Dutch firm Sensata Technologies and US-based Quanergy Systems have entered into strategic partnership and investment agreements to bolster the ongoing development and commercialisation of LiDAR technology, which is critical for autonomous vehicles.

The two companies will work as partners to provide component level solid state LiDAR sensors to the transportation industry.

Sensata Technologies president and CEO Martha Sullivan said: "The strategic partnership with Quanergy underscores Sensata’s strategy to ‘Win in Sensing’.

"Together, we are well positioned to become the leading provider of LiDAR sensors to the transportation markets."

"This partnership is a pragmatic way to extend our sensing capabilities into advanced driver assistance applications, one of the fastest-growing areas of transportation sensing.

"According to industry experts, the LiDAR market is expected to develop into a billion dollar market opportunity by 2020, and we are optimistic that our long track record of bringing new sensing parameters into Sensata and implementing successful global rollouts will enable us to capitalise on this important opportunity."

LiDAR sensing will play a major role in providing future driver assistance, including autonomous driving.

The partnership will help upgrade Quanergy’s intellectual property and current and future technology development, in order to supply reliable, low-cost LiDAR sensors with enhanced capabilities and reduced power consumption.

The LiDAR sensors and software delivered by Quanergy enable real-time capture and processing of 3D mapping data and object detection.

The technology also allows tracking and classification that help improve onboard driver safety systems.

Quanergy CEO Louay Eldada said: "We know that by teaming up with Sensata we’ll stand to benefit from Sensata’s new product launch and manufacturing expertise, deep customer relationships and global presence as the leading independent sensor supplier.

"Together, we are well positioned to become the leading provider of LiDAR sensors to the transportation markets."