Automotive LiDAR Market

Automotive LiDAR Market Outlook (2021-2031)

The global automotive LiDAR market was worth US$ 430 million in 2020, and is anticipated to surge to a market valuation of US$ 3 billion by the end of 2031.

This huge jump is because demand for automotive light detection and ranging (LiDAR) is projected to increase at a stellar CAGR of 19.5% over the next ten years.

Report Attributes	Details
Automotive LiDAR Market Size (2020)	US$ 430 Million
Projected Year Value (2031F)	US$ 3 Billion
Global Market Growth Rate (2021-2031)	19.5% CAGR
Solid-state LiDAR Market Share (2020)	60%
Key Companies Profiled	Delphi Automotive PLC NXP Semiconductors TetraVue XenomatiX N.V. Luminar Technologies Inc. LeddarTech Inc. Continental AG Robert Bosch GmbH Quanergy Systems Inc. Velodyne LIDAR Inc. Valeo SA HELLA GmbH & Co. KGaA First Sensor AG Ibeo Automotive Systems GmbH DENSO Corporation Innoviz Technologies Ltd.

Increasing popularity of autonomous vehicles has majorly driven sales of LiDAR sensors as they are crucially used in these vehicles to ensure the safety of the vehicle. Solid-state LiDAR is expected to see high demand owing to its increasing scope of application in advanced driver assistance systems (ADAS) and collision warning systems.

Automotive LiDAR Demand Analysis (2017-2020) in Comparison to Growth Forecast (2021-2031)

Advancements in technology have revolutionized the world and the use of technology has substantially increased in the automotive industry as well. Vehicles have seen a substantial rise in the use of electronic and electric components to keep them functional and the increasing popularity of electric vehicles is expected to drive this demand further in the near future.

LiDAR technology has found increased scope in automotive applications as it has proven to scan and detect changes in surroundings in an effective manner. LiDAR sensors are most commonly used in advanced driver assistance systems (ADAS), lane-departure warning systems, collision warning systems, lane-keep assistance systems, etc.

Rising popularity of autonomous vehicles is expected to bolster the use of automotive light detection and ranging systems. Implementation of stringent norms to incorporate safety systems in automobiles by multiple governments across the world, rapid technological advancements, and the emergence of 4D LiDAR technology will also influence sales of LiDAR sensors and devices.

Increasing demand for miniaturization of devices will also propel the demand for MEMS LiDAR for multiple applications. Rising integration of advanced navigation and loT technologies is also expected to favor sales of MEMS LiDAR devices.

However, high costs associated with the implementation of automotive LiDAR systems could prove to be a major challenge for market growth as it would prevent small vehicle manufacturers from adopting the technology.

From 2021 to 2031, automotive LiDAR demand is anticipated to progress at an impressive CAGR of 19.5%.

Will Rising Demand for Autonomous Vehicles Drive Sales of LiDAR Sensors?

"Increasing Use of LiDAR Systems in Autonomous Vehicles to Boost Market Potential”

Autonomous vehicles are seeing a hike in demand and increasing advancements in technology have made this a real-world possibility with many vehicle manufacturers investing in the development of such vehicles. These vehicles will completely be driven by sensors and electronics to ensure complete a driverless experience.

LiDAR sensors are crucially important for autonomous vehicles as they are major components of essential systems such as blind-spot monitoring, lane-keep assistance, lane-departure warning, and collision warning.

Demand for solid-state LiDAR is expected to be high for these applications as opposed to standard flash LiDAR owing to its rising popularity and cost-effective nature.

Will Cost of Automotive LiDAR Devices Impact Market Potential?

"High Costs of Automotive LiDAR Systems Slows Growth"

A functional automotive LiDAR system consists of sensors, advanced hardware, advanced software, scanners, etc. All of these components increase the cost of manufacturing and hence result in an expensive LiDAR system.

The high costs of light detection and ranging devices and systems slow down their adoption in multiple applications as many small vehicle manufacturers cannot afford to deploy them.

Which Regional Market Will Be Most Profitable for LiDAR Sensor Manufacturers?

“Asian Market to Exhibit Attractive Opportunities for LiDAR Suppliers"

The regions of East Asia and South Asia are expected to emerge as highly rewarding markets for automotive LiDAR system manufacturers. The demand in this region will be driven by factors such as rising industrialization, increasing demand for vehicles, rising disposable income, presence of key automotive component manufacturers, etc.

India, China, Malaysia, and Japan are some of the most prominent markets to watch out for in these regions.

Increasing popularity of electric vehicles and autonomous vehicles will propel shipments of LiDAR sensors in the region of North America. Moreover, stringent automotive safety mandates and increasing deployment of advanced driver assistance systems (ADAS) will also favor automotive LiDAR market growth in this region.

The presence of key automotive manufacturers in Europe will also propel shipments of automotive light detection and ranging systems in this region and this region is expected to hold a notable market share in the global industry landscape throughout the forecast period. Germany is anticipated to be a key market in this region for light detection and ranging sensors.

Country-wise Insights

How Will Sales of LiDAR Sensors Perform in China?

"Robust Automotive Manufacturing Sector to Boost Demand for Automotive LiDAR Systems"

China is one of the world's largest automotive industries and has been the leading automobile manufacturer in the world for the past few years. This makes it a highly lucrative market for automotive LiDAR companies and this trend is expected to primarily drive market potential in the nation through 2031.

Increasing investments in the automotive industry and supportive government initiatives will further bolster automotive LiDAR demand in China over the years to come.

Automotive LiDAR system providers are focusing on partnerships and collaborations to increase their business scope in China and maximize revenue generation capacity through the forecast period.

• For instance, in April 2021, two leading names in the LiDAR technology industry - LingDao Intelligence and Innoviz Technologies - announced the signing of a strategic partnership that will be focusing on the introduction of high-res LiDAR to the Chinese market.

Category-wise Insights

Why is Solid-state LiDAR Preferred over Flash LiDAR?

"Cost-Effectiveness of Solid-state LiDAR to Drive its Popularity"

Solid-state light detection and ranging technology has emerged as a popular choice in multiple automotive applications due to its smaller form factor and cost-effective nature as compared to traditional LiDAR. Hence, solid-state LiDAR is more preferred than flash LiDAR.

In 2020, demand for solid-state LiDAR systems accounted for a major market share of 60% in the global marketplace.

How Did the Automotive LiDAR Market Perform in 2020?

The world witnessed the emergence of coronavirus in 2020, which resulted in an unprecedented situation that the world struggled to deal with. While the world economy suffered due to lockdowns that hampered international trade activity, the already suffering automotive industry experienced major losses during the pandemic.

The closure of multiple production facilities resulted in costly downtime for automotive companies and a drop in sales made the situation even worse. This resulted in a drop in demand for automotive LiDAR and hence created a negative growth trend for the market.

The automotive light detection and ranging market is expected to make a stellar comeback in the post-pandemic era as the lockdown restrictions are lifted and the world returns to normal. Rising popularity of autonomous vehicles and increasing use of LiDAR technology in multiple automotive safety systems will be prominent trends driving market potential through 2031.

Competitive Landscape

Automotive light detection and ranging system providers are focusing on the acquisition of new agreements and partnerships to boost their business scope on a global level and maximize profits.

• In March 2020, Velodyne LiDAR, a leading name in the LiDAR technology industry, announced a sales agreement with NAVYA, a leading autonomous driving system provider.

Key Segments Covered in Automotive LiDAR Industry Research

• Automotive LiDAR Market by Technology :

  • Solid-state LiDAR
  • Mechanical/Scanning LiDAR

• Automotive LiDAR Market by Location :

  • Roofs & Upper Pillars
  • Headlights & Taillights
  • Bumpers & Grills

• Automotive LiDAR Market by Image Projection :

  • 2D Automotive LiDAR
  • 3D Automotive LiDAR

• Automotive LiDAR Market by Range Type :

  • Short & Mid-range Automotive LiDAR
  • Long range Automotive LiDAR

• Automotive LiDAR Market by Vehicle Type :

  • IC Engine Vehicles
  • Hybrid Electric Vehicles (HEVs)
  • Plug-in Hybrid Electric Vehicles (PHEVs)
  • Battery Electric Vehicles (BEVs)

• Automotive LiDAR Market by Application :

  • Semi-autonomous
  • Autonomous

• Automotive LiDAR Market by Region :

  • North America Automotive LiDAR Market
  • Latin America Automotive LiDAR Market
  • Europe Automotive LiDAR Market
  • East Asia Automotive LiDAR Market
  • South Asia & Oceania Automotive LiDAR Market
  • MEA Automotive LiDAR Market