LiDAR Market Analysis Report By Product Type, By Component, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global LiDAR market size was worth USD 1.1 billion in 2019. It is estimated to expand at 13.2% CAGR over the forecast duration. In the recent past, there has been technological advancement in the spatial resolution of the LiDAR-enabled digital terrain models. Owing to this, it has become easier to measure the distance by the digital 3-dimensional representation of the target. Therefore, various operations such as water runoff for mining and agricultural sites, hillside change detection, and similar operations can be performed with high accuracy. In addition, LiDAR (Light Detection and Ranging) can be very useful for different industrial applications owing to its high accuracy. These factors collectively supplementing the growth of the market over the forecast period.

The demand for three-dimensional imagery is gaining traction in various applications such as topographical surveys, corridor mapping, military & defense, civil engineering, and others. LiDAR's ability to provide an accurate digital 3-D representation of a target makes it an ideal choice for these applications. Various applications where 3D imagery is used include city planning, corridor mapping, and 3D mapping. Further, LiDAR is vital for autonomous mobility. The operation of self-driving cars is approved in countries like the United States. For accurate navigation, LiDAR systems are integrated with the GPS in autonomous cars.

The use of LiDAR in the monitoring environment and weather conditions is prevented. For example, the government of Canada uses LiDAR technology to monitor tropospheric pollution. In addition, LiDAR technology is useful in monitoring the ash flow during volcano eruptions to figure out how ash can causes a problem to air travel. Further, the technology is likely to find its application in monitoring oil sand.

However, a lack of benefits associated with this technology is projected to hamper its growth over the forecast duration. Therefore, awareness and customer education are critical in making full use of this technology.

Product Type Insights

Depending on the product, the Light Detection and Ranging (LiDAR) market is classified into terrestrial, mobile & UAV, and airborne. Of them, the airborne division accounted for the highest share in the market in 2019. The rising penetration of aerial mapping devices is attributing to the growth of this segment. Aerial LiDAR creates digital elevation models accurately, thus, replaces photogrammetry. Compared to terrestrial models, this system provides coverage to larger areas and offers enhanced accuracy.

On the other hand, terrestrial LiDAR, which can be both stationary and mobile, obtains XYZ coordinates on land. For conventional topography, documentation of cultural heritage, and forensic and for monitoring, stationary terrestrial LiDAR systems are ideal. Mobile & UAV LiDAR operates in both aerial and mobile models.

In the recent past, there has been a rise in the adoption of mobile & UAV LiDAR. Further, the introduction of new products in the market is likely to increase the investment by key players. For example, RIEGL Laser Measurement Systems GmbH, in 2019, introduced airborne LiDAR, which is lightweight and meant for UAVs.

Components Insights

By component, the LiDAR market is segregated into GPS components, navigation Inertial Measurement Unit (IMU) devices, laser scanners, and others. Owing to the higher adoption, aerial mapping and scanning are likely to register increased demand. In 2019, the laser scanner segment held the highest share in the market. Further, the segment is projected to lead from 2020 to 2027.

Laser scanners record intensity value and thereby, provide return signal strength to differentiate the objects of varied reflectivity. In addition, these scanners provide two-dimensional point cloud data that is useful in mapping, environmental modeling, and localization. The laser scanners segment is projected to witness over 15% CAGR from 2020 to 2027. Further, the declining cost of laser scanners is likely to offer manufacturers new growth opportunities.  For example, Pepperl+Fuchs introduced a multi-layer scanner named R2300 in 2019. This product uses LiDAR laser measurement technology and offers comparatively high measurement density.

Application Insights

Advanced driver assistance systems (ADAS), exploration, corridor mapping, environment, engineering, and others comprise the application segment. Among them, in 2019, the corridor-mapping category held the highest share in the market. On the other hand, the ADAS segment is projected to witness the highest CAGR of over 18.0% over the forecast duration. The increasing adoption of LiDAR-based sensors in various automotive applications is attributing to the growth of this segment.

The corridor-mapping share is estimated to decline over the forecast duration. Technologies such as driver assistance systems and low-speed collision are likely to gain traction over the forecast duration. The assisted driving system in automobiles is becoming popular. This system uses radar and cameras to sense the surrounding environment and prevent any possible collision. Considering the increasing demand for the automotive industry, key players are focusing on introducing an enhanced product to gain a larger market share. For example, VelodyneLidar, Inc. acquired Mapper.ai, Inc. in 2019 to bolster its ADAS system production.

Regional Insights

North America dominated the LiDAR market in 2019 due to the regulations that mandate the use of LiDAR technology to ensure enhanced safety in automobiles. The use of the LiDAR system is prevalent in both heavy-duty and light-duty vehicles. Airborne LiDAR systems are widely used in varieties of applications in Canada and the United States. Increasing adoption of the LiDAR system in automatic emergency braking (AEB) and ADAS is expected to offer lucrative growth opportunities for the market.

On the other hand, Asia Pacific is estimated to register the highest growth of over 19.0% CAGR over the forecast duration. Emerging countries such as India and China are likely to emerge as lucrative investment destinations owing to the rise in investment made by both domestic and international players. For example, Ouster LiDAR, in 2019, opened its new centers in Hong Kong, Shanghai, and Paris as part of its expansion strategy in Europe and the Asia Pacific.

Impact of COVID-19

The outbreak of COVID-19 has negatively affected the market. LiDAR technology is mostly used in engineering, automotive, exploring, and corridor mapping. Following the virus outbreak in late 2019, these industries were either forced to shut down or operated with limited capacity, thereby leading to a significant fall in the demand for LiDAR technology in the first and second quarters of 2020. Moreover, manufacturers restrain themselves from making huge investments amid low demand, thereby, delaying the introduction of new products. However, with a resumption in various industrial operations in the third quarter of 2020, the market is projected to recover to some extent. However, reaching pre-COVID levels is likely to take a few more years. Financial support from the government is expected to help the market to recover faster.

LiDAR Market Share Insights

Major industry players operating in the market are VelodyneLiDAR, RIEGL USA, Trimble Navigation Limited, and Faro Technologies among others. Owing to changing business needs, security parameters, and technological advancements, industry participants are bound to provide a superior solution to stay ahead in the competition. Europe is the home of a large number of players operating in the market offering the advanced solution.

Amid increasing competition, industry players are also focusing on product differentiation and quality, thereby, understating several strategic measures such as mergers & acquisitions, partnerships, and strengthening their distribution networks.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Million Insights has segmented the global LiDAR market report based on product type, application, component, and region:

• Product Type Outlook (Revenue, USD Million, 2016 - 2027)
    • Airborne
    • Terrestrial
    • Mobile & UAV

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Corridor Mapping
    • Engineering
    • Environment
    • Exploration
    • ADAS
    • Others

• Component Outlook (Revenue, USD Million, 2016 - 2027)
    • GPS
    • Navigation (IMU)
    • Laser Scanners
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
       • The U.S.
       • Canada
       • Mexico
    • Europe
       • Germany
       • The U.K.
       • France
    • The Asia Pacific
       • China
       • India
       • Japan
    • South America
       • Brazil
    • Middle East & Africa