Ouster BlueCity to Power the Largest Lidar-Enabled Smart Traffic Solution in the United States

Rhea-AI Summary

Ouster (NASDAQ: OUST) has secured a $2 million contract to implement its BlueCity traffic management solution in Chattanooga, Tennessee. Following a successful pilot at 12 intersections, the system will expand to over 120 intersections throughout downtown, making it the largest lidar-enabled smart traffic solution in the United States.

The BlueCity solution combines digital lidar sensors and edge AI to manage traffic flow, detect safety incidents, and enable vehicle-to-everything (V2X) communications. The system creates a real-time 3D digital traffic twin of intersections, automating data collection for monitoring road events involving vehicles, pedestrians, and cyclists. The project, scheduled for completion by the end of 2025, will be implemented in partnership with Southern Lighting & Traffic Systems and the University of Tennessee Chattanooga Research Institute.

Positive

• Secured $2 million contract for traffic management solution
• Expanding from 12 to 120 intersections, becoming largest US deployment
• Achieved NEMA TS2 certification as traffic detection system in 2024
• Demonstrated 100% reduction in near-miss incidents in pilot program

Negative

• None.

Insights

Financial Analyst

The $2 million contract win represents a meaningful revenue opportunity for Ouster, particularly given its current market cap of $530.7 million. Beyond the immediate financial impact, this landmark deal positions Ouster for significant expansion in the smart infrastructure sector. The successful pilot program leading to a 10x expansion demonstrates strong product validation and could accelerate adoption by other municipalities.

The NEMA TS2 certification and Buy American compliance are important differentiators that could give Ouster a competitive edge in securing U.S. government contracts. With hundreds of existing deployments globally and proven results like the 100% reduction in near-miss incidents, Ouster's BlueCity solution shows strong commercial viability and scalability potential.

The smart infrastructure market represents a significant growth vector beyond Ouster's traditional automotive and industrial segments. This contract could serve as a blueprint for similar city-wide deployments, potentially leading to a predictable revenue stream from municipal contracts.

Tech Expert

The BlueCity solution's integration of digital lidar with edge AI and real-time 3D digital twin technology represents a sophisticated technical achievement in smart city infrastructure. The system's ability to perform complex tasks like near-miss detection, red light running identification and wrong-way driving detection through deep learning AI demonstrates advanced perception capabilities that surpass traditional traffic management systems.

The solution's cloud-based architecture for automated data collection enables scalable deployment and valuable data analytics. The system's ability to maintain privacy while collecting detailed traffic data is particularly noteworthy, addressing a key concern in smart city implementations. The V2X communications capability positions the technology for future integration with autonomous vehicles and smart mobility solutions.

Market Research Analyst

This deployment represents the largest lidar-enabled smart traffic solution in the U.S., setting a significant precedent for the smart city market. The successful pilot program's expansion from 12 to over 120 intersections demonstrates strong market validation and could accelerate adoption across other municipalities. The project's focus on both immediate safety improvements and long-term planning optimization aligns with growing urban development trends.

The partnership with academic institutions like UTC Research Institute adds credibility and provides valuable data validation. The documented success in reducing near-miss incidents provides compelling evidence for other cities considering similar implementations. As municipalities increasingly prioritize smart infrastructure investments, Ouster's proven solution and Buy American certification position it favorably in this growing market segment.

• Ouster awarded two-million-dollar contract in Chattanooga, TN
• Ouster BlueCity traffic management solution to be deployed at over 120 intersections

 

SAN FRANCISCO--(BUSINESS WIRE)-- Ouster, Inc. (Nasdaq: OUST) (“Ouster” or the “Company”), a leading provider of high-performance lidar sensors for the automotive, industrial, robotics and smart infrastructure industries, announced today that it was awarded a two-million-dollar contract to deploy its Ouster BlueCity traffic management solution in Chattanooga, Tennessee to improve roadway safety and reduce congestion.

Ouster BlueCity deployed in Chattanooga, TN (Photo: Business Wire)

Following a successful pilot at 12 intersections, the City of Chattanooga will expand Ouster’s BlueCity solution to over 120 intersections, covering the downtown area. With this expansion, Ouster BlueCity will be the largest deployment of lidar detection technology for traffic and pedestrian safety in the United States. The project will combine digital lidar sensors and edge AI at each intersection to manage traffic flow, detect and analyze safety incidents and provide detection for vehicle-to-everything (V2X) communications.

“Chattanooga is leading the country in adopting smart city technology to improve our roadways, and with it, the safety and quality of life of our citizens,” said Chattanooga Mayor Tim Kelly. “Using American lidar and advanced perception software from Ouster, we are building the largest lidar-powered smart traffic network in the United States. This technology will enable optimized traffic signal management on roads and intersections to improve traffic flow and provide data we can use to improve pedestrian safety."

Ouster BlueCity is a turnkey solution that delivers more intelligent signal actuation at intersections while generating an analytics data stream that gives traffic operators and city planners high quality insights about their public corridors. Ouster BlueCity combines digital lidar with perception software and data analytics, enabling the creation of a real-time 3D digital traffic twin of an intersection or road. The solution automates data collection in the cloud to monitor road events more accurately for vehicles, pedestrians and cyclists, enabling quick safety interventions and long-term planning optimizations. Using deep learning AI perception, Ouster BlueCity delivers reliability and advanced object classification and detection for a range of complex use cases including traffic actuation, near-miss detection, outside of crosswalk events, red light running and wrong-way driving.

Chattanooga is working with Southern Lighting & Traffic Systems and the Center for Urban Informatics & Progress (CUIP), part of the University of Tennessee Chattanooga Research Institute (UTCRI), to expand the city's lidar connected traffic infrastructure by the end of 2025.

“We are excited to be part of this innovative expansion that will drive meaningful traffic and safety optimizations in our city, all while ensuring privacy of residents,” said Mina Sartipi, Founding Director of the Center for Urban Informatics and Professor at the University of Tennessee Chattanooga. “Ouster BlueCity already led us to install a crosswalk that resulted in a 100% reduction in near-miss incidents on a high-risk city block. We are just starting to capture the full benefits of this technology.”

Ouster BlueCity is already deployed at hundreds of intersections around the world with more underway as municipalities take steps to modernize their traffic infrastructure. Ouster BlueCity achieved system-level NEMA TS2 certification as a detection system for traffic actuation in 2024, making it the first certified lidar traffic solution with Buy America(n) lidar.

“We are thrilled to work with the City of Chattanooga and its partners to deploy the largest lidar-powered traffic network in the country,” said Asad Lesani, VP of Smart Infrastructure Products at Ouster. “Every accident we can help prevent and every hour of transit time saved with advanced digital lidar detection is a win. Ouster BlueCity already yields invaluable results, and we look forward to rapidly expanding its adoption.”

To learn more about this expanded deployment of advanced digital lidar detection, register to join a free ITS America webinar with the University of Tennessee Chattanooga and Ouster on January 21, 2025.

About Ouster

Ouster (Nasdaq: OUST) is a leading global provider of high-resolution scanning and solid-state lidar sensors and software solutions for the automotive, industrial, robotics, and smart infrastructure industries. Ouster is on a mission to build a safer and more sustainable future by offering affordable, high-performance sensors that drive mass adoption across a wide variety of applications. Ouster is headquartered in San Francisco, CA with offices in the Americas, Europe, and Asia-Pacific. For more information about our products, visit www.ouster.com, contact our sales team, or connect with us on X or LinkedIn.

About the University of Tennessee at Chattanooga Research Institute

The University of Tennessee at Chattanooga Research Institute (UTCRI) was founded in 2023 to bolster UTC’s focus on building cross-disciplinary teams and catalyzing partnerships to establish enduring programs of excellence to address challenges that can’t be solved using a single-discipline approach. UTCRI’s work addresses specific and critical challenges in urban infrastructure, mobility, sustainability, and healthcare.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon current plans, estimates and expectations of management that are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Words such as “anticipate,” “expect,” “intend,” “may,” “will,” “should,” “plan,” “can,” “could,” “offer,” “estimate,” “possible,” “potential,” “pursue,” “demonstrate,” and the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. All statements, other than historical facts, including statements regarding the benefits of Ouster’s software offerings and software-attached offerings, impacts on other revenue streams, industry and business trends, Ouster’s business objectives, plans, market growth and Ouster’s competitive position, all constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including, but not limited to, risks related to important factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as may be further updated from time to time in the Company’s other filings with the SEC. Readers are urged to consider these factors carefully and in the totality of the circumstances when evaluating these forward-looking statements, and not to place undue reliance on any of them. Any such forward-looking statements represent management’s reasonable estimates and beliefs as of the date of this press release. While Ouster may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, other than as may be required by law, even if subsequent events cause its views to change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250114751677/en/

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Source: Ouster, Inc.

FAQ

What is the value of Ouster's (OUST) Chattanooga traffic management contract?

Ouster (OUST) secured a two-million-dollar contract to deploy its BlueCity traffic management solution in Chattanooga, Tennessee.

How many intersections will Ouster's (OUST) BlueCity system cover in Chattanooga?

The BlueCity solution will expand from 12 pilot intersections to over 120 intersections covering Chattanooga's downtown area.

When will Ouster (OUST) complete the Chattanooga traffic system deployment?

The expansion of Chattanooga's lidar connected traffic infrastructure is scheduled for completion by the end of 2025.

What certification did Ouster's (OUST) BlueCity traffic solution receive in 2024?

Ouster BlueCity achieved system-level NEMA TS2 certification as a detection system for traffic actuation in 2024, becoming the first certified lidar traffic solution with Buy America(n) lidar.

What safety improvements has Ouster's (OUST) BlueCity system demonstrated in Chattanooga?

The BlueCity system led to the installation of a crosswalk that resulted in a 100% reduction in near-miss incidents on a high-risk city block.