Obstacle-Avoidance Light Detection and Ranging (LiDAR) Market Report 2026

The obstacle-avoidance light detection and ranging (lidar) market size has grown rapidly in recent years. It will grow from $1.37 billion in 2025 to $1.59 billion in 2026 at a compound annual growth rate (CAGR) of 16.1%. The growth in the historic period can be attributed to early adoption in autonomous vehicle testing, expansion of robotics and drone applications, increasing use in industrial safety systems, growth of sensor-based automation, availability of advanced laser components.

The obstacle-avoidance light detection and ranging (lidar) market size is expected to see rapid growth in the next few years. It will grow to $2.79 billion in 2030 at a compound annual growth rate (CAGR) of 15.1%. The growth in the forecast period can be attributed to increasing deployment in autonomous vehicles, rising demand for smart mobility solutions, expansion of unmanned aerial systems, growing adoption in industrial automation, increasing investments in perception technologies. Major trends in the forecast period include increasing adoption of solid-state lidar sensors, rising demand for long-range obstacle detection, growing integration with autonomous navigation systems, expansion of compact and lightweight lidar designs, enhanced focus on real-time data processing.

The growing popularity of autonomous vehicles is significantly contributing to the rise of the obstacle-avoidance light detection and ranging (LiDAR) market. These self-driving vehicles rely on a combination of cameras, radar, AI, and sensors to operate without direct human control. Obstacle-avoidance LiDAR plays a crucial role in producing highly accurate, real-time 3D environmental maps. It enhances object detection and classification, including identifying pedestrians, debris, and cyclists. For instance, in February 2025, according to Trafikanalys, a Sweden-based government agency, China’s intelligent connected vehicle industry was valued at $18.71 billion (134.2 billion yuan) in 2022, and it is projected to grow to $30.99 billion (222.3 billion yuan) by 2026, showing rapid expansion. Therefore, the surge in demand for autonomous vehicles is driving the growth in the obstacle-avoidance light detection and ranging (LiDAR) market.

Leading companies in the obstacle-avoidance LiDAR space are prioritizing the development of advanced solutions such as frequency-modulated continuous wave (FMCW) 4D LiDAR sensors to enable high-resolution, long-distance object detection and improve real-time perception, navigation safety, and automated driving capabilities. FMCW 4D LiDAR sensors are sophisticated sensing systems that simultaneously capture distance and velocity by using frequency-modulated light waves, offering more detailed environmental information than conventional time-of-flight LiDAR, which measures distance alone. For example, in July 2025, Aeva, a US-based provider of sensing hardware and perception software, introduced the Aeva Atlas Ultra, a next-generation 4D LiDAR sensor built for autonomous and highway-speed applications. The sensor delivers up to three times greater resolution than earlier versions, features a configurable 150° field of view, supports detection distances of up to 500 meters, and includes on-sensor perception that provides real-time 3D object position and velocity data, enhancing obstacle avoidance while lowering overall computational requirements.

In June 2023, Magna International Inc., a Canada-based firm specializing in automotive technology and mobility solutions, completed the acquisition of Veoneer's Active Safety division for an undisclosed amount. This strategic move was aimed at strengthening Magna’s portfolio in the field of advanced driver assistance systems (ADAS), improving its competitive position in the growing active safety market, and fast-tracking the innovation of autonomous driving technologies. By bringing Veoneer's expertise in LiDAR, cameras, and radar-based perception and decision-making software into its fold, Magna intends to push forward its autonomous mobility capabilities.

Major companies operating in the obstacle-avoidance light detection and ranging (lidar) market are The Boeing Company, Lockheed Martin Corporation, Airbus SE, Northrop Grumman Corporation, L3Harris Technologies Inc., Israel Aerospace Industries Ltd., Moog Inc., OHB System AG, Sierra Nevada Corporation, SENER Aeroespacial SA, Electroimpact, West End, Gruppo ESEA, Beyond Gravity, HPS GmbH, INASCO, MTES Inc., Gradel, Highftech Engineering SRL, RUAG Space, Thales Alenia Space, Aerospace Valley, Stelia Aerospace, Redwire Space, ISISPACE Group, Space Applications Services, Astrotech Corporation.

North America was the largest region in the obstacle-avoidance light detection and ranging (LiDAR) market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the obstacle-avoidance light detection and ranging (lidar) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the obstacle-avoidance light detection and ranging (lidar) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The obstacle-avoidance light detection and ranging (LiDAR) market consists of revenues earned by entities by providing services such as system integration services, mapping and localization services, calibration and testing services, data processing and analytics, maintenance and support services. The market value includes the value of related goods sold by the service provider or included within the service offering. The obstacle-avoidance light detection and ranging (LiDAR) market consists of sales of frequency modulated continuous wave (FMCW) LiDAR, microelectromechanical systems (MEMS) LiDAR, optical phased array (OPA) LiDAR, and coherent LiDAR. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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