Automotive Lidar Market

Global Automotive LiDAR Market Size (2024 to 2029)

The global automotive LiDAR market size is expected to be valued at USD 1.23 billion in 2024 and reach USD 3.77 billion by 2029, growing at a CAGR of 24.97 % from 2024 to 2029. 

The automotive lidar market is anticipated to showcase promising growth during the forecast period because of the strict regulations in multiple regions and this boosted the installation of safety sensors in cars. In addition, hardware and software interfaces make up collision avoidance systems. So, the demand for affordable software might present service providers with an additional revenue stream. This is even when the cost of hardware is predicted to decrease such as cameras and radars.

Global Automotive LiDAR Market Drivers:

The growth of the automotive lidar market is majorly driven by the rising need to decrease traffic accidents, the growing safety laws, and the rising demand for autonomous cars and advanced driver assistance systems (ADAS). Moreover, major players are making significant investments due to the growing use of safety systems in autonomous and semi-autonomous automobiles at various automation levels, which is driving the global market growth further. The rise in demand for luxury cars is favoring the market’s growth rate. There is a lifestyle shift taking place in the world. Moreover, developing nations such as China, India, Brazil and others are witnessing an economic change. Global passenger car sales are rising. Particularly those of premium vehicles. Hence, people's lifestyles and financial situations are improving.

Light detection and ranging sensors with artificial intelligence present potential prospects for the automotive lidar market. It is considered a key to the future of AI in automobile applications. Moreover, an AV or AI navigation system uses about thirty sensors to help navigate the world. This includes cameras. In addition to RADAR, it also features GPS, odometers, inertial measurement units, several cameras, sonar, and wheel encoders. Furthermore, apart from cameras, lidar is the most important tool in AI's toolbox. This is because to achieve its full potential and fulfill its promises to people.

Global Automotive Lidar Market Restraints:

Bad weather conditions are hindering the expansion of the automotive lidar market. It cannot perform well under bad weather conditions such as persistent rain, snow, or fog. However, radar may still operate in these situations. Also, LiDAR uses visible lasers to measure distance. It becomes nearly blind in bad weather. Moreover, autonomous cars that use these systems still use radar because they travel in such climate conditions. This drives up the cost of these vehicles. The presence of substitutes is expected to derail the automotive lidar market growth. In certain ways, systems like cameras, radar sensors, ultrasonic sensors, and others will limit the market growth. This is because the radar sensors are expensive. For example, these sensors are cheaper than lidar sensors. Moreover, radar devices for L1 autonomy usually cost between USD 70 and USD 80. So, these automotive systems are used by many automakers. It includes Tesla, Inc. (US), Audi AG (Germany), Nissan Corporation (Japan), Ford Corporation (US), etc., for L1, L2, and L3 autonomy.

Impact of COVID-19 on the global automotive LiDAR market:

The automotive lidar market had notable growth and prevalence both during and after the COVID-19 pandemic. Even with the pandemic's initial effects, it recovered and is doing well when lockdowns were lifted. Moreover, the pandemic had a favorable impact on the LiDAR sensor industry's outlook. This increased the need for intelligent sensing technologies to improve a range of applications. Furthermore, it is anticipated that the industry's growing use of electrified and driverless cars will increase demand for LiDAR sensors.

REPORT COVERAGE:

This research report on the global automotive lidar market has been segmented and sub-segmented based on the technology, image type, ice vehicle type, location, electric vehicle, maximum range, laser wavelength, measurement process, level of autonomy and region.  

Global Automotive Lidar Market - By Technology:

• Solid-state LiDAR
• Mechanical LiDAR

The solid-state LiDAR segment is anticipated to have substantial expansion in the market owing to its benefits in providing economical and high-resolution solutions. In addition, these systems are not dependent on nearby objects to get accurate data. Also, they are less prone to wear and tear and have a greater range of uses because of their non-mechanical nature.

Global Automotive Lidar Market - By Image Type:

• 2D
• 3D

The 3D segment holds the larger share and is more popular in the automotive lidar market. At the same time, 2D sensors are still used in certain applications. Their cost-effectiveness and simple design drive the 2D segment. Additionally, the market is rapidly evolving with new technologies like solid-state LiDAR offering potential improvements in affordability and performance, potentially influencing future popularity.

Global Automotive Lidar Market - Based on ICE Vehicle Type:

• Passenger Cars
• Commercial Vehicles

The passenger cars segment is leading under this category of the automotive lidar market. The use of LiDAR sensors is more prevalent in passenger cars. Also, it is especially for those equipped with ADAS and autonomous driving capabilities. Moreover, the integration of LiDAR sensors in vehicles has significantly improved features like adaptive cruise control, lane-keeping assistance, and automated parking. Hence, these are more commonly found in passenger cars.

Global Automotive Lidar Market - By Location:

• Bumpers & Grills
• Headlights & Taillights
• Roofs & Upper Pillars
• Other Locations (Windscreens, Rearview Mirrors, etc.)

The bumpers and grill segment is anticipated to remain the biggest market. Consumers find autonomous vehicles more appealing when they have attractive bumpers and grills, which is due to the integration of LiDAR sensors.

Global Automotive Lidar Market - By Electric Vehicle Type:

• BEV
• FCEV
• HEV
• PHEV
• ICE

The ICE segment accounted for the most vehicle types sold in the automotive lidar market. However, because of government rules and environmental concerns, the market is quickly changing. It has also increased emphasis on electric and hybrid cars. Moreover, electric and hybrid car sales have risen over time. Therefore, the situation has shifted now. It is leading to an increase in the market share of electric and hybrid cars.

Global Automotive Lidar Market - By Maximum Range:

• Short & Mid-range (170 m and below)
• Long-range (Above 170 m)

The long-range segment is anticipated to dominate the automotive lidar market. As these systems can identify objects and obstacles from a great distance, they are essential for driverless cars and advanced driver assistance systems. In addition, this will significantly influence the segment expansion as demand for autonomous features and self-driving technology increases.

Global Automotive Lidar Market - By Laser Wavelength:

• Near Infrared (NIR)
• Short-wave Infrared (SWIR)
• Long-wave Infrared (LWIR)

The Near Infrared segment will remain the larger category of the automotive lidar market share. Manufacturers are spending money on NIR lidar sensor development to provide more precise and accurate distance information in difficult environments. Furthermore, this caused these sensors to become widely available. They are used to see beyond climatic barriers such as heavy fog, rain, snow, or clouds.

Global Automotive Lidar Market - By Measurement Process:

• Frequency-modulated Continuous Wave (FMCW)
• Time of Flight (ToF)

The time of flight segment is expected to capture the biggest share of the automotive lidar market. This is because the majority of manufacturers support this measurement technique. Also, ToF has certain advantages over FMCW. For example, ToF LiDARs are less expensive than FMCW lidars. However, these sensors have undergone successful testing over time.

Global Automotive Lidar Market - By Level of Autonomy:

• Semi-autonomous
• Autonomous

The autonomous segment is projected to register a higher growth rate in the automotive lidar segment throughout the projection period. The expansion is due to the rising trend of autonomous mobility. Moreover, level 4 self-driving vehicle development is being funded by major OEMs, technology suppliers, and self-driving car service providers. Primary inputs indicate that about five LiDAR solid-state sensors would be needed for a fully autonomous vehicle to achieve level 5 autonomy.

Global Automotive Lidar Market – By Region:

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

Asia Pacific is anticipated to hold the biggest share of the automotive lidar market in the future. It is expected to become the biggest market by 2030 for both ICE and EVs. Moreover, South Korea, China, and Japan will implement L4 and L5 autonomy in this area. Also, Japanese and South Korean automakers are creating highly automated self-driving vehicles. This includes Hyundai, Kia, Nissan, Honda and Toyota. Furthermore, several industry participants are based in APAC. For instance, Rob sense (China), DENSO Corporation (Japan), Hsia (China), LIVOX (China), and Huawei Technologies Co. Ltd. (China). 

Europe is predicted to grow substantially during the forecast period. Large OEMs, including Volvo Group, Daimler, PSA Peugeot Citroen, and Volkswagen, are present in this region. Furthermore, the Netherlands and Sweden are two nations where automakers are allowed to use these vehicles. This is because of the small-scale deployment with improved management. In addition, European Union laws governing vehicle pollution and rising energy costs will encourage German and British car owners to equip their vehicles with advanced safety measures in addition to transitioning to completely autonomous cars. It is anticipated to increase lidar system sales.

North America is leading the automotive lidar market with more than 35 percent industry share. Sales are expected to rise due to the region's increasing administrative laws that require the installation of automobile safety systems in both light and heavy-duty vehicles. Moreover, collision avoidance technology and the use of lidar sensors in dynamic remote sensing applications are the key industry developments. Furthermore, the majority of ADAS-based lidar system sales in North America and Europe were attributed to the automobile industry. 

Latin America is predicted to have a steady growth rate in the automotive lidar market during the forecast period. The region's need for laser scanners is growing quickly. This is because of its capacity to build 3D point clouds for various applications. Moreover, it includes rocks, single molecules, clouds, aerosols, chemical compounds, and nonmetallic substances.

The Middle East and Africa automotive lidar market is expected to rise at a substantial rate in the coming years. The rising GDP and the emerging middle-class group are driving automotive sales in the region. Moreover, Saudi Arabia is the biggest market, selling almost 800000 new cars annually. Also, The United Arab Emirates has made advancements in the connected car sector. Furthermore, the increasing demand for autonomous vehicles and the government's focus on achieving zero emissions are driving the demand for lidar sensors. 

KEY MARKET PLAYERS:

Continental AG, Denso Corporation, LeddarTech Inc., KUBOTA Corporation, Quanergy Solutions, Inc., Robert Bosch GmbH, Teledyne Geospatial, ValeoVelodyne LiDAR, Inc. are some of the leading companies in the global automotive LiDAR market.

RECENT DEVELOPMENTS IN THE MARKET:

• In February 2024, Woolpert won a contract to provide digital terrain models and contours with the University of Wyoming. The company will create derivative products. They will utilize Lidar data obtained for the United States Geological Survey (USGS).
• In December 2023, ComNav introduced its LS300 3D laser scanner. It uses Simultaneous Localization and Mapping technology. This ensures advanced real-time map and positioning abilities.