Global Automotive LIDAR Market (by Technology, Range, Application, & Region): Insights and Forecast with Potential Impact of COVID-19 (2023-2028)

The automotive LIDAR system illuminates the chosen target and utilizes a sensor to measure the reflected pulses to estimate the distance between two cars. When traffic conditions change quickly, LIDAR is employed in automotive systems to automatically modify vehicle speed and braking systems. It is largely utilised in fully autonomous or semi-autonomous cars to give assistance features such as adaptive cruise control, lane-keeping assistance, lane-departure warning, and collision warning and avoidance systems.

LIDAR sensor use is advancing as a result of rising demand for smarter cars at decreasing costs. Furthermore, the worldwide market's exponential growth may be ascribed to the increase in the integration of AI-enabled functions, the developing ecosystem of Automotive IOT, and increased customer traction for complex features in automobiles. Global automotive LIDAR market is expected to reach US$0.74 billion by 2023, growing at a CAGR of 33.18% during the forecast period. Also, global automotive LIDAR market volume is likely to rise to 0.69 million units in 2023.

Segment Covered

By Technology: In terms of technology, the report offers insights of the global automotive LIDAR market into two segments: Solid-State LIDAR and Mechanical LIDAR. Solid-State LIDAR segment held the largest share in the market, owing to its affordability, it is used in multiple locations, including the front, rear, and sides of a vehicle & combines data received from each of the sensors to provide an extended Field of View (FOV). Whereas, Mechanical LIDAR segment is expected to grow at a significant CAGR in the future as a large field of view (FOV) that is typically 360 degrees can be achieved with mechanical LIDAR by utilizing high-grade optics and a rotating assembly. The mechanical component results in a bulky implementation, but it offers a high signal-to-noise ratio (SNR) over a large field of view (FOV).

By Range: On the basis of range, the report provides the segmentation of the global automotive LIDAR market as follows: Short & mid-range and Long range. Short & mid-range segment occupied the maximum share in the market, as it detects objects within 25 meters and is well-suited for slow-moving vehicles. Whereas, the Long range segment is expected to have the highest CAGR in the future as long-range LIDARs are suitable for faster-moving navigating vehicles and detecting objects within mid to long ranges.

By Application: The report further provides the categorization of the market into two key segments, according to the application Autonomous and Semi-autonomous. Autonomous segment acquired majority of share in the market, owing to the adoption of level 4 and level 5 autonomous cars for sharing services, across the world. Whereas, Semi-autonomous segment is expected to have the highest CAGR in the future as LIDAR sensors are extensively used in Level 1, 2, and 3 vehicles that require moderate to low assistance from drivers in channelizing vehicle's direction & braking.

Geographic Coverage

According to this report, the global automotive LIDAR market can be divided into four regions: North America, Europe, Asia Pacific, and Rest of the World. The countries covered in North America region are the US, Canada, and Mexico, while Europe includes the UK, Germany, France, Italy and the Rest of Europe. Moreover, China, Japan, India, South Korea and the Rest of Asia Pacific are included in the Asia Pacific region. North America automotive LIDAR market enjoyed the dominant market share, primarily owing to because this region is typically dominated by automotive OEMs such as General Motors, and Ford Motor Company, paired with some established Asian as well as European automotive OEMs. The growing demand for Electric vehicles is influencing the growth of the US automotive LIDAR market.

Top Impacting Factors

Growth Drivers

• Rising Disposable Income
• Increasing Sales of Electric Vehicles
• Rising Demand for Autonomous Vehicles
• Rapid Urbanization

Challenges

• High Cost of LIDAR
• Availability Of Alternatives

Trends

• Integration of Artificial Intelligence
• Growing Automotive Semiconductor Market
• OEMs Integrating LIDAR in Vehicles in North America & Europe
• Scope of Multiple LIDAR Fitment Across All Levels of Automation

Driver: Increasing Sales of Electric Vehicles

Electric vehicles plays a very important part in reducing the amount of carbon emissions and air pollution. Governments of all countries are promoting them heavily. Because of rising environmental concerns, rapid urbanization, and the low cost of electric vehicles, demand for electric vehicles has skyrocketed. These factors are driving the global automotive LIDAR market forward. LIDAR has become an important component in the development of electric vehicles since it enables these vehicles to navigate and understand their environment in real time. The use of LIDAR in electric vehicles has the advantage of providing highly accurate and detailed 3D mapping of the surrounding environment. LIDAR sensors detect objects and features with millimeter precision, allowing these vehicles to maneuver safely and effectively. LIDAR can also function in a variety of illumination and weather conditions, giving it a dependable and resilient technology for autonomous navigation.

Challenge: Availability Of Alternatives

The availability of alternatives, such as cameras, radar sensors, ultrasonic sensors, etc., is expected to restrain potential opportunities in the automotive LIDAR market to a certain extent. This is owing to the cost associated with the radar sensors. For instance, radar sensors are less costly as compared to LIDAR sensors. The average cost for radar sensors for L1 autonomy is between US$70-80. Most automotive manufacturers, such as Tesla, Inc. (US), Audi AG (Germany), Nissan Corporation (Japan), Ford Corporation (US), etc., use automotive radar sensors for L1, L2, and L3 autonomy.

Trend: Integration of Artificial Intelligence

The integration of AI in LIDAR technology is a trend in the automotive LIDAR market because it can significantly enhance the capabilities and performance of LIDAR systems used in autonomous vehicles. LIDAR (Light Detection and Ranging) is a key technology for self-driving cars, as it allows them to "see" their surroundings and navigate safely. LIDAR sensors use laser light to create a 3D map of the environment around the vehicle, and this information is then used by the vehicle's AI to make decisions about steering, braking, and acceleration. However, traditional LIDAR systems generate large amounts of data that can be difficult to process in real-time, which can limit their effectiveness in certain situations. This is where AI comes in: by using machine learning algorithms to analyze and interpret LIDAR data, AI can help vehicles make more informed and accurate decisions in real-time. For example, AI can be used to improve object recognition and tracking, allowing vehicles to better identify and avoid obstacles in their path. AI can also help LIDAR systems better differentiate between different types of objects, such as pedestrians, bicycles, and other vehicles, which can improve safety and performance.

The COVID-19 Analysis

The COVID-19 pandemic has had a major influence on the automotive LIDAR market, as governments in several nations imposed lockout and trade restrictions, disrupting automotive part exports. As a result, lower automobile production owing to temporary plant shutdowns is projected to have a negative impact on demand for LIDAR sensors in the automotive sector. The industry of semi-autonomous and autonomous vehicles is projected to resurrect in the near future. Recognizing the benefits of contactless and driverless transportation in a world of physical distance, several logistics, delivery, and food delivery companies have begun to use autonomous cars, including LIDAR as a vital component.

Analysis of Key Players

Global automotive LIDAR market is fragmented, with more than 60 private and public LIDAR companies at varying stages of development. These players must compete to build solid supply chains and form strategic partnerships to ultimately land a partnership with an OEM. Key players of global automotive LIDAR market are Aeva Technologies, Inc, Luminar Technologies, Inc., Ouster, Inc., Continental AG, Velodyne LIDAR, Inc., Innoviz Technologies Ltd., Valeo S.A., DENSO Corporation, Livox Technology Company Limited, Innovusion, RoboSense (Suteng Innovation Technology Co., Ltd.), Cepton, Inc., and Hesai Technology Co Ltd.