Following the news that Luminar Technologies’ new automated, high-volume factory in Mexico started producing sensors;

Rupayan Chakraborty, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:

“As a provider of cutting-edge sensor technology, Luminar Technologies is constantly designing and developing solutions for advanced driver assistance systems (ADAS). Their ultra-sensitive pixel-based sensors measure distance using laser light to generate a 3D map, which helps the drivers in navigation and safety.

“The demand for automotive sensors is growing as advanced driver assistance technologies become increasingly used in the automotive industry. Also, the sensor business is being driven by the increasing need for advanced security features and technology in fleet management, such as real-time monitoring, tracking, and navigation systems.

“According to GlobalData estimates, 13.5 million units of sensors were sold globally in 2022, recording an annual growth rate of 10%. Additionally, the industry is anticipated to post sales of 17.6 million units by 2026, registering a compound annual growth rate (CAGR) of 7.46% over 2022-2026. Also, the market in North America, which is estimated at 2.4 million units in 2022, is expected to witness sales of 4.3 million units by 2036, growing at a CAGR of 4%. In 2021, Continental and Magna dominated the sector with a 12% market share each in the global market for sensing cameras.

“Considering the market potential of North America and the growing global demand for sensors, the new facility will boost the capabilities of Luminar in order to challenge the dominance of Continental and Magna in the long run.”