Global Market Size, Forecast, and Trend Highlights Over 2025-2037
LiDAR Sensor Market size was USD 2.4 billion in 2024 and is estimated to reach USD 13.7 billion by the end of 2037, expanding at a CAGR of 14.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of LiDAR sensors is evaluated at USD 2.7 billion by the end of 2025.
The global LiDAR sensor sales are estimated to be influenced by a complex and internationally integrated supply chain of standards. The biggest push for LiDAR sensor demand is coming from the automotive, defense, and infrastructure sectors. Digital transformation is increasing the demand for advanced sensor technologies and their components. Gallium arsenide, one of the key materials for LiDAR transmitters, is getting more attention owing to its versatility and enhanced performance. Asia Pacific mainly leads the supply of gallium arsenide across the world. According to the U.S. International Trade Commission, optoelectronic component imports went up by about 11.2% in 2023. During the same year, North America registered a significant growth in the manufacturing and assembly of optoelectronic solutions, particularly for LiDAR sensors.
The study by the U.S. Bureau of Labor Statistics estimates that in 2023, the producer price index for semiconductors and electronic components increased by about 3.9%. During the same period, the consumer price index of the gear used in vehicles, including LiDAR-powered driver-assist systems, exhibited a 3.1% growth. This highlights that the LiDAR tech is steadily gaining demand across the end-use companies. Furthermore, in 2023, the National Science Foundation invested more than USD 73.2 million in research and development activities for the development of precision navigation and spatial sensing technologies. The same source also states that most of the funding was aimed at improving accuracy, shrinking the hardware, and the cost-effectiveness of LiDAR.
LiDAR Sensor Sector: Growth Drivers and Restraints
Growth Drivers
- Rise in public sector investment: The booming investments in infrastructure development projects across the world are accelerating the LiDAR sensor trade. Governments are investing heavily in digital transformation to enhance the country’s position on a global scale. Between 2023 and 2026, the U.S. Department of Commerce aims to invest over USD 500.5 million in the development of smart infrastructure. The public-private investments in urban planning and disaster management are projected to increase the deployment of LiDAR technologies during the foreseeable period.
- Increasing importance of industrial automation: The industrial automation trend is foreseen to create a profitable environment for LiDAR sensor manufacturers. the robotics and automation needs in the warehousing, manufacturing, and logistics sectors are set to increase the application of LiDAR sensing technologies. the B2B solution providers are increasingly investing in LiDAR sensors, particularly for forklifts and robotic arms. Considering the leadership in technological innovations, Japan and South Korea are estimated to dominate the sales of LiDAR sensors in the coming years.
Technological Innovations in the LiDAR Sensor Market
The smart city developments are set to fuel the adoption of advanced LiDAR sensor technologies during the study period. The robotics and automation needs are encouraging end users to invest in LiDAR sensor systems. The table below represents the adoption and results of technologically advanced LiDAR sensors.
|
Technological Trend |
Sector |
Company |
Technology Use Case |
Impact/Metric |
|
AI-Integrated LiDAR |
Automotive |
Cruise (GM) |
Real-time object classification |
22.5% reduction in detection latency |
|
FMCW LiDAR Adoption |
Mobility & AV |
Aurora Innovation |
High-speed object tracking |
Improved detection at 210+ meters |
|
Sensor Miniaturization |
Telecom |
Ericsson |
Infrastructure mapping for 5G tower placements |
17.3% site selection efficiency gain |
AL and ML Integration in LiDAR Sensor Market
The digital transformation trend is projected to increase the sales of LiDAR sensor technologies in the years ahead. The capability of AI and ML in enhancing operational efficiency is boosting their use in LiDAR sensor production. Follow the table below to understand the role of AI and ML in LiDAR sensor technology.
|
Company |
Integration of AI & Machine Learning |
Outcome |
|
Velodyne Lidar |
AI-driven product simulation for automotive-grade sensors |
21.3% cut in time-to-market |
|
Innoviz Technologies |
ML-based sensor calibration and automated testing pipeline |
18.5% decrease in development costs |
|
Aeva |
AI-powered supply chain forecasting and logistics modeling |
14.4% fall in supply chain costs |
Challenges
- Infrastructure and connectivity gaps: The poor infrastructure and connectivity networks are expected to limit the sales of LiDAR sensors in the budget-constrained markets. The lack of digital infrastructure hinders the growth of smart city projects, which is estimated to negatively influence the sales of LiDAR sensing technologies. These solutions are used in the energy infrastructure and are costly to install and maintain. The governments in the price-sensitive markets often refrain from investing in advanced technologies that affect the overall market growth.
- Regulatory fragmentation: The uncertainty in regulations across different regions is creating a challenge for the revenue growth of LiDAR sensor manufacturers. The regulatory fragmentation is leading to delays in new product launches, which directly affects the pockets of manufacturers as they cannot earn from the latest trends. The redesign of the product as per regulations across regions adds costs to the overall production, limiting the sales of LiDAR sensors.
LiDAR Sensor Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
14.8% |
|
Base Year Market Size (2024) |
USD 2.4 billion |
|
Forecast Year Market Size (2037) |
USD 13.7 billion |
|
Regional Scope |
|
LiDAR Sensor Segmentation
End user (Automotive, Aerospace & Defense, Industrial Automation, Agriculture & Forestry, Energy & Utilities)
The automotive segment is projected to account for 48.3% of the global LiDAR sensor market share by 2037. The increasing demand for advanced automotive technologies and driving systems is accelerating the use of LiDAR sensors. The U.S. Department of Transportation’s (NHTSA) multiple policies under its Automated Vehicles 4.0 initiative are expected to fuel the installation of LiDAR for safety compliance in automobiles. The automation of vehicles, increasing demand for luxury and supercars, and customization trends are expected to propel the sales of LiDAR sensors in the years ahead.
Technology (Solid-State LiDAR, Mechanical LiDAR)
The solid-state LiDAR segment is estimated to capture 50.5% of the global LiDAR sensor market share throughout the assessed period. The miniature design, high reliability, and cost-effectiveness are prime factors contributing to the increasing sales of solid-state LiDAR sensing technologies. The technical report on autonomous mobility systems by the National Institute of Standards and Technology states that solid-state LiDARs enhance system integrity and make them highly suitable for large-scale AV manufacturing. Continuous technological innovations are projected to enhance the capabilities of solid-state LiDAR in the coming years.
Our in-depth analysis of the global market includes the following segments:
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Technology |
|
|
Application |
|
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End user |
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Customize this ReportLiDAR Sensor Industry - Regional Scope
North America Market Forecast
The North America LiDAR sensor market is anticipated to hold 31.5% of the global revenue share through 2037. The digitalization trend and increasing smart manufacturing practices are boosting the use of LiDAR sensors. The swiftly expanding automotive sector is propelling the demand for LiDAR sensing technologies. The zero-emission goals and increasing investments in energy capacity expansion are poised to drive the sales of LiDAR sensors in the coming years.
In the U.S., the growing public investments in digital infrastructure, defense innovation, and smart transportation are foreseen to propel the sales of LiDAR sensors. In 2024, the NTIA report stated that around 5.5% of the federal budget was allocated to ICT projects. This also included the expansion of LiDAR-enabled systems for autonomous vehicle navigation, broadband mapping, and military surveillance. The rising investments in digital technologies and robust connectivity networks are projected to double the revenues of LiDAR sensor producers.
The leadership of Canada in the clean energy sector, owing to its high investments in capacity expansion and advanced technologies, is expected to increase the application of LiDAR sensors. In 2024, Innovation, Science and Economic Development (ISED) declared that the investments in the research and development of the information, communication, and technology sector increased by 14.5%. Both the public and private companies are expected to boost the manufacturing of LiDAR sensors. Furthermore, the digital transformation and expanding smart city projects are anticipated to increase the adoption of LiDAR technologies.
APAC Market Statistics
The Asia Pacific LiDAR sensor market is foreseen to increase at a CAGR of 13.9% from 2025 to 2037. The supportive government policies and favorable schemes are opening profitable doors for LiDAR sensor manufacturers. China and India are investing heavily in digital programs, which is expected to increase the application of LiDAR sensor technologies in the years ahead. The Ministry of Industry and Information Technology (MIIT) estimates that the public spending on LiDAR technology increased by 16.9% from 2018 to 2023. Japan and South Korea are set to lead the innovation trend in the LiDAR sensor market of Asia Pacific.
The robust production of semiconductors and other components is aiding China in dominating the production of LiDAR sensor technologies. Innovations in AI and rising demand for the advanced electronics sector are expected to propel the application of LiDAR sensors in the coming years. The Made in China movement is forecast to increase the domestic manufacturing of LiDAR sensors during the study period. Furthermore, supportive government policies are encouraging new companies to expand their operations in the LiDAR sensor business.
The ongoing infrastructure development and urban planning projects in India are estimated to increase the demand for LiDAR sensor technologies. The government’s aim towards a digital shift is driving lucrative funding in the ICT sector. The Ministry of Electronics and Information Technology (MeitY) states that the government spending between 2015 and 2023 on LiDAR sensor technology grew by 18.5%. Construction, agriculture, and automotive sectors are expected to fuel the sales of LiDAR sensors in the coming years.
Companies Dominating the LiDAR Sensor Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The LiDAR sensor market is mainly dominated by the North American firms owing to their solutions high demand in the automotive and industrial applications. The Asian companies are set to gain leadership in LiDAR sensor technologies due to their know-how techniques. Overall, the leading companies are employing various marketing strategies such as new product launches, technological innovations, mergers & acquisitions, partnerships & collaborations, and global expansion to uplift their position in the competitive landscape. Strategic partnerships with other players and collaborations with end users is set to boost the revenue shares of key players in the coming years.
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Velodyne Lidar |
USA |
15.5% |
|
Luminar Technologies |
USA |
12.3% |
|
Ouster |
USA |
10.4% |
|
Innoviz Technologies |
Israel |
8.9% |
|
Hesai Group |
China |
7.7% |
|
Quanergy Systems |
USA |
XX% |
|
LeddarTech |
Canada |
XX% |
|
Aeva |
USA |
XX% |
|
Cepton Technologies |
USA |
XX% |
|
Sick AG |
Germany |
XX% |
|
Leica Geosystems (Hexagon) |
Sweden |
XX% |
|
Trimble Inc. |
USA |
XX% |
|
RoboSense (Suteng Innovation) |
China |
XX% |
|
Baraja |
Australia |
XX% |
|
XenomatiX |
Belgium |
XX% |
Below are the areas covered for each company in the LiDAR sensor market:
In the News
- In May 2025, Ouster introduced the OS1-128 Rev 7 sensor, tailored for autonomous mining equipment. The sensor features enhanced point cloud density and a ruggedized design that has the potential to withstand harsh industrial environments.
- In March 2024, RoboSense announced the launch of the M2 LiDAR sensor, particularly designed for advanced driver assistance systems (ADAS) in mass-market vehicles. This innovation is gaining traction in China and Europe.
Author Credits: Abhishek Verma
- Report ID: 3854
- Published Date: May 16, 2025
- Report Format: PDF, PPT
