Global Automotive LiDAR Market Research Report: Forecast (2024-2030)

Market Definition

Laser Imaging Detection & Ranging or Light Detection & Ranging is a technology that sends out laser pulses from the emitter to the object and back to the receiver measuring its distance. It is mainly used to map the surroundings in great depth. It helps in enabling the Advanced Driving Assistance and Developing Autonomous and Semi-Autonomous Vehicles in the industry. For usage, it is placed in various locations on the vehicle that provide it easy access to the surroundings to guide the vehicle accordingly. Its usage can be done on both passenger and commercial vehicles.

Market Insight & Analysis: Global Automotive LiDAR Market (2024-30)

The Global Automotive LiDAR Market size was valued at around USD 510 million in 2023 & is estimated to grow at a CAGR of around 18.5% during the forecast period, 2024-30.  The primary growth for the market is due to the increasing adoption and evolution of autonomous vehicles. Usually, companies use various sensors and radars to get the spatial representation of the surrounding environment of the automobile. But with the technological advancement in LiDAR technology which is capable of generating a high-quality mapping of the environment has greatly improved the reliability and safety of autonomous and semi-autonomous vehicles.

Additionally, the rising sales of automobiles across the globe, especially electric vehicles highlight the great opportunity for the Automotive LiDAR Market Growth. The development of new-age technologies such as Artificial Intelligence, and Machine Learning further augments the immense growth potential for automotive LiDAR companies. While there are some challenges regarding the high cost associated with LiDAR technology the wider adoption and scalability along with the continuous innovation in it, can lower the cost in the future. As the demand for self-driving vehicles grows riding on increasing people's awareness and regulations regarding road safety illuminates the future outlook and the huge growth potential present in the market over the forecasted period.

Global Automotive LiDAR Market Driver:

Increasing Adoption of Autonomous Vehicles – The growth in the Global Automotive LiDAR Market is primarily driven by the increasing adoption of autonomous vehicles and the technological advancement involved in improving their reliability. The automobile companies generally used other technologies such as cameras, radars, ultrasonic, and sensors to achieve the L1 and L2 autonomy of the automobile and even L3. But while using these works fine till L2 autonomy goes further will need much sophistication in the system of autonomous vehicles as these technologies struggle to detect the exact location, shape, and size of the objects in the surroundings. This shortcoming leads to automobiles having difficulty differentiating various objects from pedestrians, to animals to other vehicles present in the surroundings especially if they are slightly away from the vicinity of the automobile.  The usage of LiDAR solves such shortcomings improving the reliability of the autonomous automobile.

LiDAR can create a high-definition mapping of the surrounding environment of the autonomous automobile which greatly surpasses the similar capabilities of the other such technologies. Additionally, LiDAR can work optimally in low light conditions and is capable enough to detect and differentiate objects up to 400 meters. This is filling the gaps previously left in autonomous vehicles and greatly boosts their reliability to operate optimally. As the technology evolves further along with the implementation of regulations to improve road safety and prevent road accidents, the development of such scenarios will fuel the growth and drive the Automotive LiDAR Market Value in the coming years.

Global Automotive LiDAR Market Opportunity:

Increasing Adoption of Electric Vehicles Globally – The rising adoption of electric vehicles (EVs) presents a significant opportunity for growth in the Automotive LiDAR Market over the forecasted period. The substantial adoption of EVs highlights two important points: globally, people are becoming more aware of the surroundings and world they live in. Second is the increase in automobile sales following the trend. These scenarios highlight that as people become more aware of road safety and the necessary regulations that come with it, along with the availability of the technology that can reliably ensure that with a higher probability. This illuminates the potential field of demand which will only widen in the future. 

As EVs, which are at the forefront of innovation, become more prevalent, the need for robust and reliable sensing and mapping solutions to navigate the complex environments of cityscapes and terrains becomes more critical. Automotive Lidar systems are capable of generating high-definition mapping of the surrounding environment, offering the accurate real-time data needed to support autonomous driving and advanced driver-assistance systems (ADAS), making it an important capability enabler for EVs. The development of these scenarios paints a positive future outlook and the unfolding of huge growth opportunities for automotive Lidar technology during the forecasted period.

Global Automotive LiDAR Market Challenge:

High Cost of LiDAR Technology Impeding Market Growth – LiDAR technology is pretty good at generating high-definition representations of the surrounding environment. Implementation of this technology will greatly enhance the capabilities of an automobile in terms of achieving higher levels of autonomy of vehicles but it is an expensive technology because of high Lidar sensor cost. The high cost can be an important factor in discouraging automotive Lidar sensor manufacturers, especially considering the mass market vehicle, which is quite sensitive to the pricing of the vehicle. Such scenarios can act as an obstacle to the wider usage of LiDAR technology in the automobile industry.

Additionally, a lot of automotive companies can switch to cheaply available alternatives such as smart sensors and radars. As, with the technological advancements these alternatives can become more efficient and capable leading to wider disruption in the Automotive LiDAR Market Growth across the globe. 

Global Automotive LiDAR Market Trend:

Rising Innovation for Self-Driving Vehicles – Companies, to enhance the L3 or achieve the L4 autonomy in automobiles, are driving innovation and are considering the adoption of LiDAR as a possible solution. Consider a scenario in which an automobile with its self-driving feature enabled is traveling at a speed of 100 kmph. Suddenly an object came in front of it just 200 meters away, the automobile needed to have capability enough to detect it, process it, and make a decision to ensure safe navigation in about 7 seconds. This is where the need for a sophisticated Automotive LiDAR system comes in, as its ability to map the surrounding environment in detail in real time ensures a rapid and accurate assessment of the obstacle in response to the changing dynamics on the road.

The development of such scenarios is resulting in heavy investments in the R&D and integration of advanced LiDAR technology in autonomous vehicles for better reliability and safety. This will boost the navigational capabilities for L4 and possible L5 autonomy of an automobile and fuel the Automotive LiDAR Market Share in the coming years.

Global Automotive LiDAR Market (2024–30): Segmentation Analysis

The Global Automotive LiDAR Market study at MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024-2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Application:

• Autonomous
• Semi-Autonomous

The semi-autonomous segment holds the largest market share in terms of application, in the Global Automotive LiDAR Market. Since there are more semi-autonomous vehicles in the world as compared to autonomous vehicles, this becomes one of the most critical reasons for its high growth. With autonomous vehicles still in the developing phase, the companies prefer the usage of LiDAR technologies to add advanced driver assistance functionalities in the automobile to enhance customer experience.  A trend reversal is possible soon with the growth of autonomous vehicles.  The market will still grow at a rapid rate because of its high potential.

Based on Vehicle Type:

• Passenger Vehicles
• Commercial Vehicles

Based on vehicle type, the passenger vehicles segment holds the major portion of the Automotive LiDAR Market Value. The rationale for this is due to the massive consumption of automobiles in the passenger vehicle globally when it comes to the total sales and production of automobile units. Additionally, a need to massively enhance the customer experience is driven from the passenger vehicle segment only. The implementation of automotive LiDAR technology will greatly enhance the customer experience by enabling advanced driver assistance systems such as automatic emergency braking (AEB), adaptive cruise control (ACC), lane departure warning, and blind spot detection. These advancements along with increasing consumer awareness paint a positive future outlook of immense growth for the automotive LiDAR companies or automotive LiDAR sensor manufacturers.

Global Automotive LiDAR Market (2024 – 30): Regional Projections

Geographically, the Global Automotive LiDAR Market expands across:

• North America
• South America
• Europe
• The Middle East and Africa
• Asia-Pacific

In the global automotive LiDAR industry, North America holds the largest market share. The main reason for the growth is the presence of major economic powerhouses like the USA in the North American region. A lot of advancement and development in the sector is happening there with the presence of major technology companies and tech giants the USA has become one of the largest consumers of automobiles in the world.  Moreover, the majority of the market operating companies are present in the North American region boosting the North America Automotive LiDAR Market Size.

Global Automotive LiDAR Industry Recent Development:

• June 2024: Innoviz Tech has announced its partnership with the major OEMs to develop L4 autonomous vehicle capabilities.
• April 2024: Luminar Technologies unveiled its next-generation integrated lidar product, which will boost lidar performance while cutting costs and offering better scalability. The company also announced that it had begun shipping its sensors “at scale” as standard equipment for a new electric vehicle from the global automaker Volvo.

Gain a Competitive Edge with Our Global Automotive LiDAR Market Report

1. Global Automotive LiDAR Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Automotive LiDAR Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.