Millimeter Wave Radar Market Trends

Growth Drivers

• Expanding autonomous vehicle sector: The adoption of rapid millimeter wave radar in autonomous vehicles is a key factor expected to drive global market growth. Radar technology provides the precise object detection and mapping required for safe and efficient autonomous driving. For example, in February 2021, Arrow Electronics and Jorjin Technologies launched a radar-sensing solution based on Infineon's XENSIV chip, enabling micro and macro motion detection. This innovation highlights the demand for radar technology that can adapt to varied driving conditions, accelerating adoption in the automotive sector.

• Rising applications in defense and security: Millimeter wave radar technology finds increasing applications in defense and security due to its strong performance of detection amidst environmental variations. The focus on national security has created sizeable investments in this area. In October 2024, the U.S. Department of Defense awarded Raytheon Technologies a contract aimed at developing advanced millimeter wave radar systems with potential use in enhancing surveillance and reconnaissance operations.

• Increasing adoption in industrial automation: Applications of radar solutions using mmWave technology find increasing adoption in industries for areas like robotics, automation, and quality control. Aviat Networks, in January 2024, developed wireless connectivity and automation-related services in Indonesia together with PT Smartfren Telecom. These types of developments by companies reflect the speed at which radar is becoming an integral building block in industrial automation to facilitate real-time monitoring and operational efficiency.

Challenges

• Environmental limitations: Environmental factors pose severe challenges to millimeter-wave radar systems, given the immense deterioration rain, fog, or even atmospheric conditions can cause to the quality of the signal and the range of effective detection. According to a report published by UC Davis in September 2023, more than a third of all failures in radar systems during adverse weather conditions were contributed by environmental interference, thus raising serious questions about reliability when these systems were in use for critical applications.

• Regulatory hurdles: Spectrum allocation involves several regulatory challenges that may further discourage the growth of the millimeter wave radar market. Indeed, a number of delays are presented in the deployment of technologies through a balance by governments between technological advancement and public safety regulations. For example, in April 2024, the Federal Communications Commission (FCC) introduced new regulations aimed at subjecting all new millimeter wave technologies to wide testing and compliance checks before commercial deployment.