The value of LiDAR goes beyond self-driving capabilities

Valued at US$1.3bn in 2018, the global LiDAR market is projected to reach US$6.7bn by 2026—a CAGR of 22.7%, according to Fortune Business Insights. However, despite this healthy growth, it has so far proven difficult for manufacturers to reach profitability.

In late 2022, the mixed progress of autonomous vehicle development culminated in investors losing enthusiasm and a drop in valuation for some LiDAR companies. November saw Ford and VW put Argo AI’s LiDAR unit up for sale and the start of a merger between Ouster and Velodyne, which was finally completed in February 2023. In December, two other sensor makers—Ibeo and Quanergy—announced insolvency and filed Chapter 11 bankruptcy respectively.

Could these events mean that Tesla Chief Executive Elon Musk is correct in characterising LiDAR as “a fool’s errand”? Paul Drysch, Chief Executive of LiDAR manufacturer PreAct Technologies, doesn’t think so. However, he tells Automotive World that the technology’s ongoing success depends on broadening its scope, responding to automaker pain points, and adequately preparing for the industry’s future.