Automotive LiDAR Market Trends

Automotive LiDAR Market Drivers

Demand for Autonomous Vehicles

• Rapid urbanization and growing traffic congestion have led to the rise in popularity of autonomous vehicles. LiDAR provides highly accurate 3D mapping and object detection capabilities, which are critical for the safe operation of self-driving cars to navigate complex environments, avoid obstacles, and make real-time decisions, thereby driving up the demand for automotive LiDAR as well.

Imposition of Stringent Road Safety Mandates

• Road accidents and mortality rates due to the same are increasing rapidly around the world. To control the number of road accidents, governments and regulatory authorities around the world are imposing new and stringent regulations to improve road and vehicle safety. LiDAR plays a crucial role in multiple safety systems of a vehicle, which is why imposition of strict road safety regulations will benefit market growth in the long run.

Automotive LiDAR Market Restraints

Technical Limitations

• While LiDAR is quite an impressive technology, it also comes with its own limitations. LiDAR systems have been shown to malfunction or not work accurately in adverse conditions such as storms and heavy rains. This puts a limitation on the application scope of automotive LiDAR thereby hurting market development potential as well.

Limited Range

• Certain automotive LiDAR devices have a limited range and this can adversely affect the performance and capability of autonomous vehicles. The issue is particularly persistent in long-range detection applications while the vehicle travels at a high speed. These range limitations are expected to slow down the use of automotive LiDAR in high-speed vehicles going forward.