Automotive Light Detection and Ranging (LiDAR) Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Automotive Light Detection and Ranging (LiDAR) Market size was estimated at USD 504.2 million in 2024 and is projected to reach USD 939.0 million in 2031 at a CAGR of 9.29 % during the forecast period 2025-2031.

The automotive light detection and ranging (LiDAR) market involves the use of LiDAR technology in the automotive industry to enable advanced driver-assistance systems (ADAS) and autonomous vehicles. LiDAR uses laser beams to scan the environment and create detailed 3D maps, helping vehicles detect obstacles, pedestrians, and other road conditions with high precision. This technology plays a crucial role in enabling self-driving cars to navigate safely and efficiently by providing real-time data about the surrounding environment. As the demand for autonomous driving increases, the automotive LiDAR market has become a key area of innovation and investment within the automotive sector.

The scope of the automotive LiDAR market is expanding due to advancements in autonomous vehicle technologies, the growing focus on safety, and the demand for enhanced vehicle performance. LiDAR systems are essential for enabling fully autonomous vehicles to operate in various environments and weather conditions, offering a high level of accuracy compared to other sensors like cameras and radar. In addition to autonomous vehicles, LiDAR is also being integrated into semi-autonomous cars and advanced driver-assistance systems (ADAS) to improve safety features such as collision avoidance, lane-keeping assistance, and pedestrian detection. The market is further supported by the increasing focus on smart city initiatives and the development of connected transportation systems.

Trends in the automotive LiDAR market are shifting toward the development of more compact, cost-effective, and efficient LiDAR systems. As autonomous vehicle technology matures, manufacturers are working on reducing the size and cost of LiDAR sensors without compromising performance. Solid-state LiDAR, which does not require mechanical moving parts, is gaining traction due to its durability, reliability, and potential for lower production costs. Additionally, there is a growing trend toward integrating LiDAR with other sensors, such as cameras and radar, to create more robust sensor fusion systems that improve overall vehicle perception. The adoption of LiDAR in various levels of autonomous driving and ADAS features is accelerating, with several automakers and suppliers leading the way in research and development.

Key drivers of the automotive LiDAR market include the rapid advancements in autonomous vehicle technology, the increasing demand for vehicle safety and automation, and regulatory pressures to enhance road safety. As autonomous driving becomes more viable, the need for precise and reliable sensors like LiDAR is growing, driving the market forward. The rise in traffic accidents and fatalities has also contributed to a greater emphasis on ADAS technologies, which rely on LiDAR for accurate and real-time data. Additionally, investments from both automotive manufacturers and tech companies are pushing the development of LiDAR systems, making the technology more accessible and widespread. As costs continue to decrease and the technology improves, the automotive LiDAR market is expected to experience significant growth in the coming years.

Delvens Industry Expert's Standpoint

Experts in the Automotive Light Detection and Ranging (LiDAR) Market highlight several key trends driving growth and innovation. The automotive LiDAR market focuses on the use of LiDAR technology to enhance advanced driver-assistance systems (ADAS) and enable autonomous vehicles to navigate safely by creating detailed 3D maps of the surroundings. With the growing demand for autonomous driving and vehicle safety, the market is expanding, driven by advancements in sensor technology, including the development of compact, cost-effective solid-state LiDAR systems. Trends show increased integration of LiDAR with other sensors like cameras and radar for better vehicle perception. Key drivers include the push for safer, more automated vehicles, regulatory requirements, and continued investment in research and development, which are all fueling the growth of the market.

Market Portfolio

Key Findings

• The mechanical LiDAR segment holds a significant share of the automotive LiDAR market, providing high-resolution 3D mapping essential for autonomous vehicle navigation. These systems, known for their rotating components, offer precise data crucial for detecting obstacles and creating accurate environmental models. However, mechanical LiDAR faces challenges such as bulkiness and wear, which can affect long-term durability and reliability. Despite these drawbacks, advancements in laser technology and signal processing continue to enhance mechanical LiDAR's performance, maintaining its crucial role in the development of automotive sensing technologies.

• Solid-state LiDAR is rapidly being integrated into both autonomous and semi-autonomous vehicles due to its ability to provide high-resolution, real-time 3D mapping for key ADAS features like adaptive cruise control and automatic emergency braking. Unlike mechanical LiDAR, solid-state systems have no moving parts, offering increased durability, compactness, and cost-effectiveness. As the automotive industry progresses toward higher levels of automation, the demand for solid-state LiDAR is growing, particularly due to its essential role in meeting safety standards and enhancing vehicle performance in complex driving environments.

• The ADAS segment dominates the automotive LiDAR market, driven by the increasing consumer demand for enhanced safety features in vehicles. As awareness of road safety issues rises, consumers are prioritizing vehicles equipped with advanced systems such as lane-keeping assistance, pedestrian detection, and blind-spot monitoring. Automakers are responding to this trend by incorporating LiDAR technology into their ADAS offerings, enhancing vehicle safety and improving driving experiences. This shift in consumer preferences is fueling the widespread adoption of LiDAR solutions in modern vehicles.

• The internal combustion engine (ICE) vehicle segment holds the largest share of the market as manufacturers incorporate LiDAR technology to meet consumer demand for advanced safety features. Traditionally relying on conventional sensors, ICE vehicles now integrate LiDAR for superior detection capabilities, enabling critical functions like collision avoidance and lane-keeping assistance. The growing competition from electric and hybrid vehicles is also driving the adoption of LiDAR in ICE models to remain competitive. Meanwhile, the increasing integration of LiDAR in electric and hybrid vehicles, particularly premium models, highlights the technology's expanding role across all vehicle types, from ICE to electric and hybrid vehicles.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America region is projected to hold the largest market share. Factors such as increasing advancements in technology, rising demand for autonomous vehicles, safety features, government regulations, electric vehicle expansion, ADAS, AI integration, smart city development, and cost reductions have triggered the Automotive Light Detection and Ranging (LiDAR) Market in the region.

Regional Analysis

North America to Dominate the Market

• North America holds a significant share of the automotive LiDAR market, contributing to approximately 34.9% of the global market. The region is marked by substantial investments in autonomous vehicle technology, a strong presence of major LiDAR manufacturers, and a growing focus on developing solid-state LiDAR solutions. There is an increasing trend of integrating LiDAR with other sensing technologies, supported by strategic partnerships between automotive OEMs, tech giants, and LiDAR startups. The U.S. is also leading the charge with more autonomous vehicle testing and deployment, which is further driving the demand for advanced LiDAR systems in the region.

• The U.S. market is particularly notable for its leadership in LiDAR technology development and adoption. It benefits from significant investments from both established automakers and technology companies focused on autonomous driving research. A key trend is the emphasis on reducing the cost of LiDAR systems while enhancing their performance and reliability. Beyond autonomous vehicles, the U.S. is also seeing an increase in LiDAR applications in smart city infrastructure and ADAS for traditional vehicles, expanding the scope of the technology.

• Europe’s automotive LiDAR market is shaped by stringent safety regulations and a strong commitment to reducing carbon emissions, which is accelerating the adoption of electric and autonomous vehicles. Countries like Germany, France, and the UK are leading the charge in R&D efforts, focusing on developing high-resolution, long-range LiDAR systems. European automakers are increasingly incorporating LiDAR into their premium models, while there is also growing interest in using LiDAR for urban mobility solutions and public transportation to improve efficiency and safety.

• The Asia Pacific region, with countries like China, Japan, and South Korea, is experiencing rapid growth in the automotive LiDAR market. China, in particular, is driving market expansion through government support and investments in autonomous vehicle technology. The rise of domestic LiDAR manufacturers, especially in China, is challenging established Western players, and the region is seeing increased collaboration between automakers and tech companies. The diverse market conditions across Asia Pacific are fostering the development of scalable LiDAR solutions suitable for both premium and budget vehicle segments, promoting innovation in autonomous driving and AI-powered systems.

Competitive Landscape

• Continental AG
• Denso Corporation
• Innoviz Technologies
• LeddarTech Inc.
• KUBOTA Corporation
• Quanergy Solutions, Inc.
• Robert Bosch GmbH
• Teledyne Geospatial
• Valeo
• Velodyne LiDAR, Inc.

Recent Developments

• In July 2024, Koito Manufacturing Co., Ltd., a Japanese automotive lighting manufacturer, finalized an agreement to acquire Cepton, Inc., a U.S.-based provider of LiDAR solutions. This acquisition is expected to strengthen Koito's position in the automotive sensing market, with plans to integrate Cepton's technology and expertise to enhance its capabilities in various key areas.

• In June 2023, Innoviz Technologies Ltd partnered with LOXO to deploy InnovizOne LiDAR units on LOXO delivery vehicles through 2024. LOXO will utilize Innoviz's automotive-grade LiDAR in its zero-emission autonomous delivery vehicles, offering retailers enhanced capabilities for more efficient and eco-friendly transportation of goods. This collaboration is designed to meet the growing demand in the autonomous last-mile delivery market, projected to reach USD 5.9 billion by 2030.

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Report Scope