The automotive 3D Imaging and sensing market is expected to grow at a CAGR of 18% during the forecast period of 2023 to 2030.  The advanced driver assistance systems (ADAS) in automobiles are the foundation of the progressive increase in automation that is occurring across the globe in the automotive industry. The incorporation of 3D imaging and sensing into automotive systems is an essential component of this automation, which is made possible by continued technological advancements in CMOS image sensors. Once thought to be an unlikely beneficiary of 3D sensing technology, the automotive sector is now featuring sophisticated driver-assistance systems (ADAS) and autonomous vehicles enabled by 5G and the Internet of Things. This has made 3D sensing an essential component of transportation safety. In addition, the LiDAR systems provide short as well as long-range 3D sensing, which enables vehicles to autonomously evaluate their surroundings in real-time. Through the utilisation of automotive 3D imaging technology, vehicles of today are not only mechanical forms of transportation, but they have also developed into information-generating centres that are connected with the outside world. This technology provides protection, an anti-theft function and parking monitoring, as well as forensics, social media, healthcare, and mobile commerce as built-in features in automobiles.

ADAS Key Motivator for 3D Imaging and Sensing Applications

In the same way that CMOS sensors have taken the place of CCD devices, the development of more recent imagers that are focused on certain niches has increased the usefulness of machine vision applications. Quality inspections and machine guiding are two of the most important applications of these systems in the automotive industry. In addition, numerous machine vision technologies are currently being implemented in inspection applications for the automotive industry. This comprises line scan cameras, 3D imaging, multi-camera systems, reading barcodes, and smart cameras. Increases in both the number of cars and the advanced driver assistance systems (ADAS) are the primary contributors to the expansion of the automotive 3D imaging market. However, the price of these sensors is quite high, which is impacting the market growth. Top players operating in the market are focusing on R&S resulting in significant market opportunities.

Increasing Demand for Safety Standards in Vehicles to Boost the Market for 3D Imaging and Sensing

The National Highway Traffic Safety Administration (NHTSA) suggests that an automated driving system should be able to monitor the surrounding driving environment with little to no intervention from a person from level three on up to level five of the autonomous driving scale. The present requirement for driver monitoring systems (DMS) established by Euro NCAP (European New Car Assessment Programme) is well on its way to becoming a European safety standard for next-generation vehicles in terms of in-cabin scanning.

The use of sensors inside the vehicle's cabin is becoming increasingly common in modern vehicles. Monitoring the driver's level of awareness enables it to contribute to an increase in overall vehicle safety, and it can also be integrated into more sophisticated functions like gesture control. These sensors frequently employ VCSEL sources, which call for the application of beam shaping and direction management.

LiDAR Dominated the Market in 2021

LiDAR dominated the cameras market in 2021. In order to generate an exhaustive 3D map of the environment and the things that are found inside it, it is necessary to collect a broad variety of data, ranging from what is happening hundreds of metres down the road to how observant the driver is. One of the most important technologies for both long- and short-range scanning is known as light detection and ranging, or LiDAR for short. LiDAR is superior to traditional scanning-based sensors such as radar and camera-based imaging in terms of the amount of information it captures as well as the level of accuracy it offers. LiDAR is mostly utilised for advanced driving assistance systems (ADAS) in automobiles for the purpose of providing the driver with ease. These systems feature a human-machine interface that allows for safe navigation and easy operation. Due to the autonomous nature of the vehicle, extremely high accuracy and assistance are required for the identification of obstacles, as well as their avoidance and safe navigation across the roadways. The utilisation of LiDAR in robotic vehicles necessitates the utilisation of numerous LiDAR systems in order to map the environment surrounding the vehicle. The implementation of LiDAR is required to achieve a high level of redundancy amongst sensors, which is important to guarantee the safety of the passengers. The highest feasible level of human contact is necessary for robotic vehicles, which are generally more advanced than autonomous automobiles equipped with ADAS systems. Flash LiDAR, a type of LiDAR, is gaining popularity as a result of its ease of use and low cost. It does this by measuring the distance between an object in the field of view by employing a pulse of light, which is typically emitted from a vertical cavity surface emitting laser (VCSEL) array, coupled with a time-of-flight (ToF) camera. This allows it to reconstruct a 3D map of the environment around it. LiDAR is anticipated to play a significant role in the process of developing fully autonomous cars as well as robotic vehicles for the transportation of passengers, which is still in the development stage.

Hardware Segment Contributed over 45% of Market Revenues in 2021

The hardware sector was responsible for the greatest revenue share in 2021, which was more than 45%, and it is anticipated that it would continue to dominate the market during the projected period. However, the software segment is expected to be the fastest growing segment that is to register about 20% CAGR during the forecast period 2023 to 2030. The growth of this particular segment can be attributed to the advanced solutions such as safety and protection, parking monitoring and so on that 3D imaging and sensing technologies are able to offer.

North America Dominating, Asia Expected to Grow the Fastest

In 2021, North America contributed more than 35.0% of the total revenue, and it is predicted that the region would continue to hold the top spot throughout the forecast period. The presence of significant industry players, as well as a high acceptance rate of modern technologies, are some of the factors that are supporting the expansion of the market in the area. It is anticipated that Asia Pacific will experience the largest CAGR growth of 20.8% during the forecast period. The expansion of the local market may be primarily ascribed to the expansion of automotive manufacturing facilities and automation companies. Because of the potential for growth in the sector, countries in the Asia Pacific region, including China, Japan, and India, have been boosting their investments. It is anticipated that the rising level of technological awareness and acceptance in the region would also contribute to the growth of the market.

Fragmented Market Grooming Cut-Throat Competition Among Market Players

The market is characterised by a fragmented competitive landscape due to the presence of a variety of global and regional market participants. Leading companies in an industry are turning to methods such as partnerships, collaborations, acquisitions and mergers, and agreements in order to thrive in an environment that is intensely competitive and grow their corporate footprints. In addition, companies that provide 3D imaging are spending a significant amount of money on research and development efforts in order to produce more sophisticated products and include new technologies and features into the products and services they provide. Companies such as Continental AG, Leddartech, Quanergy Systems, Inc., Velodyne LiDAR, Inc., Novariant, Inc., Denso Corporation, Phantom Intelligence, Teledyne Optech Incorporated, Valeo, and Omnivision Technologies, Inc. and others are among the major players dominating in this market.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive 3D Imaging and Sensing market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive 3D Imaging and Sensing market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive 3D Imaging and Sensing market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive 3D Imaging and Sensing market?
• Which is the largest regional market for Automotive 3D Imaging and Sensing market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive 3D Imaging and Sensing market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive 3D Imaging and Sensing market worldwide?