Automotive LiDAR Market to Reach USD 10.51 Billion by 2034

The automotive LiDAR market, valued at USD 1.30B in 2024, is expected to reach USD 10.51B by 2034, growing at a CAGR of 23%.

Automotive LiDAR Market Key Takeaways

  • North America dominated the global market with a 38% share in 2024.
  • Europe is expected to experience a strong CAGR from 2025 to 2034.
  • The advanced driver assistance system (ADAS) segment held the largest market share in 2024.

Automotive LiDAR Market Size 2025 to 2034

The global automotive LiDAR market was valued at USD 1.30 billion in 2024 and is expected to grow significantly, reaching USD 10.51 billion by 2034, driven by a strong CAGR of 23%. North America led the market in 2024 with a 38% share, while Europe is projected to experience a profitable CAGR from 2025 to 2034. The advanced driver assistance system (ADAS) segment dominated the market in 2024, contributing to the industry’s growth. As automotive technologies evolve, LiDAR systems are becoming increasingly integral to ensuring safety and driving automation.

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Market Scope

Report Highlights Details
Market Size by 2034 USD 10.51 Billion
Market Size in 2025 USD 1.62 Billion
Market Size in 2024 USD 1.30 Billion
Growth Rate from 2025 to 2034 CAGR of 23%
Largest Market North America
Base Year 2024
Forecast Period 2025 to 2034
Segments Covered Product, Component, Application, and Region
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Key Drivers

Key drivers of the automotive LiDAR market include advancements in autonomous driving technologies, increasing demand for safety features in vehicles, and the growing adoption of advanced driver assistance systems (ADAS). The need for high-precision mapping and real-time data processing to support self-driving vehicles is a significant factor. Additionally, regulatory pressures for enhanced vehicle safety and the rising awareness of environmental concerns are propelling the market growth. The continuous innovation in LiDAR technology, making it more cost-effective and efficient, also contributes to the market expansion.

Opportunities

  • Provides high-resolution, accurate 3D mapping for autonomous vehicles.
  • Improves vehicle safety by enabling advanced driver assistance systems (ADAS).
  • Enhances real-time obstacle detection and navigation.
  • Facilitates the development of fully autonomous driving systems.
  • Offers long-range sensing capabilities, which are critical for autonomous vehicles.

Challenges

  • High cost of LiDAR sensors, limiting affordability for mass-market vehicles.
  • Performance can be affected by weather conditions, such as fog or heavy rain.
  • Limited integration in some existing vehicle models due to hardware constraints.
  • High data processing requirements, demanding advanced computing power.
  • LiDAR technology still faces challenges in scalability and widespread adoption.

Regional Insights

In North America, the automotive LiDAR market is leading, accounting for 38% of the global share in 2024. This dominance is primarily driven by significant investments in autonomous vehicle development and advanced driver assistance systems (ADAS). The region’s strong presence of key players and research and development initiatives further accelerates market growth. Europe is expected to witness a profitable CAGR between 2025 and 2034, driven by increasing regulatory mandates for vehicle safety and environmental standards. In the Asia Pacific region, rapid advancements in autonomous driving technology and growing automotive production are expected to contribute to substantial market growth, particularly in countries like China and Japan.

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Market Key Players

Recent News

In November 2024, China’s Hesai Group, a leading manufacturer of lidar sensors for autonomous driving, announced plans to reduce the price of its key product by half in the coming year. This strategic move aims to increase the adoption of lidar technology in electric vehicles (EVs), making it more accessible even for lower-priced models. The company intends to price its new ATX lidar for advanced driver assistance systems (ADAS) under $200, leveraging self-developed chips and improved manufacturing processes to achieve this cost reduction. This initiative is expected to boost the adoption rate of lidar to 40% for higher-priced EVs, positioning Hesai to play a pivotal role in the future of autonomous driving.

Market Segmentation

By Product Type

  • Aerial
  • Mobile
  • Terrestrial/Static
  • Short-range

By Components

  • Laser
  • GPS/GNSS Receiver
  • Camera
  • Inertial Navigation System
  • Micro Electro Mechanical System

By Application

  • Advanced Driver Assistance System (ADAS)
    • Adaptive Cruise Control
    • Automatic Emergency Braking
  • Autonomous Cars

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