In 2023, the global lidar market for passenger cars, light commercial vehicles, and robotaxis is estimated at $538 million, up 79% year-over-year. Yole Group expects the market to grow at a CAGR of 38% to reach $3.6 billion by 2029.
Lidar technology used to be costly and limited to its widespread adoption in the automotive sector. However, with the advancement of technology and large-scale production, the cost problem has been significantly alleviated. Chinese companies such as Suteng Juchuang and Hesai Technology have played a key role in driving down the cost of lidar, making it possible for lidar to be used in more vehicle models.
China is far more active in the lidar market than any other country. Local Chinese original equipment manufacturers (OEMs) are aggressively promoting the adoption of lidar, and a large number of new models are expected to be equipped with lidar in 2024. In addition, the average selling price of LiDAR systems in China has also shown a significant decline, further driving the expansion of the market.
The development of autonomous driving technology is another important factor driving the deployment of lidar. With the introduction of urban NOA and L3 and above high-level autonomous driving models, the demand for lidar as a key sensor is growing. The report of CITIC Securities predicts that the shipment of lidar will reach 1.5 million units in 2024.
Figure: Automotive LiDAR Deployment Accelerates in 2024
In order to cope with the rapid growth of the market and the intensification of competition, domestic automotive laser manufacturers have increased investment. Among them, the industrialization project of semiconductor lidar and sensor devices with a total investment of 5 billion yuan signed by the Management Committee of Dezhou Tianqu New Area and Guangdong Pioneer Rare Materials Co., Ltd. is a typical example. The project will introduce advanced production equipment and technology to create a complete LiDAR industry chain and improve the production capacity and quality of domestic automotive LiDAR.
Innovations at the technical level are also driving the deployment of lidar. The application of chip-based technology helps to further reduce costs and improve performance. At the same time, the installation position and form of lidar are constantly innovating, such as behind the windshield or in the headlight position, new installation methods are being explored.
However, in the face of market opportunities and challenges, domestic automotive laser manufacturers also need to maintain a clear mind and keen insight. First of all, problems such as the slow advancement of autonomous driving policies and the frequent occurrence of vicious accidents may have a certain impact on the market, and manufacturers need to pay close attention to policy dynamics and market changes, and adjust their strategies and tactics in a timely manner. Secondly, technological innovation is the key to the development of the automotive lidar industry. Domestic automotive laser manufacturers need to increase R&D investment and continuously introduce more advanced and reliable products to meet the diverse needs of the market.
