Automatic Emergency Braking Market By System Type (Low-Speed, High-Speed, Pedestrian, Dynamic); By Vehicle Type (Passenger Cars, Light & Heavy Commercial Vehicles); By Component (Radar, Camera, LiDAR, ECU, Braking Modules); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Automatic Emergency Braking (AEB) Market will witness a robust CAGR of 10.6%, valued at $21.3 billion in 2024, expected to appreciate and reach $39.1 billion by 2030, confirms Strategic Market Research.

 

Automatic Emergency Braking systems, often integrated with forward-collision warning (FCW), are advanced safety technologies that detect potential collisions and autonomously apply brakes to avoid or mitigate impact. Initially available only in high-end vehicles, AEB systems are rapidly penetrating mid-range and even entry-level vehicle segments due to regulatory mandates, insurance incentives, and the growing prioritization of vehicular safety by OEMs and consumers.

 

Strategic Relevance in 2024–2030

The strategic significance of the AEB market lies in its central role in achieving zero-fatality road safety targets, transforming automotive ADAS architectures, and serving as a foundation for fully autonomous driving. Between 2024 and 2030, macro-level forces driving market growth include:

• Government Regulations : Euro NCAP, NHTSA, and other agencies have made AEB a prerequisite for 5-star safety ratings. The U.S. has mandated AEB installation in all light-duty vehicles starting from 2029, creating a surge in OEM integration efforts.

• Rising Global Accident Rates : With over 1.3 million deaths annually due to road crashes (WHO), there's increasing pressure on automakers to incorporate life-saving technologies like AEB.

• Tech Convergence : AEB systems increasingly rely on sensor fusion—combining LiDAR, radar, and vision systems —with AI-based object recognition, accelerating innovation in both hardware and software.

• Insurance Incentives : Several insurers offer lower premiums for vehicles equipped with AEB systems, creating market pull from the consumer end.

 

Key Stakeholders in the Ecosystem

The automatic emergency braking ecosystem includes a diverse set of stakeholders such as:

• OEMs (e.g., Toyota, Ford, Hyundai) – embedding AEB across vehicle platforms

• Tier 1 suppliers (e.g., Bosch, ZF, Continental) – innovating in radar, camera, and control units

• Sensor manufacturers (e.g., Velodyne, Ambarella ) – powering next-gen detection systems

• Regulatory bodies – standardizing performance benchmarks globally

• Investors and tech integrators – fueling R&D in AI and embedded safety systems

• Consumers and fleet operators – driving demand via safety and operational benefits

With growing emphasis on safety mandates and collision mitigation, automatic emergency braking is transitioning from an optional luxury to a standard feature across vehicle categories.

 

Market Segmentation And Forecast Scope

The automatic emergency braking (AEB) market is broadly segmented based on System Type, Vehicle Type, Component, and Region. This segmentation enables a deeper understanding of growth dynamics across the automotive safety ecosystem.

By System Type

• Low-Speed AEB Systems

• High-Speed AEB Systems

• Pedestrian AEB Systems

• Dynamic AEB Systems

Low-speed systems are prevalent in urban vehicles, offering braking support in bumper-to-bumper traffic. High-speed and pedestrian AEB systems, however, are gaining adoption across premium and mid-tier models. In 2024, pedestrian AEB systems accounted for approximately 28.5% of global revenues, driven by urban safety mandates and rising pedestrian injury cases.

Dynamic AEB systems, which adjust braking force based on real-time sensor input, are projected to be the fastest-growing segment through 2030, as automakers enhance safety differentiation in high-margin vehicles.

 

By Vehicle Type

• Passenger Cars

• Commercial Vehicles

• Light Commercial Vehicles (LCVs)

• Heavy-Duty Trucks and Buses

Passenger cars dominate the market in terms of volume, particularly in North America, Europe, and Asia-Pacific. However, commercial vehicles, especially urban delivery fleets and autonomous shuttle buses, are expected to grow at a CAGR of over 12.4%, given their need to minimize insurance claims and downtime.

 

By Component

• Sensors

• Radar

• LiDAR

• Ultrasonic

• Camera

• ECU (Electronic Control Units)

• Actuators and Braking Modules

In 2024, radar sensors comprised nearly 41% of total component revenue, favored for their reliability in all-weather conditions. However, camera-based systems are rapidly advancing due to improvements in AI vision processing and cost reductions in CMOS sensors.

Sensor fusion, combining radar and camera input, is emerging as the industry standard in vehicles priced above $30,000.

 

By Region

• North America

• Europe

• Asia-Pacific

• LAMEA (Latin America, Middle East & Africa)

Asia-Pacific holds the largest share due to high vehicle production, strong regulatory support in countries like Japan and South Korea, and increasing domestic demand for safety features in China and India. North America follows closely, driven by federal crash-avoidance mandates and large-scale deployment in fleet vehicles.

 

Market Trends And Innovation Landscape

The automatic emergency braking (AEB) market is evolving rapidly, driven by sensor advancements, AI-based decision systems, and a broader transition toward autonomous mobility. The 2024–2030 forecast period marks a transition phase where AEB shifts from basic forward-collision systems to predictive, multi-directional safety networks.

1. Convergence of AI and Sensor Fusion

A key innovation trend is the fusion of multiple sensing technologies— radar, cameras, LiDAR, and ultrasonic sensors —integrated through deep learning and AI algorithms. This shift enables real-time contextual analysis, allowing systems not just to detect objects, but also to classify threats, predict pedestrian paths, and adjust braking force based on speed, weight, and traffic dynamics.

“Sensor fusion is becoming the de facto design strategy for Level 2 and Level 3 ADAS. By 2027, we expect over 70% of AEB-enabled vehicles to use dual or triple sensor modalities,” notes an ADAS engineer at a leading German OEM.

 

2. Software-Defined AEB Platforms

Traditional AEB systems relied heavily on hardware triggers. Now, we’re witnessing the rise of software-defined braking architectures, which allow over-the-air (OTA) updates, regional tuning for driving behavior, and modular expansion. For example, software layers can be reconfigured to respond differently in European cityscapes versus U.S. highways.

“With a unified software stack, OEMs can extend AEB capabilities without replacing the hardware—cutting costs and deployment cycles drastically,” explains a product lead at a Tier 1 supplier.

 

3. AEB for Multi-Directional Collision Avoidance

Advanced AEB systems are expanding beyond forward-collision detection. Rear and side AEB modules are emerging, powered by multi-angle camera arrays and short-range radars, offering 360-degree protection. This is particularly critical for urban environments and commercial vehicles maneuvering in tight spaces.

 

4. Partnerships and Innovation Accelerators

Leading AEB players are increasingly forming strategic partnerships to co-develop sensing platforms and AI engines. Noteworthy developments include:

• Bosch and Microsoft : Collaboration on cloud-based vehicle data ecosystems to improve AEB responsiveness.

• Mobileye (Intel) and Volkswagen : Joint efforts on integrating Mobileye’s REM (Road Experience Management) data into braking decision models.

• ZF and NVIDIA : Building scalable ADAS systems where AEB is a core service module in the automated driving suite.

 

5. Evolution Toward Autonomous Integration

AEB is now seen as a building block for full autonomy. As L3 and L4 vehicle prototypes scale up, AEB becomes part of a broader predictive safety architecture that preempts crashes using high-definition mapping, edge AI, and vehicle-to-everything (V2X) communication.

Autonomous vehicles will rely on AEB not just as a fail-safe, but as a core safety net continuously supervising the environment—even when human drivers disengage.

 

Competitive Intelligence And Benchmarking

The automatic emergency braking (AEB) market is highly competitive and technology-intensive, with a blend of global OEMs, Tier 1 automotive suppliers, and sensor/software innovators. Competitive advantage hinges on integration capabilities, system reliability, sensor innovation, and compliance with evolving global safety regulations.

Here is a benchmarking overview of leading players shaping the competitive landscape:

1. Bosch

A global leader in advanced driver-assistance systems (ADAS), Bosch continues to dominate the AEB space through its comprehensive portfolio of radar and vision-based braking modules. It leverages vertical integration—designing both sensors and control software—allowing for high system reliability. Bosch also benefits from partnerships with cloud providers to offer scalable, OTA-updatable AEB systems for electric and hybrid vehicles.

 

2. ZF Friedrichshafen

ZF is a front-runner in intelligent braking systems, offering modular AEB components as part of its larger ProAI autonomous driving platform. ZF’s competitive edge lies in its sensor fusion control units and close collaborations with automotive OEMs for Level 2+ driving systems. The company has been especially proactive in addressing side-impact and reverse AEB functions.

 

3. Continental AG

Known for its cutting-edge radar and camera modules, Continental provides highly integrated AEB systems, especially for the European automotive market. The firm is investing heavily in AI-based pedestrian and cyclist detection, enabling higher accuracy in crowded city environments. Continental’s value proposition is its ability to miniaturize high-performance systems for compact vehicle segments.

 

4. Mobileye (an Intel Company)

Mobileye focuses on vision-centric AEB, capitalizing on its EyeQ ® chip platform and REM crowd-sourced mapping. Its approach differs by emphasizing visual AI over radar, offering cost-efficient solutions for OEMs targeting L2 automation. Mobileye systems are embedded in more than 50 million vehicles worldwide, providing a robust data layer that improves AEB prediction accuracy.

 

5. Aptiv

Aptiv emphasizes scalable, software-defined ADAS platforms, where AEB is a foundational layer. Its modular approach allows OEMs to tailor AEB functionality across vehicle classes without extensive hardware changes. Aptiv is a key player in North American and European EV platforms, particularly in vehicles transitioning from assisted to semi-autonomous driving.

 

6. Valeo

With a focus on ultrasonic and camera-based systems, Valeo specializes in short-range AEB for urban driving and parking scenarios. The company is notable for its efforts in the Asia-Pacific market, offering localized solutions tailored for dense urban environments like Seoul, Tokyo, and Shanghai.

 

7. Denso Corporation

A stronghold in the Japanese market, Denso supplies AEB systems primarily to Toyota and other Asian OEMs. The firm is exploring edge AI chips that support ultra-fast braking decisions, and it has invested in joint ventures to localize production across Southeast Asia.

Across the competitive landscape, companies are shifting from hardware-differentiated offerings to software-enabled, adaptable AEB ecosystems. Those that succeed in enabling OTA updates, sensor fusion, and regulatory compliance will lead in both volume and profitability.

 

Regional Landscape And Adoption Outlook

The adoption of automatic emergency braking (AEB) technology varies widely across global regions, shaped by differences in regulatory enforcement, vehicle production, urbanization, and consumer safety awareness. While developed markets continue to drive volume, emerging economies represent the next frontier for expansion.

North America

The United States and Canada are among the most advanced markets for AEB, driven by government mandates and insurance incentives. The National Highway Traffic Safety Administration (NHTSA) and IIHS have made AEB a standard requirement for crash avoidance ratings, pushing OEMs to integrate the technology across new models.

• U.S. automakers like Ford and GM are rolling out AEB even in base trims of their vehicles.

• The region's robust regulatory push and strong consumer awareness support steady CAGR growth of 9.8% through 2030.

• Fleet operators in logistics and ride-hailing are also accelerating adoption due to liability and insurance cost benefits.

“North America is no longer asking if AEB is needed—it’s deciding how fast it can be scaled across autonomous and semi-autonomous platforms,” notes an executive from the American Automotive Safety Alliance.

 

Europe

Europe boasts the highest regulatory stringency for automotive safety, making AEB nearly ubiquitous in new vehicles sold across Germany, France, the UK, and the Nordic countries. Under EU Regulation 2019/2144, AEB has become mandatory for new models starting July 2024, with full fleet compliance by 2026.

• German automakers are leading in dynamic and AI-enhanced AEB systems that adapt to traffic and weather conditions.

• Europe’s urban infrastructure and emphasis on pedestrian safety have led to innovations in cyclist detection and multi-directional braking.

• The region is expected to contribute over 29% of global AEB revenue by 2030.

 

Asia-Pacific

Asia-Pacific is the largest and fastest-growing regional market for AEB, fueled by mass vehicle production in China, Japan, South Korea, and India.

• Japan was an early adopter, integrating AEB in nearly 95% of new vehicles by 2022.

• South Korea enforces strict crash-avoidance technology mandates in both personal and commercial fleets.

• China is rapidly integrating AEB into EV platforms, especially those by BYD, XPeng, and NIO, which use domestic radar and camera modules to lower costs.

• India's regulatory body, AIS, is in the process of phasing in AEB recommendations for all passenger vehicles by 2026.

Despite infrastructure limitations in some nations, Asia-Pacific will see a CAGR exceeding 12.2%, propelled by urban safety concerns, rising middle-class car ownership, and local production of cost-effective AEB systems.

 

LAMEA (Latin America, Middle East & Africa)

While still nascent, the AEB market in LAMEA is gaining traction through fleet modernization, international safety standards, and government-driven safety programs.

• Brazil and Mexico are leading adoption in Latin America, with rising consumer preference for compact cars equipped with basic ADAS.

• GCC countries in the Middle East are investing in smart city mobility and premium vehicle imports, boosting demand for advanced safety systems.

• Africa remains largely untapped but presents long-term potential via fleet retrofitting and public transport automation.

“LAMEA represents the next growth frontier—not in sheer volume today, but in regulatory evolution and investment-led adoption by 2030,” notes a regional automotive strategist.

 

End-User Dynamics And Use Case

Automatic Emergency Braking (AEB) technology is being deployed across diverse vehicle categories and user environments, shaped by differing operational priorities—from passenger safety to fleet efficiency. The demand trajectory across end users hinges on regulatory compliance, insurance incentives, vehicle cost sensitivity, and urban mobility dynamics.

1. Passenger Car Owners and Individual Consumers

This segment is the primary driver of AEB adoption globally. Increasing safety awareness, 5-star crash rating expectations, and OEM bundling of AEB with other ADAS features (like lane-keeping and adaptive cruise control) are accelerating penetration into both premium and mass-market vehicles.

• Urban buyers in Europe and Asia-Pacific prioritize AEB with pedestrian and cyclist detection to mitigate traffic hazards.

• Suburban and highway-focused drivers value high-speed AEB variants that work at 80–100 km/h, integrated into adaptive cruise systems.

Younger consumers in the 25–35 demographic actively seek safety features like AEB when purchasing vehicles, viewing it as a critical lifestyle upgrade rather than a luxury.

 

2. Fleet Operators and Commercial Transportation

From logistics providers to ride-hailing services, AEB adoption among fleet operators is being driven by the need to reduce accident-related downtime, minimize insurance premiums, and ensure driver accountability.

• Companies managing delivery fleets in urban centers are deploying AEB as part of broader telematics solutions.

• Insurance providers offer discounts of up to 15–20% on commercial policies when vehicles are equipped with verified AEB systems.

Large e-commerce and logistics firms are making AEB a prerequisite in vehicle procurement contracts to meet both ESG goals and operational benchmarks.

 

3. Public Transport Authorities and Municipal Fleets

City governments and transport agencies are increasingly integrating AEB into buses, trams, and municipal vehicles, especially in regions with high pedestrian density or accident rates.

• Smart city initiatives in countries like South Korea, the UAE, and the Netherlands have mandated or incentivized AEB adoption in urban fleet renewal programs.

• AEB technology in buses often includes enhanced pedestrian awareness and intersection-specific braking patterns.

 

4. Military and Emergency Services (Emerging Segment)

Although still limited, the defense and emergency response sectors are exploring AEB integration, especially for non-combat transport and ambulance fleets in dense urban zones. The use case here is typically tied to automated convoying and collision avoidance under high-stress conditions.

 

Use Case Highlight

A tertiary hospital network in Seoul, South Korea, upgraded its ambulance fleet in 2023 with commercial vehicles equipped with advanced AEB systems featuring pedestrian detection and cross-traffic alert. Within the first year, incident reports involving vehicle collisions during emergency responses dropped by 38%. Operators also noted improved driver confidence and smoother braking performance during high-speed navigation through congested zones. This not only reduced vehicle downtime but also contributed to improved patient response times during critical cases.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Past 2 Years)

• U.S. Department of Transportation Mandate (2023)
  The U.S. announced that all passenger cars and light trucks sold from 2029 must include automatic emergency braking systems, triggering early OEM retrofitting strategies and partnerships with AEB suppliers.

• Mobileye Partners with Volkswagen on Real-Time AEB Mapping (2023)
  Mobileye and VW expanded collaboration to integrate crowd-sourced Road Experience Management (REM) data to enhance AEB response precision in congested urban conditions.

• Bosch Unveils Predictive Emergency Braking System (2024)
  Bosch launched a predictive AEB platform using AI-powered threat modeling that anticipates vehicle behavior at intersections and pedestrian crossings.

• China Mandates AEB for New Energy Vehicles (NEVs) by 2025
  The Chinese Ministry of Industry and Information Technology announced a directive requiring all new EVs to integrate AEB systems by 2025, fast-tracking domestic AEB development.

• ZF and NVIDIA Launch AI-Enabled AEB Module for Commercial Trucks (2023)
  This joint platform enhances side and rear AEB functionality, optimized for long-haul and urban delivery fleets.

 

Opportunities

• Integration with Autonomous Driving Architectures
  AEB serves as a foundational technology in the transition to Level 3 and 4 autonomous driving systems. Its enhancement through AI and V2X communication opens doors to new vehicle safety frameworks.

• Fleet-Driven Demand Surge in Emerging Markets
  Urban logistics fleets in Latin America, Southeast Asia, and Africa are driving demand for AEB-enabled vehicles to reduce losses and comply with global ESG mandates.

• Software-Defined ADAS and OTA Expansion
  With more AEB systems becoming modular and software-configurable, OEMs can push updates and expand capabilities over the air—creating recurring revenue models and faster innovation cycles.

 

Restraints

• High Cost of Advanced Sensor Fusion Systems
  Radar-LiDAR-camera combinations increase system complexity and cost, making AEB integration in low-end vehicles financially challenging without subsidies or incentives.

• Lack of Standardized Testing Protocols in Developing Regions
  The absence of universally enforced AEB performance benchmarks across emerging markets limits trust and adoption by regulators and consumers.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 21.3 Billion
Revenue Forecast in 2030	USD 39.1 Billion
Overall Growth Rate	CAGR of 10.6% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By System Type, By Vehicle Type, By Component, By Geography
By System Type	Low-Speed, High-Speed, Pedestrian, Dynamic
By Vehicle Type	Passenger Cars, Light Commercial Vehicles, Heavy Trucks
By Component	Radar, Camera, LiDAR, ECU, Braking Modules
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, UAE
Market Drivers	• Regulatory mandates • Urban safety priorities • ADAS integration shift
Customization Option	Available upon request