Automotive Autonomous Emergency Braking System Market Size (USD 9485.54 M) by 2032 By Types (Camera, Lidar, Radar, Others) , Applications (Passenger Cars, Commercial Vehicles) and Regional Forecast to 2032

Automotive Autonomous Emergency Braking System Market Size

Automotive Autonomous Emergency Braking System Market was valued at USD 2,353.22 million in 2023 and is expected to reach USD 2,747.38 million in 2024, growing to USD 9,485.54 million by 2032, with a robust CAGR of 16.75% during the forecast period [2024-2032].

The US Automotive Autonomous Emergency Braking System market is set to witness substantial growth due to increasing regulatory mandates for vehicle safety systems and the rising demand for advanced driver assistance technologies. Growing consumer awareness about road safety and the push for automated driving technologies are also key factors contributing to market expansion in the US region.

Automotive Autonomous Emergency Braking System Market Growth and Future Outlook

The automotive autonomous emergency braking system market is poised for robust growth in the coming years, driven by increasing awareness about vehicle safety and the rising adoption of advanced driver assistance systems (ADAS). As road safety continues to be a global priority, governments and regulatory bodies are pushing for the implementation of emergency braking systems in both passenger and commercial vehicles. This trend has fueled significant investments in autonomous emergency braking (AEB) technologies, positioning the market for substantial expansion. The rise of electric vehicles (EVs) and connected car technology is further propelling the demand for AEB systems, which are increasingly viewed as essential safety features in modern vehicles.

One of the key drivers of growth in the AEB market is the increasing stringency of safety regulations. Governments worldwide are introducing mandates that require vehicles to be equipped with emergency braking systems, especially in developed regions such as North America and Europe. In the European Union, for example, new vehicle models must include AEB systems as a standard feature by law. Such regulations not only drive the adoption of AEB systems but also accelerate technological advancements as manufacturers compete to develop more efficient, reliable, and cost-effective solutions.

The global automotive market is also witnessing a shift towards autonomous driving, with autonomous vehicles being tested and rolled out in various regions. Autonomous emergency braking systems play a critical role in these vehicles, ensuring safety by automatically applying brakes in critical situations where the driver fails to react in time. The integration of artificial intelligence and machine learning in AEB systems allows vehicles to learn from driving patterns and improve their braking response, contributing to the enhanced reliability of these systems.

In addition to regulatory pressures, consumer demand for safer vehicles is another important factor contributing to the growth of the AEB market. Modern consumers are increasingly seeking vehicles equipped with advanced safety features, including autonomous emergency braking. The inclusion of AEB systems in vehicles not only enhances safety but also boosts the overall appeal of a vehicle, which in turn influences purchasing decisions. This trend is especially evident in premium and luxury car segments, where AEB systems are often marketed as high-end features.

The AEB market is also benefiting from the expansion of the electric vehicle market. Electric vehicles, known for their advanced technology and safety features, are increasingly incorporating autonomous emergency braking systems as part of their standard or optional packages. As the electric vehicle market continues to grow, so too will the demand for AEB systems. Moreover, the autonomous emergency braking system is gaining traction in commercial vehicles, including trucks and buses, as fleet operators seek to reduce the risk of accidents and improve driver safety.

Looking ahead, the AEB market is expected to witness significant growth in emerging markets such as Asia-Pacific and Latin America, where vehicle safety regulations are becoming stricter and consumer awareness is rising. As urbanization continues to drive vehicle sales in these regions, the demand for autonomous emergency braking systems is anticipated to surge. Key industry players are likely to focus on these regions to expand their market presence and capitalize on the growing demand for vehicle safety technologies.

The future outlook for the automotive autonomous emergency braking system market is promising, with advancements in sensor technology, including radar, lidar, and camera systems, playing a pivotal role in the development of more accurate and efficient braking systems. These technological innovations are expected to lead to further enhancements in the performance of AEB systems, making them more responsive to different driving conditions and ensuring a safer driving experience.

Automotive Autonomous Emergency Braking System Market Trends

The automotive autonomous emergency braking system market is characterized by several key trends that are shaping its growth trajectory. One notable trend is the increasing integration of artificial intelligence (AI) and machine learning in AEB systems. These technologies enable vehicles to analyze real-time driving data, predict potential collisions, and apply the brakes more effectively. The use of AI-driven AEB systems is expected to enhance vehicle safety, especially in complex urban environments where human drivers may struggle to react in time.

Another significant trend in the AEB market is the growing adoption of radar-based and camera-based systems. These sensor technologies are becoming more sophisticated, offering greater accuracy in detecting potential hazards such as pedestrians, cyclists, and other vehicles. The development of multi-sensor AEB systems is also gaining momentum, allowing vehicles to make more informed braking decisions by combining data from multiple sources. This trend is likely to drive the adoption of autonomous emergency braking systems in both passenger and commercial vehicles.

The rise of connected vehicles and the Internet of Things (IoT) is also influencing the AEB market. Connected vehicles can communicate with each other and with traffic infrastructure, providing valuable data that can improve the performance of AEB systems. For example, if a vehicle ahead suddenly brakes, a connected vehicle can receive this information in real-time and apply the brakes more quickly. This trend is expected to contribute to the widespread implementation of AEB systems in the coming years.

Market Dynamics

The dynamics of the automotive autonomous emergency braking system market are influenced by a variety of factors, including regulatory mandates, technological advancements, and consumer preferences. One of the primary drivers of market dynamics is the increasing emphasis on vehicle safety by governments and regulatory bodies. As regulations become stricter, manufacturers are compelled to incorporate AEB systems into their vehicles to comply with safety standards, which is driving market growth.

Technological advancements in sensor technologies, such as radar, lidar, and cameras, are also shaping the market dynamics. These advancements are leading to the development of more accurate and reliable autonomous emergency braking systems, which are essential for preventing accidents in various driving conditions. Additionally, the integration of AI and machine learning in AEB systems is further enhancing their performance, making them more responsive to real-time driving data.

On the demand side, consumer preferences for safer vehicles are playing a significant role in the market's dynamics. As consumers become more safety-conscious, the demand for vehicles equipped with advanced safety features, such as autonomous emergency braking systems, is increasing. This shift in consumer behavior is encouraging automakers to prioritize the inclusion of AEB systems in their vehicles, further driving market growth.

Drivers of Market Growth

Several key factors are driving the growth of the automotive autonomous emergency braking system market. First and foremost, the increasing focus on vehicle safety by governments and regulatory bodies is a major driver. As road safety becomes a global priority, governments are introducing mandates that require vehicles to be equipped with autonomous emergency braking systems. This is especially prevalent in developed regions such as North America and Europe, where stringent safety regulations are in place.

Another driver of market growth is the rising demand for electric vehicles (EVs). EVs are often equipped with advanced safety features, including autonomous emergency braking systems, as part of their standard or optional packages. The growing popularity of EVs, driven by environmental concerns and government incentives, is expected to boost the demand for AEB systems.

Technological advancements are also contributing to the market's growth. The integration of AI, machine learning, radar, lidar, and camera technologies in AEB systems is making these systems more accurate and reliable, which is encouraging their adoption in both passenger and commercial vehicles. As these technologies continue to evolve, the performance of autonomous emergency braking systems is expected to improve, driving further market growth.

Finally, consumer demand for safer vehicles is playing a significant role in the growth of the AEB market. Modern consumers are increasingly seeking vehicles with advanced safety features, and autonomous emergency braking is often viewed as a crucial safety enhancement.

Market Restraints

Despite the promising growth of the automotive autonomous emergency braking system market, several factors are acting as restraints, limiting the market's potential. One of the primary restraints is the high cost of AEB systems, which makes it challenging for many manufacturers, especially in emerging markets, to incorporate these systems into vehicles. While the technology is rapidly evolving, the initial cost of sensor technology and software integration remains high, pushing up the overall price of vehicles equipped with autonomous emergency braking systems. This issue is particularly prevalent in cost-sensitive markets, where consumers are less willing to pay a premium for additional safety features.

Another significant restraint is the lack of consumer awareness about the benefits of AEB systems. While these systems have been proven to reduce the risk of accidents, many consumers in developing regions are not familiar with the technology or its potential to save lives. This lack of awareness leads to lower demand for vehicles equipped with AEB systems, especially in regions where safety is not yet a top priority for vehicle buyers. Automakers face the challenge of educating consumers about the advantages of autonomous braking, which can slow down the market's growth in some areas.

The technical limitations of AEB systems also serve as a restraint in the market. While the technology has improved significantly, certain limitations remain, particularly in extreme weather conditions. Radar and camera-based systems may struggle to function effectively in heavy rain, snow, or fog, reducing their reliability. Additionally, there are concerns about the ability of AEB systems to differentiate between real hazards and false positives, leading to unnecessary braking. These technical challenges limit the widespread adoption of AEB systems, especially in regions with harsh climates or challenging driving conditions.

Market Opportunities

The automotive autonomous emergency braking system market presents several opportunities for growth, particularly in regions where safety regulations are becoming more stringent. Governments across the world are increasingly mandating the inclusion of AEB systems in new vehicles, creating significant opportunities for manufacturers to expand their product offerings. In markets such as North America and Europe, where safety standards are already high, there is an opportunity for manufacturers to develop more advanced AEB systems that cater to luxury and high-end vehicles, offering features such as enhanced braking accuracy and AI-driven decision-making.

The rise of electric vehicles (EVs) offers another significant opportunity for the AEB market. EVs are often marketed as high-tech, environmentally friendly vehicles, and consumers expect them to be equipped with the latest safety features. As the EV market continues to grow, particularly in regions such as Asia-Pacific and Europe, the demand for AEB systems is expected to increase. Manufacturers can capitalize on this trend by developing AEB systems specifically designed for EVs, which often have unique performance characteristics compared to traditional internal combustion engine vehicles.

There is also an opportunity for growth in the commercial vehicle sector. Fleet operators are increasingly focused on improving safety and reducing accident-related costs. AEB systems can help fleet managers prevent collisions, reduce downtime, and lower insurance premiums. As a result, there is growing demand for AEB systems in trucks, buses, and other commercial vehicles. Manufacturers who can develop cost-effective and reliable AEB solutions for the commercial vehicle market are likely to see significant growth opportunities in this segment.

Market Challenges

The automotive autonomous emergency braking system market faces several challenges that could hinder its growth. One of the key challenges is the integration of AEB systems with other vehicle technologies. As vehicles become more connected and autonomous, AEB systems need to work seamlessly with other advanced driver assistance systems (ADAS). Ensuring compatibility between these systems can be complex, requiring significant research and development efforts. Automakers and AEB system manufacturers must work together to develop standardized systems that can be easily integrated, which can slow down the pace of innovation.

Another challenge is the variation in regulatory standards across different regions. While North America and Europe have stringent safety regulations that encourage the adoption of AEB systems, other regions, such as Asia-Pacific and Latin America, have less developed regulatory frameworks. This inconsistency in regulations can make it difficult for manufacturers to design and market AEB systems that comply with multiple regional standards. The lack of global standardization can lead to higher development costs and slower market penetration.

Finally, the high cost of developing AEB systems remains a significant challenge for many manufacturers. The development of accurate and reliable AEB systems requires significant investment in sensor technology, software development, and testing. Smaller manufacturers, in particular, may struggle to keep up with these costs, limiting their ability to compete with larger companies that have more resources. Additionally, the costs associated with maintaining and updating AEB systems over the lifecycle of a vehicle can be high, creating ongoing challenges for manufacturers and consumers alike.

Segmentation Analysis

The automotive autonomous emergency braking system market is segmented based on type, application, and distribution channel. Each of these segments plays a critical role in shaping the market dynamics and offers unique growth opportunities for manufacturers.

Segment by Application:

The automotive autonomous emergency braking system market is also segmented by application, with passenger vehicles and commercial vehicles being the two primary categories. Passenger vehicles account for the largest share of the market, driven by increasing consumer demand for advanced safety features. Automakers are increasingly incorporating AEB systems into passenger vehicles, particularly in the mid-range and luxury segments, where safety is a key selling point.

Commercial vehicles, including trucks and buses, represent another important segment of the AEB market. The demand for AEB systems in commercial vehicles is growing as fleet operators seek to reduce accidents, lower insurance costs, and improve driver safety. Autonomous emergency braking is particularly valuable in commercial vehicles, where the size and weight of the vehicle can increase the severity of accidents. As a result, manufacturers are developing AEB systems specifically designed for the unique challenges of commercial vehicle applications.

By Distribution Channel:

The AEB market is segmented by distribution channel into OEMs (original equipment manufacturers) and aftermarket sales. OEMs represent the largest distribution channel, as AEB systems are increasingly being included as standard or optional features in new vehicles. Automakers are partnering with AEB system manufacturers to integrate these systems into their vehicles during the manufacturing process, ensuring seamless functionality and compliance with safety regulations.

The aftermarket segment is also experiencing growth, particularly in regions where older vehicles remain on the road. AEB systems can be retrofitted into existing vehicles, providing an opportunity for manufacturers to tap into the growing demand for vehicle safety upgrades. As consumer awareness of the benefits of AEB systems continues to rise, the aftermarket segment is expected to expand, offering additional growth opportunities for AEB system manufacturers.

Automotive Autonomous Emergency Braking System Market Regional Outlook

The automotive autonomous emergency braking system market is experiencing growth across several key regions, including North America, Europe, Asia-Pacific, and the Middle East & Africa. Each region presents unique opportunities and challenges for market players, driven by varying levels of regulatory enforcement, consumer awareness, and vehicle safety standards.

North America:

In North America, the demand for AEB systems is being driven by stringent safety regulations and high consumer awareness. The region has seen significant government initiatives aimed at reducing road accidents, leading to the widespread adoption of AEB systems in both passenger and commercial vehicles. The presence of leading automotive manufacturers in the U.S. is also contributing to the growth of the AEB market.

Europe:

Europe is one of the most advanced markets for autonomous emergency braking systems, thanks to strict vehicle safety regulations implemented by the European Union. Automakers in the region are required to equip new vehicles with AEB systems, driving significant market growth. The region's focus on electric vehicles is also boosting demand for AEB systems.

Asia-Pacific:

The Asia-Pacific region is witnessing rapid growth in the AEB market, driven by increasing vehicle sales and rising consumer awareness about vehicle safety. Countries such as China and Japan are seeing a surge in demand for AEB systems, particularly in the electric vehicle segment.

Middle East & Africa:

The Middle East & Africa region is gradually adopting automotive autonomous emergency braking systems as part of the broader movement towards vehicle safety improvements. In countries such as the United Arab Emirates and Saudi Arabia, rising awareness of road safety and government initiatives are driving the adoption of AEB systems in high-end and luxury vehicles. However, the market faces challenges due to the high cost of implementing advanced safety technologies and limited consumer awareness in certain areas. Despite these barriers, the market is expected to grow, particularly with the increasing influx of modern vehicle technologies and safety regulations across the region.

List of Key Automotive Autonomous Emergency Braking System Companies Profiled

• Wabco Holdings – Headquartered in Auburn Hills, Michigan, USA – Revenue: $3.8 billion (2019)
• Valeo – Headquartered in Paris, France – Revenue: $19.5 billion (2022)
• Denso – Headquartered in Kariya, Japan – Revenue: $44.5 billion (2022)
• Paccar – Headquartered in Bellevue, Washington, USA – Revenue: $32.9 billion (2022)
• Knorr-Bremse – Headquartered in Munich, Germany – Revenue: $7.2 billion (2022)
• Aisin Seiki – Headquartered in Aichi, Japan – Revenue: $36 billion (2022)
• Continental AG – Headquartered in Hanover, Germany – Revenue: $39.2 billion (2022)
• Robert Bosch – Headquartered in Gerlingen, Germany – Revenue: $94 billion (2022)
• Hyundai Mobis – Headquartered in Seoul, South Korea – Revenue: $33 billion (2022)
• Analog Devices – Headquartered in Norwood, Massachusetts, USA – Revenue: $12 billion (2022)
• ZF Friedrichshafen – Headquartered in Friedrichshafen, Germany – Revenue: $41 billion (2022)
• Autoliv – Headquartered in Stockholm, Sweden – Revenue: $8.8 billion (2022)
• Mando – Headquartered in Seoul, South Korea – Revenue: $5.7 billion (2022)
• Texas Instruments – Headquartered in Dallas, Texas, USA – Revenue: $18.3 billion (2022)
• Delphi Automotive – Headquartered in Troy, Michigan, USA – Revenue: $3.5 billion (2019).

COVID-19 Impacting Automotive Autonomous Emergency Braking System Market

The COVID-19 pandemic significantly disrupted the automotive autonomous emergency braking system market, bringing both challenges and opportunities to industry players. Initially, the market experienced a major setback as the automotive sector worldwide was impacted by the disruption in global supply chains, factory shutdowns, and reduced consumer spending. The automotive industry, like many others, faced a sharp decline in production due to lockdowns, resulting in lower demand for autonomous emergency braking systems.

One of the key factors affecting the AEB market during the pandemic was the reduced availability of semiconductors and other critical components needed for the production of braking systems. The global semiconductor shortage significantly slowed down the production of ADAS technologies, including AEB systems, as manufacturers struggled to source the necessary materials. This supply chain disruption affected OEMs and tier-one suppliers, resulting in delays in vehicle production and increased costs for AEB system manufacturers.

Additionally, the economic uncertainty caused by the pandemic led to a decline in consumer confidence, which in turn reduced the demand for new vehicles. Many consumers delayed purchasing decisions due to financial uncertainty, which directly impacted the automotive market and slowed down the adoption of autonomous emergency braking systems. In particular, the decline in vehicle sales in emerging markets such as Asia-Pacific and Latin America further hindered market growth.

However, the pandemic also brought some opportunities for growth in the AEB market. As economies began to recover and governments implemented stimulus measures to boost the automotive sector, there was a renewed focus on vehicle safety technologies. The post-pandemic recovery phase saw increased investments in autonomous vehicle technologies, including AEB systems, as automakers looked to differentiate their offerings in an increasingly competitive market.

Furthermore, the pandemic accelerated the shift toward electric vehicles (EVs) and connected car technologies, creating new opportunities for the AEB market. The rising demand for electric vehicles is expected to drive the adoption of autonomous emergency braking systems, as these safety features are often included as standard or optional in EV models. The focus on sustainability and innovation during the recovery phase is likely to boost the market for AEB systems in the coming years.

Investment Analysis and Opportunities

The automotive autonomous emergency braking system market presents several attractive investment opportunities, driven by the increasing emphasis on vehicle safety, technological advancements, and the shift toward autonomous driving. As regulatory mandates requiring the inclusion of AEB systems in new vehicles become more widespread, there is significant potential for manufacturers and investors to capitalize on this growing demand.

One of the primary areas for investment is in the development of advanced sensor technologies, such as radar, lidar, and camera-based systems. As automakers seek to enhance the accuracy and reliability of AEB systems, there is a growing demand for cutting-edge sensor solutions that can detect obstacles more effectively in a wide range of driving conditions. Investors focusing on companies that specialize in sensor technology and autonomous driving systems are likely to benefit from the rising demand for these products.

Another key area of investment is in the software development side of AEB systems. The integration of artificial intelligence (AI) and machine learning in autonomous emergency braking is transforming the market, making systems more intuitive and responsive. Companies that are developing AI-driven AEB solutions are poised to capture significant market share as automakers increasingly look to integrate these technologies into their vehicles. Investors can explore opportunities in software development firms that are at the forefront of autonomous driving technology.

The commercial vehicle market also offers considerable investment opportunities. As fleet operators continue to prioritize safety and reduce the risk of accidents, the demand for AEB systems in commercial vehicles, such as trucks and buses, is expected to rise. Companies that focus on providing cost-effective AEB solutions for the commercial vehicle sector are likely to see increased demand as fleet managers invest in safety technologies to lower operational costs and improve driver safety.

Moreover, there is significant potential for growth in the aftermarket segment. As consumer awareness of AEB systems continues to rise, more vehicle owners are likely to retrofit their existing vehicles with autonomous emergency braking technologies. Investors can explore opportunities in companies that offer aftermarket AEB systems, particularly in regions where older vehicles remain on the road for longer periods.

Recent Developments 

• Introduction of AI-Driven AEB Systems: In recent years, several automakers have introduced AI-powered autonomous emergency braking systems, which improve the accuracy of obstacle detection and reduce false positives. These systems use machine learning to adapt to various driving conditions and environments, offering enhanced safety.

• Partnerships Between OEMs and Tech Companies: Key automotive players have formed strategic partnerships with technology firms to integrate advanced sensor technologies and AI into their AEB systems. These collaborations are driving innovation and expanding the market for AEB systems.

• Expansion of AEB Systems in Electric Vehicles: The increasing adoption of electric vehicles (EVs) has led to a surge in the demand for AEB systems. Many EV manufacturers are including AEB systems as standard features, further boosting the market.

• Government Initiatives to Promote Vehicle Safety: Several governments have introduced new regulations that require automakers to equip new vehicles with AEB systems. These mandates are driving the adoption of autonomous emergency braking technologies, particularly in developed regions.

• Advancements in Sensor Technologies: The development of radar, lidar, and camera-based sensor systems has significantly improved the accuracy and reliability of AEB systems. These advancements are expected to drive further growth in the AEB market.

REPORT COVERAGE of Automotive Autonomous Emergency Braking System Market

The report on the automotive autonomous emergency braking system market provides comprehensive coverage of the key aspects of the industry, including market size, growth drivers, and competitive landscape. The report delves into the technological advancements that are shaping the market, with a focus on the development of sensor technologies such as radar, lidar, and cameras, as well as the integration of AI and machine learning into AEB systems.

In addition, the report highlights the regulatory landscape, analyzing the impact of government mandates on the adoption of AEB systems in various regions. It provides an in-depth examination of the regional markets, including North America, Europe, Asia-Pacific, and Middle East & Africa, and offers insights into the key factors driving growth in these areas.

The report also includes a detailed analysis of the competitive landscape, profiling the leading players in the AEB market and evaluating their market strategies, product offerings, and technological innovations. Market segmentation by type, application, and distribution channel is covered extensively, providing a granular view of the market dynamics.

NEW PRODUCTS

The automotive autonomous emergency braking system market has seen the introduction of several new products in recent years, driven by advancements in sensor technologies and the integration of AI. One of the most notable new products is the AI-powered AEB system, which uses machine learning algorithms to improve the accuracy of obstacle detection and adapt to changing driving conditions.

Another significant new product is the multi-sensor AEB system, which combines data from radar, lidar, and camera sensors to provide a more comprehensive view of the vehicle's surroundings. This system offers superior accuracy compared to single-sensor systems, making it ideal for both passenger and commercial vehicles.

In the electric vehicle segment, manufacturers are introducing AEB systems specifically designed for EVs, which take into account the unique performance characteristics of these vehicles. These systems are often integrated with other advanced driver assistance systems (ADAS), providing a seamless driving experience.

REPORT SCOPE

The scope of the automotive autonomous emergency braking system market report includes a detailed analysis of the market's growth potential, key drivers, restraints, opportunities, and challenges. The report covers both passenger vehicles and commercial vehicles, providing insights into the demand for AEB systems in each segment.

The report also examines the regional markets, including North America, Europe, Asia-Pacific, and Middle East & Africa, offering a comprehensive view of the market dynamics in each region. It provides a detailed segmentation analysis, breaking down the market by type, application, and distribution channel.

In addition to market size and growth forecasts, the report includes an analysis of the competitive landscape, profiling the leading players in the AEB market and assessing their market strategies, technological innovations, and product portfolios.