The automotive Camera and Integrated Radar and Camera Market is projected to grow from USD 6.1 billion in 2021 to USD 10.1 billion by 2026; it is expected to grow at a CAGR of 10.5% from 2021 to 2026. The key factors fueling the growth of this market include increasing demand for advanced security systems, rising demand for vehicle safety systems for premium segment vehicles, and increasing number of regulations mandating safety features in vehicles.
Major players in the market are Robert Bosch GmbH (Germany), Aptiv PLC (Ireland), ZF Friedrichshafen (Germany), Continental AG (Germany), Valeo SA (France), Magna International (Canada), Veoneer Inc. (Sweden).
Integrated Radar and camera is expected to grow at the highest rate during the forecast period.
The integrated radar and camera segment is expected to register a higher growth rate during the forecast market. It is currently a niche market. An integrated radar camera system includes camera and radar components housed in a single module. The module can be employed in a vehicle for safety applications such as ACC, forward collision warning (FCW), collision mitigation or avoidance via autonomous braking, and LDW. The integration of the camera and the radar into a single module results in a reduction in sensor costs. Additionally, camera and radar integration employ common or shared electronics and signal processing. With the increasing adoption of ADAS, the integrated radar and camera market is expected to witness significant growth in the coming years.
A front-view segment to account for the largest size of the automotive camera and integrated radar and camera market in 2021
The front view segment is projected to account for the largest size of the integrated radar and camera market from 2021 to 2026. The growth of this segment is driven by the increasing demand for ADAS functions to monitor the traffic ahead to enable the car to maintain a safe and legal speed, stay in its lane, keep its distance with vehicles ahead, and react to emergencies. Front view cameras are mainly used for dash camera applications and ADAS applications. ADAS front view cameras enhance active safety and driver assistance functions, such as autonomous emergency braking (AEB), adaptive cruise control (ACC), lane-keeping assist system (LKAS), and traffic jam assist (TJA). Rising trends of connected vehicles and autonomous vehicles and the growing adoption of ADAS drive the growth of the front view segment. Increasing encouragement from governments for OEMs to adopt advanced safety features in vehicles and growing preference of end-users for advanced safety features are the major factors driving the growth of ADAS in vehicles, which, in turn, drives the demand for front view automotive cameras.
ADAS application is expected to grow at the highest rate during the forecast period.
The ADAS segment is projected to grow at a higher CAGR during the forecast period. Increasing awareness about vehicle safety ratings and decreasing component costs due to the extensive adoption of cameras and radars will fuel the automotive camera and integrated radar and camera market for ADAS. Major OEMs are embracing ADAS solutions to achieve higher safety ratings to attract more consumers. Leading OEMs either standardize safety systems across models or offer them as additional features. Thus, the increasing penetration of ADAS features will boost the demand for components such as automotive cameras, integrated radar and camera systems, receivers, transmitters, and system-on-chip (SoC) during the forecast period. The market’s growth is driven by factors such as the rising adoption of ADAS in vehicles by different automobile OEMs, growing push through government mandates to introduce advanced safety features in vehicles, increasing level of vehicle autonomy, surging demand for safety features in vehicles by end users, and rising number of cameras adopted per vehicle.
Europe is projected to be the largest market for automotive cameras and integrated radar and cameras from 2021 to 2026.
Europe accounted for the largest share of the automotive camera and integrated radar and camera market in 2020. Some of the major drivers for the growth of the market in Europe include the technological developments within the country, emerging applications, demand for automotive cameras and integrated radar and camera systems in the region, and the presence of a strong automotive industry in the region. These factors would further boost the automotive camera and integrated radar and camera market in Europe. This, in turn, has created a significant demand for automotive cameras and integrated radar and cameras.