Automotive LiDAR Market Trends and Forecast 2031

The automotive LiDAR Market size is projected to reach US$ 8,307.14 billion by 2031 from US$ 750.49 billion in 2022. The market is expected to register a CAGR of 35.1% in 2022–2031. The automotive LiDAR market is driven by the rapid adoption of autonomous self-driving cars along with a surge in the sale of connected cars. The autonomous driving market is expected to create revenue between US$ 300 billion to $400 billion by 2035. Increased demand for autonomous passenger cars across developed countries, including the US and Canada drives the automotive LiDAR market growth. Also, increased demand for luxury cars across the globe is a major driving factor for the automotive LiDAR market growth during the forecast period.

Automotive LiDAR Market Analysis

The automotive LiDAR market is driven by increasing sales of luxury vehicles, along with increased adoption of ADAS technology in the vehicles is driving the automotive LiDAR market growth during the forecast period. Increased developments of autonomous vehicles, along with a surge in the sales of electric vehicles built with LiDAR technology, are expected to create significant opportunities for automotive LiDAR market growth. Companies in the automotive LiDAR market are focused on new product development and the launching of new autonomous technologies-based sensors. For instance, in January 2022, Innoviz Technologies Ltd. launched the next-generation Innoviz360 sensor in its product line. Innoviz360 generated revenues in 2023.

Automotive LiDAR Market Overview

Increased adoption of autonomous vehicles is expected to support the automotive LiDAR market growth. Automotive and connected vehicle technologies use LiDAR to optimize their usage. Leading OEMs, such as Audi AG, BMW AG, Ford Motors, Mercedes-Benz, Nissan Corporation, Tesla Inc., and AB Volvo, offer level 2 autonomous driver assistance globally. These include automotive systems that offer acceleration, steering, and braking assistance while driving on motorways. The penetration of connected cars with the surge in the adoption of automated vehicles in the real world across the developed nations, including the UK, the US, and Germany driving the automotive LiDAR market growth during the forecast period. Connected in-car services offer several services, such as connected maps, GPS systems, and app-based music streaming assistance. All these factors are projected to create ample opportunities for automotive LiDAR market growth during the forecast period.

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Automotive LiDAR Market: Strategic Insights

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Automotive LiDAR Market Drivers and Opportunities

Increasing Sales of Light Detection Systems Among Passenger Cars is Expected to be the Prime Driver for The Automotive LiDAR Market

Increasing penetration of light detection systems and surge in the penetration of advanced LiDAR solutions in passenger cars is a major driving factor for the automotive LiDAR market growth during the forecast period. Furthermore, the rapidly increasing demand for autonomous and connected cars, along with the increase in partnerships of automotive OEMs and other organizations, is also providing significant automotive LiDAR market growth. The autonomous car provides convenience for the passengers and improves the safety level of the travelers.  These autonomous vehicles offer lucrative opportunities for several automotive firms to access a wide range of sensors and autonomous LiDAR systems to generate revenues.

The adoption of automotive LiDAR technologies helps in light detection and providing navigation assistance technology for vehicle owners. Another use of automotive LiDAR is in ADAS and LiDAR across robotaxis and ride-sharing services. Increased demand for on-demand car rental services, on-demand shuttle services, and mobility as services are the major driving factors for the automotive LiDAR market during the forecast period. Therefore, automotive OEMs are investing a considerable amount in LiDAR sensors to launch next-generation autonomous vehicles.

Increased Adoption of Autonomous Driving with a Surge in the Development of Connected Cars is Expected to Create an ample Opportunity for Market Growth.

With increasing economic development globally, there is a need for advanced technologies to meet the current standard of living. Increased adoption and launching of autonomous driving and the surge in growth of connected cars drive the global automotive LiDAR market growth during the forecast period. For instance, in July 2023, Volkswagen Group planned to launch autonomous self-driving vehicles for adopting ride-hailing, ride-sharing, and goods delivery services in the US by 2026. Such growth in autonomous driving by the leading OEMs is expected to create ample opportunity for market growth.

Automotive LiDAR Market Report Segmentation Analysis

Key segments that contributed to the derivation of the automotive LiDAR Market analysis are type, component, and application.

• Based on type, the global automotive LiDAR market is divided into solid state and flash. Among these, the solid-state has the largest share in 2023.
• Based on the components, the market is divided into photodetectors, lasers, integrated circuits, optical elements, and others.
• Depending upon the application, the market is divided into autonomous shuttles, robotaxis, and passenger cars. Among these, passenger cars have the largest share in 2023, owing to the increasing adoption of advanced technologies by leading OEMs, suppliers, and technology providers across the globe.

Automotive LiDAR Market Share Analysis by Geography

The geographic scope of the Automotive LiDAR Market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific region is projected to have the largest share in 2023 for the automotive LiDAR market during the forecast period. The growth of This region is primarily owing to rapid urbanization, increased automotive sales, and a surge in the adoption of advanced technologies by leading OEMs. Emerging countries such as India, China, South Korea, and Japan are growing at a rapid pace owing to the presence of several leading automotive OEMs. Automotive OEMs in the Asia Pacific region include Hyundai Corporation, Kia Motors, Nissan Corporation, Honda Corporation, and Toyota Corporation. These leading players are developing automated self-driving cars to meet current urbanization demand.

Automotive LiDAR Market Regional Insights

The regional trends and factors influencing the Automotive LiDAR Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Automotive LiDAR Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Automotive LiDAR Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Automotive LiDAR Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Automotive LiDAR Market are:

1. Continental AG
2. Delphi Automotive
3. First Sensor AG
4. Infineon Technologies AG
5. Innoviz Technologies, Ltd
6. LeddarTech, Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Automotive LiDAR Market News and Recent Developments

The automotive LiDAR Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Automotive LiDAR market and strategies:

• In April 2024, Luminar Technologies launched next-generation sensors by partnering with AB Volvo. Luminar Technologies launched Iris lidar for its first global customer, AB Volvo. (Source: Flyability, Press Release/Company Website/Newsletter)

Automotive LiDAR Market Report Coverage and Deliverables

The “Automotive LiDAR Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles with SWOT analysis