Automotive LiDAR Market Size, Share & Analysis

The passenger car segment is anticipated to account for the largest market share during the forecast period, driven by several key factors, such as the growing trend of autonomous mobility in passenger cars essential for advanced driver assistance systems that enhance vehicle safety and performance. Additionally, features such as automatic emergency braking, adaptive cruise control, and emergency lane-keeping systems are increasingly becoming standard, pushing manufacturers to integrate LiDAR into their vehicles.

The battery electric vehicle segment is projected to dominate the automotive LiDAR market over the forecast period due to the accelerating global shift toward electrification and the demand for advanced autonomous features in EVs. China’s EV revolution plays a pivotal role, with leading models like Zeekr 009, Rising Auto F7, and IM Motors’ LS6 and LS7 integrating LiDAR technologies from RoboSense (China) and Hesai Group (China).

The 3D segment is projected to account for a significant share during the forecast period, driven by the rising demand for advanced perception capabilities in autonomous and semi-autonomous vehicles. 2D LiDAR is gradually being eliminated from the market as it provides only a flat, two-dimensional view due to its limited number of channels, which restricts its ability to capture detailed spatial information. In contrast, 3D LiDAR, with its capability to generate rich three-dimensional point clouds, enables advanced algorithms, such as 3D object detection and segmentation, which makes it far superior for applications in autonomous driving.

The near-infrared segment is projected to account for the largest market share over the forecast period, driven by several key factors. Near-infrared wavelength LiDAR operates at 905 nm wavelength. These LiDAR systems demonstrate superior performance in challenging environmental conditions, including fog and rain, compared to those operating at 1550 nm. This advantage is crucial for automotive applications, as LiDAR systems must maintain accurate detection capabilities in adverse weather. For instance, the M3 LiDAR from RoboSense (China) and the Robin W LiDAR from Seyond (US), functioning at 905 nm, provide reliable distance measurements and effective object detection even in less-than-ideal visibility conditions. Near-infrared LiDAR can penetrate fog more effectively, resulting in less signal attenuation than 1550 nm systems, which are more susceptible to scattering by fog droplets.

The semi-autonomous segment is projected to account for the largest share during the forecast period, driven by the growing adoption of Level 2 (L2) and Level 3 (L3) autonomous features in mainstream vehicles. Several models, such as the IM L6 and Zeekr 7X, are already equipped with LiDAR from RoboSense (China) to enable L2 capabilities, providing advanced driver assistance systems for enhanced safety and convenience.

The bumper & grill segment is poised to secure a significant position in the automotive LiDAR market due to its practicality for seamless integration and optimal front-facing perception. Installing LiDAR in the bumper or grill lets manufacturers maintain vehicle aesthetics and aerodynamics while embedding advanced sensing capabilities. For instance, luxury models like the Mercedes-Benz S-Class have successfully incorporated LiDAR into the grill, emphasizing its effectiveness for advanced driver-assistance systems. Additionally, at CES in January 2024, Innoviz Technologies Ltd. (Israel) showcased the BMW i7 equipped with InnovizOne LiDAR seamlessly integrated into its grill, highlighting the growing trend of front-end LiDAR installations. As the demand for autonomous functionalities accelerates, the bumper & grill location is expected to remain a preferred choice for LiDAR integration, with ongoing innovations ensuring its relevance across vehicle segments.

The frequency-modulated continuous wave (FMCW) segment is projected to grow significantly over the forecast period. Its unique capability to directly measure the speed of an object using the Doppler effect eliminates the need for multiple measurements to calculate velocity, as is required in Time of Flight (ToF) systems. This efficiency simplifies the measurement process and enhances accuracy, making FMCW LiDAR particularly appealing for driver assistance systems and autonomous vehicles. Various OEMs and LiDAR companies actively invest in FMCW technology developments, recognizing its potential impact on market growth.

The solid-state LiDAR segment is projected to lead during the forecast period, driven by its compact design, cost efficiency, and durability compared to traditional mechanical LiDAR. Unlike mechanical systems, solid-state LiDAR has fewer moving parts, which makes it more resilient to wear and tear, vibrations, and environmental challenges. Mercedes-Benz EQS, XPeng P5, and NIO ET7 are vehicles equipped with solid-state LiDAR.

The long-range segment is projected to account for a significant share over the forecast period. Its ability to enhance the perception of autonomous driving and advanced safety features drives the segment's growth. Unlike short-range LiDAR, which overlaps with capabilities provided by existing sensors such as cameras and ultrasonic systems, long-range LiDAR is uniquely suited for high-speed scenarios, detecting objects, vehicles, and pedestrians at greater distances to ensure advanced decision-making for Level 3 and above autonomy.

Asia Pacific is poised to dominate the automotive LiDAR market during the forecast period. The region’s growth is driven by its progressive government policies, rapid technological innovations, and the strong presence of leading automakers and LiDAR providers. Various developments and initiatives to promote the use of autonomous vehicles are also driving the popularity of LiDAR in the region. For example, Seoul’s “Autonomous Driving Vision 2030” aims to establish city-wide autonomous driving infrastructure, including real-time traffic signal data for multi-lane roads, a precise road map for autonomous driving, and an open platform to update real-time by 2026 in South Korea. Similarly, Japan plans to deploy Level 4 vehicles across 100 municipalities by 2027, reflecting its commitment to autonomous mobility. China is not behind in promoting the use of advanced LiDAR in autonomous vehicles. In August 2024, the country offered more than 16,000 test licenses for driverless cars to promote autonomous testing. Also, prominent Chinese models like the BYD Han EV, BYD Han DM-i, and Chery Exeed STERRA ES are expected to be equipped with LiDAR systems offered by RoboSense Technology Co., Ltd. (China), signifying growing LiDAR adoption in mass-market vehicles.