Lidar: Another emerging technology brought to you by China

Excerpt

The exponential growth in connected and automated systems has increased the demand for the sensor technology necessary to make them operate safely. Light detection and ranging, or lidar, is just such a remote sensing technology that uses pulsed light to measure and map the surrounding environment. Lidar’s ability to quickly and precisely map complex environments has made it essential for autonomous vehicles, and has given it an increasing role in airports, infrastructure mapping, ports and other emerging connected systems.

For 2022, analysts estimated global automotive lidar revenues at $332 million per year, a number only expected to grow as the technology becomes more widespread and sophisticated. However, the rapid growth of lidar in connected systems and the predominant position Chinese companies have in the marketplace, coupled with the precise data the technology collects, expose the threat posed by untrusted lidar systems. The systems could easily be exploited by malign actors to conduct any manner of malicious actions, including clandestinely mapping U.S. critical infrastructure or conducting cyberattacks that disrupt operations.

American and European companies previously comprised the majority of the global market, but Chinese technology firms like Hesai, RoboSense, Seyond, and Livox (a division of the Chinese drone maker DJI) have rapidly expanded into international markets, including the United States. Hesai has grabbed over 47% of the global market share, benefitting from Chinese domestic industrial policies, including state subsidies and procurement preference. An analysis of filings from publicly traded lidar companies shows that Hesai and RoboSense gained approximately 50% of the North American market share in just a few short years.

While the presence of Chinese companies in lidar competition can drive innovation and competitive pricing, we must be clear-eyed about the threats posed by companies affiliated with the Chinese Communist Party and its strategy of military-civil fusion. Under the military-civil fusion, the Chinese Communist Party, or CCP, obfuscates the line between private companies and the government in order to direct technological research and development that would benefit the state both commercially and militarily.

Retired U.S. Navy Rear Adm. Mark Montgomery is a senior fellow at the Foundation for Defense of Democracies think tank. He is also a senior adviser to the chairman of the Cyberspace Solarium Commission. He previously served as policy director of the Senate Armed Services Committee under Sen. John McCain, R-Ariz., and as director of operations (J3) at U.S. Pacific Command.