027.
In 2021, the automotive industry is anticipated to witness a low demand for passenger cars due to strict lockdowns in various 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. In addition, in the area of connected cars, e-mobility, and autonomous driving, SAM is experiencing technological changes. As radar system is one of the key elements in autonomous vehicles, it is likely to give the automotive radar market growth impetus because it helps enable safe and consistent vehicle operations. In the coming years, the rising popularity of autonomous vehicles is expected to boost radar sensor sales. Additionally, surging necessity for advanced imaging radar is among the other factors expected to fuel the demand for automotive radars in SAM during 2020–2027.
Based on frequency, intelligent park assist segment is expected to be the fastest growing during the forecast period for SAM automotive radar market in 2019. The technology helps driver in parking the vehicle, making it easy for drivers who find parking process cumbersome. The system automatically operates steering freeing the driver so that he/she can concentrate on operating the accelerator and the brake system. The system largely takes help of the footage from around view monitor. Radar sensor used for the system uses an algorithm to calculate whether an object is in the parking space and, if so, how big it is and how it is positioned. Overall, radar sensor helps driver effectively park their vehicle without much hustle.
The ongoing COVID-19 outbreak is negatively impacting SAM. Due to the presence of most of the automotive manufacturing capabilities of Brazil, SAM witnessed a limited impact despite slower demand for passenger vehicle sales. As per the Brazil automaker’s association, it is anticipated that the sales of automotive will recover to pre-COVID-19 levels by 2025. Also, several automakers in the country have witnessed a sharp decline in their production capabilities. According to Anfavea, the automakers association, the automotive production is expected to witness a fall of 45% in 2020 as compared to 2019. Also, the auto exports are expected to see a decline of 53% for the same duration. Moreover, recently, Ford Motors announced the closure of its three production facilities, It also announced that it will stop manufacturing operations in SAM. The COVID–19 pandemics would have a short-term impact on the SAM automotive radar market; however, it is anticipated that the market will recover in the coming years.
The overall SAM 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 SAM 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 SAM automotive radar market. Aptiv Plc, Continental AG, Denso Corporation, HELLA KGaA Hueck & Co., Nidec Corporation, Robert Bosch GmbH, Valeo, Veoneer Inc, and ZF Friedrichshafen AG are among the key players operating in the market.