The global automatic or autonomous emergency braking market will exhibit a promising 5.9% CAGR and rise a valuation of around US$ 17,881 million by 2027.
Automatic or autonomous emergency braking technology is a special type of braking technology used currently in automobiles. Braking system in an automobile helps to brake the vehicle to prevent collision. Automatic or autonomous emergency braking as the name implies helps to brake the vehicle by increasing the braking force or automatically brakes to prevent a rear-end and other collision. Rising demand for passenger vehicles and luxury vehicles across the globe and the rising adoption of advanced driver assisted systems are anticipated to increase the demand for automatic or autonomous emergency braking systems across the globe in the next few years.
Europe Accounts for Massive Chunk in Global Revenue
In terms of market attractiveness, the technology segment of dynamic brake support is presently the most attractive segment followed by the crash imminent braking technology. Although the market size of these automatic or autonomous technologies is small, they are growing at a healthy rate and are expected to acquire a larger share in the global market in the next few years. Geographically, the market is dominated by Europe owing to the well-established automotive industry and the high rate of adoption of automatic or autonomous emergency braking technology in most vehicles.
Mounting Rise in Passenger Vehicle Sales Boosts Demand
The rising global demand for high-end passenger vehicles is anticipated to remain the key driver of the global market for automatic emergency braking systems in the next few years. China is the world’s largest automobile market and sales of passenger vehicles are rising due to tax rebates on small-engine vehicles since October 2015. China plans to extend the tax benefit throughout 2017, which is anticipated to increase the demand for automatic emergency braking technology in the near future.
The vast rise in demand for luxury vehicles across the world is also anticipated to drive the demand for automatic or autonomous emergency braking technology in the next few years. Leading automotive brands such as BMW, Mercedes, and Lexus are launching new luxury car brands to cater to the rising global population of high net worth individuals, boosting the demand technologically advanced automatic or autonomous emergency braking systems. In the U.S. Low fuel prices, low interest rates and rising employment generation have increased the sales of cars and trucks thus significantly upping the demand for emergency braking systems.
High Cost Likely to Restrain Growth Prospects to Certain Extent
Of the key factors restraining the overall growth prospects of the global automatic emergency braking market is the rise in cost of vehicles with automatic or autonomous emergency braking systems. Although the market is witnessing a steady rise in research and development activities, which is expected to reduce cost of emergency brakes in the near future, costs are presently high and inclusion of such brakes add up to increase the cost of vehicles by around 5-10% more than that of normal vehicles. Moreover, there is no aftermarket for automatic or autonomous emergency braking system. Nevertheless, the increasing adoption of advanced driver assisted systems is expected to create vast growth opportunities for the automatic or autonomous emergency braking market.
Some of the leading players operating in the global automatic or autonomous emergency braking market are Volvo Car Corporation (Sweden), Tesla Inc. (the U.S), Ford Motor Company (The U.S), Daimler AG (Germany), Audi AG (Germany), BMW Group (Germany), Volkswagen Group (Germany), Toyota Motor Corporation (Japan), Honda Motor Company Ltd (Japan), and Jaguar Land Rover Automotive Plc. (the U.K).
For the study, the market has been segmented as follows:
By Vehicle Type
The brake is the most essential safety equipment in a vehicle. Automatic or autonomous emergency braking system helps to improve safety of vehicles by improving the vehicle’s braking power. In terms of product life cycle this braking technology is in its introduction stage and moving towards the growth stage.
National Highway Traffic Safety Administration (NHTSA) which is part of the U.S Department of Transportation and non-profit organization, Insurance Institute of Highway Safety (IIHS), announced a voluntary commitment from major automotive manufacturers in the U.S to install automatic or autonomous emergency braking system in new cars by 2022 and new trucks by 2025. This is expected to drive the automatic or autonomous emergency braking market in North American region. Currently automatic or autonomous emergency braking technology penetration in the U.S is low. NHTSA plans to start a safety rating system of vehicles with higher rating for vehicles with are installed with automatic or autonomous emergency braking technology. Europe has a higher adoption of automatic or autonomous emergency braking system technology adoption. Euro NCAP (New Car Assessment Programme) has already started safety rating of vehicles where AEB installed vehicles are rated higher.
Rising demand of vehicles across the world is anticipated to increase the market size of automatic or autonomous emergency braking market. Vehicles sales are increasing in North America, Europe and Asia Pacific which is anticipated to drive the automatic or autonomous emergency braking system market.
By technology the AEB market is segmented into forward collision warning, dynamic brake support and crash imminent braking. Forward collision warning (FCW) was the first automatic or autonomous emergency braking technology available in the market. This technology provides audio and visual warning to alert the driver if it senses possibility of a collision. It does actually help in braking. Dynamic brake support (DBS) and crash imminent braking are current emergency braking technologies. Like FCW, dynamic brake support technology provides audio and visual warning to alert the driver if it senses a collision. The driver brakes but the braking force is not sufficient to prevent the collision then dynamic brake support system provides additional braking force along with driver’s own braking force to mitigate or prevent collision. Similar to FCW and DBS, crash imminent braking also provides audio and visual warning to alert the driver if it senses collision with nearby vehicles. If the driver does not apply brakes at all to prevent the collision, crash imminent braking provides full braking force automatically to mitigate or prevent collision. The market size for automatic or autonomous emergency braking is provided in terms of revenue which is in US$ million and compound annual growth rate (CAGR) is forecasted for the period of 2020 till 2027.
Scope of the Report
The report provides analysis of different drivers that are impacting the global automatic or autonomous emergency braking market along with restrains and opportunities as per the scope of the report. For each segment (such as technology and vehicle type) market analysis is provided. Additionally taking into consideration all the drivers an extensive geographical growth analysis is provided for the forecasted period has been provided in the report.
The major players in the market has been profiled across five broad geographical regions. The profile include business strategies adopted these players in the automatic or autonomous emergency braking market. Further, the report includes market attractiveness analysis of three different emergency braking technologies and insights into the market.