Summary of Key Points
This news article focuses on "physical AI" – AI that can interact with the real world, such as in autonomous driving and robotics – and highlights lidar as a crucial tool for physical AI to perceive three-dimensional environments. The competition between leading companies Hesai Technology and Speedtronics is at the center of attention. Hesai has gradually gained a leading edge in revenue and shipments, especially in the ADAS (Advanced Driver Assistance Systems) market. Although the two companies adopt different technical approaches (Hesai aims for ultimate performance, while Speedtronics prioritizes cost reduction), their prices are becoming more similar. Despite Hesai's more complex technology, its larger scale and self-developed core components allow it to achieve higher profit margins. The future of the industry lies in "sensor-compute integration" chips, and both companies are making strategic investments in this area.
I. Physical AI: Lidar as a Super Catalyst
Physical AI is not virtual AI that processes images and text; it is AI that can move and perform tasks in the real world (e.g., autonomous vehicles, delivery robots). To understand the physical world, it needs to accurately perceive three-dimensional information such as location, distance, and shape. While pure vision systems (like cameras) are susceptible to factors like light and weather conditions, lidar acts like "3D eyes," providing precise scans of the surrounding environment.
The growing applications of physical AI in areas like intelligent driving, industrial robotics, and low-altitude drones have led to an increasing demand for lidar. Even Xiaomi has incorporated lidar into its air conditioners, indicating that the era where "everything can use lidar" may be upon us. This has made lidar the most profitable segment of the physical AI industry chain.
II. Hesai vs Speedtronics: Who Is the Leader in Lidar?
Both companies are among the global pioneers in lidar technology, and their competition is intensifying:
- Revenue: Hesai has consistently led, with figures of 1.88 billion yuan in 2023 compared to Speedtronics' 1.12 billion yuan; in Q1 2026, Hesai reported 680 million yuan versus Speedtronics' 460 million yuan (about 67% of Hesai's revenue).
- Shipments: Although both companies are competing, Hesai is gaining an edge. In 2025, Hesai shipped 1.62 million units (of which 1.38 million were for ADAS), while Speedtronics shipped 900,000 units; in Q1 2026, Speedtronics shipped 719,000 units, but Hesai has raised its annual target to 3-3.5 million units (with a production capacity of 4 million), further widening the lead.
- Market Segmentation:
- ADAS: Hesai dominates this market, with 1.38 million units shipped in 2025 (2.27 times that of Speedtronics); in Q1 2026, Hesai shipped 353,000 units versus Speedtronics' 145,000 units.
- Robots: Speedtronics has seen rapid growth (1142% year-over-year), but Hesai is also catching up: 186,000 units shipped in Q1 2026 versus Hesai's 118,000 units, narrowing the gap.
III. Technological Approaches: Performance vs Cost
The two companies follow completely different strategies:
- Hesai: Focus on quality first and then reduce costs. They use a "one-dimensional mirror rotation" technology, deploying multiple lasers in a vertical arrangement and rotating the mirrors to scan horizontally, achieving 360-degree coverage without blind spots and true line counts (not just approximate values). Their customers are high-end automakers like Xiaomi, which can afford quality products.
- Speedtronics: Prioritize cost reduction and then upgrade performance. They use an "EMES mirror" technology, deploying fewer lasers and using vibrations to scan the environment, initially gaining market share with lower prices. However, their prices are now comparable to Hesai's.
The trend is shifting: In the past, customers preferred cheaper options, but now higher-performance solutions are more popular – similar to how lithium iron phosphate (cheaper) replaced lithium nickel cobalt manganese (more expensive) in battery technology. Similarly, Hesai's high-performance lidar approach (now at a lower price) is beginning to replace Speedtronics' cost-effective solutions.
IV. Counterintuitive: Why Does Hesai Have Higher Profit Margins Despite More Complex Technology?
Logically, Hesai's more complex technology should result in lower profit margins due to higher hardware costs and manufacturing complexities. However, the reality is the opposite:
- Profit Margin: In 2024, Hesai had a hardware margin of 42.6%, while Speedtronics only had 16.1%; in 2025, Hesai's margin was 41.6% versus Speedtronics' 27.1%.
- Reasons:
1. Scale Effect: Hesai's larger shipments allow for better cost distribution, resulting in higher profits.
2. Self-Development of Core Components: Hesai is the only company in the industry that can manufacture all seven core components (lasers, detectors, etc.) in-house, eliminating the need to purchase them from others and thus achieving better cost control.
This demonstrates that combining advanced technology with large scale and self-development can lead to higher profits.
V. The Future of the Industry: Sensor-Compute Integration Chips
The new trend in lidar is the integration of light sensing, signal processing, and time measurement into a single chip (known as SPAD-SoCs), which reduces size by 50% and power consumption by 30%.
- Speedtronics: Launched the Phoenix chip, a 28-nanometer automotive-grade solution supporting 2160 lines of resolution and capable of detecting objects up to 600 meters, expected to be used in vehicles in 2026.
- Hesai: Launched the Picasso chip, which supports 4320 lines of resolution (twice that of Speedtronics') and offers 6D color perception, also scheduled for deployment in 2026.
Hesai's technological advancements leave little room for Speedtronics to overtake them, and the competition between the two companies is set to continue intensify.
Note: The above analysis is for informational purposes only and does not constitute investment advice.