Automotive LiDAR market to surpass $2 billion by 2026
The global automotive LiDAR (light detection and ranging) market is projected to expand at a compound annual growth rate of more than 35% from 2018 to 2026. According to the market report, “Automotive LiDAR Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018 – 2026,” published by Transparency Market Research, the rise in adoption of intelligent active safety systems in vehicles due to the increasing trend of autonomous vehicles is expected to drive the automotive LiDAR market during the forecast period. Increased testing of autonomous vehicles by major OEMs worldwide, especially in the U.S. and Germany, is expected to offer significant growth opportunities to the automotive LiDAR market.
Automotive LiDAR is a technology that surveys or maps the surroundings via light in the form of a pulsed laser. In this technology, light projected from the emitter is reflected back when it strikes an object and is collected by the receiver. Based on the time and angle of the received light, an image projection of the object, which helps analyze the surrounding conditions, is generated.
The global automotive LiDAR market is a highly competitive market due to the presence of major LiDAR manufacturers. Key players operating in the global automotive LiDAR market include Velodyne LiDAR, Inc., Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Denso Corporation, Delphi, Magna International Inc., Valeo, LeddarTech, Teledyne Technologies Incorporated, Infineon Technologies AG, Quanergy Systems Inc., Phantom Intelligence, TriLumina, HELLA GmbH & Co., KGaA, Ibeo Automotive Systems GmbH, and AEye Inc.
In the U.S., a study conducted for 25 states concluded that vehicles deployed with advanced safety technologies reduced fatality rate and injuries by 21%. This dramatic reduction has led to an increase in incorporation of advanced driver assistance systems in vehicles, which in turn is expected to augment the automotive LiDAR market during the forecast period.
The increased development of autonomous and self-driving vehicles is expected to play a vital role in the development and production of automotive LiDAR systems. Automotive LiDAR provides benefits over the combination of radar and camera. These benefits include enhanced real-time obstacle detection with higher accuracy and the ability to work in severe climate conditions. These key factors are anticipated to boost the global automotive LiDAR market during the forecast period. Major auto manufacturers worldwide have begun production of vehicles deployed with automotive LiDAR because of its additional functions in adaptive cruise control and autonomous emergency braking systems. This, in turn, is anticipated to prompt vehicle users to opt for safety technologies such as automotive LiDAR during the forecast period.
The bumper and grill location segment dominated the automotive LiDAR market in terms of revenue. During the initial stages of the development of automotive LiDAR, roof location was preferred because of the mechanical LiDAR, which rotated 360 degrees to detect obstacles and navigate. Development of small and compact solid-state LiDAR has led to a wider area on the vehicle being available for the location of LiDAR.
In terms of application, the autonomous emergency braking system holds a prominent share of the market because of its rising adoption and implementation of stringent safety standards. The autonomous emergency braking system employs laser sensors around the vehicle to monitor and prevent potential vehicle collisions. The automotive LiDAR emits a laser pulse, which is reflected off an object and projected in the form of an image in front of the driver. The LiDAR intervenes on the driver's behalf to avoid or mitigate vehicle collision.
Based on image projection, 3D was a highly attractive segment of the automotive LiDAR market. Currently, the 2D segment accounts for a major share of the market because of its considerable presence across the region. Automotive LiDAR manufacturers are focusing on the development of more advanced LiDAR, with improved image projection, which will lead to the innovation of 3D LiDAR.
In terms of sales channel, the aftermarket segment accounts for a prominent share compared to the other segments. This is due to the increased testing of self-driving cars. The aftermarket segment is anticipated to expand at a considerable growth rate because of the increased level of autonomy in premium vehicles.
Based on vehicle type, the passenger vehicle segment holds a major share of the market due to the rising production of vehicles with increased autonomy levels. In terms of revenue, the passenger vehicle segment held a prominent share of the automotive LiDAR market in 2017. Commercial vehicle is expected to be a highly lucrative segment of the market due to research and development in the field of public transit to ensure safety of passengers.
Solid-state LiDAR is a highly attractive segment of the market due to its cost, size, and location compared to mechanical LiDAR, which is mounted either on the roof or hood of the vehicle. Automobile LiDAR manufacturers are upgrading solid-state LiDAR to provide better efficiency at low cost.
Based on range type, in terms of volume, the medium- and long-range LiDAR segment is projected to expand at a higher CAGR during the forecast period. Medium- and long-range LiDAR is expected to increase the range of LiDAR and to detect and monitor vehicles and objects in front of the vehicle from a longer distance. Navigation is expected to drastically improve because of the extended range of automotive LiDAR.
Europe dominated the global automotive LiDAR market in 2017. Europe and North America are anticipated to be prominent markets for automotive LiDAR during the forecast period due to the rising awareness of safety and increasing adoption of these sophisticated technologies in these regions. Many automotive LiDAR manufacturers are working to improve efficiency and build cost-effective LiDARs in these regions. This, in turn, boosts the vehicle penetration level, which is relatively well developed compared to other mass auto manufacturing regions. The automotive LiDAR market in Asia Pacific is also expected to expand at a significant growth rate due to the increasing sales and presence of prominent automotive LiDAR manufacturers in the region, particularly in China and Japan. Automotive LiDAR is expected to witness a noteworthy rise in rate of adoption in all mass manufacturing regions. This is due to its additional operation and consistent reduction of cost across the world.
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