The global automotive LiDAR market value is expected to reach approximately $2.9 billion by 2026. A CAGR of 27.1% is projected during the forecasted period of 2019 to 2026, according to research presented by Acumen Research and Consulting in its report, “Automotive LiDAR Market Size, Share, Trends, Scope, Growth Opportunity and Forecast 2019-2026.”

The decrease in manufacturing prices has boosted the demand for LiDAR sensors in the automotive industry. However, consumer trust is the biggest challenge faced by the global automotive LiDAR market due to increase in the number of incidents by self-driven cars, which may negatively impact the growth of the market in the forecast period. The LiDAR manufacturing industries are backed by a host of major automobile market players. One such player is Velodyne LiDAR, which is financially supported by Ford Motor Co. Another LiDAR developer is Luminar Technologies, funded by AB Volvo. With the announcement of BMW AG to launch its self-driving cars in 2021, Innoviz Technologies has signed an agreement with the company to supply LiDAR sensors for its level 3-5 autonomous vehicles.

The global automotive LiDAR market is segmented by LiDAR type, application, and region.

Based on LiDAR Type, the market is segmented into mechanical automotive LiDAR and solid-state automotive LiDAR. Solid-state LiDARs are expected to have significant growth for the market because of their high-resolution and cheaper solutions. In addition to this, unlike mechanical automotive LiDARs, the solid-state automotive LiDAR does not rely on movement of the objects to have precise measurements.

Based on application, the market is segmented into LiDAR for robo-taxis and LiDARs for advanced driver-assistance systems (ADAS) and autonomous vehicles. LiDAR for ADAS and autonomous vehicles are expected to dominate the global automotive LiDAR market. Increase in R&D activities across ADAS and autonomous vehicles have boosted the growth of the global automotive LiDAR market.

Geographically, global automotive LiDAR market is segmented into North America, Europe, Asia Pacific, Latin America, and The Middle East & Africa (LAMEA).

North America dominates the global automotive LiDAR market due to the growing technological advancements, increase in research and development activities, and mass production of LiDAR sensors in the region. In addition, the region has an evolving market because of the existence of established automotive LiDAR providers in the key countries such as the U.S. and Canada. The progression toward autonomous vehicle technology in commercial cars, robust technology, and early adoption of ADAS are expected to drive the market in the region in forecast period.

The automotive industry in Europe is a strategic and robust industry that is powering the economic growth of the region. Europe is efficiently working on building a connected and automated driving system in the region by introducing self-driven LiDAR-based autonomous vehicles. France and Germany are the key countries that are leading the growth of automotive LiDAR market in the region. Increase in research and development activities and support from the government for developing automated driving systems are expected to boost the automotive LiDAR market in the forecast period.

Asia Pacific is the fastest growing region for the automotive LiDAR market due to the increase in demand for robust technology and autonomous cars in the developing economies. Increase in technological advancements and growing economic developments are the key factors contributing to the growth of automotive LiDAR market. China is the major contributor of the automotive LiDAR market in the region because of the rising demand for mobility services such as robo-taxis.

Latin American and the Middle Eastern countries are projected to drive the LAMEA market as a result of increasing demand for self-driven cars and the growing automotive sector. Africa is expected to have the smallest growth in the market, but it has an optimistic future for the automotive LiDAR market in the forecast period.

Velodyne signed a licensing deal with Veoneer, an automotive supply-chain company, in January 2019 to reduce costs on LiDAR systems. In March 2019, Lumotive announced a beam-steering technology that is expected to considerably advance the reliability and pricing of LiDAR units in the evolving automated car market.

Some of the key players in the global automotive LiDAR market include Luminar technologies Inc., Innoviz Technologies Ltd., Velodyne LiDAR Inc., Continental AG, Infineon Technologies, LeddarTech, Ibeo Automotive Systems GmbH, Garmin Ltd., and Phantom Intelligence.

Another crucial sensor for autonomous vehicles is radar (radio detection and ranging). Radar can detect the presence, direction, distance, and speed of objects near the vehicle by sending out pulses of high-frequency electromagnetic waves that are reflected off the object back to the source.

LiDAR and radar each have distinct advantages and disadvantages. A combination of the two technologies, along with cameras, is used in self-driving vehicles.

In another report by Acumen Research and Consulting, “Automotive Radar Market Size, Share, Trends, Scope, Growth Opportunity and Forecast 2019-2026,” projected growth of the global automotive radar market is revealed. The market is expected to be worth approximately $10.5 billion by 2026 and to grow at a rate of 20.4% from 2019 to 2026.

The global automotive radar market is primarily driven by increase in demand for driver safety and stringent government regulations regarding these safety measures. The continuously increasing use of radar systems per vehicle across the globe has driven the growth of the global automotive radar market. According to the World Health Organization (WHO), road accidents are likely to be one of the major causes of death by the end of 2030. Additionally, increasing R&D expenditure and government initiatives have boosted the growth of the market. Conversely, as the use of these systems is considered illegal in some countries, this factor is expected to slow the growth of the automotive radar market during the forecasted period.

The global automotive radar market is segmented by range type, frequency, application, and region.

On the basis of range type, the market is segmented into short-range radar, medium-range radar, and high-range radar. The short- and medium-range radar is anticipated to witness the fastest growth due to their larger application base. Based on frequency type, the market is segmented into 2X-GHZ and 7X-GHZ. On the basis of application, the market is segmented into autonomous emergency braking (AEB), adaptive cruise control (ACC), blind spot detection (BSD), forward collision warning system, and intelligent parking assistance. ACC is expected to witness the fastest growth till the end of the forecast period.

Geographically, the automotive radar market is segmented into North America, Europe, Asia Pacific, Latin America, and LAMEA.

Europe dominates the global automotive radar markets across the globe, as it is one of the pioneers in the use of automotive radar systems. Also, the rapid adoption of technological innovations and product launches by this region is anticipated to drive the growth of the automotive radar market. Increasing government support and growing expenditure on R&D are also projected to drive the automotive radar market in Europe. France and Germany are the largest contributors to European market growth due to increasing investments in the automotive sector. Additionally, to meet the upcoming demand and grab the major share of the market, most of the key players are investing heavily in research and development activities and using modern technologies in R&D in this region, which has supported the growth of the automotive radar market in Europe.

Asia Pacific is the fastest growing region for the automotive radar market due to the presence of the large developing economy, growing R&D spending, and continuously increasing government support. China and India hold the prominent share in the global market because of the significant spending on automotive and the high level of awareness of ADAS and autonomous vehicle technologies among the people.

However, the Latin American and the Middle Eastern countries markets are projected to drive the LAMEA market. Huge spending power in the Middle East region has also supported the growth of the market.

Some of the key players in the global automotive radar market include Continental, Hella KGaA, Robert Bosch, Autoliv, Infineon Technologies, Valeo, Delphi Automotive, and Texas Instruments. These major players have adopted the strategy of merger and acquisitions and continuous product launches to gain a major share in the market. Increase in R&D spending has also been one of the major strategies adopted by key players in the automotive radar market to gain strategic advantage over their competitors.