Innoviz Technologies Takes Flight in Security Markets with LiDAR-AI Integration

Julian CruzWednesday, Jun 18, 2025 8:18 am ET
20min read

The partnership between Innoviz Technologies (NASDAQ: NVZ) and Cogniteam, announced in June 2025, marks a strategic pivot for the Israeli LiDAR leader. By merging Innoviz's long-range LiDAR technology with Cogniteam's AI-driven analytics platform, the duo is targeting high-margin security applications, signaling a bold move to diversify beyond its automotive-centric revenue stream. This shift could position Innoviz as a leader in next-gen safety solutions, unlocking value in sectors hungry for real-time threat detection and infrastructure protection.

The LiDAR-AI Synergy: Precision Meets Intelligence

The joint solution combines InnovizSMART's industry-leading LiDAR—capable of detecting objects up to 400 meters in adverse conditions—with Cogniteam's AI platform, which analyzes spatial data to trigger instant alerts for security teams. This integration addresses critical pain points in surveillance:

  • Accuracy in Harsh Environments: InnovizSMART's 3D point cloud technology provides high-resolution data even in rain, dust, or direct sunlight, reducing false positives common in traditional camera systems.
  • Real-Time Decision-Making: Cogniteam's analytics enable rapid response to threats, such as unauthorized access to critical infrastructure or traffic anomalies, slashing incident resolution times.
  • Scalability: The off-the-shelf system is already deployed in security settings, with applications spanning smart cities, aerial surveillance, and robotics.

The technology's immediate deployability reduces time-to-market risks, a key advantage in fast-growing security markets.

Market Diversification: A Play for Higher Margins and Stability

Innoviz's core automotive business, while lucrative, faces headwinds from supply chain volatility and pricing pressures. By expanding into security, the company taps into a sector with faster sales cycles and superior margins. According to the partnership details, security markets prioritize reliability and precision over cost, aligning with Innoviz's premium positioning.

This move also mitigates reliance on the automotive sector, which accounted for nearly 80% of Innoviz's revenue in 2024. Diversification into infrastructure protection, smart mobility, and intelligent traffic management—sectors projected to grow at 12-15% CAGR through 2030—offers a buffer against industry-specific downturns.

Risks and Considerations

The partnership is not without challenges. Competitors like Sick AG and AEye are also eyeing security markets, intensifying competition. Additionally, operational risks in Israel—a hub for both companies—could disrupt supply chains. However, Innoviz's established LiDAR expertise and Cogniteam's AI prowess create a defensible moat.

Investment Thesis: A Leader in Emerging Safety Tech

For investors, Innoviz presents an intriguing opportunity to capitalize on secular trends in AI-enhanced security infrastructure. Key catalysts include:

  1. Revenue Diversification: Security solutions could contribute meaningfully to revenue within 12–18 months, with margins outpacing automotive.
  2. Valuation Upside: A shift toward higher-margin markets could re-rate the stock, especially if automotive contracts stabilize.
  3. First-Mover Advantage: Innoviz's early deployments in critical infrastructure and smart cities may lock in long-term contracts with governments and enterprises.

Bottom Line: A Strategic Play for Growth Investors

Innoviz's pivot into security markets is a calculated move to leverage its core LiDAR technology in high-growth, high-margin sectors. While risks remain, the partnership with Cogniteam positions the company at the forefront of a booming safety tech landscape. Investors seeking exposure to AI-driven infrastructure solutions should view NVZ as a compelling buy, particularly if the stock trades below 20x forward EV/EBITDA—a valuation historically tied to its automotive trajectory.

In a world where infrastructure security is non-negotiable, Innoviz's LiDAR-AI integration isn't just a technology upgrade—it's a strategic masterstroke.