The number of radar modules per car will increase from 1.7 in 2022 to 3.1, on average, in 2028. As a result, the automotive radar module is expected to realize a CAGR of 12% between 2022-2028, growing from $6.7 billion to $13.5 billion. Radar for Automotive 2023 Report by Yole Group classifies legacy radar as standard radar today but 4D radar is expected to dominate and therefore generate around 60% of the market revenue in 2028.

To replace legacy radar, 4D radar comes with the elevation capability and a better resolution. Indeed, 4D radar brings 1° angular resolution which dramatically improves object differentiation compared with 3D radar, which has an angular resolution of 4-6°. But such an increase in performance requires more computing power to process all these data. Here, innovation is being driven by Arbe Robotics (More News), Uhnder and Metawave. These start-up companies are either using [AMD/Xilinx] FPGAs or, in the case of Arbe Robotics, producing their own ASICs to replace classic MCUs. In 2023, the computing is usually embedded in the radar module, but in the coming years, we expect to see an increase in the computing part being separated from the radar module.