Automatic Emergency Brake Systems Market, By Vehicle Type (Passenger Cars and Commercial Vehicles), By Technology Type (Forward Collision Warning, Dynamic Brake Support and Crash Imminent Braking), By Sensor Type (Radar, Lidar, Camera), By Company and By Geography, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 45.38 Billion
CAGR (2026-2031)	13.35%
Fastest Growing Segment	Radar
Largest Market	North America
Market Size (2031)	USD 96.25 Billion

Market Overview

The Global Automatic Emergency Brake Systems Market will grow from USD 45.38 Billion in 2025 to USD 96.25 Billion by 2031 at a 13.35% CAGR. Automatic Emergency Braking (AEB) systems are active safety technologies that autonomously monitor the road environment to detect potential collisions and engage the vehicle's braking mechanism if the driver fails to intervene. The global market growth is fundamentally supported by increasing regulatory mandates and the elevation of safety standards by assessment programs which necessitate the inclusion of collision avoidance features in new vehicle models. These compliance requirements compel manufacturers to standardize safety suites across various vehicle segments to mitigate accident severity. According to the China Passenger Car Association, in the first half of 2025, the installation rate of automatic emergency braking systems in passenger cars reached 64.4 percent.

However, the market faces a substantial challenge regarding the high production costs associated with integrating complex sensor suites such as radar and cameras. This financial burden elevates the final vehicle price, thereby hindering widespread adoption in price-sensitive entry-level segments where profit margins are restricted. Furthermore, technical limitations related to system reliability during inclement weather conditions or low-visibility scenarios continue to present engineering obstacles that impede universal market confidence and expansion.

Key Market Drivers

Stringent government mandates and regulatory frameworks constitute the primary catalyst for market expansion, as federal agencies enforce compellable standards to reduce traffic fatalities. Regulatory bodies in major automotive hubs are transitioning from voluntary agreements to binding federal motor vehicle safety standards, requiring manufacturers to install collision avoidance technology that functions at higher speeds and detects pedestrians in low-light conditions. A pivotal development occurred when the National Highway Traffic Safety Administration finalized a rule necessitating standard automatic emergency braking on all new passenger vehicles. According to the National Highway Traffic Safety Administration, May 2024, in the 'NHTSA Finalizes Key Safety Rule to Reduce Rear-End and Pedestrian Crashes', this new standard is projected to save at least 360 lives and prevent 24,000 injuries annually once fully implemented. This legislative pressure forces OEMs to standardize sensor fusion hardware across all trim levels.

The rising global incidence of road accidents and specific concerns regarding pedestrian safety further accelerate the adoption of these active safety systems. As urbanization increases vehicle-pedestrian interactions, the industry is prioritizing technologies capable of identifying vulnerable road users and autonomously engaging brakes to mitigate impact severity. This urgency is underscored by alarming accident statistics that highlight the vulnerability of non-motorized road users. According to the Governors Highway Safety Association, June 2024, in the 'Pedestrian Traffic Fatalities by State: 2023 Preliminary Data', drivers struck and killed 7,318 pedestrians in the United States during the prior year, necessitating urgent technological intervention. Reflecting the immense industrial scale required to meet this safety-driven demand, according to Continental AG, November 2024, in the 'Nine-Month Financial Report 2024', the Automotive group sector generated sales of 4.8 billion euros in the third quarter alone.

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Key Market Challenges

The substantial financial burden associated with integrating complex sensor suites presents a critical impediment to the expansion of the Global Automatic Emergency Brake Systems Market. The necessary hardware, including millimeter-wave radar and high-fidelity cameras, demands significant capital investment and engineering resources, which inevitably inflates the overall manufacturing cost. Automakers are consequently forced to increase the retail pricing of vehicles to maintain viability, a strategy that disproportionately affects the entry-level and economy segments where consumer demand is highly elastic.

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

Key Market Trends

The expansion of AEB capabilities to detect vulnerable road users, particularly in challenging environments, represents a critical evolution in market technology. Manufacturers are increasingly refining sensor fusion algorithms to identify non-motorist signatures such as pedestrians and cyclists, addressing a major safety gap left by earlier systems that primarily focused on vehicle-to-vehicle collisions. This technical maturation is yielding significant real-world safety benefits as these systems become standard equipment. According to the Partnership for Analytics Research in Traffic Safety, January 2025, in the 'Largest Automatic Emergency Braking Study Finds Systems Improving Over Time' report, recent data indicated a 9 percent reduction in single-vehicle frontal crashes involving non-motorists for vehicles equipped with pedestrian automatic emergency braking systems.

Simultaneously, the market is witnessing the convergence of AEB functionalities with Level 2+ and Level 3 autonomous driving suites. Instead of functioning as discrete 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 shift enables more sophisticated predictive braking by leveraging the high-fidelity perception capabilities of semi-autonomous systems. Highlighting the industrial scale of this technological integration, according to Mobileye Global Inc., February 2025, in the '2024 Annual Report on Form 10-K', the company shipped approximately 29.0 million EyeQ and SuperVision systems in 2024, underpinning the widespread deployment of these converged safety platforms.

Segmental Insights

The Radar segment is anticipated to witness the fastest growth in the Global Automatic Emergency Brake Systems Market owing to its operational consistency in challenging weather conditions. While optical sensors may face limitations during heavy rain or fog, radar sensors provide accurate distance measurement and object detection regardless of visibility. This technical advantage supports compliance with rigorous safety protocols established by institutions like the European New Car Assessment Programme. Furthermore, the comparative cost-efficiency of radar sensors against LiDAR alternatives encourages high-volume adoption across economy and mid-range vehicle classes, thereby fueling segment development.

Regional Insights

North America maintains a leading position in the global Automatic Emergency Brake Systems market, driven by stringent regulatory frameworks and a unified focus on vehicle safety. The National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety have been pivotal in this expansion by facilitating commitments from automakers to standardize this technology in new passenger vehicles. This regulatory pressure, combined with strong consumer demand for high safety ratings and the presence of major manufacturers, ensures the widespread integration of automatic braking solutions across the United States and Canada.

Recent Developments

• In October 2025, Mobileye announced that its vision-only driver assistance system had successfully met the rigorous requirements of the United States' new Federal Motor Vehicle Safety Standard No. 127. The company confirmed that its proprietary system, powered by the EyeQ6L system-on-chip, could satisfy the mandate for automatic emergency braking performance without requiring additional radar or lidar sensors. This achievement was validated through extensive testing involving thousands of targeted scenarios and real-world driving data. The development offered automakers a cost-effective, scalable solution to comply with the upcoming safety regulations that necessitate standard emergency braking on all new passenger vehicles.
• In September 2024, Continental AG announced a substantial expansion of its product portfolio to include advanced camera and radar sensors specifically for the automotive aftermarket. The company introduced these components to address the increasing prevalence of advanced driver assistance systems in small and mid-range vehicle classes. Among the newly released products were multifunctional camera modules and long-range radar units capable of supporting adaptive cruise control and emergency braking functions. This strategic move aimed to provide workshops and service centers with original equipment-quality replacements, ensuring the continued reliability of critical safety systems in aging vehicle fleets.
• In September 2024, ZF Friedrichshafen AG presented the latest iteration of its OnGuardMAX autonomous emergency braking assistance system for commercial vehicles at the IAA Transportation event. The technology group highlighted the system's enhanced capabilities in detecting and reacting to moving and stationary obstacles, including vulnerable road users such as pedestrians and cyclists. By integrating sophisticated data from cameras and radar sensors, the system was designed to autonomously initiate braking maneuvers to prevent collisions or mitigate their severity. This launch underscored the company's focus on improving safety standards within the heavy-duty transport sector through advanced automation technologies.
• In January 2024, Luminar Technologies unveiled its new Automatic Emergency Steering capabilities utilizing its Iris+ LiDAR sensor during the Consumer Electronics Show. This development represented a significant advancement in proactive safety features, designed to avoid collisions at high speeds where braking alone might be insufficient. The company demonstrated how the system could actively control steering to navigate around obstacles without driver intervention. This technology was positioned as a critical enhancement over traditional camera and radar-based assistance systems, offering higher-confidence detection and response capabilities for next-generation vehicle safety and autonomous driving platforms.

Key Market Players

• 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

By Vehicle Type	By Technology Type	By Sensor Type	By Region
Passenger Cars and Commercial Vehicles	Forward Collision Warning Dynamic Brake Support and Crash Imminent Braking	Radar Lidar Camera	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automatic Emergency Brake Systems Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automatic Emergency Brake Systems Market, By Vehicle Type:

• Passenger Cars and Commercial Vehicles

• Automatic Emergency Brake Systems Market, By Technology Type:

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

• Automatic Emergency Brake Systems Market, By Sensor Type:

• Radar
• Lidar
• Camera

• Automatic Emergency Brake Systems Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE