Millimeter Wave Radar Market
The millimeter wave radar market has become one of the most closely watched segments within the automotive electronics industry, driven largely by the rapid rise of advanced driver assistance systems (ADAS) and the global push toward autonomous mobility. Millimeter wave radar systems use high-frequency, highly directional electromagnetic waves to map a vehicle's surrounding environment, enabling functions such as collision warning, distance measurement, and interval maintenance between vehicles. Because these radar units are compact and easy to integrate into modern vehicle designs, automakers have increasingly adopted them to reduce traffic accidents and support the transition toward semi-autonomous and fully autonomous driving.
According to Fortune Business Insight, the global millimeter wave radar market was valued at USD 567.2 million in 2020 and was projected to grow to USD 572.1 million in 2021, eventually reaching USD 1,401.4 million by 2028. This represents a compound annual growth rate (CAGR) of 13.7% during the 2021–2028 forecast period. The COVID-19 pandemic initially disrupted the market, with the industry witnessing a 5.2% decline in 2020 compared to the average year-on-year growth recorded between 2017 and 2019. However, growth was expected to rebound as demand for advanced automotive technologies returned to pre-pandemic levels.
Key Growth Drivers
A major factor fueling market expansion has been the accelerating rollout of 5G infrastructure. According to Fortune Business Insight, the Federal Communications Commission's decision in November 2020 to reallocate part of the 5.9 GHz Safety Spectrum, previously reserved for Dedicated Short Range Communications (DSRC), has helped speed up the development of cellular vehicle-to-everything (C-V2X) systems. This shift enables lower latency, improved speeds, and greater network capacity, which in turn supports safer and more reliable communication between vehicles, pedestrians, and road infrastructure. Numerous automakers have since launched C-V2X pilot programs aimed at commercial deployment.
Another significant growth driver is the expanding role of millimeter wave radar in ADAS applications, including blind-spot detection, adaptive cruise control, lane change assist, automatic braking, and cross-traffic alert systems. These radar units complement other vehicle subsystems such as cameras and ultrasonic sensors, creating a more comprehensive view of a vehicle's surroundings. According to Fortune Business Insight, millimeter wave radar also offers stable detection performance regardless of an object's surface shape or color, along with strong adaptability to atmospheric turbulence and a long detection range of roughly 150 to 200 meters, making it highly suitable for high-speed driving conditions.
The rise of Intelligent Vehicular Networks has also positively influenced market growth. In the Internet of Vehicles (IoV) ecosystem, high-speed millimeter wave links are essential for transmitting large volumes of sensor-generated data to the cloud. According to Fortune Business Insight, in 2020 South Korea saw BMW, SK Telecom, and Ericsson deploy the first 5G-compatible vehicular network, using the 28 GHz band to stream video from camera-equipped vehicles, demonstrating the practical application of this technology.
Restraining Factors
Despite strong growth prospects, the market faces certain challenges. According to Fortune Business Insight, millimeter wave radar systems remain vulnerable to external interferences, including electromagnetic hotspots that can disrupt system performance. Additionally, these radars are sensitive to meteorological and atmospheric parameters, and pollutants or other atmospheric particles can interfere with real-time threat identification, potentially restraining broader market adoption.
Market Segmentation
The market is segmented by vehicle type, technology, and frequency band. According to Fortune Business Insight, the passenger car segment held the largest market share and was estimated to reach USD 823.8 million in 2025, driven by rising consumer demand for ADAS features and declining component costs. The commercial vehicle segment is expected to see substantial growth as well, benefiting from short-range accuracy that supports autonomous driving functions like platooning.
By frequency band, the market is divided into 24 GHz and 77 GHz & Others. According to Fortune Business Insight, the 24 GHz segment held the largest share in 2020 due to widespread adoption under existing spectrum regulations, and it is expected to exhibit a CAGR of 42.2%. Meanwhile, the 77 GHz & Others segment is anticipated to grow at a higher rate due to increasing demand for high-range resolution needed in ADAS algorithms and autonomous driving.
In terms of technology, the market includes GaAs, Silicon-Germanium BiCMOS, and RF CMOS. According to Fortune Business Insight, the GaAs segment dominated in 2020 due to its lightweight design, flexibility, and efficient performance, while the Silicon-Germanium BiCMOS segment is expected to see exponential growth by combining high performance with cost-effective integration.
Regional Insights
According to Fortune Business Insight, North America dominated the global market with a 51.99% share in 2020, valued at USD 294.9 million, supported by major industry players such as Eravant, Keysight Technologies, and L3Harris Technologies. The Millimeter Wave Radar Market in the U.S. is projected to reach an estimated USD 662.8 million by 2028.
Europe is expected to show considerable growth as well, with a projected CAGR of 13.5%, driven by regulatory harmonization in spectrum allocation and heavy investment in 5G network deployment. According to Fortune Business Insight, Asia Pacific is also poised for substantial growth, with Japan's market expected to reach USD 29.9 million by 2025 and China's market projected to grow at a steady CAGR of 12.2%, as both countries work to improve transportation efficiency and reduce traffic accidents.
Competitive Landscape
Key players profiled in the market include Robert Bosch GmbH, Continental AG, Denso Corporation, NEC Corporation, and Smiths Group Plc, among others. According to Fortune Business Insight, Robert Bosch GmbH has strengthened its leading position through early R&D investment and strategic partnerships, including a March 2021 collaboration with GlobalFoundries to develop a millimeter wave automotive radar system-on-chip for ADAS applications.
Conclusion
The millimeter wave radar market is positioned for steady expansion through 2028, propelled by growing adoption of ADAS technologies, 5G infrastructure development, and the broader shift toward autonomous vehicles. While challenges such as signal interference remain, the overall growth trajectory reflects increasing global reliance on radar-based safety and automation systems in the automotive sector.
Source:https://www.fortunebusinessinsights.com/millimeter-wave-radar-market-105482