LiDAR Market Size 2024-2028

The LiDAR market size is forecast to increase by USD 6.62 billion at a CAGR of 28.82% between 2023 and 2028. The market is experiencing significant growth, driven by the expanding application areas of this technology. This advanced sensing technology is increasingly being adopted in various industries, including automotive, forestry, mining, and surveying, among others. In the automotive sector, it is gaining popularity for commercial vehicle ADAS and autonomous vehicles due to its ability to accurately measure distances and create 3D maps of the environment. Increasing adoption of sensors in automotive applications, in addition to geospatial mapping and disaster management applications. Additionally, the growing demand for renewable energy sources, particularly wind power, is driving the adoption of light detection and ranging in wind farm applications for measuring wind speed and direction. These factors, coupled with advancements in this technology and increasing investments in research and development, are expected to fueling market growth in the coming years.

What will be the Size of the LiDAR Market During the Forecast Period?

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LiDAR Market Segmentation

The LiDAR market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Product Outlook
  • Airborne LiDAR
  • Terrestrial LiDAR
• Application Outlook 
  • Corridor mapping
  • Engineering
  • ADAS and driverless cars
  • Environment
  • Others
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Application

The market share growth by the corridor mapping segment will be significant during the forecast period. LiDAR technology, utilizing laser scanner systems, plays a pivotal role in generating 3D imagery and digital elevation models for various applications. In corridor mapping, light detection and ranging, whether airborne or terrestrial, is employed for mapping infrastructure such as highways, oil and gas pipelines, and railway lines. This data is essential for planning, executing work, and monitoring potential repairs. 

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The corridor mapping segment showed a gradual increase in market share from USD 415.10 million in 2018. Airborne LiDAR is increasingly adopted for electricity transmission line inspections, offering cost savings and reduced time compared to traditional methods. For instance, the Maharashtra State Electricity Transmission Company in India began utilizing drones equipped with light detection and ranging capabilities for transmission line inspections in July 2020. Beyond corridor mapping and transmission line inspections, the technology is applied extensively in various sectors. In aerospace and defense, 3D terrestrial laser scanning is used for topographical surveys, military and defense applications, and 3D and 4D technology.

In civil engineering and city planning, it is employed for mapping and localization, while in the environmental sector, it is used for monitoring weather, oil sands, wildlife ecosystems, and coastal geospatial services. Moreover, it is integral to industries such as construction, energy, and oil and gas, as well as smart infrastructure, seismology, geomatics, meteorological physics, archeology, and geomorphology. Applications include collision avoidance systems, driver assistance systems, UAV, and MEMS scanners in electromechanical systems. Photogrammetry is another field where this technology is extensively used. Overall, the versatility of this technology makes it an indispensable tool for numerous industries and applications.

By Region

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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period. The expanding application field is one of the key factors driving the market in North America. The US contributes a large share of the market revenue. In North America, the solutions are primarily used for mapping applications in areas where accurate topographic maps do not exist. This technology is also used for disaster management and mapping of ground displacements caused by earthquakes, landslides, and storms. Additionally, these solutions are being used for archaeological surveys throughout North America. Thus, such factors are expected to be the major drivers of the market in this region during the forecast period. 

LiDAR Market Dynamics

The market is rapidly expanding, driven by advancements in 3D mapping, 3D imaging, and laser scanner technology. Airborne LiDAR, often integrated with UAVs (unmanned aerial vehicles), provides crucial data for advanced driver assistance systems (ADAS), including AEB (autonomous emergency braking) and autonomous driving assistance systems. It enhances global navigation satellite systems and electromechanical systems for precise digital terrain models (DTM) and digital surface models (DSM). MEMS scanners and smart grids contribute to advanced geospatial solutions used in urban planning, disaster response, and environmental monitoring. The technology's application in smart city planning and infrastructure monitoring underscores its significance in developing advanced geospatial solutions and supporting sustainable urban development.

Key Market Driver

Expanding application areas of LiDAR technology is notably driving the market growth. Light detection and ranging technology is gaining momentum in construction and engineering. The technology offers several benefits to the construction and engineering industry, including improved team productivity and process efficiency, and accurate project cost estimates. When surveying construction sites using light detection and ranging technology, point cloud data software can be used to estimate project costs. Using point cloud data analysis, construction teams can get a better idea of ??the machines and equipment that may be needed to complete construction. Additionally, the technology can be used to determine the need for maintenance and repair of machinery and equipment in the field. Such pre-analysis at construction sites provides significant cost savings, making it highly valuable and widely used in construction and engineering applications.

In addition to the construction and engineering industries, this technology is also used in public safety, agriculture, utilities, and mining. Recognizing the growing application, the vendor is developing and bringing to market its light detection and ranging solutions that are application specific. The introduction of such application-specific solutions is expected to drive LiDAR market growth during the forecast period. 

Significant Market Trends

The development of LiDAR sensors based on continuous-wave frequency modulation (CWFM) technology is a key trend influencing market growth. One area of design improvement for LiDAR sensor manufacturers is measuring the time and distance it takes for a laser beam to reach and bounce off a target. Most sensors today use a simple time-of-flight approach for this. They emit short pulses and use a precise clock to measure the time it takes for the laser beam to bounce off them. However, the next generation of these sensor makers are working on continuous wave frequency modulation (CWFM) technology for these sensors. This technology continuously transmits a laser beam to a target. These beams are then split in two and one beam travels to the target, bounces off, and recombines with the other beam. The original laser beam has a higher frequency and the two beams travel different distances. So when the first beam recombines with the second beam, they are at different frequencies.

This approach has several advantages over traditional sensors. CWFM LiDAR sensors are not affected by background light. Traditional time-of-flight LiDAR sensors can get confused if other light sources are transmitting on the same frequency. Additionally, these sensors can detect both the speed and distance of an object. Therefore, the development of such sensors based on continuous wave frequency modulation (CWFM) technology is one of the growth trends expected to drive the growth of the market during the forecast period. 

Major Market Challenge

The high cost of LiDAR sensors is challenging LiDAR market growth. The high cost of light detection and ranging sensors poses significant challenges for commercial adoption in various industries. For example, the price of a single Velodyne HDL-64 LiDAR sensor is around USD 75,000. These sensors have seen their costs drop rapidly in recent years. However, even this price poses a challenge for the light detection and ranging market globally as it is too expensive for mass adoption in various industries. Data-based evidence that mass production is likely to significantly reduce the cost of these sensors, as confirmed by multiple value chain participants. These vendors have announced plans to reduce the cost of LiDAR sensors used in various industries.

However, the current low volume production of LiDAR sensors exacerbates existing challenges related to cost pressures faced by end users. Currently, the high cost of these sensors has led various end users, including automakers such as Tesla Inc., to choose other sensors. This is expected to restrain the growth of the market during the forecast period.

Customer Landscape

The LiDAR market research report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Major LiDAR Market Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

GEOKNO: The company is involved in the installation of LiDAR systems in helicopters, vehicles, and airplanes. 

The LiDAR market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• DENSO Corp.
• FARO Technologies Inc.
• GMR Infrastructure Ltd.
• Hexagon AB
• Innoviz Technologies Ltd.
• LeddarTech Inc.
• Luminar Technologies Inc.
• Ouster Inc.
• Phoenix LiDAR Systems
• Quanergy Systems Inc.
• RIEGL Laser Measurement Systems GmbH
• Robert Bosch GmbH
• RoboSense
• SICK AG
• SureStar
• Teledyne Technologies Inc.
• Trimble Inc.
• Valeo SA
• YellowScan
• Zephir Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is experiencing growth across various sectors, including mining sites and inland waterways, driven by the need for efficient water runoff management. The integration of LiDAR (light detection and ranging) with UAV (unmanned aerial vehicle) enhances ADAS (advanced driver assistance systems) and autonomous driving assistance system by utilizing MEMS scanner, global navigation satellite system, and electromechanical system to provide accurate, real-time data for improved vehicle safety and GPS. Furthermore, in military & defense, these systems are crucial to monitor weather conditions and environmental factors, such as those monitored by Canadian environment monitoring stations, including tropospheric pollution and the aftermath of volcanic eruptions. This also plays a key role in air travel and the oil sand monitoring system, highlighting its importance in various industries.

The market's growth is hindered by the lack of educated customers, emphasizing the need for customer education. However, the adoption of this in aerial mapping devices and ADAS segment applications, such as automotive safety applications, is driving market expansion. The LiDAR market is growing rapidly, driven by the integration of technologies like UAV (unmanned aerial vehicle) systems and ADAS (advanced driver assistance systems). Light detection and ranging is essential for providing precise 3D imagery and 3D mapping, which are critical for navigation and environmental analysis. In automotive applications, it enhances AEB (autonomous emergency braking) by accurately detecting obstacles. Laser scanner technology plays a key role in generating detailed digital elevation models, improving both topographical studies and autonomous vehicle performance. As industries seek enhanced spatial awareness, LiDAR's accuracy and versatility make it indispensable for advancements in safety, mapping, and automation.

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What are the Key Data Covered in this LiDAR Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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