In the field of LiDAR applications, the automotive industry is expected to become the biggest driving force

In the field of LiDAR applications, the automotive industry is expected to become the biggest driving force. With the gradual implementation of autonomous driving technology, the widespread application of LiDAR is expected to continue to grow, and more domestic models equipped with LiDAR will enter the market in the future. This trend will promote faster popularization of downstream applications, thereby increasing the shipment volume of LiDAR.

At present, China is in a critical stage of transition from L2 level to L3+level autonomous driving. In 2022, the penetration rates of L2 and L3 levels in newly sold cars in the Chinese market were 35% and 9%, respectively. It is expected that by 2023, these two numbers will reach 51% and 20%, respectively. Obviously, the market size is continuously expanding, which provides more development opportunities for domestic manufacturers.

In this development process, domestic manufacturers are accelerating their rise. However, it should be noted that there are high entry barriers in the upstream links of the LiDAR industry chain, and currently, the core components of China's LiDAR upstream still mainly rely on imports. In the middle reaches of the industrial chain, the competitive landscape is not yet clear.

Looking ahead to the future, the development of solid-state blind patch technology and chip field will provide broad growth space for domestic manufacturers. Breakthroughs in these two fields are expected to reduce the cost of LiDAR, improve its performance, and thus make it more widely popular in applications such as automobiles.