Innoviz Technologies (NASDAQ:INVZ) is expanding its lidar business beyond automotive applications, targeting security and defense markets including counter-drone systems and perimeter protection, Chief Financial Officer Eldar Cegla said during a company presentation.
Founded in 2016, Innoviz initially focused on supplying 3D lidar sensors for autonomous driving. Cegla said the company has worked with automotive customers including BMW, Volkswagen, Daimler Truck and Mobileye, and that BMW vehicles using Innoviz technology began launching in 2024.
Security and defense focus
Innoviz is marketing its existing second-generation lidar products to security and defense customers under the Perciz brand. While the products are the same as the company’s automotive lidar offerings, the separate branding is intended to distinguish the security and defense business from the automotive market, Cegla said.
The company’s strategy in this market differs from its automotive approach. Innoviz serves automotive original equipment manufacturers as a Tier 1 supplier, providing lidar sensors as well as integration, qualification and testing services. In security and defense, Cegla said Innoviz intends to operate as a Tier 2 or Tier 3 supplier, with its sensors integrated by prime contractors into broader systems.
The company has identified two near-term priority markets:
- Counter-unmanned aircraft systems, or counter-UAS, focused on detecting and tracking drones.
- Perimeter security for facilities, utilities, borders and airports.
Longer term, Innoviz also expects to address unmanned ground vehicles, an application Cegla described as a natural extension of the company’s automotive autonomous-driving experience.
Cegla said the company began exploring security and defense opportunities less than a year ago and has since begun collaborating with several partners. Based on Innoviz’s analysis, he said the aggregate opportunity in its targeted security and defense markets could reach $7 billion to $8 billion by 2030.
Lidar capabilities and deployment cycles
Cegla said lidar can complement or replace certain radar-based sensing functions in complex environments. In counter-drone applications, he said cameras and radar can work well in clear conditions but may face challenges near the ground, where trees, moving foliage, power lines and other objects can create noise or false positives.
Innoviz’s lidar generates a real-time 3D image of the surrounding environment, Cegla said, allowing systems to locate a potential threat in three-dimensional space. He also said lidar can support perimeter-security systems by detecting and tracking objects in areas where vegetation may obstruct camera views.
The company emphasized that its lidar was developed for automotive use, where components must operate in outdoor conditions including rain, dust and mud. Cegla said this durability and availability are also relevant for security and defense uses, such as protecting convoys in harsh environments.
Security and defense procurement cycles may also be materially faster than automotive development cycles, according to Cegla. He said automotive programs can require three to four years to reach start of production, while security and defense projects can move from pilot programs to deployment in less than a year.
Automotive programs remain central
Despite the new market focus, Cegla said automotive remains a meaningful part of Innoviz’s business. He highlighted Volkswagen’s ID.Buzz autonomous shuttle program, which he said is expected to launch at the beginning of next year. The vehicle is planned to use nine Innoviz lidars: three long-range sensors on the roof and six short-range sensors around the vehicle.
Innoviz also has programs with Volkswagen, Holon and Daimler Truck, Cegla said. He described Holon as a Mobileye project using Mobileye’s driving platform, while Innoviz supplies lidar sensors.
The company expects automotive programs to contribute volume over time, while security and defense could provide higher average selling prices and margins. Cegla said automotive lidar units sell for hundreds of dollars, while similar products sold into security and defense can be priced in the thousands of dollars.
For the ID.Buzz, Cegla said Innoviz’s lidar content per vehicle could be approximately $6,000 to $7,000, depending on volumes and timing. He declined to disclose expected vehicle volumes, citing confidentiality.
Cegla said Innoviz expects security and defense revenue to represent at least 20% of its total revenue next year and potentially about 50% in later years, including 2029 and 2030. He characterized the two businesses as complementary, with automotive providing volume and security and defense offering faster sales cycles and potentially stronger margins.
Addressing competition, Cegla said Chinese lidar suppliers Hesai and RoboSense are strong in China but face challenges outside the country due to restrictions he said affect their technologies. He also cited Ouster as a good lidar company focused primarily on industrial and indoor applications, rather than Innoviz’s automotive and targeted security markets.
About Innoviz Technologies (NASDAQ:INVZ)
Innoviz Technologies Ltd. (NASDAQ: INVZ) is an Israel-based technology company that develops light detection and ranging (LiDAR) systems and perception software for the automotive industry. Its technology is designed to help vehicles detect and interpret their surroundings, supporting advanced driver-assistance systems and autonomous-driving applications.
The company’s product portfolio includes the InnovizOne and InnovizTwo solid-state LiDAR sensors, as well as the Innoviz360 platform.
