Automatic Emergency Brake Systems Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Automatic Emergency Brake Systems Market is projected to expand from USD 45.38 Billion in 2025 to USD 96.25 Billion by 2031, registering a CAGR of 13.35%. Automatic Emergency Braking (AEB) systems function as active safety technologies that autonomously survey the road environment to identify collision risks and activate the vehicle's brakes if the driver does not respond. This global growth is primarily anchored by stricter regulatory mandates and heightened safety standards from assessment programs, which require the integration of collision avoidance features in new vehicle models. Consequently, manufacturers are compelled to standardize safety suites across diverse vehicle segments to reduce accident severity, as evidenced by the China Passenger Car Association reporting a 64.4 percent installation rate for AEB systems in passenger cars during the first half of 2025.

Despite this growth, the market encounters significant obstacles due to the high production costs involved in integrating complex sensor suites, such as cameras and radar. This financial requirement drives up final vehicle prices, thereby restricting widespread adoption in entry-level segments where profit margins are tight and consumers are price-sensitive. Additionally, technical constraints regarding system reliability during adverse weather conditions or low-visibility scenarios persist as engineering hurdles that limit universal market confidence and impede broader expansion.

Market Drivers

Rigid government mandates and regulatory frameworks serve as the primary drivers for market expansion, with federal agencies implementing enforceable standards to decrease traffic fatalities. Regulatory authorities in key automotive regions are shifting from voluntary agreements to binding federal motor vehicle safety standards, mandating that manufacturers install collision avoidance technology capable of operating at higher speeds and detecting pedestrians in low-light environments. A significant milestone was reached when the National Highway Traffic Safety Administration finalized a rule requiring standard automatic emergency braking on all new passenger vehicles. As noted by the National Highway Traffic Safety Administration in May 2024, within the 'NHTSA Finalizes Key Safety Rule to Reduce Rear-End and Pedestrian Crashes', this standard is expected to save at least 360 lives and prevent 24,000 injuries annually upon full implementation, forcing OEMs to standardize sensor fusion hardware across all trim levels.

The increasing global frequency of road accidents and specific apprehensions regarding pedestrian safety further hasten the uptake of these active safety systems. With urbanization intensifying interactions between vehicles and pedestrians, the industry is focusing on technologies that can identify vulnerable road users and autonomously apply brakes to lessen impact severity.

This priority is highlighted by alarming statistics demonstrating the risk to non-motorized road users; according to the Governors Highway Safety Association's 'Pedestrian Traffic Fatalities by State: 2023 Preliminary Data' from June 2024, drivers struck and killed 7,318 pedestrians in the United States the previous year, signaling a need for urgent technological intervention. Reflecting the massive industrial scale needed to meet this demand, Continental AG reported in its 'Nine-Month Financial Report 2024' from November 2024 that its Automotive group sector achieved sales of 4.8 billion euros in the third quarter alone.

Market Challenges

The significant financial load associated with incorporating complex sensor suites acts as a critical barrier to the growth of the Global Automatic Emergency Brake Systems Market. Essential hardware, such as millimeter-wave radar and high-fidelity cameras, necessitates substantial capital investment and engineering resources, which inevitably increases overall manufacturing costs. Consequently, automakers are compelled to raise retail vehicle prices to remain viable, a strategy that disproportionately impacts economy and entry-level segments where consumer demand is highly sensitive to price changes.

This cost-influenced pricing dynamic severely restricts the broad adoption of automatic emergency braking in lower-tier vehicle categories and price-sensitive regions. As manufacturers attempt to balance advanced safety compliance with affordability, the standardization of these systems decelerates in high-volume, low-margin markets. According to the American Automobile Association, the cost to replace minor advanced driver assistance system components, such as front radar sensors, ranged from $500 to $1,300 in 2024. This figure highlights the substantial per-unit expense inherent in these technologies, creating a barrier to entry for mass-market consumers and hampering the market's global volume growth.

Market Trends

A critical evolution in market technology is the expansion of AEB capabilities to detect vulnerable road users, specifically in challenging environments. Manufacturers are increasingly refining sensor fusion algorithms to recognize non-motorist signatures, such as cyclists and pedestrians, thereby addressing a significant safety gap that existed in earlier systems focused primarily on vehicle-to-vehicle collisions. This technological maturation is delivering tangible real-world safety benefits as these systems become standard equipment; according to the Partnership for Analytics Research in Traffic Safety's January 2025 report, 'Largest Automatic Emergency Braking Study Finds Systems Improving Over Time', recent data showed a 9 percent decrease in single-vehicle frontal crashes involving non-motorists for vehicles equipped with pedestrian automatic emergency braking systems.

Concurrently, the market is observing the convergence of AEB functionalities with Level 2+ and Level 3 autonomous driving suites. Rather than operating as isolated safety modules, AEB logic is being integrated into centralized domain controllers that manage comprehensive driver assistance stacks, utilizing powerful system-on-chips to execute complex braking decisions. This architectural transition facilitates more sophisticated predictive braking by capitalizing on the high-fidelity perception capabilities of semi-autonomous systems. Underscoring the industrial scale of this integration, Mobileye Global Inc. stated in its '2024 Annual Report on Form 10-K' from February 2025 that the company shipped approximately 29.0 million EyeQ and SuperVision systems in 2024, supporting the widespread deployment of these converged safety platforms.

Key Players Profiled in the Automatic Emergency Brake Systems Market

• Robert Bosch GmbH
• Continental AG
• ZF Friedrichshafen AG
• Aisin Corporation
• Hyundai Mobis Co. Ltd.
• Denso Corporation
• Autoliv Inc.
• WABCO Holdings Inc.
• Valeo SA
• Aptiv PLC

Report Scope

In this report, the Global Automatic Emergency Brake Systems Market has been segmented into the following categories:

Automatic Emergency Brake Systems Market, by Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Automatic Emergency Brake Systems Market, by Technology Type:

• Forward Collision Warning
• Dynamic Brake Support
• Crash Imminent Braking

Automatic Emergency Brake Systems Market, by Sensor Type:

• Radar
• Lidar
• Camera

Automatic Emergency Brake Systems Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automatic Emergency Brake Systems Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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