Automotive Radar Market 2025 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

The global market value of the automotive radar market was estimated to be USD 5.6 billion in 2023 and is projected to grow at a CAGR of 29.7% during the forecast period. Increasing emphasis on passenger safety due to the rise in accidents worldwide by manufacturers and consumers. The growing need for ADAS in modern-day vehicles is driving the demand in the market.

Increasing demand for a variety of radio frequency devices to enhance safety while driving. The shift toward 4D imaging radar, which adds elevation data to traditional range, velocity, and azimuth measurements, is a key trend. This technology enhances resolution and object detection, critical for autonomous driving in complex environments. Companies like Arber Robotics and NXP Semiconductors are pioneering these innovations, with products like 28nm RF CMOS radar chips entering the market.

Level 2-5 autonomous vehicles require multiple radar sensors for accurate environmental perception. Automakers and tech companies are heavily investing in self-driving technology. Radar-based safety systems are increasingly mandatory in new vehicle models.

Growth Drivers

Radar plays a crucial role in vehicle-to-everything communication for enhanced traffic management. Smart cities and IoT integration boost demand. The rise in electric vehicles and hybrid vehicles is driving growth in the market. Major automakers focus on ADAS-enabled EVs to attract buyers. Advancements in CMOS technology and solid-state radars reduce production costs. Smaller, more efficient radars enable mass adoption in mid-range vehicles. Radar’s ability to function in low visibility conditions (example-fog, rain, and night) makes it ideal for urban environments, supporting features like pedestrian detection, and traffic aware navigation.

With 60% of the global population expected to live in cities by 2030 (up from 56% in 2025), radar-equipped vehicles are increasingly seen as a solution to urban mobility challenges. The push for safer roads and higher level of vehicles are driving the demand in the market significantly. Rising urbanization, and increasing growth in industrialization is driving the market significantly.

High-frequency radars offer better object detection and reduced interference. Radar based safety systems are increasingly mandatory in new vehicle models. Levels 2-5 autonomous vehicles require multiple radar sensors for accurate environmental perception.

Segmentation

Automotive Radar Market on the basis of Range

·         Long Range Radar

·         Medium & Short Range Radar

Automotive Radar Market on the basis of Frequency

·         2X-GHz

·         2X-GHz

Automotive Radar Market on the basis of Engine

·         ICE

·         Electric

Automotive Radar Market on the basis of Vehicle

·         Passenger Cars

·         Commercial Vehicles

Automotive Radar Market on the basis of Application

·         Adaptive Cruise Control (ACC)

·         Autonomous Emergency Braking (AEB)

·         Blind Spot Detection (BSD)

·         Forward Collision Warning System

·         Intelligent Park Assist

·         Other ADAS systems

By Region

·         Asia Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

The Automotive Radar Market by Vehicle Segmentation

On the basis of the vehicles, The Automotive Radar Market is segmented into Passenger Cars, and Commercial Vehicles. Passenger Cars are the leading segment in the market, and is expected to dominate the market during the forecast period. Passenger cars due to Advanced driver-assistance systems (ADAS), which heavily rely on radar, are more widely integrated into passenger cars.

Features like adaptive cruise control (ACC), autonomous emergency braking (AEB), and blind-spot detection are standard or optional in many mid-range and premium passenger models. Rising consumer awareness of safety and comfort features fuels demand for radar-equipped passenger cars. In regions like Europe and North America, buyers increasingly expect ADAS in family sedans, SUVs, and even compact models.

Rising consumer awareness of safety and comfort features fuels demand for radar-equipped passenger cars. In regions like Europe and North America, buyers increasingly expect ADAS in family sedans, SUVs, and even compact models.

Regional Outlook

On the basis of the regions, the automotive radar market is segmented into 5 regions: Asia-Pacific, North America, Latin America, Middle East and Africa, and Europe. Middle East is the emerging market, and Asia Pacific region is expected to dominate during the forecast period. The MEA region is an emerging market for automotive radar, with growth fueled by increasing urbanization, rising vehicle ownership, and gradual adoption of stricter emission and safety regulations. The Middle East, particularly countries like Saudi Arabia and the UAE, is seeing investments in smart transportation and luxury vehicles equipped with ADAS, which rely heavily on radar systems. In Africa, South Africa leads due to its established automotive industry, while other nations are slower to adopt due to economic constraints and limited infrastructure.

APAC is the largest and fastest-growing region for the automotive radar market, driven by high vehicle production in China, Japan, and India. China, the world’s largest automotive market, is heavily investing in autonomous vehicles and ADAS, boosting radar demand. India’s growing middle class and safety concerns are also key drivers. Increasing demand for electric and hybrid vehicles in the region is driving growth in the market significantly. Presence of key players in the region is significantly driving growth in the market. Rapid urbanization and increasing industrialization is driving growth in the market.

Europe’s stringent safety and emission standards are a primary driver. The European Union’s General Safety Regulation (effective from July 2022) mandates ADAS features like autonomous emergency braking (AEB) and lane-keeping assist for new vehicles, directly increasing radar demand. Euro NCAP ratings further incentivize automakers to integrate radar-based safety systems to achieve higher safety scores. Germany, home to major automakers like Volkswagen, BMW, and Mercedes-Benz, is a hub for radar technology development and adoption.

France, Italy, and the UK also contribute significantly, with a focus on premium and electric vehicles (EVs) incorporating radar. Germany is the largest market in Europe, driven by its automotive giants and Tier-1 suppliers like Bosch, Continental, and ZF Friedrichshafen. Germany’s focus on luxury and autonomous vehicles amplifies radar demand. France is home to Renault and PSA (Stellantis), France emphasizes radar in mid-range and electric models, supported by government incentives for EV adoption. Presence of key players in the market is driving growth significantly.

Key Players

·         Robert Bosch GmbH

·         Continental AG

·         Denso Corporation

·         Valeo

·         ZF Friedrichshafen AG

·         HELLA GmbH & Co. KGaA

·         Autoliv Inc.

·         Infineon Technologies AG

·         Texas Instruments Incorporated

·         NXP Semiconductors

·         Other Players