Automotive LiDAR Market to Hit Around USD 985.26 Million By 2033

The global automotive LiDAR market size was exhibited at USD 448.00 million in 2023 and is projected to hit around USD 985.26 million by 2033, growing at a CAGR of 8.2% during the forecast period of 2024 to 2033.

Light Detection and Ranging (LiDAR) is a surveying system that transmits laser light to determine distance of the object. For the future generation of automated vehicles, LIDAR will be employed as the part of ADAS sensor suite. LIDAR will be integral part of the automakers from full automated i.e. Level 5 to partially automated i.e. Level 1 vehicle.

Horizontal field of view, vertical field of view and the resolution are the key parameter by which the choice of LIDAR is defined and opted to be employed in the vehicle. LIDAR is the most important enabler of automated driving and it is expected to witness the immense growth in near future.

Market Dynamics:

Design, resolution and cost are the major causes in the hindrance of LIDAR growth. The design i.e. number of channels implemented is directly proportional to the resolution of LIDAR and its cost. The more number of channels in the LIDAR more will be its cost. There is a need to identify a way to reduce the cost of LIDAR and at the same time not reducing the number of channels. As we believe that full automation i.e. Level 5 can be achieved only with the help of 64 Channel LIDAR.

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The automotive LIDAR market is mainly divided as per the technology capabilities and is been segmented as follows:

Based on Type:

Mechanical

Solid State

Based on Channels

8 Channel

16 Channel

32 Channel

64 Channel

Based on Location:

Head Lamp Mounting

Side Rear Mirror Mounting

Roof Mounting

Mirror Mounting

Front Grille Mounting

Others

Based on Region:

America

Europe

Asia-Pacific

Rest of the World

Key Takeaways:

North America dominated the market and accounted for the largest revenue share of 36.0% in 2023.

The ADAS segment captured the largest revenue share of over 70% in 2023.

Automotive LiDAR Market: Overview

The automotive LiDAR market is experiencing rapid growth and innovation, revolutionizing the automotive industry with its advanced sensing technology. LiDAR, which stands for Light Detection and Ranging, utilizes laser pulses to measure distances to objects, enabling vehicles to perceive their surroundings with remarkable precision. This technology plays a pivotal role in the development of autonomous vehicles, enhancing their ability to navigate complex environments safely.

Automotive LiDAR Market Growth

The automotive LiDAR market is experiencing robust growth due to several key factors. Firstly, the rising demand for enhanced safety features in vehicles, coupled with increasing regulatory pressure to improve road safety, is driving the adoption of LiDAR technology. Additionally, the rapid development of autonomous driving technology is fueling demand for LiDAR sensors, as they play a crucial role in enabling vehicles to perceive and navigate their surroundings accurately. Moreover, advancements in LiDAR technology, including the introduction of solid-state LiDAR systems and the integration of artificial intelligence for data processing, are driving down costs and enhancing performance, making LiDAR solutions more attractive to automotive manufacturers. Furthermore, strategic partnerships and collaborations between automotive companies and LiDAR technology providers are accelerating innovation and market penetration. Overall, these growth factors are propelling the Automotive LiDAR market forward, promising a future where LiDAR technology is integral to the safety and efficiency of vehicles on the road.

Automotive LiDAR Market Restraint

• Cost and Affordability:

One of the primary restraints hindering the widespread adoption of LiDAR technology in the automotive industry is its high cost. Traditional LiDAR sensors are often expensive to manufacture due to their complex components and precision engineering requirements. This high cost presents a significant barrier, particularly for mass-market vehicles where cost-effectiveness is paramount. Additionally, the integration of LiDAR sensors into vehicles adds to the overall cost of production, further limiting their adoption. While advancements in technology have led to cost reductions in recent years, achieving cost parity with alternative sensing technologies such as radar and cameras remains a challenge.

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Automotive LiDAR Market Opportunity

• Rapid Growth in Autonomous Vehicle Development:

One of the most promising opportunities in the Automotive LiDAR market is the rapid growth of autonomous vehicle development. As automotive manufacturers and technology companies continue to invest heavily in the research and development of autonomous driving technology, the demand for LiDAR sensors is expected to surge. LiDAR plays a crucial role in enabling autonomous vehicles to perceive and understand their surroundings with high precision and accuracy. With advancements in LiDAR technology enhancing its performance, reliability, and cost-effectiveness, there is a growing opportunity for LiDAR manufacturers to capitalize on the expanding market for autonomous driving solutions.

Automotive LiDAR Market Challenges

• Regulatory Uncertainty and Compliance Issues:

One of the primary challenges confronting the Automotive LiDAR market is regulatory uncertainty and compliance issues. As LiDAR technology becomes increasingly integrated into autonomous driving systems and advanced driver-assistance systems (ADAS), regulatory bodies around the world are grappling with the development of standards and regulations governing its use. The absence of clear and standardized regulations can create uncertainty for automotive manufacturers and LiDAR technology providers, hindering investment and adoption efforts. Moreover, navigating the complex regulatory landscape across different regions and jurisdictions presents additional compliance challenges, as requirements may vary significantly from one market to another.

Recent Developments

• In April 2023, Cepton, Inc. launched Komodo, its exclusive ASIC (Application-Specific Integrated Circuit) chip for lidar point cloud processing. Komodo is a highly integrated custom SoC (System on Chip) designed to optimize the company's patented lidar architecture, enhancing the quality of point cloud data while reducing costs by replacing multiple off-the-shelf silicon devices. To facilitate the widespread adoption of lidar technology in future vehicles, Cepton, Inc. leverages dedicated ASICs as their lidar products move towards extensive deployment, enabling them to achieve the necessary price points desired by automotive OEMs for mass-market implementation.
• In January 2023, Luminar Technologies, Inc. partnered with Mercedes-Benz Group AG. With this partnership, Mercedes plans to integrate Luminar's Iris LiDAR into its upcoming vehicles based on the next-generation platform. This integration aims to enhance safety features and enable autonomous highway driving capabilities. As part of the partnership, Mercedes-Benz has also acquired 1.5 million shares of Luminar. This alliance with Mercedes-Benz follows Luminar's previous supply agreements with notable companies such as Volvo Cars, China's SAIC, and Daimler Trucks, all of whom recognize LiDAR as a critical technology for developing autonomous vehicles.
• In August 2023, Volkswagen Group partnered with Innoviz Technologies Ltd. With this partnership, Innoviz Technologies will supply its LiDAR technology and software to Volkswagen Group's autonomous vehicle unit, CARIAD, with its production beginning in 2025. Over eight years, Innoviz anticipates providing 5 to 8 million LiDAR units to various brands within the Volkswagen Group. This strategic alliance aims to bolster Volkswagen's autonomous driving capabilities and further solidify Innoviz Technologies' position as a key player in the market.

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