Automatic Emergency Braking (AEB) Market Size

Automatic Emergency Braking Market Size

Automatic Emergency Braking Market size was valued at USD 63.6 billion in 2023 and is anticipated to grow at a CAGR of over 5% between 2024 and 2032. Regulatory pressures and stringent safety standards are key drivers of the market growth. For instance, in July 2024, the Insurance Institute for Highway Safety (IIHS) emphasized the critical need for rear automatic emergency braking (AEB) as standard in all vehicles.

To get key market trends

  Download Free Sample

The growth of the market is significantly driven by continuous technological advancements. Innovations in sensors, radar, and camera technologies have enhanced the effectiveness of AEB systems. The integration of advanced algorithms and artificial intelligence improves the system's ability to detect potential collisions and respond in real-time. These technological enhancements not only increase the reliability of AEB systems but also contribute to their adoption by automotive manufacturers aiming to offer advanced safety features in their vehicles.
 

Increasing consumer awareness and demand for advanced safety features are fueling the expansion of the market. As vehicle buyers become more conscious of safety and accident prevention, they increasingly seek vehicles equipped with AEB systems. This rising consumer preference drives automakers to include AEB technology in their vehicles, making it a standard offering. The growing emphasis on safety and the desire for enhanced driver assistance systems contribute to the overall growth of the market.
 

Integrating Automatic Emergency Braking (AEB) systems into vehicles can be costly, particularly for manufacturers of budget or entry-level vehicles. The advanced technology required for AEB includes sensors, radar, and sophisticated algorithms, which contribute to higher production costs. These expenses can deter some automakers from incorporating AEB into their vehicles, especially if they are targeting price-sensitive markets. As a result, the adoption of AEB may be slower in lower-end vehicle segments, impacting overall market growth.
 

Consumer understanding of AEB technology and its benefits remains limited. Some buyers may not fully appreciate the effectiveness of AEB in preventing accidents or might have misconceptions about its reliability. This lack of awareness can lead to lower demand for vehicles equipped with AEB, as consumers may not prioritize or even seek out this feature. Additionally, misinformation or skepticism about the technology's performance could hinder its widespread acceptance, affecting the overall growth of the market.