| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| Automatic Emergency Braking Market Size 2024 |
USD 31,641.30 million |
| Automatic Emergency Braking Market, CAGR |
8.4% |
| Automatic Emergency Braking Market Size 2032 |
USD 60,323.78 million |
Market Overview
The automatic emergency braking market is projected to grow from USD 31,641.30 million in 2024 to USD 60,323.78 million by 2032, at a compound annual growth rate (CAGR) of 8.4%.
The automatic emergency braking (AEB) market is driven by the increasing emphasis on vehicle safety, stringent government regulations mandating advanced driver assistance systems (ADAS), and growing consumer awareness of road safety. The rising adoption of autonomous and semi-autonomous vehicles further fuels demand for AEB systems, as they play a critical role in reducing collision risks. Advancements in sensor technologies, such as radar, LiDAR, and camera systems, enhance AEB accuracy and efficiency, propelling market growth. The trend toward electrification in the automotive industry also supports AEB integration due to its compatibility with modern vehicle architectures. Additionally, increasing collaborations among automakers and technology providers are accelerating innovation and deployment of AEB solutions in mass-market and premium vehicles alike. Emerging markets in Asia-Pacific and Latin America are presenting lucrative opportunities, driven by rapid urbanization and the rising penetration of advanced safety features in mid-range vehicles. These factors collectively position the AEB market for significant growth over the coming years.
The automatic emergency braking (AEB) market exhibits significant geographical variation, with North America and Asia-Pacific emerging as key regions. North America leads due to stringent safety regulations, high consumer demand for advanced safety systems, and the presence of major automakers. Asia-Pacific, driven by rapid urbanization, rising disposable incomes, and growing vehicle ownership in countries like China, Japan, and India, is the fastest-growing region. Key players shaping the market include Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Hyundai Mobis, Aisin Seiki Co., Ltd., Delphi Automotive LLP, Mobileye, Autoliv Inc., Hitachi Automotive Systems, Ltd., and Mando Corporation. These companies are investing heavily in research and development to enhance AEB system capabilities, address regional demands, and leverage emerging opportunities in global markets.
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Market Drivers
Increasing Focus on Road Safety
The growing emphasis on enhancing road safety is a significant driver for the automatic emergency braking (AEB) market. Rising road traffic accidents have compelled governments and regulatory bodies worldwide to implement stringent safety standards for vehicles. For instance, the European Union’s General Safety Regulation (GSR) mandates the inclusion of advanced driver assistance systems (ADAS), including AEB, in all new passenger and commercial vehicles by 2022. Consumers are also becoming increasingly aware of the importance of safety technologies, leading to higher demand for vehicles equipped with AEB systems. This trend has prompted automakers to integrate AEB as a standard or optional feature in their offerings. For example, Volvo Cars has made AEB a standard feature across its entire lineup.
Advancements in Sensor and Detection Technologies
Technological advancements in sensors and detection systems are a key enabler of growth in the AEB market. Innovations in radar, LiDAR, and camera technologies have significantly improved the performance and reliability of AEB systems. For instance, the latest Bosch mid-range radar sensor (MRR) provides high-resolution detection of vehicles and pedestrians up to 160 meters. These technologies allow vehicles to detect obstacles, pedestrians, and other vehicles with greater accuracy, thereby enhancing collision avoidance capabilities. The continuous development of sensor miniaturization and cost optimization has further facilitated the adoption of AEB systems in mid-range and economy vehicle segments, expanding the market scope. For example, the Toyota Corolla, a popular mid-range vehicle, now offers AEB as a standard feature.
Rising Adoption of Autonomous and Semi-Autonomous Vehicles
The increasing adoption of autonomous and semi-autonomous vehicles is bolstering the demand for AEB systems. AEB is a critical component of self-driving technologies, as it ensures safety by preventing collisions in various traffic scenarios. Major automakers and technology companies are investing heavily in autonomous vehicle development, incorporating AEB as a fundamental safety feature. For instance, Waymo, a subsidiary of Alphabet Inc., has integrated AEB into its fleet of self-driving cars to enhance safety. This trend is expected to drive the widespread implementation of AEB systems in the automotive industry. For example, Tesla’s Autopilot system includes AEB as one of its core safety features.
Emerging Markets and Electrification Trends
Emerging markets, particularly in Asia-Pacific and Latin America, are creating new growth opportunities for the AEB market. Rapid urbanization, rising disposable incomes, and increasing vehicle ownership in these regions have accelerated the adoption of advanced safety features. For instance, the Indian government’s Bharat New Vehicle Safety Assessment Program (BNVSAP) aims to improve vehicle safety standards, including the adoption of AEB systems. Furthermore, the shift toward vehicle electrification aligns seamlessly with AEB integration, as electric vehicles often feature modern architectures conducive to advanced safety systems. For example, the Nissan Leaf, an electric vehicle, comes equipped with AEB as a standard feature. These dynamics are expected to propel market expansion in the coming years.
Market Trends
Integration of Advanced Technologies
The automatic emergency braking (AEB) market is witnessing a significant trend toward integrating advanced technologies such as artificial intelligence (AI) and machine learning (ML). These technologies enable AEB systems to analyze complex traffic scenarios, predict potential hazards, and make real-time decisions more effectively. For instance, Tesla’s Autopilot uses AI and ML algorithms to continuously improve its AEB performance by learning from vast amounts of driving data. Additionally, innovations in sensor fusion, which combines data from radar, LiDAR, and cameras, are enhancing the accuracy and reliability of AEB systems. For example, Mobileye’s EyeQ4 system integrates data from multiple sensors to provide a comprehensive understanding of the vehicle’s surroundings. This trend is driving the development of more sophisticated AEB solutions capable of adapting to dynamic driving environments.
Growing Adoption in Economy Vehicle Segments
A notable trend in the AEB market is the increasing adoption of these systems in economy and mid-range vehicles. Earlier, AEB systems were predominantly available in luxury and high-end models due to their high cost. However, advancements in manufacturing and cost optimization have enabled automakers to offer AEB systems in more affordable vehicle segments. For instance, Toyota has made AEB a standard feature in many of its economy models, such as the Corolla and Yaris. This democratization of safety technology is expected to significantly expand the market’s reach and cater to a broader consumer base.
Emphasis on Pedestrian and Cyclist Safety
Modern AEB systems are increasingly focusing on vulnerable road user (VRU) protection, including pedestrians and cyclists. Automakers and technology providers are developing AEB solutions capable of detecting and responding to these users in various lighting and weather conditions. For example, Volvo’s City Safety system can detect pedestrians and cyclists and automatically apply the brakes to avoid collisions. Regulatory bodies in regions such as Europe and North America are also encouraging this trend by introducing stringent standards that prioritize VRU safety. The European New Car Assessment Programme (Euro NCAP) has included pedestrian and cyclist detection as part of its safety ratings, driving innovation and adoption of AEB systems designed to minimize accidents involving VRUs.
Expansion in Emerging Markets
The AEB market is experiencing robust growth in emerging markets, particularly in Asia-Pacific and Latin America. Rising urbanization, increasing vehicle ownership, and heightened awareness of road safety are driving the demand for AEB systems in these regions. For instance, in India, the Bharat New Vehicle Safety Assessment Program (BNVSAP) aims to improve vehicle safety standards, including the adoption of AEB systems. Automakers are capitalizing on these opportunities by introducing region-specific models equipped with AEB. For example, Maruti Suzuki has started offering AEB as a standard feature in its Baleno model, targeting the growing middle-class consumer base in India. These dynamics are expected to propel market growth in the coming years.
Market Challenges Analysis
High Implementation Costs
One of the primary challenges in the automatic emergency braking (AEB) market is the high cost of implementation, particularly for advanced systems. Integrating AEB requires sophisticated sensors, processors, and software algorithms, all of which contribute to increased manufacturing and development costs. This poses a challenge for automakers aiming to incorporate AEB systems into mid-range and economy vehicles while maintaining competitive pricing and affordability. Additionally, smaller manufacturers often face difficulties in allocating resources for research and development, limiting their ability to compete with larger and more established players in the industry. High costs also affect aftermarket installation, significantly reducing the penetration of AEB systems in older vehicles, which represent a considerable portion of the global fleet. Addressing cost-related barriers, including optimizing manufacturing processes and reducing component prices, remains critical for the widespread adoption of AEB technologies across all vehicle segments and price categories.
Technical Limitations and Regulatory Disparities
Technical limitations in current AEB systems also present significant challenges for manufacturers and end-users alike. These systems often struggle with detecting obstacles under adverse weather conditions, such as heavy rain, snow, or fog, leading to reduced reliability in real-world applications. False positives and negatives in detection, where systems either misidentify hazards or fail to detect them entirely, further diminish consumer confidence and satisfaction with AEB technology. Moreover, the lack of standardization across global markets creates inconsistencies in system design, functionality, and performance metrics. Regulatory disparities between regions, including variations in testing protocols, certification requirements, and compliance standards, complicate the process for automakers operating on a global scale. These challenges necessitate continuous innovation in sensor technologies, enhanced system calibration, and alignment in international regulatory frameworks to ensure consistent quality and functionality of AEB systems across diverse markets and environments.
Market Segmentation Analysis:
By Product
The market is categorized into forward collision warning (FCW) systems and dynamic brake support (DBS) systems. FCW systems dominate the segment due to their ability to alert drivers to potential collisions, providing a proactive safety measure. These systems are widely adopted in both passenger and commercial vehicles, driven by increasing regulatory mandates and consumer demand for enhanced safety features. Dynamic brake support systems are also witnessing substantial growth, as they complement FCW systems by automatically applying brakes in critical situations. The combination of these products ensures comprehensive safety, catering to varying consumer and regulatory requirements.
By Technology
The market includes radar-based, camera-based, and LiDAR-based AEB systems. Radar-based systems hold the largest share due to their high reliability in detecting obstacles in diverse weather conditions. Camera-based systems are gaining traction due to their ability to recognize objects, pedestrians, and lane markings, enhancing system versatility. LiDAR-based systems, though currently limited by high costs, represent a growing segment with their superior precision and adaptability for autonomous vehicles. The increasing integration of multi-sensor technologies in AEB systems is driving innovations and expanding the application scope across vehicle categories.
Segments:
Based on Product
- Low-speed AEBS
- High-speed AEBS
Based on Technology
- Crash Imminent Braking
- Dynamic Brake Support
- Forward Collision Warning
- Others
Based on Brake
Based on Vehicle
- Drum Passenger Vehicle
- Commercial Vehicle
Based on the Geography:
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Argentina
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of the Middle East and Africa
Regional Analysis
North America
North America commands a significant share of the automatic emergency braking (AEB) market, fueled by stringent safety regulations, consumer awareness, and early adoption of advanced driver assistance systems (ADAS). For instance, the National Highway Traffic Safety Administration (NHTSA) has initiated a voluntary agreement with major automakers to equip nearly all new vehicles with AEB systems by 2025. The United States plays a pivotal role in driving this dominance, supported by regulatory initiatives such as the National Highway Traffic Safety Administration’s (NHTSA) voluntary agreement with automakers to integrate AEB systems into nearly all new vehicles by 2025. This initiative has not only accelerated adoption but also established AEB as a standard feature across various vehicle segments, including passenger and commercial vehicles. The region benefits from a mature automotive infrastructure, a strong research and development ecosystem, and the presence of major players like General Motors, Ford, and Tesla, which continue to innovate in safety technologies. Additionally, consumer demand for advanced safety features in vehicles has risen significantly, driving automakers to prioritize AEB integration. In 2024, North America is projected to account for 30% of the global AEB market. The region’s focus on integrating radar, LiDAR, and AI-driven technologies in AEB systems ensures it remains a leader in innovation, addressing diverse safety challenges and reinforcing its market position in the coming years.
Asia-Pacific
Asia-Pacific is witnessing unprecedented growth in the automatic emergency braking (AEB) market, driven by rapid urbanization, rising disposable incomes, and increasing vehicle ownership across emerging economies. For example, China is leading the charge in AEB adoption due to its robust automotive production capabilities and proactive government policies. Countries like China, Japan, and India are at the forefront of this growth, with China leading the region due to its robust automotive production and proactive government policies aimed at enhancing road safety. The Chinese government’s New Car Assessment Program (C-NCAP) has set benchmarks for vehicle safety, encouraging automakers to integrate AEB systems. Meanwhile, Japan’s advanced technological ecosystem and focus on autonomous driving technologies are driving high penetration of AEB in premium and mid-range vehicles. India is experiencing a surge in safety awareness, with automakers introducing AEB in economy vehicles to meet evolving consumer expectations and regulatory requirements. The rise of electric vehicles in the region further supports the adoption of AEB, as manufacturers integrate advanced safety systems into next-generation vehicle platforms.
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Key Player Analysis
- Hyundai Mobis
- ZF Friedrichshafen AG
- Aisin Seiki Co., Ltd.
- Delphi Automotive LLP
- Continental AG
- Mobileye
- Autoliv Inc.
- Mando Corporation
- Robert Bosch GmbH
- Hitachi Automotive Systems, Ltd.
Competitive Analysis
The competitive landscape of the automatic emergency braking (AEB) market is shaped by leading players such as Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Hyundai Mobis, Aisin Seiki Co., Ltd., Delphi Automotive LLP, Mobileye, Autoliv Inc., Hitachi Automotive Systems, Ltd., and Mando Corporation. These companies are driving market growth through innovations in sensor technologies, AI integration, and system optimization to enhance AEB performance and reliability. They focus on strategic collaborations, partnerships, and mergers to expand their market presence and address diverse regional demands. Investments in research and development for radar, LiDAR, and camera-based systems further strengthen their competitive edge. For instance, the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) finalized a rule requiring all passenger cars and light trucks to be equipped with AEB systems. Additionally, the adoption of advanced safety systems in autonomous and electric vehicles offers lucrative opportunities, with these players actively leveraging their expertise to capture market share and maintain leadership in the evolving automotive safety industry.
Recent Developments
- In May 2023, Tesla upgraded its automatic emergency braking system to operate in reverse driving mode. This enhancement aims to increase driver and passenger safety during reverse maneuvers.
- In April 2024, the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) issued a mandate requiring all new passenger cars and light trucks to include automatic emergency braking (AEB) systems with pedestrian detection capabilities by September 2029.
- In July 2024, NIO Inc. launched the Banyan 2.6.5 CN system for vehicles equipped with the NT 2.0 technology platform. This update includes notable advancements in automatic emergency braking (AEB) functionality, utilizing artificial intelligence to improve system performance.
- In October 2024, Lynred introduced a revolutionary thermal imaging sensor, setting a benchmark for compactness. This advanced technology is anticipated to significantly enhance the capabilities of future automatic emergency braking systems.
Market Concentration & Characteristics
The automatic emergency braking (AEB) market is moderately concentrated, with a mix of global leaders and regional players competing for market share. Dominated by key companies such as Robert Bosch GmbH, Continental AG, and ZF Friedrichshafen AG, the market is characterized by intense competition and continuous innovation. These leading firms focus on advanced sensor technologies, such as radar, LiDAR, and camera systems, to enhance AEB system efficiency and reliability. The market exhibits strong integration of AEB in both premium and mid-range vehicle segments, driven by regulatory mandates and rising consumer awareness of vehicle safety. Collaborations between automakers and technology providers are prevalent, fostering innovation and reducing time-to-market for advanced solutions. Additionally, the increasing adoption of AEB systems in emerging markets and their alignment with autonomous and electric vehicle development highlight the market’s dynamic and rapidly evolving nature.
Report Coverage
The research report offers an in-depth analysis based on Product, Technology, Vehicle, Brake and Geography. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
- The automatic emergency braking (AEB) market is expected to witness robust growth driven by increasing regulatory mandates for advanced safety systems.
- Technological advancements in sensor fusion and AI integration will enhance AEB system accuracy and efficiency.
- The adoption of AEB systems in mid-range and economy vehicles will expand due to declining component costs and consumer demand.
- Emerging markets, particularly in Asia-Pacific and Latin America, will present significant growth opportunities as vehicle ownership increases.
- Autonomous and semi-autonomous vehicles will drive further demand for AEB systems as they become critical components of self-driving technologies.
- Electric vehicles will increasingly feature AEB systems, leveraging their advanced architectures for seamless integration.
- Collaborative efforts between automakers and technology providers will accelerate innovation and reduce the time-to-market for advanced AEB solutions.
- The focus on pedestrian and cyclist safety will push the development of more sophisticated AEB systems targeting vulnerable road users.
- Regulatory harmonization across regions will simplify compliance and support global adoption of standardized AEB technologies.
- Continued investments in research and development will unlock new applications and improve system performance in adverse conditions.
