The surge in the use of LIDAR sensors, propelled by the escalating demand for intelligent vehicles at decreasing costs fuel the global automotive LIDAR market to reach $0.74 billion by 2023.
According to the latest report, titled 'Global Automotive LIDAR Market (by Technology, Range, Application, & Region): Insights and Forecast with Potential Impact of COVID-19 (2023-2028),' by ResearchAndMarkets, indicate that the market is expected to grow at a CAGR of 33.18% throughout the forecast period. The market volume is anticipated to surge to 0.69 million units in 2023.
The exponential growth of the worldwide market is attributed to the integration of AI-enabled functions, the flourishing ecosystem of Automotive IoT, and increasing consumer traction for advanced features in automobiles.
With over 60 private and public LIDAR companies at various developmental stages, the global automotive LIDAR market is notably fragmented. Market players face the challenge of establishing robust supply chains and forging strategic partnerships to secure collaborations with Original Equipment Manufacturers (OEMs).
The North American automotive LIDAR market dominates, primarily due to the stronghold of automotive OEMs such as General Motors and Ford Motor Company. This dominance is further fueled by the increasing demand for electric vehicles, propelling the growth of the US automotive LIDAR market.
Driving Force & Challenges
Electric vehicles emerge as a pivotal factor in curbing carbon emissions and air pollution. Governments worldwide heavily endorse them, with rising environmental concerns, rapid urbanization, and the affordability of electric vehicles driving unprecedented demand.
While the demand for LIDAR technology is soaring, the availability of alternatives like cameras, radar sensors, and ultrasonic sensors poses a potential challenge due to associated costs, particularly with radar sensors.
The integration of AI in LIDAR technology is a prominent trend in the automotive LIDAR market. This integration significantly enhances the capabilities and performance of LIDAR systems used in autonomous vehicles. LIDAR, a key technology for self-driving cars, allows them to 'see' and navigate safely by creating a 3D map of their surroundings using laser light.
By Technology: The market is divided into Solid-State LIDAR and Mechanical LIDAR. Solid-State LIDAR leads, thanks to its affordability and versatility, while Mechanical LIDAR is expected to witness significant growth due to its ability to achieve a 360-degree field of view.
By Range: Short & mid-range LIDARs dominate the market, catering to objects within 25 meters and suitable for slow-moving vehicles. Long-range LIDARs, expected to register the highest CAGR, are ideal for faster-moving vehicles, detecting objects within mid to long ranges.
By Application: The market segments into Autonomous and Semi-autonomous categories. The Autonomous segment prevails, driven by the adoption of Level 4 and Level 5 autonomous cars for sharing services globally. Meanwhile, the Semi-autonomous segment is poised for the highest future CAGR, given the extensive use of LIDAR sensors in Level 1, 2, and 3 vehicles.
Courtesy: ResearchAndMarkets. Photo is representational; courtesy:Continental.