A system and method for processing a 3D point cloud to generate a segmented point cloud in real time are disclosed, the method includes: receiving a sparse 3D point cloud captured by a detection and ranging sensor mounted to a vehicle, the 3D point cloud comprising a plurality of data points, each data point in the 3D point cloud having a set of coordinates in a coordinate system of the detection and ranging sensor; generating, from the 3D point cloud, a range map comprising a plurality of elements, each of the plurality of data points of the 3D point cloud occupying a respective element of the plurality of elements; labelling the data point in each respective element of the range map as one of a pole-like data point or a vertical-plane-like data point; and generating the segmented point cloud including one or more of the labeled data points.