Impact of COVID-19 on the Global Automotive LiDAR Sensors Market
The rapid spread of COVID-19 has impacted the automotive industry globally. Following the directions of the WHO for minimizing the spread of the virus, governments of various countries have set up lockdown and trade restrictions, which has disrupted the exports of automotive parts, especially from China, large scale manufacturing interruptions across Europe, and the closure of assembly plants in the US. The situation has put intense pressure on the automotive industry, which is already coping with a downshift in global demand. Along with disruptions in initial supply and manufacturing processes, the industry is now also experiencing a setback with an uncertain recovery timeline due to decreased demand. The automotive light detection and ranging (LiDAR) sensors market is expected to be negatively impacted due to the COVID-19 pandemic. However, the pandemic is expected to have an indirect effect on the market.
Automotive LiDAR sensors are capable of detecting objects within a range of 300 meters. The data scanned by these LIDAR sensors are recorded by the software tools, which can be used for creating a model of the vehicles’ surroundings. The LiDAR sensors also connect close-range and far-range sensor systems. The reduced production of automobiles due to the temporary shutdown of manufacturing plants is expected to impact the demand for LiDAR sensors in the automotive sector negatively. The slowdown in the development and demand for autonomous vehicles is expected to impact the demand for LiDAR sensors. Furthermore, the disruptions in supply chains are also restricting market growth. Moreover, the economic downturn following the pandemic has compelled automotive giants to reduce the spending on research & development activities for offering advanced features and capabilities, which is expected to hamper the market growth further.
TOTAL NUMBER OF ELECTRIC vehicles ON THE ROAD, 2014–2020 (Units in MILLION)
Source: International Energy Agency