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Is Ouster Well Poised to Capture the $18B Industrial LiDAR Market?
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Key Takeaways
OUST's industrial LiDAR segment led Q1 2025 revenue, reducing dependence on automotive markets.
Software-tied bookings for OUST grew 60% in 2024, enhancing margins and recurring revenue streams.
OUST shares rose 102.3% YTD, with 2026 earnings estimates improving and revenue growth projected.
Ouster Inc. (OUST - Free Report) is tapping into a $70 billion global LiDAR market opportunity, spanning automotive, industrial, robotics, and smart infrastructure, with industrial applications accounting for a $19 billion addressable market. The company provides a full range of high-performance scanning and solid-state LiDAR sensors designed specifically for industrial use cases. Ouster’s sensors help industrial customers enhance safety and automate operations across the global supply chain, from material handling vehicles in ports and warehouses to off-highway vehicles in mining, agriculture, and factory machinery.
By expanding into industrial markets, Ouster reduces its reliance on the cyclical automotive sector while capturing growth driven by the accelerating trend of industrial automation. In fact, this vertical was the largest contributor to first-quarter 2025 revenue. The company is shifting from a hardware-only model to a vertically integrated approach, combining its LiDAR sensors with software solutions, including Gemini and Blue City. This transition is generating recurring revenue, improving differentiation, and supporting healthier gross margins. Software-tied bookings increased significantly in 2024, reflecting a rise in adoption across the security, logistics, and infrastructure sectors. It also closed a multimillion-dollar deal with Komatsu, one of the world’s largest heavy equipment manufacturers, marking a preference for Ouster’s LiDAR solution.
Though Ouster is still delivering adjusted EBITDA loss, the company remains focused on disciplined cost control. Its differentiated digital LiDAR technology is well-positioned to meet automation demands across mining, logistics, agriculture, ports, and smart infrastructure, making the industrial segment a crucial growth engine for Ouster’s long-term value creation.
What About OUST’s Competitors?
Aeva Technologies (AEVA - Free Report) is strengthening its position in the industrial LiDAR market with proprietary technology delivering precise velocity and distance data. Aeva’s collaborations with major brands emphasize its expanding industrial footprint. Through continuous innovation, Aeva reinforces its status as a key player in high-precision sensing solutions.
Luminar Technologies (LAZR - Free Report) strengthens its position in the industrial LiDAR market by integrating Iris sensors into Caterpillar’s autonomous machinery. Luminar’s growing industrial use cases reflect its capability beyond automotive applications. Through cutting-edge technology and key partnerships, Luminar secures its standing as a prominent player in industrial LiDAR solutions.
OUST’s Price Performance
Shares of OUST have gained 114.4% year to date, outperforming the industry.
Image Source: Zacks Investment Research
OUST’s Expensive Valuation
OUST is currently expensive. It is trading at a price-to-sales multiple of 7.39, higher than the industry average of 1.66. OUST has a Value Score of F.
Image Source: Zacks Investment Research
Estimates for OUST
The Zacks Consensus Estimate for OUST’s second-quarter and third-quarter 2025 earnings per share remained unchanged over the past 60 days. The same for full-year 2025 witnessed no movement, but the same for 2026 improved 3 cents in the same period.
Image Source: Zacks Investment Research
The consensus estimate for OUST’s 2025 and 2026 revenues and earnings indicates year-over-year increases.
Image: Bigstock
Is Ouster Well Poised to Capture the $18B Industrial LiDAR Market?
Key Takeaways
Ouster Inc. (OUST - Free Report) is tapping into a $70 billion global LiDAR market opportunity, spanning automotive, industrial, robotics, and smart infrastructure, with industrial applications accounting for a $19 billion addressable market. The company provides a full range of high-performance scanning and solid-state LiDAR sensors designed specifically for industrial use cases. Ouster’s sensors help industrial customers enhance safety and automate operations across the global supply chain, from material handling vehicles in ports and warehouses to off-highway vehicles in mining, agriculture, and factory machinery.
By expanding into industrial markets, Ouster reduces its reliance on the cyclical automotive sector while capturing growth driven by the accelerating trend of industrial automation. In fact, this vertical was the largest contributor to first-quarter 2025 revenue. The company is shifting from a hardware-only model to a vertically integrated approach, combining its LiDAR sensors with software solutions, including Gemini and Blue City. This transition is generating recurring revenue, improving differentiation, and supporting healthier gross margins. Software-tied bookings increased significantly in 2024, reflecting a rise in adoption across the security, logistics, and infrastructure sectors. It also closed a multimillion-dollar deal with Komatsu, one of the world’s largest heavy equipment manufacturers, marking a preference for Ouster’s LiDAR solution.
Though Ouster is still delivering adjusted EBITDA loss, the company remains focused on disciplined cost control. Its differentiated digital LiDAR technology is well-positioned to meet automation demands across mining, logistics, agriculture, ports, and smart infrastructure, making the industrial segment a crucial growth engine for Ouster’s long-term value creation.
What About OUST’s Competitors?
Aeva Technologies (AEVA - Free Report) is strengthening its position in the industrial LiDAR market with proprietary technology delivering precise velocity and distance data. Aeva’s collaborations with major brands emphasize its expanding industrial footprint. Through continuous innovation, Aeva reinforces its status as a key player in high-precision sensing solutions.
Luminar Technologies (LAZR - Free Report) strengthens its position in the industrial LiDAR market by integrating Iris sensors into Caterpillar’s autonomous machinery. Luminar’s growing industrial use cases reflect its capability beyond automotive applications. Through cutting-edge technology and key partnerships, Luminar secures its standing as a prominent player in industrial LiDAR solutions.
OUST’s Price Performance
Shares of OUST have gained 114.4% year to date, outperforming the industry.
Image Source: Zacks Investment Research
OUST’s Expensive Valuation
OUST is currently expensive. It is trading at a price-to-sales multiple of 7.39, higher than the industry average of 1.66. OUST has a Value Score of F.
Image Source: Zacks Investment Research
Estimates for OUST
The Zacks Consensus Estimate for OUST’s second-quarter and third-quarter 2025 earnings per share remained unchanged over the past 60 days. The same for full-year 2025 witnessed no movement, but the same for 2026 improved 3 cents in the same period.
Image Source: Zacks Investment Research
The consensus estimate for OUST’s 2025 and 2026 revenues and earnings indicates year-over-year increases.
OUST currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.