Automotive LiDar Market By Type (Solid State Lidar, Mechanical/Scanning Lidar), By Application (OEM, Research), By Region, And Segment Forecasts, 2023 to 2032

Market Overview:

LiDAR is considered a key enabling technology for self-driving vehicle development by the Automotive Manufacturers. LiDAR can adapt to all light conditions and evaluate parameters such as raindrop density and braking distance for autonomous cars. Automakers have made efforts to fuel LiDAR technology development worldwide through collaboration with self-driving service providers. 

The global automotive LiDAR market was valued at USD 447.2 million in 2023 and is projected to reach USD 8612 million by 2031, growing at a CAGR of 41% from 2023-2031. Increasing sales of high-end end-vehicles, along with the increased penetration of ADAS technology in vehicles is expected to drive the demand for the automotive LiDar sensors. Stringent regulatory measures in different countries have also accredited the inclusion of safety sensors in vehicles. 

Premium Insights:

• Continuous advancements in LiDAR technology, such as solid-state LiDAR and improved sensor fusion are driving market growth. 

• Companies are expanding their operations and investments in emerging markets to tap into growth opportunities.

Global Automotive LiDAR Market Dynamics: 

Drivers: Focus on AV’s, rising demand for ADAS and stringent safety regulations 

-LiDAR is a critical sensor technology for autonomous vehicles, providing high-resolution 3D perception of the surrounding environment. The growing investment and development efforts in the AV industry are a major driver for the automotive LiDAR market.

-LiDAR can be integrated into ADAS features like automatic emergency braking and lane departure warning. This growing demand for advanced safety features in vehicles is driving the adoption of LiDAR technology.

-Governments worldwide are implementing stricter safety regulations for vehicles. Leading safety organisations like NCAP (New Car Assessment Program) are considering LiDAR integration as a factor in their ratings. This can push automakers to adopt LiDAR for safety compliance and market competitiveness.

Restraints: High Cost of LiDAR sensors, weather sensitivity and computational requirements 

-LiDAR sensors can be significantly more expensive compared to other automotive sensors like cameras and radar. This high upfront cost is a major barrier to wider adoption, particularly for budget-conscious automakers.

-LiDAR performance can be affected by adverse weather conditions like rain, fog, and snow. Additionally, LiDAR may struggle in situations with limited visibility or extreme sunlight. Further development to address these limitations is necessary.

-LiDAR sensors generate a large amount of data that requires significant processing power from onboard computers in vehicles. Advancements in computing power and efficient data processing algorithms are needed for wider adoption.

Opportunities: Advancements in solid-sate LiDAR, collaboration between tech companies & automakers and focus on LiDAR mapping.

-Solid-state LiDAR technology offers advantages like lower cost, smaller size, and improved reliability compared to traditional mechanical LiDAR systems. Breakthroughs and wider adoption of solid-state LiDAR can be a game-changer for the market.

-Strong collaboration between technology companies developing LiDAR sensors and automakers integrating this technology into vehicles can accelerate innovation, overcome technical challenges, and drive market growth.

-LiDAR data plays a crucial role in creating detailed HD maps for autonomous vehicles. Collaboration with mapping companies and leveraging LiDAR data for HD map development creates additional revenue streams for the LiDAR industry.

Market By Automotive LiDAR Type Insights: 

Based on technology, the market can be segmented into Solid-state LiDAR and Mechanical LiDAR. Solid-state is expected to hold a large revenue share in 2024 and offers significant advantages over traditional mechanical LiDAR. The Solid-State LiDAR utilises micro-electrical mechanical systems (MEMS) technology, resulting in a smaller, lighter and more affordable sensor, which is crucial for the wider adoption in passenger cars.  

Based on Image Type, the market can be bifurcated into 2D and 3D. The 3-D LiDAR type is expected to dominate the market in 2024 as it provides a crucial depth perception element for autonomous vehicles and ADAS features. 3-D LiDAR creates a precise point cloud map of the surroundings, enabling accurate object detection and recognition.

Based on the type of Electric Vehicles (EVs), the market can be segmented into BEV, FCEV, HEV and PHEV.  Battery Electric Vehicles(BEVs) are expected to be a key driver of LiDAR adoption due to the growing popularity of BEVs and their inherent need for advanced safety and autonomous driving capabilities. LiDAR also complements other sensors in BEVs for robust environmental protection. 

Market By End-Use Insights:

Based on end-use, the ADAS or Advanced Driver Assistant System segment held the largest market share in 2023 as LiDAR is increasingly integrated into ADAS features like automatic emergency braking, adaptive cruise control and lane departure warning, enhancing driver safety and offering a stepping stone towards full autonomy. 

Market By Region Insights:

Based on regional coverage, the market is segmented into North America, Asia-Pacific, Europe, Latin America and Middle East & Africa. North America dominated the market with over 35 % market share in 2023 and is projected to increase as more administrative regulations requiring the installation of automotive safety technologies in both light-duty and heavy-duty vehicles become more widely adopted. The use of LiDAR sensors in dynamic remote sensing applications and collision avoidance technologies are among the major developments in the industry. The majority of ADAS application-based LiDAR system sales in North America and Europe were attributed to the automotive industry. 

Competitive Scenario: 

Major Players in the region are Continental AG,  KUBOTA Corporation, Denso Corporation, Quanergy Solutions, LeddarTech Inc., Inc., Robert Bosch GmbH, Teledyne Geospatial and ValeoVelodyne LiDAR, Inc.

Key Market Developments:

• November 2022-The RS-LiDAR-E1 (E1), the most recent solid-state LiDAR from RoboSense, was introduced. With its proprietary, in-house chips and flash technology platform, the E1 is a state-of-the-art 360° field of view LiDAR. It is an innovative product platform at its core, that uses specially designed chips to enable area array transceiver technology. Essential to enabling the core features of autonomous driving is the E1.

• June 2023- By 2024, Innoviz Technologies Ltd. and LOXO will equip LOXO delivery trucks with InnovizOne LiDAR units. Innoviz's automotive-grade LiDAR will be used by LOXO in its autonomous delivery vehicles that emit no emissions. Retailers can gain from improved capabilities for efficient and environmentally friendly goods transportation by integrating InnovizOne into LOXO vehicles. This partnership attempts to meet the growing demand in the market for autonomous last-mile delivery, which is projected to reach USD 5.9 billion by 2030.

• April 2023-Komodo, an exclusive ASIC (Application-Specific Integrated Circuit) chip designed for processing lidar point clouds, was introduced by Cepton, Inc. and developed to optimise the company's patented lidar architecture, Komodo is a highly integrated custom SoC (System on Chip) that lowers costs by replacing several off-the-shelf silicon devices while improving the quality of point cloud data. As lidar technology advances towards broad deployment, Cepton, Inc. uses specialised ASICs to help them reach the price points that automakers need to reach a mass market. 

Frequently Asked Questions (FAQs)

1. What are the main drivers of the automotive LiDAR market?

Ans. The main drivers include a focus on AVs, rising demand for ADAS and stringent safety regulations

2. What are the primary challenges faced by the automotive LiDAR market?

Ans. Challenges include high Cost of LiDAR sensors, weather sensitivity and computational requirements 

3. Who are the major players in the automotive LiDAR market?

Ans. The major players in the industry are Continental AG,  KUBOTA Corporation, Denso Corporation, Quanergy Solutions, LeddarTech Inc., Inc., Robert Bosch GmbH, Teledyne Geospatial and ValeoVelodyne LiDAR, Inc.

4. What opportunities exist in the automotive LiDAR market?

Ans. Opportunities available are advancements in solid-sate LiDAR, collaboration between tech companies & automakers and focus on LiDAR mapping.