German multinational engineering and technology company Bosch has announced its exit from developing LiDAR sensors for self-driving cars, citing the complexity and extended time-to-market for the technology. The company will redirect resources previously allocated to LiDAR research toward other sensing technologies like radar.

Bosch initiated its LiDAR sensor development effort in 2020 but has not disclosed the amount invested in the project.

Despite discontinuing its internal LiDAR development, Bosch still considers LiDAR technology important for fully automated driving and will explore integrating LiDAR products into its automated driving functions.

Analyst QuickTake: This is not the first time a LiDAR maker mentioned its intention to move away from automotive-grade LiDAR to other applications. In fact, LiDAR startups Quanergy and Ouster announced their plans to focus more on LiDAR for smart infrastructure and other applications, as opposed to automotive-grade LiDAR targeted at self-driving cars and advanced driver assistance systems (ADAS). Even though autonomous vehicles and ADAS are considered promising areas of growth for LiDAR, these technologies are still in the development stages and hence, they may not generate much revenue for LiDAR companies in the near term. This might provide additional rationale for companies to redirect their focus.