China leads automotive LiDAR market

News and Business

Industry analyst company Yole Group says that, the LiDAR automotive industry will reach US$2 billion in 2027 with the strong push by Chinese players eager to integrate innovative LiDAR technologies. It observes that China has developed an impressive LiDAR industry and has identified 15 LiDAR companies based in China. Yole adds that the move is not new, since Surestar was established in 2005 at the beginning of the 3D real-time LiDAR boom. Also, Chinese LiDAR companies are not small. The global top two 3D real-time LiDAR companies are now Chinese: Hesai and RoboSense.

Pierrick Boulay, senior technology & market analyst at Yole Intelligence says, “The Chinese LiDAR push is not limited to LiDAR companies. China has developed a significant, if not yet complete, LiDAR ecosystem. Among the various LiDAR companies, several provide components, design, and software.”

He cites the example of Hitronics, with 1,700 employees, it designs and manufactures optical components, optical systems, receivers, and lasers. In 2022, the company will offer auto-grade 1,550nm fibre lasers for LiDAR, with a manufacturing capacity of 250k units per year. Another example of the Chinese LiDAR ecosystem is Liangdao. The company develops perception software for LiDAR and has also established LiDAR perception evaluation systems. It is now moving into the development of short-range flash LiDAR. The development of LiDAR perception software can require a team of 200 software engineers. OEMs are shifting from internal to external development for this software.

The Chinese ecosystem is not limited to components, design, or software, but also involves LiDAR users. The Chinese car industry is developing new electric passenger cars with a lot of technology for autonomous driving, including LiDAR. Logistics, smart infrastructures, robotaxis, and delivery robots are also being developed intensively in China, creating a strong and diverse demand for LiDAR. In parallel, Chinese companies are increasing their development in topographic applications.

Finally, there is an important difference between Chinese and foreign LiDAR companies, which could be decisive in the transition to mass-volume production. Although foreign LiDAR companies rely on external manufacturing, RoboSense and Hesai have developed manufacturing capacities in which they will have more control in achieving large-volume production.

The LiDAR market for automotive and industrial applications is expected to reach US$6.3B in 2027 from US$2.1 billion in 2021, with a 22% CAGR between 2022 and 2027. The automotive market will be the primary driver for this growth. The automotive LiDAR market in 2027 is expected to reach US$2.0 billion from US$38 million in 2021. A total of 55 design wins have been announced since 2018. Robotic car applications will also drive the LiDAR market, with an expected value of US$698 million in 2027, from US$120 million in 2021.

Alexis Debray PhD, technology & market analyst at Yole Intelligence says, “LiDAR growth will not be limited to automotive applications. Various projects for smart infrastructure are ongoing, including intersection monitoring and security. Therefore, the LiDAR market for smart infrastructure will reach US$1.1 billion in 2027, from US$108 million in 2021. Furthermore, the automation of the logistics chain is also pulling the LiDAR market. The logistics LiDAR market will reach US$344 million in 2027, from US$92 million in 2021.”

For more information, visit www.yolegroup.com.