Automotive Laser Projection Market Report 2026

The automotive laser projection market size has grown exponentially in recent years. It will grow from $1.23 billion in 2025 to $1.49 billion in 2026 at a compound annual growth rate (CAGR) of 20.9%. The growth in the historic period can be attributed to automotive safety feature evolution, head-up display adoption, luxury vehicle demand, advancement in laser optics, driver assistance systems growth.

The automotive laser projection market size is expected to see exponential growth in the next few years. It will grow to $3.14 billion in 2030 at a compound annual growth rate (CAGR) of 20.6%. The growth in the forecast period can be attributed to autonomous driving development, electric vehicle feature differentiation, smart lighting innovation, regulatory focus on road safety, AI-enabled projection systems. Major trends in the forecast period include adoption of laser-based driver assistance, integration with advanced driver assistance systems, growth of augmented road projection, demand for enhanced night visibility, expansion of premium vehicle features.

The growing demand for luxury cars is expected to drive the expansion of the automotive laser projection market. Luxury cars, which offer exceptional comfort, performance, and exclusivity, are becoming more popular as disposable incomes rise, allowing consumers to afford premium vehicles. These vehicles are increasingly desirable due to their superior comfort, advanced technology, and status symbol appeal. Automotive laser projection enhances luxury vehicles by enabling advanced head-up displays (HUDs), which project high-resolution information directly onto the windshield. This improves driver safety, navigation, and convenience while maintaining a sleek, modern interior design. For example, in September 2023, the Energy Information Administration (EIA) reported that luxury vehicles made up 18% of all new car sales in the second quarter of 2023, up from 14%. As a result, the growing demand for luxury cars is fueling the expansion of the automotive laser projection market.

Leading companies in the automotive laser projection market are focusing on developing innovative technologies, such as high-power multi-die laser packages, to enhance projection brightness, improve energy efficiency, and enable advanced display features in vehicles. A high-power multi-die laser package integrates several laser diodes within a single unit, providing higher optical power output, improved brightness, and better performance for applications such as automotive projection systems. For instance, in September 2025, ams OSRAM AG, a semiconductor company based in Austria, introduced the Vegalas Power PLPM7_455QA, a high-performance laser product tailored for advanced automotive projection. This multi-die blue laser diode, which delivers 42 W optical output with around 45% efficiency, is ideal for applications such as automotive head-up displays and immersive home cinemas. The module offers higher brightness and longer life compared to traditional lamp sources, while its compact design simplifies system integration and ensures high-quality, sustainable projection.

In July 2025, AMETEK Inc., a US-based manufacturing company, acquired FARO Technologies Inc., a provider of automotive laser projection solutions. This acquisition will help AMETEK strengthen its position in 3D metrology and digital reality solutions across various industrial and manufacturing sectors.

Major companies operating in the automotive laser projection market report include Robert Bosch GmbH, DENSO Corporation, Hyundai Mobis Co. Ltd., Continental AG, Valeo SE, Texas Instruments Incorporated, LG Electronics Inc., MicroVision Inc., Koito Manufacturing Co. Ltd., ams-OSRAM AG, Stanley Electric Co. Ltd., Gentex Corporation, Panasonic Automotive Systems Co. Ltd., WayRay AG, Envisics Ltd., Z-LASER GmbH, Appotronics Corporation Limited, Optotune AG, Ceres Holographics Limited, Maradin Ltd., R-Laser.

Europe was the largest region in the automotive laser projection market in 2025. The regions covered in the automotive laser projection market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive laser projection market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive laser projection market consists of revenues earned by entities by providing services such as augmented navigation guidance, safety alerts, and parking assistance. The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive laser projection market also includes sales of laser projectors, projection modules, and laser diodes. 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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