The global automotive LiDAR market is valued at USD 1.30 billion in 2024 and is expected to grow at a CAGR of 23%, reaching approximately USD 10.51 billion by 2034.
Automotive LiDAR Market Key Takeaways
- North America Dominates: Held the largest market share of 38% in 2024.
- Europe’s Growth Potential: Expected to expand at a profitable CAGR from 2025 to 2034.
- ADAS Leads Application Segment: The Advanced Driver Assistance System (ADAS) segment had the highest market share in 2024.
Overview
The global automotive LiDAR market is experiencing significant growth, driven by the increasing demand for advanced driver assistance systems (ADAS) and autonomous vehicles. LiDAR (Light Detection and Ranging) technology enables vehicles to perceive their surroundings accurately, facilitating safe navigation and decision-making. The market is projected to reach approximately USD 9.59 billion by 2030, growing at a compound annual growth rate (CAGR) of 41.6% from 2024.
Drivers
Key factors propelling the automotive LiDAR market include the push by original equipment manufacturers (OEMs) for higher levels of vehicle autonomy, leading to the integration of LiDAR systems alongside cameras and radars for enhanced perception and safety. Additionally, stringent government regulations worldwide mandate the incorporation of safety features such as Advanced Emergency Braking (AEB) and Emergency Lane Keeping Systems (ELKS), which often rely on LiDAR technology. The growing consumer demand for vehicles equipped with advanced safety and autonomous features further accelerates market expansion.
Opportunities
The market presents opportunities in the development of cost-effective and compact solid-state LiDAR systems, which are more durable and suitable for mass production compared to traditional mechanical LiDAR. Advancements in artificial intelligence (AI) integration with LiDAR are enhancing object detection and classification capabilities, opening avenues for improved autonomous driving solutions. Emerging markets, particularly in the Asia-Pacific region, offer substantial growth potential due to rapid urbanization and supportive government initiatives promoting autonomous vehicle adoption. The development of hybrid sensing solutions that combine LiDAR with radar and camera-based systems offers additional growth prospects. Additionally, LiDAR’s application in shared mobility services, such as autonomous taxis and shuttles, is expected to drive future demand.
Challenges
Despite the positive outlook, the high cost of LiDAR systems remains a significant barrier to widespread adoption, especially in mid-range and economy vehicles. Technical challenges such as performance limitations in adverse weather conditions and the need for seamless integration with existing vehicle systems also pose hurdles. Moreover, competition from alternative sensing technologies like cameras and radar, which are often more cost-effective, adds to the challenges faced by LiDAR technology in the automotive sector.
Regional Insights
The Asia-Pacific region is projected to lead the automotive LiDAR market during the forecast period, driven by progressive government initiatives, rapid technological advancements, and the strong presence of key players and automakers. Developments like Seoul’s ‘Autonomous Driving Vision 2030’ and Japan’s goal to deploy Level 4 vehicles across 100 municipalities by 2027 underscore the region’s proactive approach to adopting autonomous vehicles, thereby boosting the demand for LiDAR systems. In China, significant investments in autonomous driving technology and government plans to equip over 70% of new cars with Level 2 or 3 autonomy by 2025 further enhance market growth.
Recent News
In November 2024, Hesai Group, a leading Chinese LiDAR manufacturer, announced plans to halve the price of its LiDAR products in the coming year to promote broader adoption in electric vehicles. This strategic move aims to make LiDAR technology more accessible, even for vehicles priced below 150,000 yuan (approximately USD 20,000). Additionally, in October 2024, RoboSense announced a strategic partnership with GAC International to provide LiDAR solutions for GAC AION’s vehicles, highlighting ongoing collaborations to enhance autonomous driving capabilities in the automotive industry.
Automotive LiDAR Market Companies
- LeosphereSaS
- Airborne Hydrography AB
- Faro Technologies Inc.
- Aerometric Inc.
- 3D Laser Mapping Inc.
- Mira Solutions Inc.
- Quanergy Systems, Inc.
Segments Covered in the Report
By Product Type
- Aerial
- Mobile
- Terrestrial/Static
- Short-range
By Components
- Laser
- GPS/GNSS Receiver
- Camera
- Inertial Navigation System
- Micro Electro Mechanical System
By Application
- Advanced Driver Assistance System (ADAS)
- Adaptive Cruise Control
- Automatic Emergency Braking
- Autonomous Cars
By Regional Outlook
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- France
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of the World