Editor's note: This story has been updated to correct a quote by Jay Hohauser, vice president for automotive, North America, at AEye. Hohauser said: "It is the closest thing to solid-state lidar on the market." A previous version of the story referred to radar instead of lidar.
Despite many lidar companies going public in recent years, via the special purpose acquisition company process, the industry has taken a hit with some companies shutting down or being acquired over the past year.
Lidar technology, which stands for "light detection and ranging," uses lasers to map the environment. The reliability and cost of the multifaceted systems, with their spinning mirrors and motors, have been questioned by some auto industry observers and lidar competitors. The argument: Lidar systems may break more easily because they are more complex than self-contained solid-state radar and cameras, lidar's main competitors, and could hinder their mass adoption by the industry.
"If I had to bet, the solid-state approach will eventually win out," said Michael Ramsey, transportation and mobility analyst at Gartner Inc., told Automotive News.
A solid-state lidar system promises lower costs to produce, install, repair and replace, Ramsey said, adding that they are also favored by the auto industry.
Velodyne's merger with Ouster was a sign the lidar industry is trending toward producing solid-state products at scale, Ramsey said.