Back to top

Image: Bigstock

Can Ouster Tap $20B Automotive LiDAR Boom With Scalable Solutions?

Read MoreHide Full Article

Key Takeaways

  • OUST targets a $20B LiDAR market, spanning robotaxis, EVs, ADAS and autonomous commercial vehicles.
  • Scalable hardware-software platforms and OEM partnerships position OUST for long-term automotive growth.
  • Estimates for OUST's 2025 and 2026 earnings and revenues have moved higher over the past 60 days.

Ouster Inc. (OUST - Free Report) has identified a $20 billion opportunity in the automotive LiDAR market across segments such as robotaxis, autonomous trucking, shuttles, buses and consumer ADAS. This growth is driven by increasing safety standards, increasing consumer demand for advanced safety features and growing OEM adoption of Level 3+ autonomy, placing high-resolution LiDAR systems at the heart of future vehicle design.

As the industry shifts toward enhanced safety and autonomy, LiDAR is becoming a critical technology. Ouster is well-positioned to serve this evolution, working with players across the automotive ecosystem—from technology providers to Tier 1 suppliers and OEMs—to deliver scalable, software-driven LiDAR solutions that support both ADAS and autonomous applications.

The electrification trend further supports LiDAR adoption, with EV makers integrating the technology to differentiate on safety and performance. Simultaneously, commercial use cases—including autonomous delivery, freight, and shared mobility—are adding billions in incremental LiDAR demand. Ouster’s software-enabled platform (like Gemini) offers the dual advantage of hardware sales and recurring revenues from software and data services as vehicle and infrastructure deployments expand worldwide.

Supported by favorable regulatory and technological tailwinds, a move toward solid-state, digital architectures and strong execution via partnerships and manufacturing flexibility, Ouster is well-positioned to emerge as a key enabler in next-generation automotive sensing. Despite fierce competition, particularly from Chinese firms, Ouster’s integrated technology stack and platform strategy present a compelling investment opportunity.

What About OUST’s Competitors?

Aeva Technologies (AEVA - Free Report) is a rising leader in the automotive LiDAR market, securing Tier 1 deals with global OEMs. Aeva’s Atlas sensors offer long range, high resolution, and velocity detection. With its 4D FMCW technology, Aeva is outpacing traditional rivals and redefining next-generation vehicle perception systems.

Luminar Technologies (LAZR - Free Report) is a key player in the automotive LiDAR market, partnering with top OEMs like Volvo and Mercedes-Benz. Luminar’s Iris and Halo sensors offer long-range, high-resolution capabilities vital for ADAS and autonomy. With growing industry adoption, Luminar continues to solidify its leadership in next-generation vehicle sensing technology.

OUST’s Price Performance

Shares of OUST have gained 101.6% year to date, outperforming the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

OUST’s Expensive Valuation

OUST is currently expensive. It is trading at a price-to-sales multiple of 7.4, higher than the industry average of 1.66. OUST has a Value Score of F.

Zacks Investment Research
Image Source: Zacks Investment Research

Estimates for OUST Witness Northward Movement

The Zacks Consensus Estimate for OUST’s second-quarter and third-quarter 2025 EPS did not witness any movement over the past 60 days. The same for full-year 2025 and 2026 has moved 5.2% and 2.3% north, respectively, in the same period.
 

Zacks Investment Research
Image Source: Zacks Investment Research

The consensus estimates for OUST’s 2025 and 2026 revenues and earnings indicate year-over-year increases. 

OUST currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Luminar Technologies, Inc. (LAZR) - free report >>

Ouster, Inc. (OUST) - free report >>

Aeva Technologies, Inc. (AEVA) - free report >>

Published in