Automotive Antenna Market Size, Share & Trends Analysis Report By Antenna Type (Shark-fin, Fixed Mast, Others), By Component (Transceivers, Electronic Control Unit, Wiring Harness, Others), By Frequency (High Frequency, Very High Frequency, Ultra-High Frequency), By Vehicle Type (Commercial Vehicles, ICE Vehicle, Electric Vehicle, Passenger Vehicle), By Sales Channel (OEM, OES, IAM) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global automotive antenna market revenue was valued at USD 4,185.30 million in 2021 and is expected to generate USD 7,253.13 million in 2030 with a CAGR of 6.30%.

Over the past few years, automotive antennas have received great responses from the end-users as well as the manufacturers, which gave the much-needed boost to the automotive antenna market share that is heading towards the high point where businesses are ready to grab the opportunity to capture a segment of the global automotive market.

The lack of robust communication infrastructure in the emerging economies that produced challenges in signal transmissions in an automotive led to the invention of smart automotive antennas, which made the transmission and reception of high-frequency signals better and uninterrupted. Leading manufacturers from the global automobile sector like Siemens, ABB, and Fuji Electric, have already started to develop new-age smart automotive antennas that will cater to high-frequency transmission needs. The global automotive antenna market is segmented into product type, application, and regions.

Market Dynamics

Automotive Antenna Market Drivers

• Emergence of Smart Antennas

Automotive antenna serves a wide range of purposes for vehicle owners starting from communication, navigation, entertainment, etc. In India, even the section-level vehicles are provided with shark-blade antennas for the above-listed purposes. Simultaneously, numerous researches are going on to develop automotive antennas for better signal communication.

Fleet management is one of the trending topics in the automotive industry that allows multiple vehicles to communicate through a single channel. For this, advanced cellular channels are developed in connected vehicles to enable seamless communication through better and uninterrupted signals. Smart automotive antennas are in demand in the automotive industry due to their high-frequency signal transmission. When it comes to fleet management, these antennas are considered one of the most critical parts of the vehicle. Even in a passenger vehicle, such smart antennas can perform essential tasks of navigation, live streaming, communication, etc.

This is where the demand for smart automotive antennas took a giant leap in the automotive industry. Integrating it with IoT devices and smart AI assistance made it the talk of the town.

• Cellular Applications in Connected Cars

Connected vehicles refer to those vehicles that are connected through an Internet connection and are associated with IoT devices and AI assistance. The primary benefit of such connected vehicles is the data and information are transferable. The information may be transferred from vehicle to infrastructure, vehicle to vehicle, vehicle to cloud, or vehicle to pedestrians. The demand for connected car technologies is growing with the rising cellular applications in modern-day cars.

Out of the total market deliverables, the key market drivers are the development of smart antennas and the emerging cellular applications used in connected cars that offers a wide range of scaling opportunities for businesses and private entities.

Automotive Antenna Market Restraints

• Lack of Infrastructure for Smart Automotive Antennas

Utilizing such high-end automotive antennas requires an efficient technological framework consisting of a robust communication channel that caters to the requirements of communication and infotainment through better signal communication, even in remote areas. However, the lack of such highly integrated communication networks hampers the overall functionalities of automotive antennas, resulting in transmission losses and communication breakdowns. This lack of infrastructure will act as a barrier to the growth of the automotive antenna market. Nonetheless, leading nations are developing a robust communication infrastructure to provide seamless data and information transfer through automotive antennas that could cater to next-generation needs.

Automotive Antenna Market Opportunities

• Widescale Technological Advances in the Automotive Antenna Market Growth

The automotive antenna industry offers a lucrative opportunity for growth considering the new-age technologies that utilize the radars in the automotive segment and the autonomous driving trend in the industry. The implementation of the radar in the automobile sector redefines the identification of objects and their trajectories. Recent years have seen that various companies have developed innovative solutions that improve radar capability. Some noteworthy innovations can be the inclusion of 4D radar, utilization of meta-materials for fabricating advanced antennas, geographic detection, etc.

Furthermore, Shark fin Antennas are provided with an optimized circuit board that can receive DARS, GPS, and SDARS Signals. The newly developed automotive antennas are capable of streaming services with advanced technology and integrated communication channels. Along with this, some noteworthy advancements in antennas are glass-mounted antennas that can extend television and streaming services capabilities. Spoiler mounted antennas optimize the mounting space and integrate microelectronic radio and antennas.

With all these technological advancements in the automotive antennas, it is clear that the sector is offering a wide range of opportunities for vendors and manufacturers who are operating or willing to operate in the automotive antenna market growth.

What Are Key Challenges in Automotive Antenna Market

Emergence of 5G Technology Poses Transmission Challenges

The constant demand for integrated communication infrastructure to overcome signal transmission and reception challenges has led to the transition from conventional to technologically advanced antennas. The 5G wireless communication is expected to turn the tables in the automotive antenna segment with more productive signal transmission and reception. However, the 5G technology offers a wide operating frequency of 6-100 GHz, where the chances of signal loss are high with cable transmission. 

Another issue that arises is the fluctuating weather conditions that can hamper the operating life cycle of the antenna, thereby affecting the overall performance. Besides, the broader range of frequency increases the probability of radio field attenuation, which forces the signal received at a shorter distance. According to reports and the study carried out by Ericson, approximately 15% of the global population embarked on the 5G technology in 2020, and the number of 5G Subscriptions is said to cross the 500 million mark by the end of 2022.

Nonetheless, the automobile industry is not yet convinced about the inclusion of 5G technology due to its implications. The point of concern here is the integration of mobile communication along with antenna technology to deliver the best transmission ratio with the development of smart automotive antennas.

Although the distance factor can be encountered with the pinpoint alignment of antennas, the devices need to be installed in a large number to maintain the transmission ratio without any network glitches, and to conquer this, the smart antennas are placed in the direction of the transmitter. Another way to overcome this restraint is to equip the roadside units with antennas for better signal transmission to the vehicles passing by. 

Leading OEMs and Tier-1 and 2 companies are already working to resolve the said issue with new and innovative ways to enhance the smart automotive antennas. By making all these arrangements to tackle the problem, there still remain some uncertainties that need to be solved as a priority, like robust product design and strong integrated communication infrastructure. Even considering these limitations, the benefits and the potential of the 5G technology cannot be ignored as it offers a significant opportunity for automotive antenna manufacturers around the globe.

Once 5G technology is utilized efficiently in manufacturing and installing smart automotive antennas, it will change the perception of communication channels for vehicles and fleet management. It can prove to be the innovation of the decade.

Regional Analysis

Booming Performance in South America and Asia-Pacific

The global automotive antenna market share is segmented into five regions, namely North America, Asia-Pacific, Europe, South America, and the Middle East and Africa. The two most growing markets for automobile antennas are South America and Asia-Pacific, which have a CAGR of 7.4% and 5.9%, respectively.

The South American region is divided into Central South America and the Caribbean, which have exceptional sales for these automotive antennas contributing to USD 175.78 million in 2021. It is expected to rise to USD 334.20 million, with a CAGR of 7.4% in 2030 for the said region. The primary factors responsible for the growth of passenger car sales in the region are the lowest interest rates and increased consumer trust, making the automotive antenna market a money grabber.

With an impeccable sales figure of USD 1,944.21 million in 2021, Asia-Pacific is the second-largest region in the automotive antenna market share. It is expected to grow at USD 3,256.90 million, accounting for a CAGR of 5.9% in 2030. Countries like India and China are among the fastest-growing economies globally. India is being developed as the automotive hub of South Asia, providing a lucrative sales opportunity in the region.

Segmental Analysis

The global automotive antenna market is classified into product type and application.

There are three types of automotive antennas, namely fin-type, rod type, and screen and film type. Among these, screen and film type antennas contributed the major share in the sales of automotive antennas, with a revenue of USD 312.05 million in 2021. It is expected to reach USD 569.84 million at a CAGR of 6.92% by 2030.

Fin type, which ensembles a shark fin, is the easiest to mount and can receive AM/FM,4G LTE, GPS, and Satellite routes. Rod-type antennas are used for AM/FM reception and are mounted on top of the car. They are robust but incapable of receiving a wide range of frequencies. Screen and film types of antennas are mounted on the rear screen, quarter screen, or windshield and are capable of various applications like multimedia, TV, radio, etc.

Automotive antennas find their application in passenger and commercial vehicles. The passenger vehicle segment is booming with exceptional pace, as around 53 million passenger cars were sold in 2020, despite being hit by the Covid-19 pandemic. It is expected to be valued at USD 522.45 million, growing at a CAGR of 6.74%

The automotive antenna on a passenger car serves as a component that receives and transmits information through signals. Some passenger car manufacturers mount these antennas on the car’s roof, and some OEMs place them in the plastic spoiler as it offers a seamless reception of signals. Such hidden automobile antennas are primarily found in sports or luxury cars, where aesthetics come into play.

When considered with commercial vehicles, automotive antennas have functions to deploy signals for geolocation, traffic information, and data exchange in the fleet transportation system. To overcome any accidental hazards and transmission loss, OEMs install the antennas on both the mirrors to ensure a smooth transmission and data collection during the fleet movement.

Impact of covid-19

COVID-19 has caused chaos in the world economy, humanitarian aid, and healthcare systems. The rapid spread of the virus has a substantial impact on the worldwide automobile industry, causing a drop in the demand for both new and used automobiles.

The pandemic has a tremendous impact on the electric vehicle industry as the vehicles are regarded as cutting-edge mobility and are prohibitively expensive to buy. Due to the vigorous spread of the virus worldwide, many commodities' demand and supply chains have come to a standstill due to the lack of transportation medium.

However, by the end of 2020, the COVID-19 situation had stabilized in several countries, leading to the end of demand-supply imbalance and a considerable increase in new automobile registrations. It was due to the necessity of avoiding public transportation for the commute.

Additionally, the transmission market has lost its market share due to low or near-zero automobile sales and new requirements. Although over 90% of autos in the United States have adopted automatic transmission, large-scale markets such as India have failed to adopt automatic gearbox.  Automatic transmissions have become increasingly popular among drivers worldwide, assisting the industry in dealing with the pandemic and delivering high statistics in the aftermath of COVID-19.

Recent Developments

• March 2021 ­– Kathrein Solutions launched a product called RRU 1400 reader, which is added to the IoT portfolio of the company’s products. The RRU 1400 makes it easy to use the IoT applications that depend on high reliability and performance.
• December 2020 – Laird Connectivity partnered with Cal-Chip Connected devices, one of the leading distributors and service providers of IoT devices.
• July 2020 – STMicroelectronics signed an M&A Agreement related to acquiring the entire share capital of BeSpoon and IoT connectivity assets of Riot Micro to enhance their IoT applications.
• March 2021, Continental AG expanded its operations to three European countries, namely, England, Germany, and Italy, to focus on developing and adopting advanced driver assistance systems (ADAS).