The global LiDAR market is expected to grow at a CAGR of 13.45% to reach a market size of US$4.174 billion in 2024 from US$1.957 billion in 2018. Increasing spending by governments across the globe into strengthening their defense is one of the major factors driving the growth of this market. Rising incidence of terrorist attacks and geopolitical issues in many regions has been increasing the need for governments to spend in advanced technologies and armaments in order to strengthen their defense. According to a data from the Stockholm International Peace Research Institute (SIPRI), total global spending by governments into defense was around US$1.74 trillion in 2017. The U.S. military and defense sector was apportioned a budget of US$700 billion in 2018, a 15.5% jump from that in 2017, which aimed to strengthen the country’s defense. It has been nearly a decade since LiDAR gained popularity in this sector. By 2011, the National Geospatial-Intelligence Agency (NGA) was using LiDAR in aircrafts for the mapping of Afghanistan’s entire area of around 647,500 square kilometers. The technology has also been in use by many governments for various monitoring and rescue operations. For instance, in 2010, LiDAR played an active role in the mapping of Haiti’s landscape after an earthquake hit it in 2010. This technology has been continuously gaining traction in this sector owing to its numerous benefits, which is driving with it the demand for LiDAR sensors. Furthermore, increasing popularity of autonomous vehicles worldwide has been opening doors to immense growth opportunities for the growth of LiDAR market. Automakers are continuously funneling investments into the development of autonomous vehicles in order to reduce road accidents while improving traffic flow. According to the U.S. Energy Information Administration (EIA), congestion in the country resulted in rise in urban Americans’ travel time by 6.9 billion hours in 2014, resulting in purchase of 3.1 billion gallons more fuel at a cost of US$160 billion. In 2016, Uber launched a pilot program for its self-driving cars in Pittsburgh while Ford Motors has plans to make self-driving taxis that work without steering wheel, brake or gas pedal and making them available for the public by 2021. Growth of self-driving cars is driving with it the demand for advanced technologies like LiDAR, thus boosting their market growth.
By Application, the market is segmented as Agriculture and Precision Forestry, Civil Engineering and Surveying, Defense and Emergency Services, Environmental and Coastal Monitoring, Highways and Road Networks, Mining, Quarries and Aggregates, Rail Mapping and others. Environmental and Coastal Monitoring, and defense and emergency services hold a major share in this market on account of huge spending by governments into these sectors.
Geographically, the global LiDAR market is segmented as North America, South America, Europe, Middle East and Africa, and Asia-Pacific. North America accounted for a major market share in 2017 owing to early adoption of newer technologies coupled with high investments in R&D across various industries. High military and defense budget of countries like U.S. and Canada contributes to the growth of the LiDAR sensor market. Europe also holds a significant share on account of high investments in aerospace and defense sector and autonomous vehicles. The market for LiDAR technology in Asia Pacific is projected to grow at the highest CAGR over the forecast period. The growth of the market in this region is majorly attributed to rising production of autonomous cars in China and increasing government spending in many countries into surveillance and defense.
Major industry players profiled as part of the report are SICK AG, Infineon Technologies AG, Leica Geosystems AG, Velodyne LiDAR, Inc., Quanergy Systems, Inc., Hitachi, Ltd., LeddarTech Inc., Neptec Technologies Corp and Innoviz Technologies, Ltd. among others.
The global LiDAR market has been analyzed through following segments:
By System Type
Agriculture and Precision Forestry
Civil Engineering and Surveying
Defense and Emergency Services
Environmental and Coastal Monitoring
Highway and Road Networks
Mining, Quarries and Aggregates
Middle East and Africa