LiDAR Market Size, Share & Russia-Ukraine War Impact Analysis, By Component (Hardware and Software), By Type (Mechanical and Solid-state), By Deployment (Ground-based and Airborne), By Range (Short Range, Medium Range, and Long Range), By Industry (Automotive, Aerospace and Defense, Smart Infrastructure, Environment Sector, Oil and Gas, and Others), and Regional Forecast, 2023-2030

The global LiDAR market size was valued at USD 1.90 billion in 2022 and is projected to grow from USD 2.31 billion in 2023 to USD 7.94 billion by 2030, exhibiting a CAGR of 19.3% during the forecast period. North America dominated the light detection and ranging market with a market share of 33.16% in 2022.

Light Detection and Ranging is a remote sensing method that uses light as a pulsed laser scanner to measure ranges (variable distances) to the earth. These light pulses generate precise, two-dimensional, and three-dimensional information about the shape of the earth and its surface properties combined with other data recorded by the airborne system.

The market is driven by the increasing demand for automated cars and various industries for gathering accurate data. With the help of a high-intensity laser tool, a mini electro-mechanical system, a MEMS scanner, and global navigation satellite system transceiver, light ranging can be applied to generate 2D, 3D, or 4D images.

System has wide applications in various areas such as seismology, geomatics, airborne laser track mapping, meteorological physics, archeology, and geomorphology. In addition, using LiDAR in various applications is also carried out by industries such as automotive, aerospace & defense, healthcare, and others. Further, according to the National Oceanic and Atmospheric Administration, (NOAA), system is used for coastal geospatial service and coastal remote sensing.

LIDAR MARKET TRENDS

Offshore Wind Energy Targets to Attract Enormous Investments to Bolster Market Growth

With the increasing adoption of this imaging technology for various mapping and 3D imaging applications, there is exponential growth in its volume and revenue share. Due to the negligible performance dimension of specific existing mapping and imaging solutions, is necessary. This ranging technology uses fewer wavelengths and can detect more tiny objects, making it far more precise than conventional methods.

The imaging system technology is also used in the environment to provide vivid applications. These trends can be attributed to the use of technology internally used for various geoscience applications to produce precise and high-quality 3D data while studying different types of wildlife ecosystems.

RUSSIA-UKRAINE WAR IMPACT

Russia-Ukraine Conflict Could Disrupt the Supply Chain of Imaging Ranging Solutions

The Russia-Ukraine war profoundly affects the global supply chain relationship and raw material price system. Further, the supply chains of the components or equipment could result in delays or shortages in the market. Besides, Ukraine is known for producing electronic components, and the war may lead to disturbances in its manufacturing capabilities, which could affect the overall supply chain.

The conflict can create an atmosphere of instability in Europe and globally, which might deter investment and slow infrastructure development projects. This technology is extensively used in mapping, surveying, and infrastructure planning. Therefore, a decline in such activities could impact the demand for light detection and ranging solutions for various industry verticals.

DRIVING FACTORS

Increasing Demand for 4D LiDAR Solutions for Several Industrial Verticals to Propel Market Growth

Light detection and ranging measures the time of flight of laser points to build a 3D real-time information model about the real world. The system sensor can calculate the distance to each object precisely based on the speed of light by the time the output laser pulse and the reflected pulse overlap. To produce a 3D matrix of its surroundings, system collects millions of those precise distance measurements every second. All the features of 3D System, plus a camera, are available in 4D System. The camera uses depth perception for each pixel, providing precise data by capturing actual time images.

The use of 4D technology for autonomous vehicles, machine vision, and factory automation is expected to propel product demand. 4D technology is foreseen to grow as autonomous cars evolve. The 4D system is expected to help increase the autonomy of the Autonomous Driving Assistance System (ADAS), which can speed up and simplify decisions on how to drive.

For instance, in January 2023, Aeva, a leader in next-generation sensing and perception systems and a global provider of autonomous driving solutions, announced the unveiling of a design for the next-generation PlusDrive highly automated driving solution integrated with Aeva’s Aeries II 4D sensor.

Increased Demand for LiDAR from Unmanned Aircraft Systems, Engineering, Construction, and Other Applications to Aid Market Growth

Wind energy is the fastest-growing renewable energy with low carbon emissions and less pollution. The global wind energy market has grown in recent years, as per the Global Wind Energy Council. The development and management of wind farms, power generation by wind energy, and distribution boost investment in energy development. Ground-based system has been extensively used in a wide range of applications including unmanned aircraft systems, advanced driving assistance systems, measurement, and others.

The demand for this technology would increase with the growing product deployment for this application. For instance, in December 2022, Black Sage Technologies announced that the Air Force Research Laboratory, AFRL, awarded a USD 4.5 million contract to evaluate novel sensing solutions to improve drone detection and discrimination. Black Sage, a leading provider of counter-unmanned aircraft systems (C-UAS), and Spectral Sensor Solutions (S3), a leading provider of LiDAR-based threat sensing capabilities, are teamed to conduct the research program named LiDAR Unmanned Aerial System Detection and Discrimination (LUASDD).

Further, the construction industry uses these solutions to generate precise 3D replicas of buildings and cities without obstacles. Moreover, big companies dominate the global market, focusing on developing and delivering advanced ranging and imaging systems for various applications. Governments have permitted autonomous vehicles to be operated by themselves across countries such as the U.S., Japan, China, and others. These vehicles are equipped with state-of-the-art that allow objects to be detected at a microscopic level, which provides a precise 4D replica of the object.

RESTRAINING FACTORS

Easy Availability of Low Cost Light Photogrammetry Systems may Hamper the Market Growth

The market growth is expected to be slowed by using low-cost and transportable photogrammetry for mapping and surveying purposes. With active sensors, the LiDAR drone identifies objects in the field and then emits a laser beam to determine how far it's from ground targets. In order to allow users to see and calculate the distance of objects in 3D, photogrammetry systems use photographs transmitted from 2D and 3D cartographic models, allowing them to perceive objects below the surface of the ground.

The raging and imaging system drone's costs were almost as high as the photogrammetry systems. They shall bear the low cost of using drones with a single camera for carrying photogrammetry equipment.

This heavy equipment makes it more expensive to fly the laser sensing drones. Consequently, the expansion of the market hampered by easy accessibility to low-cost and light photogrammetry systems.

LIDAR MARKET SEGMENTATION

By Component Analysis

Increasing Demand for Hardware in Different Industries to Propel Segment Growth

Based on component, the market is segmented into hardware and software.

The hardware segment held a major market share in 2022 and is expected to be the fastest-growing segmental market during the forecast period. New upgrades in hardware will witness significant growth in future. For instance, in April 2022, according to a published report, Velodyne, Luminar, Innoviz Technologies Ltd., and AEye, Inc. spent USD 287 million on research and development of systems sensors for better advancement features.

The software segment witnessed parallel growth with the hardware segment. The increasing use of software in industries such as mapping and surveying, construction, and others to create and develop 3D and 4D images for significant models is driving segmental growth.

By Type Analysis

Increasing Need for Advanced and Hightech Laser-Based Sensors to Impel the Demand for Mechanical System

Based on type, the market is categorized into mechanical and solid-state. The mechanical segment size dominated the market in 2022 due to increasing demand for automotive imaging systems for Advanced Driving Assistance Systems (ADAS). With its high reliability and precision, mechanical systems have been extensively used in self-driving vehicles.

The solid-state segment is set to emerge as the fastest-growing segment from 2023 to 2030. The solution can be flexibly and commercially deployed in different sectors. A solid-state ranging system is fabricated on a silicon chip and does not need moving parts. The devices are available in various types, such as microelectromechanical systems, electromagnetic light phase array ORPOPA, and flash. These systems are at an advanced stage, which is mainly preferred by different industry and defense sectors. 

By Deployment Analysis

Increased Acceptance of Corridor Mapping and Environmental Applications to Boost the Demand for Ground-based LiDAR Solutions

The market is classified into ground-based and airborne deployment. Ground-based is the fastest-growing segment during the forecast period. This technology is adopted in a broad range of applications, such as ADAS and autonomous vehicles, meteorological, and corridor mapping. The most common use of a ground-based system is to scan, detect, and generate projections such as flat hills and rocky cliffs on hillsides or canyon walls.

The airborne segment is projected to exhibit steady growth due to an accurate method for creating digital elevation models. The solution offers enhanced precision and a larger area, providing wider-area mapping in moderately fewer time intervals.

By Range Analysis

Increased Demand for Medium-Range Solutions in Various Applications to Fuel Market Growth

By range, the market is categorized into short-range, medium-range, and long-range. The medium-range segment is the fastest-growing segment during the forecast period of 2023-2030. The increasing adoption of medium-range solutions in mapping, exploration, environment, engineering, and other applications is fueling segmental growth during the forecast period.

The long range segment is expected to be the second fastest-growing segment during the forecast period. The increasing adoption is due to the ability to detect small objects at long distances and ensure comfortable braking and safe and predictable automated driving at higher speeds in the automotive industry. Further, the short-range segment is slated to exhibit moderate growth during the forecast period due to the increasing adoption of short-range LiDAR in small robots and vehicles to enhance safety and enable new capabilities. 

By Industry Analysis

Requirement of Driver Safety Systems in the Automotive Sector to Create Lucrative Opportunities for Market Growth

Based on industry, the market is divided into automotive, aerospace and defense, smart infrastructure, environment sector, oil & gas, and others. The automotive industry is the fastest-growing segment during the forecast period and held the largest market share in 2022. The growth in this segment reflects the increasing demand for applications such as ADAS and autonomous vehicles. The emerging technologies are driver assistance systems and low-speed collision avoidance systems, widely used in the automotive industry.

The technologies can enhance monitoring and guidance capabilities for drivers who wish to drive autonomous vehicles despite the absence of a human driver. For instance, in August 2022, Cariad SE chose Innoviz Technologies Ltd. to directly supply sensors for the upcoming automated vehicles within Volkswagen Brands. Innoviz Technologies Ltd. will assist in the latest sensor design and deliver InnovizTwo, the next-generation sensor and perception software.

Further, the aerospace and defense segment is the second fastest-growing segment during the forecast period. The increasing use of ranging systems for battlefield mapping aids in mine countermeasures, autonomous navigation, and determining line of sight in the military and defense sector. The rising demand for 3D System sensors in the construction field to enhance building designs and civil engineering has potential opportunities in the coming years.

For instance, in March 2023, Thale Alenia Space, the joint venture between Thales and Leonardo, signed a contract with the European Commission to launch the project known as EuroHAPS (High-Altitude Platform Systems). The project will test a range of missions with observation and categorize targets on land or at sea.

LIDAR MARKET REGIONAL INSIGHTS

This market is analyzed by region, covering North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

The North American market is predicted to be the dominant and fastest-growing regional market during the forecast period. The growth is attributed to an increasing number of new businesses, a rise in the adoption of core 3D and 4D technologies, and the emerging use of solid-state systems in all industries, such as automotive, smart infrastructure, mapping and surveillance, and so on. Major firms in this region invest strongly in different projects and focus on mergers and acquisitions that could drive the market in the region.

For instance, in December 2022, U.S.-based FARO Technologies, Inc. acquired the startup company SiteScape. The SiteScape is an innovator in 3D scanning software solutions that provide for the engineering and construction, architecture, and operations and maintenance market.

Asia Pacific held the second-largest market share during the study period. The increase in survey and mapping activities due to growing infrastructure development and rise in focus on forestry management and mining operations in this region are driving the market. The product demand is expected to surge by an increase in airborne and ground-based systems. Growing demand for vehicles equipped with automated driving technology will aid regional growth during the forecast period.

In Europe, the market is driven by an increasing number of major companies that have established themselves in emerging economies such as the U.K., Germany, France, and others. The market growth is driven by increasing demand in industries such as car production, machinery, and industrial purposes for hydraulic systems. In addition, the presence of major players such as Hexagon AB, Sick AG, Leosphere, and others is also a factor contributing to market growth in this region.

The light detection and ranging market growth in Latin America and the Middle East & Africa is expected to be sustained with a steady CAGR during the forecast period. The growing initiatives and investments made by the government and key players in municipalities contribute to the market growth.

KEY INDUSTRY PLAYERS

Companies Focus on Mergers & Acquisitions and Partnerships to Gain Competitive Edge

Various regional and international key players are consistently working on formulating advanced strategies to take a competitive advantage. Many companies are forming mergers, acquisitions, partnerships, and collaboration strategies to enable market growth. For instance, in February 2021, Seoul Robotics partnered with LeddarTech. Seoul Robotics and LeddarTech will collaborate to provide advanced perception solutions and real-time solutions of the 3D perception software for sensors.

List of the Key Companies Profiled:

• FARO Technologies, Inc. (U.S.)


• Hexagon AB (Sweden)


• Innoviz Technologies Ltd. (Israel)


• LeddarTech Inc. (Canada)


• Leica Geosystems (Switzerland)


• Ouster Inc. (U.S.)


• Sick AG (Germany)


• Teledyne Technologies (U.S.)


• Trimble Inc. (U.S.)


• Valeo S.A. (France)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 - Ouster Inc. was awarded a production contract from Motional, a global leader in driverless technology. Under the agreement, Ouster will provide Motional with Alpha Prime VLS-128 sensors through 2026 with the serial production.


• December 2022 - RIEGL Laser Measurement Systems GmbH and Schiebel successfully installed a high-precision laser scanner, the RIEGL Vq840G topo bathymetric LiDAR sensor, in the Schiebel CAMCOPTER S100 UAS Unmanned Air System.


• September 2022 - Asia-based automotive OEMs selected Innoviz Technologies Ltd. as their primary LiDAR supplier for the series production of passenger vehicles. Innoviz2 sensors will be supplied to position vehicles for full automation of the L3 system.


• March 2022 - BlackBerry QNX Automotive Operating System selected Innoviz Technologies Ltd. For its LiDAR sensors, BlackBerry will use InnovizTwo, Innoviz's first automotive-grade sytem, Innoviz's next-generation low-cost LiDAR, and Innoviz's hardware for their specially designed safety-critical embedded systems.


• November 2021 - Hexagons Geosystems partnered with Airbus to integrate two Leica Chiroptera 4X bathymetric LiDAR sensors into C295 Maritime Surveillance Aircraft, an Airbus maritime surveillance aircraft.

LIDAR MARKET REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into LiDAR market share, and trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 19.3% from 2023 to 2030
Unit	Value (USD Billion)
Segmentation	By Component, By Type, By Deployment, By Range, By Industry, By Region
Segmentation	By Component Hardware Software
By Type Mechanical Solid-state
By Deployment Ground-based Airborne
By Range Short Range Medium Range Long Range
By Industry Automotive Aerospace and Defense Smart Infrastructure Environment Sector Oil and Gas Others
Regions	North America (By Component, By Type, By Deployment, By Range, By Industry, By Country) U.S. (By Deployment) Canada (By Deployment) Europe (By Component, By Type, By Deployment, By Range, By Industry, By Country) U.K. (By Deployment) Germany (By Deployment) Italy (By Deployment) Spain (By Deployment) Rest of Europe (By Deployment) Asia Pacific (By Component, By Type, By Deployment, By Range, By Industry, By Country) China (By Deployment) Japan (By Deployment) India (By Deployment) Southeast Asia (By Deployment) Rest of Asia Pacific (By Deployment) Middle East & Africa (By Component, By Type, By Deployment, By Range, By Industry, By Country) UAE (By Deployment) Egypt (By Deployment) Saudi Arabia (By Deployment) South Africa (By Deployment) Rest of Middle East & Africa (By Deployment) Latin America (By Component, By Type, By Deployment, By Range, By Industry, By Country) Brazil (By Deployment) Mexico (By Deployment) Rest of Latin America (By Deployment)