Automotive LiDAR Market Size, Share & Trends Analysis Report By Application Type (ADAS And Autonomous Cars), By Region, And Segment Forecasts, 2020 - 2024

Industry Insights

The global automotive LiDAR market size was valued at USD 58.4 million in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 28.4% from 2020 to 2024. The key application segments analyzed in the automotive LiDAR market report include Advanced Driver Assistance Systems (ADAS) and autonomous cars incorporating these systems. ADAS systems accounted for the major share of the market in 2015, which is anticipated to increase in the years to come on account of the surging adoption of advanced safety features in automobiles and mounting administrative regulations mandating specific system installations such as AEB braking systems installations in the U.S. and the UK.

Rising adoption of safety systems in autonomous and semi-autonomous cars at various levels of automation is expected to draw huge investment from key participants, thus driving regional industry demand in the years to come. Owing to aforementioned advantages, the market exhibits high potential in the Asia Pacific countries.

The vertical integration in the market provides numerous advantages, including low costs due to access to competitive international labor markets, reduced manufacturing and delivery times, and direct sourcing of raw materials. It adds significant value to the supply chain operations by providing an array of vertically integrated services such as customization and component design.

The stringent regulatory scenario in selected geographies has accredited inclusion of safety sensors in a vehicle, which is further estimated to drive growth in the automobile market. Collision avoidance systems are composed of software and hardware interfaces. While the cost of hardware, such as cameras and radar, is expected to decline, the need for cost-efficient software may offer an alternative source of revenue for service providers. The industry is anticipated to witness strident growth over the next eight years owing to the surge in efforts towards the development of fully autonomous cars.

In October 2016, Infineon Technologies AG (Germany) had acquired Innoluce BV (The Netherlands), a fabless semiconductor company headquartered in Nijmegen. Infineon would be developing chip components for high performance LIDAR systems by utilizing Innoluce’s patented technology. This acquisition establishes Infineon’s strong foothold as one of the automotive safety technologies vendors.

Automotive LiDAR Market Trends

The installation base of advanced safety features is increasing exponentially. Accident data recorder systems, alcohol ignition interlocks, and emergency call systems are some of the examples of technologies whose future demand is expected to spur the market growth. Many safety features are being driven by safety legislations. The European Union is expected to mandate a number of applications within the next few years. Low-speed collision avoidance systems and driver assistance systems are anticipated to be among the most popular technologies. The integration of map-enabled systems also provides diverse application options leading to advantages, such as lane departure systems, driver assistance systems, and intelligent front lighting systems, enabled by the united adaptive front lighting.

Safety technologies also include usage of LiDAR sensors, data transmission, collision warning, speed alert, and map-supported adaptive front lighting. The safety technologies, such as occupant protection, are estimated to grow at a high growth rate over the forecast period. The automotive manufacturers have been focusing on passenger safety by adopting high-volume mainstream implementations. This has led to modifications in the legal framework in order to regulate a balance between governmental safety concerns and unobstructed development of ADAS. The advent of the autonomous technology in vehicles is expected to potentially reduce road accidents and lead to a better management of road space to reduce congestion.

The U.S. National Highway Traffic Safety Administration (NHTSA) is attempting to control driver support technologies and the direction of automotive collision avoidance. The government is expected to mandate fitment of the V2V safety technology in the future cars. In addition, the U.S. Association of Automobile Manufacturers is expected to leverage rear-view camera and eliminate side-view mirrors, which can reduce noise and fuel consumption. The New Car Assessment Programme (NCAP) in regions, such as the Europe and China, has been mandating the AEB and lane departure warning systems for the large-scale adoption of active safety systems. Euro NCAP awards the new and active safety systems, within its advanced program, to encourage OEMs, to extend the development of safety systems.

Application Type Insights

The market segmentation,based on applications, includes ADAS & autonomous cars application areas. Based on ADAS applications,the industry is segmented into Automatic Emergency Braking (AEB) and Adaptive Cruise Control (ACC). The ACC application segment is expected to gain prominence by 2024, on account of the surging incorporation of automation technologies in the car driving and safety technologies.

ADAS features provide short-range and long-range radars for car parking and active cruise controls respectively. LiDAR helps in the 3D mapping of surroundings and utilizes dead reckoning sensors for odometry operations. The ultrasound feature helps in parking, pedestrian detection, and other obstacle detection. A Complementary Metal–Oxide–Semiconductor (CMOS) image sensor is able to detect blind spots and offer a side view used for the recognition of a traffic sign.

The ADAS application segment is expected to gain prominence by 2024, on account of the surging incorporation of these sensors in numerous automotive safety applications, such as Automated Emergency Braking (AEB) systems, particularly in the European and North American regions.

Regional Insights

The North American regional market would dominate the global automotive LiDAR industry in terms of revenue in 2015. The growing adoption on account of administrative regulations, mandating the installation of certain automotive safety technologies in both lightweight and heavyweight vehicles in the region, is anticipated to spur the automotive LiDAR sales of the region.

The key industry trends include the incorporation of LiDAR sensors in dynamic remote sensing applications and collision avoidance technologies. The automotive sector contributed a major proportion of ADAS application-based LiDAR system sales in the North American and European regions. Over the past few years, developing nations, including India and China, have exhibited continual development, which is expected to offer flourishing opportunities to the segment growth in the Asia Pacific region.

The component manufacturers are connected to the data gatherers that provide LiDAR services such as data collection and processing. The key manufacturers, such as Velodyne LiDAR (U.S.), Quanergy Systems (U.S.), and Phoenix Aerial Systems (U.S.), provide varied data collection solutions. In addition, some of the players in this segment also offer equipment deployment services and professional training in the art of LiDAR data acquisition. The data is further transferred to the data processors that provide solutions, which include integration of data collected by different sensors and data reselling.

Europe is a high growth market with the presence of several large-scale OEMs such as The Volvo Group, Daimler, PSA Peugeot Citroen, and Volkswagen. The Netherlands and Sweden are amongst the few countries where OEMs may deploy these cars, owing to better management in the small-scale deployment. Furthermore, stringent regulations regarding vehicle emissions in the European countries coupled with the growing energy prices may instigate consumers in Germany and the UK to install advanced safety features in their automobiles alongside, switch to fully autonomous vehicles. This is expected to spur the sales of LiDAR systems in the region.

Key Companies & Market Share Insight

The key industry participants of the automotive LiDAR market are Continental AG,Denso Corporation,LeddarTech, Velodyne LiDAR, Inc., Novariant, Inc., Robert Bosch GmbH,and Quanergy Systems, Inc.The companies that are not vertically integrated usually depend on third-party suppliers for the provision of sensors and components. A few industry players outsource their manufacturing activities to the third-party contractors or subcontractors.

Automotive LiDAR Market Report Scope

Global Automotive LiDAR Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2014 to 2024. For the purpose of this study, Grand View Research has segmented the automotive LiDAR Market on the basis of application and region.

• Application Outlook (Revenue, USD Million; 2014 - 2024)

  • ADAS

  • Autonomous Cars

• Regional Outlook (Revenue, USD Million; 2014 - 2024)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Mexico

    • Brazil

  • MEA