Market Research

Market Overview

The Automatic Emergency Braking (AEB) System Market is poised for significant expansion, with its market size projected to increase from USD 31,641.30 million in 2024 to USD 60,323.78 million by 2032, reflecting a compound annual growth rate (CAGR) of 8.4% during the forecast period. This robust growth underscores the rising emphasis on vehicle safety and the increasing integration of advanced driver assistance systems (ADAS) across automotive segments. As regulatory bodies across the globe push for enhanced vehicular safety features, AEB systems are becoming essential components in both passenger and commercial vehicles. The rapid advancement in sensor technologies, coupled with growing consumer awareness regarding accident prevention, is reinforcing market adoption. Additionally, the shift towards autonomous vehicles and smart mobility is creating a favorable ecosystem for the expansion of automatic emergency braking systems, further accelerating the momentum of this dynamic market landscape.

Market Drivers

1. Rising Regulatory Mandates for Vehicle Safety
   Government regulations in major automotive markets such as the U.S., Europe, and Japan have made AEB systems mandatory or recommended in new vehicles. These mandates aim to minimize road fatalities and improve overall traffic safety. As regulatory frameworks become more stringent, OEMs are incorporating AEB as a standard feature to comply with safety protocols and enhance brand reputation.
2. Surge in Demand for ADAS Integration
   With the automotive sector moving steadily toward semi-autonomous and autonomous driving capabilities, ADAS technologies like automatic emergency braking are gaining traction. These systems work with cameras, LiDAR, radar, and ultrasonic sensors to ensure real-time object detection and collision avoidance, making AEB a critical component in the broader ADAS suite.
3. Growing Consumer Awareness and Safety Consciousness
   As consumers become more safety-conscious, demand for cars equipped with life-saving technologies has surged. Awareness campaigns, insurance incentives, and third-party safety ratings (like NCAP) have played pivotal roles in increasing AEB adoption, particularly in mid-range and economy vehicle segments.

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Market Trends

Integration of AI and Sensor Fusion in AEB Systems
Modern AEB systems are witnessing a paradigm shift with the integration of artificial intelligence and sensor fusion technologies. This evolution allows for quicker decision-making and more precise object identification. Leading manufacturers are also incorporating vehicle-to-everything (V2X) communication for proactive braking decisions, enhancing safety in complex traffic environments.

Market Challenges

High Cost of Advanced Systems in Developing Economies
One of the primary barriers to market growth is the high cost associated with advanced AEB systems. In cost-sensitive markets, especially in developing economies, consumers and manufacturers are reluctant to invest in expensive safety features. Additionally, the lack of supportive infrastructure and limited awareness hinders the widespread implementation of these technologies in entry-level vehicles.

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.

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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

• Disc
• Drum

Based on Vehicle

• Drum Passenger Vehicle
• Commercial Vehicle

Based on the Geography:

• North America
  • U.S.
  • Canada
  • Mexico
• 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

Future Outlook

• Increased implementation of AEB systems in commercial fleets.
• Growth in demand from electric vehicle manufacturers.
• Rising partnerships between tech firms and OEMs for sensor development.
• Expanding regulatory mandates across Asia-Pacific and Latin America.
• Enhanced software updates enabling over-the-air AEB enhancements.
• Integration with other ADAS functions like lane assist and adaptive cruise control.
• AEB to become standard across all vehicle categories, including economy cars.
• Use of deep learning and AI for better object classification and prediction.
• OEMs offering AEB as a differentiator in marketing and branding strategies.
• Increased R&D investments in low-cost AEB systems for emerging markets.

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