Lidar technology underpins the autonomous vehicle and smart infrastructure industries, with the capacity to revolutionize the technology space. And given increased trade restrictions designed to promote domestic markets, U.S.-based Lidar manufacturers Luminar Technologies (LAZR) and Ouster (OUST) are well-positioned to emerge as industry leaders. Consequently, Wall Street analysts expect these stocks’ prices to rally by 55% or more in the near term. Read on.Light detection and ranging (Lidar) is the backbone of autonomous driving technology. Because this is a breakthrough technology with the potential to revolutionize the automotive markets, vehicle manufacturers are racing to launch Lidar-powered self-driving vehicles to gain a first-mover advantage. The global Lidar market is expected to grow at a 22.7% CAGR over the next five years to $6.70 billion by 2026.
Lidar has extensive applications in the technology space, given its capabilities in augmented reality and virtual simulation. For example, the latest generation of iPhones manufactured by Apple, Inc. (NASDAQ:AAPL) has integrated Lidar sensors. Furthermore, the tech giant plans to venture into the automotive industry and launch self-driving cars in 2024.
The United States is actively investing in advancing its semiconductor industry to make it globally competitive. To this end, President Biden recently issued executive orders to facilitate federal capital investments into this space. Given this backdrop, the demand for domestically manufactured lidar sensors is expected to be high. Consequently, Wall Street analysts expect U.S.-based lidar stocks Luminar Technologies, Inc. (LAZR) and Ouster, Inc. (OUST) to gain more than 55% in the near term.