The dream of cars that can fully drive themselves is getting closer. It’s largely thanks to a waveof innovations in hardware, software and algorithms together with the boom in electric vehicles.But for autonomous driving to become a reality, cars are going to need a lot more sensors –especially cameras, radars and an emerging laser-based technology called LiDAR – which isthe focus of this report. These devices collect all sorts of data from outside, and even inside thecar, to enable the complex decision making required today for vehicles.

Before we get too excited, we’re clearly still some years away from fully automated cars, but weare getting closer as cars begin to migrate to the next level in autonomous driving. But even forthis jump, the technology needs to ratchet up a lot and which is why we’re so bullish on the sensorsector. We forecast the auto sensor market to double from USD7.3bn in 2020 to USD18.9bn in2025e and then to double again to USD41.4bn in 2030e. We focus on the three main sensors: