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New Delhi: In the past decade, digitalization and artificial intelligence (AI) have transformed the competitive landscape in the automotive industry worldwide. Backed by AI, autonomous product functionality is quickly evolving as most visible requirements for the new age customers

Recent research suggests that the automotive market represents the largest single vertical long-term opportunity for Light Detection and Ranging (LiDAR) sensor technology. LiDAR sensor technology was initially developed and positioned for Three-Dimensional (3D) map making, surveying, and autonomous driving.

The report suggests that this decade, the IoT market is larger than automotive, however automotive will become the largest single market beyond 2030.”The aggregated IoT market size will be substantially larger than automotive in the medium term with automotive catching up by 2030 and, ultimately, expected to become the largest market,” ABI Research said in a latest report.

According to the US-based tech research, the aggregated IoT market size will be substantially larger than automotive in the medium term with automotive catching up by 2030 and, ultimately, expected to become the largest market.

LiDARs to play a crucial role in the auto industry road towards autonomous tech: Report
In 2019, the top 10 OEMs accounted for 68% of the market as a whole, ABI Research highlighted. “As a result, automotive OEMs hold considerable monopoly power, with the ability of automakers to dictate prices to their suppliers only expected to increase as the consolidation trend continues,” it said. This will have the effect of lowering the margin that LiDAR suppliers can achieve in the automotive market, it mentioned.

  Automotive Sales Market Share by OEM 2019
Automotive Sales Market Share by OEM 2019

Furthermore, the report stated that the software-defined car trend is driving OEMs in the direction of hardware platformization, in which OEMs will operate a minimal number of vehicle platforms, enabling differentiation between different models at the software level. “This means that each OEM will be unlikely to source LiDAR sensors from more than one or two vendors at the most, further reducing the business scope for LiDAR technology developers in the automotive space,” the report explained.

Today, the research explains, there are more than 100 LiDAR vendors in the market, but few with enough capital, revenue, and mature product portfolios to be able to address the significant market opportunity. Therefore, consolidation will naturally occur during this decade with ABI Research anticipating that 10 to 20 quality vendors will serve the entire IoT and automotive markets by 2030, with roughly 5 to 10 per market, it noted.

“OEMs in certain regions prefer to engage with local sensor technology developers and suppliers, increasing the number of qualified vendors. As a result, ABI Research expects that the dozens of LiDAR developers targeting the automotive industry today will eventually consolidate to a handful of suppliers, and that no single LiDAR supplier can expect to become a monopolistic supplier of LiDAR sensors to the automotive market,” the ABI Research added

In the automotive market, LiDAR has been positioned as a sensor to support robust perception in highly autonomous vehicle applications, particularly unsupervised autonomous driving applications that mandate a greater level of redundancy in the perception stack. The report emphasized that these applications have yet to materialize at scale in the automotive market; however, almost every prototype or proof-of-concept for unsupervised autonomous driving features a LiDAR sensor in the perception stack.

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