Automotive LiDAR Market Projected to Reach US$ 25.75 Billion by 2035, Supported by Increasing Series Production Adoption Says Astute Analytica

The Automotive LiDAR market is defined by Chinese scale, dropping prices, and the first signs of genuine profitability. The technology is no longer “coming soon”—it is here, it is affordable, and it is saving lives on the road today.

Chicago, Jan. 20, 2026 (GLOBE NEWSWIRE) — The global automotive LiDAR market size was valued at USD 1.26 billion in 2025 and is projected to hit the market valuation of USD 25.75 billion by 2035 at a CAGR of 35.16% during the forecast period 2026–2035.

The Automotive LiDAR market is currently positioned at a critical commercial inflection point, characterized by a definitive shift from pilot testing to high-volume manufacturing. Industry adoption has bifurcated, with mass-market integration accelerating rapidly in Asia while Western markets focus on premium vehicle autonomy. This disparity is underscored by shipment velocities; RoboSense and Hesai have effectively normalized scale, delivering 544,200 and 501,889 units respectively in 2024, proving supply chain maturity.

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Competitiveness is now dictated by cost efficiency rather than novelty. Unit prices have breached adoption barriers, with Hesai targeting sub-USD 200 price points and average selling prices in China stabilizing between USD 450–500. This affordability has unlocked massive forward order books, exemplified by Hesai’s exclusive contract for Li Auto’s entire lineup through 2027 and Innoviz’s deployment of 9 units per vehicle for Volkswagen’s ID. Buzz. Consequently, the market is structurally entrenched, driven by verified safety mandates like the 95 km/h Level 3 certification achieved by Mercedes-Benz.

Key Findings

• The Asia Pacific region is projected to lead the automotive LiDAR market, capturing a 57.1% share in 2025.
• By electric vehicle type, the battery electric vehicle segment is forecasted to expand at the fastest pace in the automotive LiDAR market during the forecast period.
• By image type, the 3D segment is anticipated to command the automotive LiDAR market during the forecast period.
• By laser wavelength, the short-wave infrared segment is set to register the strongest growth during the forecast period.
• By level of autonomy, the semi-autonomous segment is projected to post a higher CAGR (27.9%) compared to the autonomous segment during the forecast period.
• By location, the bumper & grill segment is expected to spearhead the market during the forecast period.
• By measurement process, the time of flight (ToF) segment is forecasted to hold dominance in the market during the forecast period.
• By technology, the solid-state LiDAR segment is poised to outpace the mechanical LiDAR segment in growth during the forecast period.

By Electric Vehicle Type, Battery Electric Vehicles Commanding Automotive LiDAR Market through Standardized Tech Integration

The battery electric vehicle (BEV) segment is commanding a staggering 93% share of the passenger car LiDAR market in key regions like China, primarily because new EV architectures are being built around LiDAR as a non-negotiable standard for “intelligent driving.” Zeekr, the premium electric brand from Geely, exemplifies this trend by launching its new Zeekr 7X and 007 Touring models with LiDAR as standard equipment across all trims, not just top-tier options. These vehicles integrate the sensor directly into the roofline, feeding data into the NVIDIA DRIVE Thor centralized computer, which processes the 3D machine vision system for immediate decision-making.

Similarly, Avatr Technology, a joint venture involving Huawei, has released the Avatr 12, a “Four-LiDAR Edition” sedan that uses multiple sensors to create a 360-degree, redundant perception field superior to any automotive camera-only system. This aggressive standardization strategy by EV makers allows them to offer “door-to-door” autonomous navigation capabilities today, rather than promising them in the future across the automotive LiDAR market. As legacy combustion engines cannot easily support the power demands of these supercomputing clusters, the BEV segment effectively monopolizes the high-volume consumer adoption of automotive LiDAR.

By Image Type,  3D Imaging  to Capture the Strong Market Dominance

The 3D image type segment, specifically led by solid-state technologies, is capturing the leading share in the automotive LiDAR market by solving the durability issues that plagued early mechanical spinners. The dominance of this segment is rooted in the “occupancy grid” technology used by industry leaders like Hesai Technology. Hesai’s AT128 solid-state sensor, which has been widely adopted by Li Auto and Xiaomi for their SU7 sedan, generates an ultra-dense 3D point cloud that allows the vehicle’s computer to occupy and define every cubic centimeter of free space around the car.

This “ground truth” data is superior to 2D camera estimations because it does not require AI training to know that an obstacle exists—the laser reflection is absolute proof. RoboSense has further cemented this dominance with its M3 sensor, which utilizes a MEMS-based solid-state design to achieve a 300-meter range without the wear-and-tear of moving parts. By offering a lifespan that matches the vehicle itself (15+ years), solid-state 3D LiDAR has become the only viable choice for mass-production automotive programs, rendering mechanical alternatives obsolete for consumer cars.

Short Wave Infrared Attaining 25% Market Share with Eye Safe High Velocity Detection

The short-wave infrared (SWIR) segment is attaining a significant 25% market share  in the automotive LiDAR market and registering the fastest growth due to the unique capabilities of Frequency Modulated Continuous Wave (FMCW) technology. Unlike legacy Time-of-Flight sensors, SWIR systems operating at 1550nm allow for “instant velocity” detection, a physics-based advantage championed by Aeva. Aeva’s Atlas 4D LiDAR uses this wavelength to detect not just where an object is, but how fast it is moving in the very first measurement frame, a critical safety layer for highway autonomy.

Luminar Technologies continues to drive this segment’s expansion in the automotive LiDAR market by leveraging the 1550nm wavelength’s eye-safety properties; because the liquid in the human eye absorbs this light, Luminar’s sensors can blast lasers at 40x higher power than 905nm systems. This power enables the detection of low-reflectivity objects—like a black tire on a dark road—at 250 meters, a feat confirmed by Mercedes-Benz in their operational design domain for the Drive Pilot system. As OEMs demand higher speeds and greater safety margins for “eyes-off” driving, the physics advantages of SWIR are driving its rapid conquest of market share.

Record Shipment Volumes Signal Transition from Pilot Phases to Mass Market

The Automotive LiDAR market experienced unprecedented expansion in shipments during 2024 and 2025. RoboSense shattered records by achieving a total sales volume of 544,200 units in 2024. Competitor Hesai Technology closely followed with 501,889 LiDAR units shipped globally for the full year. ADAS-specific applications drove these numbers, as RoboSense reported 519,800 units dedicated solely to advanced driver-assistance systems. Such volume indicates a definitive shift toward mass adoption. Hesai further demonstrated this velocity by reaching a monthly delivery run-rate of 100,000 units in December 2024 alone.

Momentum continued into 2025. Ouster achieved a record quarterly shipment of 7,200 sensors in Q3 2025, rebounding from 17,300 sensors in the full fiscal year 2024. Growth metrics remain staggering. Hesai ADAS shipments in Q3 2024 grew by 220% year-over-year to 129,913 units. Similarly, RoboSense recorded a year-over-year sales volume increase of 109.6% for 2024. Cumulative historical sales for RoboSense surpassed 583,500 units by mid-2024. Overall, the Automotive LiDAR market saw global passenger car shipments reach an estimated 1.6 million units in 2024.

Drastic Price Erosion Accelerates LiDAR Integration Across Non-Luxury Vehicle Tiers

Rapid price erosion has become the primary catalyst for growth within the Automotive LiDAR market. Hesai aggressively targeted the mass market by announcing a price of less than USD 200 for its next-gen ATX LiDAR in late 2024. Market analysis confirms that the average selling price (ASP) in China dropped to a range of USD 450–500 in 2024. RoboSense mirrored this trend, reducing unit prices for ADAS products to approximately 2,600 RMB (USD 360) in Q1 2024. Analysts observed a general year-over-year price decline of 15.56% for ADAS units in 2024.

Cost reductions stem from engineering breakthroughs. RoboSense achieved a 50% cost reduction for its M3 sensor compared to traditional models. While China leads in affordability, the global average selling price remained between USD 700 and USD 1,000 in 2024. Corporate valuations reflected these pricing pressures. Koito Manufacturing acquired remaining shares of Cepton for USD 3.17 per share in 2024. Such affordability is critical for the Automotive LiDAR market to penetrate non-luxury vehicle segments effectively.

Compact Long-Range Sensors Resolve Design Frictions and Boost Safety Capabilities

Technological advancements in 2024 and 2025 focused on reducing size while boosting power. Hesai launched the ATX sensor in 2024, achieving a 60% reduction in volume compared to earlier models. The device weighs merely 360 grams. Simultaneously, RoboSense debuted the M3 LiDAR, featuring a range of 300 meters at 10% reflectivity. The M3 utilizes a 940nm wavelength laser, successfully moving away from costly 1550nm systems. These innovations define the modern Automotive LiDAR market.

Performance metrics have scaled drastically alongside physical downsizing. Hesai’s ATX operates with efficient power consumption of just 8 Watts. RoboSense achieved an ultra-precise angular resolution of 0.05° x 0.05° with the M3. Furthermore, Valeo’s Scala 3 now delivers a point cloud density of 12.5 million points per second. Hesai also pushed field-of-view boundaries, offering 140 degrees horizontally on the ATX. Such specs ensure the Automotive LiDAR market meets the rigorous safety demands of high-speed driving.

Rapid Model Integration in Asia Establishes Blueprint for Global Standardization

Integration rates within the Automotive LiDAR market are skyrocketing, particularly in Asia. As of mid-2024, 128 vehicle models in China featured equipped LiDAR systems. RoboSense secured design wins for 71 vehicle models by May 2024. Hesai surpassed 100 design wins with OEMs by the end of 2024. Data indicates a standard fitment rate of 6.3% for new passenger cars in China as of May 2024.

Global partnerships are expanding, though regional disparities exist. RoboSense partnered with 22 global OEMs and Tier 1 suppliers by mid-2024. In contrast to China’s volume, the U.S. market saw only 2 new models launch with LiDAR in 2024. Europe fared slightly better, introducing approximately 10 new models in the same period. These figures highlight the Asia-centric growth engine currently powering the market.

Revenue Breakthroughs and Profitability Validate Long-Term Commercial Viability for Suppliers

Financial maturation is finally visible across the Automotive LiDAR market. Hesai reported full-year 2024 revenue of USD 285 million (RMB 2.08 billion). RoboSense generated substantial annual revenue of RMB 1.65 billion in 2024. Hesai achieved a historic milestone, becoming the world’s first LiDAR company to achieve full-year non-GAAP net profitability in 2024. Such financial stability attracts further investment.

Western entities also showed revenue resilience. Ouster reported USD 111 million in total revenue for full-year 2024, achieving 33% year-over-year growth. Luminar Technologies reported Q3 2025 revenue of USD 18.7 million. Innoviz reported Q3 2024 revenue of USD 4.5 million. Ouster generated USD 39.5 million in revenue in Q3 2025 alone. These revenue streams validate the sustainable business models emerging within the Automotive LiDAR market.

Expanding Gross Margins and Robust Liquidity Ensure Resilience Against Market Volatility

Profitability metrics within the Automotive LiDAR market improved significantly throughout 2024 and 2025. Ouster achieved a remarkable GAAP gross margin of 42% in Q3 2025. Hesai maintained an even higher blended gross margin of 47.7% in Q3 2024. RoboSense improved its full-year gross margin to 17.2% in 2024 while narrowing its adjusted net loss by 8.9% year-over-year.

Liquidity remains robust, allowing companies to weather volatility. Luminar held USD 249 million in cash and liquidity at the end of Q3 2024. Ouster’s cash position stood at USD 154 million post-credit repayment in Q3 2024. Innoviz ended Q3 2024 with a liquidity position of USD 87.7 million. These healthy balance sheets ensure continued R&D investment essential for the Automotive LiDAR market.

Aggressive Intellectual Property Expansion Builds Competitive Moats for Market Leaders

Operational scale drives innovation in the Automotive LiDAR market. Hesai employed 1,142 full-time employees as of year-end 2024. RoboSense increased its R&D headcount to 637 personnel in 2024, investing RMB 620 million in Research & Development. Innoviz focused on efficiency, reducing operating expenses to USD 26.0 million in Q3 2024.

Intellectual property portfolios are expanding rapidly to protect these innovations. Hesai holds over 2,000 patents globally as of 2024. RoboSense added 144 new patents in 2024, reaching a total of 583 authorized patents. Manufacturing capacity is also growing to meet demand. Luminar established an initial production capacity of 250,000 sensors per year at its Mexico facility in 2024. These assets form the backbone of the Automotive LiDAR market.

High-Speed Autonomy Certification Transforms LiDAR from Novelty to Necessity

Consolidation and regulation are reshaping the Automotive LiDAR market landscape. Koito Manufacturing’s acquisition of Cepton was valued at approximately USD 50 million for the remaining stake. RoboSense expanded its reach, serving a total customer base of 2,800 clients by the end of 2024. Innoviz secured 2 new OEM programs for its Level 4 platform in Q3 2024.

Regulatory bodies are finally approving higher speeds for autonomous driving. Mercedes-Benz received approval to increase the top speed of its LiDAR-equipped Drive Pilot to 95 km/h in late 2024. Future targets are even more aggressive. Germany aims for Level 3 autonomy at 130 km/h by 2030. RoboSense confirmed its M3 LiDAR supports L3 autonomy at speeds up to 120 km/h. The global L4 LiDAR market segment was forecast to reach USD 166 million in 2024.

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​Automotive LiDAR Market Key Players:

• Continental AG
• Delphi Automotive
• First Sensor AG
• Infineon Technologies AG
• Innoviz Technologies, Ltd
• LeddarTech, Inc.
• Quanergy Systems, Inc
• Texas Instruments, Inc.
• Velodyne LiDAR, Inc.
• ZF Friedrichshafen AG
• Other Prominent Players

Key Market Segmentation:

By Technology Type:

• Mechanical LiDAR
• Solid-state LiDAR

By Image Type:

• 2D
• 3D

By ICE Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles (LCVs)
• Heavy Commercial Vehicles (HCVs)

By Range:

• Short- and Mid-range LiDAR (170 Meters and Below)
• Long-range LiDAR (Above 170 Meters)

By Laser Wavelength:

• Near-infrared
• Short-wave Infrared
• Long-wave Infrared

By Location:

• Bumper & Grille
• Headlight & Taillight
• Roof & Upper Pillar
• Others

By Measurement Process:

• Frequency-modulated Continuous Wave (FMCW)
• Time of Flight (ToF)

By Level of Autonomy:

• Semi-autonomous
• Autonomous

By Electric Vehicle Type:

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)
• Hybrid Electric Vehicle (HEV)

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

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About Astute Analytica

Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.

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