Obstacle-Avoidance Light Detection and Ranging (LiDAR) Market Report 2025

The obstacle-avoidance light detection and ranging (LiDAR) market size has grown rapidly in recent years. It will grow from $1.19 billion in 2024 to $1.37 billion in 2025 at a compound annual growth rate (CAGR) of 15.6%. The growth in the historic period can be attributed to rising adoption of advanced driver assistance systems, increasing use of automation in industrial sectors, growing early adoption in robotics and drones, rising demand for precision in manufacturing, and increasing initial support from defense and aerospace sectors.

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 $2.42 billion in 2029 at a compound annual growth rate (CAGR) of 15.2%. This projected expansion is driven by a surge in autonomous vehicle production, ongoing development of smart cities and infrastructure, a rising need for automated warehousing, increased emphasis on road safety, and favorable government regulations supporting autonomous technologies. Key trends shaping this market include breakthroughs in solid-state LiDAR, integration of AI into LiDAR platforms, continuous miniaturization and cost-reduction in LiDAR devices, progress in sensor fusion, and the evolution of automotive-grade LiDAR technology.

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.

Companies involved in the obstacle-avoidance light detection and ranging (LiDAR) market are innovating with advanced solutions such as frequency-modulated continuous wave (FMCW) technology to enhance range, precision, and motion tracking while mitigating signal interference. FMCW LiDAR works by emitting a continuous laser with a varying frequency and analyzing the differences between emitted and reflected signals to determine an object's position and speed. For example, in February 2022, Aeva Technologies Inc., a US-based sensing hardware and perception software company, introduced Aeries II, a 4D LiDAR sensor that delivers automotive-grade reliability for applications spanning automotive, industrial, and beyond. Aeries II produces real-time visuals with up to 1000 lines per frame and eliminates motion blur. It also supports 4D Localization, which provides ego vehicle motion data in real-time with six degrees of freedom, and 4D Perception Capability, which captures each point’s 3D location along with its instantaneous velocity.

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 players in the obstacle-avoidance light detection and ranging (lidar) market are Continental AG, Valeo S.A., Aptiv PLC, Waymo LLC, LS LiDAR Technology Co. Ltd., Hesai Technology Co. Ltd., Ouster Inc., Luminar Technologies Inc., Hokuyo Automatic Co. Ltd., Benewake (Beijing) Co. Ltd., LeddarTech Inc., Cepton Technologies Inc., Quanergy Systems Inc., Innoviz Technologies Ltd., LiDAR Solutions Inc., XenomatiX N.V., Sentech Industries Private Limited, Aeva Inc., Hypersen Technologies Co. Ltd., RoboSense Technology Co. Ltd.

North America was the largest region in the obstacle-avoidance light detection and ranging (LiDAR) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in obstacle-avoidance light detection and ranging (LiDAR) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the obstacle-avoidance light detection and ranging (LiDAR) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The quick escalation of U.S. tariffs and the resulting strain in trade relations in spring 2025 are considerably influencing the Paper, Plastics, Rubber, Wood And Textile sector by inflating costs for imported pulp, resin, synthetic rubber, lumber, and cotton key inputs with limited domestic substitutes. Packaging manufacturers, for example, now pay more for plastic films and corrugated materials, squeezing margins in an already price-sensitive market. Textile producers face similar challenges, as tariffs on imported yarns and dyes compound pressures from rising labor costs. Some firms are shifting to recycled materials or biodegradable alternatives, while others consolidate suppliers to negotiate bulk discounts.

Obstacle-avoidance light detection and ranging (LiDAR) is a sensing technology that utilizes laser pulses to detect and map objects in the environment, aiding systems in identifying and avoiding obstacles in real-time. This technology ensures safe navigation for autonomous vehicles, drones, and robots by generating precise 3D maps and recognizing surrounding objects to help prevent collisions.

The primary product types available in the obstacle-avoidance light detection and ranging (LiDAR) market are solid-state LiDAR and mechanical LiDAR. Solid-state LiDAR uses no moving components and instead employs electronic beam steering to measure distances and develop 3D maps, offering higher durability and a more compact design than mechanical LiDAR systems. The technology is available in different range categories such as short-range (up to 100 meters), medium-range (100 to 500 meters), and long-range (above 500 meters), and incorporates types including time-of-flight (ToF) light detection and ranging (LiDAR), phase-shift light detection and ranging (LiDAR), flash light detection and ranging (LiDAR), and hybrid light detection and ranging (LiDAR) systems. These are used in various applications like 3D recognition, volume measurement, people counting, and safe working area protection, serving end-users in industries such as automotive, aerospace, industrial, consumer electronics, and others.

The obstacle-avoidance light detection and ranging (LiDAR) market research report is one of a series of new reports that provides obstacle-avoidance light detection and ranging (LiDAR) market statistics, including the obstacle-avoidance light detection and ranging (LiDAR) industry global market size, regional shares, competitors with the obstacle-avoidance light detection and ranging (LiDAR) market share, detailed obstacle-avoidance light detection and ranging (LiDAR) market segments, market trends, and opportunities, and any further data you may need to thrive in the obstacle-avoidance light detection and ranging (LiDAR) industry. This obstacle-avoidance light detection and ranging (LiDAR) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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 and 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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