Automotive LiDAR Market to Grow at 32.09% CAGR Reaching USD 6.54 Billion by 2031, Reports Mordor Intelligence | | HYDERABAD, India, April 24, 2026 -- According to the latest report by Mordor Intelligence, the automotive LiDAR market size is expanding rapidly, growing from USD 1.23 billion in 2025 to USD 1.63 billion in 2026, and expected to reach USD 6.54 billion by 2031, at a 32.09% CAGR. This growth is driven by rising adoption of Level 3+ autonomous driving, lower sensor costs, and stricter safety requirements. Chinese OEMs are leading deployments, while advances like FMCW LiDAR enabling up to 400-meter range are pushing wider integration across vehicle segments. Automotive LiDAR Market Trends and Drivers Emerging Innovations in FMCW Sensor Capabilities FMCW LiDAR uses continuous light signals to capture both distance and motion, improving accuracy in real-world driving. It reduces signal interference in crowded traffic and performs better under strong sunlight, making it more reliable across conditions. With automakers planning integration in upcoming premium models and production already scaling, this technology is expected to play a major role in future LiDAR adoption. Falling Sensor Costs Driving Adoption in Mid-Range Vehicles Prices for solid-state LiDAR have dropped sharply in recent years, making these sensors far more accessible beyond luxury vehicles. Improvements in manufacturing, including silicon-based designs and automated testing, are helping scale production efficiently. As a result, LiDAR is now finding its way into more affordable car segments, with growing adoption further pushing costs down over time. Automotive LiDAR Market Share by Region Asia-Pacific leads the automotive LiDAR space, with China at the center of large-scale adoption. Government support and incentives are encouraging wider use in electric vehicles, while strong local supply chains help reduce costs and speed up production. Other countries in the region are also investing in smart mobility projects,