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Automotive LiDAR Market

Market Study on Automotive LiDar: As Technological Advances Propel the Evolution of Smart and Efficient LiDAR Devices for Automotive Range, PMR Foresees a Wealth of Revenue Generation Opportunities for the Market Participants

A Detailed Analysis of the Automotive LiDar Market Based on Growing Emphasis on Vehicle and Driver’s Safety

Automotive LiDar Market

The global automotive LiDar market is forecast to expand at a CAGR of 28.7% and thereby increase from a value of US$454.3 Million in 2023, to US$2,657 Million by the end of 2030.

Attributes

Key Insights

Automotive LiDar Market Size (2023E)

US$454.3 Mn

Projected Market Value (2030F)

US$2,657.0 Mn

Global Market Growth Rate (CAGR 2023 to 2030)

28.7%

Historical Market Growth Rate (CAGR 2018 to 2022)

27.2%

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Market Introduction and Definition

Automotive Light Detection and Ranging (LiDAR), is an innovative technology that creates detailed, three-dimensional maps of a vehicle's surroundings using laser beams to measure distances. Upon integration into vehicles, LiDAR systems enable autonomous driving and advanced driver assistance systems (ADAS) by providing real-time, high-resolution data on the surrounding environment, thereby enhancing safety features. By emitting laser pulses and measuring the time required for the light to return, these systems generate distance measurements that are exceptionally accurate and enable the mapping of the surrounding area. Automobile LiDAR is indispensable for obstacle detection, obstacle navigation, and ensuring the efficacy of collision avoidance systems.

Manufacturers are witnessing a substantial upsurge in demand within the Automotive LiDAR sector, which is undergoing rapid development. This surge can be attributed to the expanding acceptance of autonomous vehicles and the industry's heightened focus on safety. There is a current surge in the availability of LiDAR solutions on the market, each boasting improved functionalities to accommodate a wide array of uses in vehicles, including fundamental ADAS functions and fully autonomous driving. With the ongoing progression of technology, the Automotive LiDAR market is positioned for significant expansion, propelled by a burgeoning manufacturer ecosystem and persistent innovation that propels the sector forward.

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Market Growth Drivers

E-commerce Boom, and Increasing Consumer Expectations

The exponential expansion of autonomous driving technology serves as a substantial catalyst for the development of the automotive LiDAR sector. In the pursuit of developing and deploying autonomous vehicles, automotive manufacturers and technology companies heavily rely on LiDAR technology to furnish the essential sensory input required for navigation and informed decision-making. LiDAR sensors facilitate real-time detection of obstacles, pedestrians, and other vehicles by contributing to the creation of a dynamic and detailed 3D map of the vehicle's environs.

To ensure the secure and effective functioning of autonomous vehicles, this degree of environmental consciousness is vital; thus, LiDAR becomes an essential element of the sensor suite. Demand for Automotive LiDAR is being driven by the increasing integration of LiDAR into autonomous vehicle platforms, as stakeholders seek dependable and robust solutions to ensure the safety and efficacy of self-driving automobiles.

In addition, increasing focus on collision avoidance and vehicle safety is an additional significant factor influencing the automotive LiDAR market. In the light of the automotive industry's ongoing transition towards more secure transportation options, LiDAR technology is being recognized as an indispensable instrument for improving driver assistance systems and vehicle safety. By delivering precise and up-to-the-minute information regarding the environment of the vehicle, LiDAR sensors empower cutting-edge driver assistance functionalities including lane-keeping assistance, automatic emergency braking, and adaptive cruise control.

As regulatory priorities and public consciousness increase regarding the need to reduce road accidents and enhance safety standards, LiDAR technology is increasingly being incorporated into standard vehicles. The significance placed on safety-oriented Range establishes Automotive LiDAR as a pivotal Application in the progression of vehicle safety standards, thereby stimulating market expansion due to manufacturers' prioritization of safety attributes in their product designs.

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Market Restraints

Challenges in Last Mile Infrastructure, and Regulatory Hurdles

Even with the encouraging advances in automotive LiDAR technology, there are still several substantial obstacles to overcome, chief among them being cost and downsizing. The prohibitive manufacturing costs of high-quality LiDAR sensors hinder their extensive implementation in the automotive industry. In the pursuit to achieve a harmonious equilibrium between cost-effectiveness and innovation, the affordability of LiDAR technology emerges as a pivotal constraint.

Furthermore, the ongoing challenge is to achieve efficacy without compromising the miniaturization of LiDAR Application. The pursuit of compact and seamlessly integrated solutions within the automotive industry presents challenges in terms of ensuring the required precision and dependability. Addressing these limitations is critical for the wider adoption of automotive LiDAR. Presently, research and development endeavors are concentrated on resolving these restrictions to fully exploit the capabilities of LiDAR technology within the automotive sector.

Adoption Barriers, and Industry Fragmentation

One of the foremost obstacles encountered in the automotive LiDAR market pertains to the establishment of standards and interoperability across the industry. Compatibility challenges may arise and smooth integration within the wider automotive ecosystem due to the variation in LiDAR technologies, designs, and communication protocols across different manufacturers. Interoperability issues may arise due to the absence of standardized frameworks, which could hinder the ability of LiDAR systems to communicate effectively with other sensors, cameras, and vehicle-to-everything (V2X) communication systems.

To surmount these obstacles, industry stakeholders must collaborate to establish and implement standardized protocols that guarantee the compatibility of various LiDAR solutions. It is critical to confront these obstacles related to standardization to cultivate a unified and cooperative atmosphere in the Automotive LiDAR sector, encourage extensive implementation, and streamline the incorporation of LiDAR technology across diverse vehicle platforms.

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Opportunities

Integration of Advanced Technologies, and Focus on Sustainable Practices

The proliferation of autonomous vehicle fleets and the rapid uptake of EVs represent substantial prospects for the Automotive LiDAR industry. In the light of the automotive sector's paradigm transition towards autonomous and environmentally friendly vehicles, LiDAR technology assumes a critical role in safeguarding the performance and effectiveness of these cutting-edge automobiles. Autonomous and electric vehicles are highly dependent on precise obstacle detection, navigation, and environmental sensing—areas in which LiDAR shows exceptional performance.

The proliferation of EVs, and autonomous fleets, propelled by environmental considerations and the quest for improved mobility solutions, presents LiDAR manufacturers with a significant market opportunity. By integrating LiDAR systems into the platforms of electric and autonomous vehicle manufacturers through collaborative efforts, businesses are well-positioned to take advantage of the expanding market environment.

Moreover, in the automotive LiDAR market, the extensive integration of LiDAR technology with ADAS represents a lucrative opportunity. In the backdrop of light of manufacturers' efforts to improve vehicle safety and provide consumers with cutting-edge functionalities, the incorporation of LiDAR into ADAS emerges as a pivotal catalyst for market expansion. Real-time data collection is facilitated by LiDAR sensors, which empower functions including adaptive cruise control, automatic emergency braking, and lane-keeping assistance.

Increasing consumer demand for safety-focused features in conventional vehicles presents LiDAR integration with ADAS with a substantial market opportunity. By working in tandem with automotive original design (OdD) manufacturers, LiDAR producers can capitalize on this opportunity by seamlessly integrating their technology into forthcoming and current ADAS solutions. This would allow them to serve a wider range of customers and strengthen their standing in the automotive industry.

Analyst’s Viewpoint

The automotive LiDAR market is anticipated to experience robust growth and technological advancements in the coming years, according to our analysts. The growing incorporation of LiDAR technology into conventional automobiles, propelled by escalating safety apprehensions and the quest for autonomous driving capabilities, will constitute a critical determinant.

LiDAR sensors are anticipated to be in greater demand as the automotive industry continues to transition towards electric and autonomous vehicles, necessitating precise and real-time environmental sensing. Furthermore, continuous research and development endeavors are anticipated to yield miniaturized and cost-effective LiDAR solutions, thereby tackling existing obstacles and expanding the market penetration of the technology.

It is expected that collaborations and partnerships between automotive original equipment manufacturers (OEMs) and LiDAR manufacturers will accelerate, promoting innovation and the creation of customized solutions for a wide range of applications. The automotive LiDAR market is anticipated to undergo significant changes in the coming years due to regulatory developments, sensor technology advancements, and an increased focus on attaining dependable and comprehensive autonomous driving capabilities. With the ongoing pursuit of innovation by industry participants, the automotive LiDAR market is strategically positioned to assume a pivotal role in the progression of safety and autonomy in automobiles.

Supply-side Dynamics

The automotive LiDAR market exhibits a dynamic supply side characterized by a swiftly transforming ecosystem propelled by technological progress and the entry of fresh participants. Increasing competition among LiDAR technology manufacturers, including both established firms and entrepreneurs that specialize in cutting-edge sensor technologies, is a significant determinant impacting the supply side. Prominent entities are currently emphasizing enhancing the functionality and cost-effectiveness of their current LiDAR systems to sustain a competitive advantage. Concurrently, the market is experiencing the rise of pioneering firms that are presenting original LiDAR solutions, thereby enhancing the variety of the supply landscape.

Additionally, strategic collaborations and partnerships among LiDAR manufacturers, automotive original equipment manufacturers, and technology integrators influence the supply-side dynamics. Collaborations play a critical role in the development of cohesive and integrated LiDAR solutions that precisely cater to the unique needs of various vehicle categories and uses. These collaborative alliances guarantee the seamless integration of LiDAR into the wider automotive ecosystem, thereby ensuring its compatibility with additional sensor technologies and communication systems.

Furthermore, the expansion of manufacturing capabilities on a global scale impacts the supply side, as significant production facilities are situated in East Asia and North America, among other regions. With the escalating demand for LiDAR technology, participants on the supply side are strategically positioning themselves to meet the needs of the expanding market. This is contributing to the heightened level of competition and promoting ongoing innovation within the Automotive LiDAR sector.

Market Segmentation

Which is the Dominant Segment by Type?

Solid-State LiDAR Dominates on Account of Reduced Complexity, Durability, and Integration Demands

The type-wise segment is segmented into the Mechanical LiDAR and Solid-State LiDAR. At present, the greatest market segment within the automotive LiDAR industry is solid-state LiDAR. The widespread adoption of solid-state lidar systems can be attributed to several factors, including decreased mechanical complexity, increased durability, and enhanced reliability in comparison to mechanical lidar.

The compact and robust design of solid-state lidar systems satisfies the industry's need for smaller, integrated components in autonomous and electric vehicles. On the contrary, mechanical LiDAR is the most rapidly expanding sector, propelled by its progressive design and expanding range of applications.

In the automotive LiDAR market, the demand for long-range sensing capabilities, particularly in ADAS and autonomous vehicles, is a significant factor driving the growth of mechanical LiDAR. Of its exceptional capability to perform long-distance, high-resolution scanning, the mechanical variant is favored for tasks that necessitate extensive detection ranges and exhaustive environmental mapping.

Whis is the Leading Area of Application?

Autonomous Cars Represent the Largest Application Segment, Advanced Testing and Sensor Innovations Uphold Demand

The application segment is bifurcated into ADAS and autonomous cars. The automotive LiDAR market is dominated by the ADAS segment, which is substantial due to the extensive incorporation of LiDAR technology into vehicles to augment safety attributes. LiDAR sensor adoption is fueled by the increase in demand for ADAS, which include automatic emergency braking, lane-keeping assistance, and adaptive cruise control. The increasing recognition of road safety, regulatory requirements, and consumer inclination towards vehicles featuring sophisticated safety systems all contribute to the market prominence of ADAS applications.

Increased LiDAR deployment within ADAS highlights its capacity to augment real-time data for the prevention and mitigation of collisions. Conversely, autonomous vehicles constitute the sector of the automotive LiDAR industry that expands at the quickest rate. Autonomous vehicle testing and development necessitate the use of extraordinarily sophisticated LiDAR systems that provide a comprehensive view of the surrounding environment.

The pivotal function of LiDAR in topographical reconnaissance and guaranteeing secure navigation is consistent with the audacious objectives of attaining complete autonomous driving. The rapid expansion of LiDAR applications in autonomous cars can be attributed to several factors, including increased investments in the development of such vehicles, advancements in sensor technologies, and a broader industry trend toward autonomous mobility. These developments foster innovation and facilitate growth within this sector.

What is the Preferred LiDar Range?

Medium Range LiDar Preferred for its Versatility, and Wide Application Scope

The range segment is sub-segmented into short range (up to 50 meters), medium range (50-150 meters), and long range (above 150 meters). The automotive LiDAR market is dominated by the medium-range segment, which is significant due to its broad range of applications in autonomous driving, and ADAS. Achieving an equilibrium between short-range and long-range functionalities, this range fulfils the criteria necessary for obstacle detection, pedestrian sensing, and environment mapping. Due to its versatility, medium range LiDAR is favored across a wide range of vehicle types, which contributes to its market dominance.

On the contrary, the long range segment is experiencing the most rapid growth, primarily due to the rising need for advanced autonomous vehicles to possess extended sensing capabilities. Long range LiDAR is a critical technology utilized to identify distant objects, furnishing vital information for navigation at high speeds and guaranteeing safety in intricate driving situations. The expansion is driven by developments in LiDAR technology that improve the precision of detection and broaden the operational range, in response to the changing demands of autonomous driving applications.

Which is the Leading Vehicle Type Category?

Passenger Cars Continue to Dominate While LCVs Experience Rapid Growth

The vehicle type segment is categorized into passenger car, LCVs, and HCVs. Passenger cars constitute the greatest segment of the automotive LiDAR market. The segment's dominance can be attributed significantly to the expanding adoption of LiDAR technology in passenger vehicles, which is primarily motivated by the increased emphasis on ADAS and safety features. To improve collision avoidance, automated braking, and overall vehicle safety, passenger car manufacturers are actively integrating LiDAR sensors, which is driving the sustained expansion of LiDAR applications in this market segment.

However, the segment with the most rapid growth is LCVs. In response to the growing need for streamlined last-mile delivery and logistics solutions, LCVs are progressively integrating LiDAR technology. In urban and suburban delivery scenarios, the need for enhanced safety and navigation capabilities drives the rapid integration of LiDAR systems into LCVs. Furthermore, the proliferation of electronic commerce and the need for autonomous or semi-autonomous vehicles contribute to the expansion of LiDAR technology within the LCV sector.

Top Regional Markets

North America Spearheads, Expanse of Autonomous Driving Technology Drives Demand

The automotive LiDAR market is dominated by North America, owing to the region's significant emphasis on technological progress, the existence of prominent industry participants, and a resilient automotive sector. North America's dominance is a result of several factors, including the expanding implementation of autonomous driving technologies, rigorous adherence to safety regulations, and substantial investments in research and development. In addition to a heightened consumer awareness of safety features, the region's developed automotive market contributes to the rising demand for LiDAR technology in automobiles.

East Asia’s Market Attractiveness on the Rise, Government Support Crucial

East Asia emerges as the automotive LiDAR market's fastest-growing region. The exponential expansion is driven by the expanding implementation of LiDAR technology within the automotive industry, specifically in nations such as China, Japan, and South Korea. East Asia is endowed with a flourishing automotive sector, governmental backing for the advancement of autonomous vehicles, and an increasing focus on electric and autonomous modes of transportation. Due to the region's dedication to technological advancement and the incorporation of LiDAR into a wide range of vehicle models, the automotive LiDAR market in East Asia is expanding at a rapid rate.

Competitive Intelligence and Business Strategy

The automotive lidar market is characterized by fierce competition among major players who are endeavoring to establish their dominance in this industry that is expanding at an accelerated rate. Prominent organizations including Velodyne Lidar, Inc., Luminar Technologies, Inc., and Innoviz Technologies are leaders in the industry, perpetually improving their LiDAR technologies to satisfy the ever-changing requirements of the automotive sector.

Prominent companies in the industry make substantial investments in research and development to provide scalable, cost-effective, and sophisticated LiDAR solutions that tackle the obstacles associated with widespread implementation in vehicles, specifically autonomous driving, and advanced driver assistance systems.

Furthermore, the market is replete with startups and emerging entities that specialize in particular facets of LiDAR technology. Frequently, these businesses concentrate on specific applications, including solid-state LiDAR, software algorithms, and miniaturization techniques. In the light of the swift transformations occurring within the industry, market participants frequently employ collaborations, partnerships, mergers, and acquisitions as tactics to fortify their product portfolios, broaden their market penetration, and attain a competitive edge.

The competitive environment is additionally influenced by elements such as portfolios of intellectual property, worldwide distribution networks, and the capacity to establish strategic partnerships with automotive manufacturers. These factors are crucial in ascertaining the achievements and market presence of firms engaged in the Automotive LiDAR industry.

Key Recent Developments

New Product Launch

The demand for LiDar products manufactured by the Chinese company RoboSense has increased significantly due to the automotive industry's increasing spending. The vendor reported selling 60,000 units during the September quarter of 2023, which is over two times the quantity sold in the first half of the year.

Market Impact: The announcement from RoboSense, a LiDAR company headquartered in China, signifies a substantial surge in the automotive industry's demand for LiDAR products. The exponential growth of sales, which has doubled in the past quarter, indicates an increasing reliance on LiDAR technology. This development positively impacts the automotive LiDAR market's overall expansion and market dynamics.

(Source: RoboSense)

Product Launch

Yole Group, a worldwide advisory and market analysis firm renowned for its proficiency in the semiconductor, photonic, and electronic industries, has unveiled Hesai Technology as the leading automotive lidar company for the second year in a row as of July 2023. This accomplishment follows another year of significant growth and milestones for Hesai, which included unprecedented financial performance, strategic design victories, and record-breaking shipment volumes.

Market Impact: Yole Group's reaffirmation of Hesai Technology's position as the leading automotive LiDAR company for the second year in succession not only signifies the company's triumph but also emphasizes its substantial expansion and acknowledgment in the Automotive LiDAR Market. This accomplishment has a positive impact on the competitive environment of the market and has the potential to shape industry trends and investment choices.

(Source: Robotics 24/7)

In March 2023, the Valeo SCALA 3 LiDAR serves as the focal point of perception for an unprecedented generation of highly automated systems. It will enable the large-scale deployment of robotaxi (level 4) and broaden the operational scope of conditionally automated vehicles (level 3) to include bigger areas and higher speeds (up to 130 kilometers per hour).

Market Impact: The introduction of SCALA 3 LiDAR by Valeo, which enables level 3 and level 4 automated systems to operate with expanded capabilities, represents a major development in the automotive LiDAR market. This innovation possesses the capacity to stimulate greater integration of LiDAR technology into sophisticated automated and robotic applications, thereby exerting an impact on market trends and demand.

(Source: Valeo)

Automotive LiDar Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Type
  • Application
  • Range
  • Vehicle Type
  • Region

Key Companies Profiled

  • Velodyne Lidar, Inc.
  • Luminar Technologies, Inc.
  • Innoviz Technologies, Ltd.
  • Ouster, Inc.
  • LeddarTech, Inc.
  • Quanergy Systems, Inc.
  • Aeva, Inc.
  • Cepton Technologies, Inc.
  • AEye, Inc.
  • Hesai Technology Co., Ltd.

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Automotive LiDar Market Research Segmentation

By Type:

  • Mechanical LiDAR
  • Solid-State LiDAR

By Application:

  • ADAS
  • Autonomous Cars

By Range:

  • Short Range (Up to 50 meters)
  • Medium Range (50-150 meters)
  • Long Range (Above 150 meters)

By Vehicle Type:

  • Passenger Car
  • LCV
  • HCV

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • Velodyne Lidar, Inc.
  • Luminar Technologies, Inc.
  • Innoviz Technologies, Ltd.
  • Ouster, Inc.
  • LeddarTech, Inc.
  • Quanergy Systems, Inc.
  • Aeva, Inc.
  • Cepton Technologies, Inc.
  • AEye, Inc.
  • Hesai Technology Co., Ltd.

- Frequently Asked Questions -

The global market for automotive LiDar systems is anticipated to grow at a CAGR of 28.7% by the end of the projected period, 2023 – 2030.

As of 2023, the global automotive LiDar market size is approximately US$454.3 Mn in 2023.

The US currently captures the largest revenue share of the automotive LiDar market.

Some of the most prominent players in this market are Velodyne Lidar, Inc., Luminar Technologies, Inc., Innoviz Technologies, Ltd., Ouster, Inc., LeddarTech, Inc., and Quanergy Systems, Inc.

The autonomous cars segment is expected to witness the fastest growth rate during forecast period.

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