Source: Fact.MR announcement
The automotive LiDAR market, which held a net worth of $430 million in 2020, is slated to surge to an estimated valuation of $3 billion by the end of 2031 according to a market study conducted by Fact.MR.
Technology has become a crucial aspect of all industry verticals, and this trend is highly prevalent in the automotive industry. Increasing demand for autonomous vehicles (AV) is a major trend that is driving automotive LiDAR (light detection and ranging) market growth.
Rising use of advanced driver assistance systems (ADAS), collision warning systems, lane-departure warning systems, etc., will also favor automotive LiDAR demand growth potential. However, the high costs of automotive LiDAR are anticipated to slow down market growth to some extent over the forecast period.
Automotive LiDAR companies are expanding their business scope by investing in the research and development of new technologies to create better product offerings.
• In April 2022, Efficient Power Consumption, a semiconductor company, announced the launch of a new GaN IC that can be used in these systems for multiple applications, in which autonomous vehicles are also present.
“Increasing technological proliferation and rising demand for autonomous vehicles will propel demand for automotive LiDAR through 2031,” opined a Senior Research analyst.
Key Takeaways from the market study
• In 2020, the automotive LiDAR market stood at a valuation of $430 million.
• Demand for automotive LiDAR is projected to surge at a phenomenal compound annual growth rate (CAGR) of 19.5% from 2021 to 2031.
• Sales revenue for automotive light detection and ranging is anticipated to reach $3 billion by 2031.
• Increasing demand for autonomous vehicles, rapid technological advancements, and rising demand for safety in automotive will majorly propel automotive LiDAR market potential.
• High costs of these systems could potentially slow down market growth to some extent.
• In 2020, solid-state LiDAR accounted for a major market share of 60 percent.
• China, India, Germany, and Japan are anticipated to be the most notable markets for automotive LiDAR over the forecast period.
Automotive LiDAR companies are investing in the research and development of more advanced LiDAR technologies to create better offerings. Increasing popularity of autonomous vehicles will further bring in new opportunities for automotive LiDAR providers over the coming years.
Increasing use of automotive LiDAR in safety systems such as advanced driver assistance systems (ADAS) and collision warning systems will also help the automotive players in this market increase their sales potential.