(MENAFN- GlobeNewsWire - Nasdaq) The market for autonomous vehicles in South Korea is leading the way in creative transportation solutions and demonstrating a revolutionary move toward driverless technology. The desire to increase road safety is one of the main factors propelling South Korea's adoption of autonomous vehicles. Additionally, autonomous cars help to improve overall transportation efficiency by reducing delays and facilitating smoother traffic flow through efficient route planning and seamless communication with other vehicles.Dublin, Jan. 21, 2025 (GLOBE NEWSWIRE) -- The "South Korea Autonomous Vehicles Market by Level of Driving, Technology, Hardware and Software Component, Vehicle Type, Application, Propulsion, Company Analysis " report has been added to ResearchAndMarkets.com's offering.
South Korea Autonomous Vehicles market is expected to reach US$ 17.42 billion in 2033 from US$ 1.76 billion in 2024, with a CAGR of 29.01% from 2025 to 2033
The country's reputation as a technologically advanced and inventive civilization is mostly being bolstered by the numerous transportation, safety, and sustainability innovations made by major actors.
Furthermore, the market for driverless vehicles in South Korea supports sustainability objectives. By optimizing fuel use and lowering pollutants, AVs are intended to have a positive environmental impact. This not only demonstrates the country's dedication to environmentally favorable projects, but it also establishes autonomous technology as a major force in the shift to more environmentally friendly modes of transportation.
As of April 1, 2021, South Korea's automobile industry ranks fifth globally in terms of passenger car production and seventh globally in terms of vehicle sales. Currently making up 12 percent of all jobs and 13 percent of all manufacturing production in South Korea, the sector is expanding. The Hyundai Motor Group, which includes Hyundai, Kia, and Genesis, is expected to rank third in terms of sales in 2032. As a result, South Korea is heavily involved in the business and has a big say in what future cars can and will look like.
Growth Drivers for the South Korea Autonomous Vehicles Market
Growing Technological Advancements
One of the main factors propelling the development of autonomous vehicles is South Korea's supremacy in AI, robotics, and 5G technology. For the safe and effective operation of self-driving cars, the nation is making great progress in the development of sophisticated sensors, machine learning algorithms, and vehicle-to-everything (V2X) communication networks. While machine learning allows cars to continuously improve their driving skills through data analysis, artificial intelligence (AI) is utilized to improve decision-making. By enabling real-time connection between infrastructure and cars, V2X connectivity enhances traffic flow and safety.
Furthermore, South Korea's 5G infrastructure provides the fast, low-latency connectivity required for autonomous cars to reliably and swiftly analyze enormous volumes of data. The country's broad adoption of driverless vehicles is well-positioned thanks to these technological developments.
Government Support and Regulations
The market for autonomous vehicles is mostly driven by the South Korean government, which actively encourages its growth through a number of legislative measures and financial incentives. To speed up testing and implementation, the government has loosened regulations. One such measure is permitting autonomous cars to drive on public highways and in specific zones.
This expansion is further supported by South Korea's ""Smart City"" goal, which incorporates cutting-edge transit systems and the incorporation of driverless cars. In order to facilitate the safe and effective operation of self-driving cars, the government is also investing in infrastructure, such as smart roads, traffic control systems, and V2X communication. The rapid development of autonomous vehicle technologies in South Korea is being facilitated by these rules, as well as research funding and partnerships with private businesses.
Strong Automotive Industry
Global behemoths like Hyundai, Kia, and LG Electronics dominate South Korea's thriving automotive sector, which offers a solid platform for the advancement and marketing of driverless cars. These businesses are working with tech companies to develop AI, sensors, and networking, and they are making significant investments in R&D to incorporate autonomous driving technology into their cars.
With current research aimed at releasing completely driverless automobiles soon, Hyundai in particular has made great progress in autonomous transportation. Major automakers' involvement enables economies of scale and, by utilizing current production capabilities, speeds up the deployment of autonomous vehicles. Furthermore, by bringing South Korea's breakthroughs in autonomous vehicles to foreign markets, these companies' worldwide reach aids in their development and market penetration.
Challenges in the South Korea Autonomous Vehicles Market
Regulatory and Legal Barriers
Legal and regulatory obstacles still stand in the way of South Korea's widespread adoption of autonomous vehicles, despite the country's strong government support. The absence of precise laws governing liability in the event of collisions involving self-driving automobiles is a major problem. Since the regulations in place are made for human-driven cars, it is challenging to establish who is responsible for what - car owners, software developers, and manufacturers. Concerns have also been raised regarding cybersecurity laws that would shield self-driving cars from possible hacking. Updated legal frameworks and policies are desperately needed as the market develops to guarantee the safe and equitable deployment of autonomous vehicles on public roads.
Public Trust and Acceptance
Safety issues are a major obstacle to public trust and acceptance of autonomous vehicles in South Korea. Skepticism over the dependability and security of autonomous vehicles has been heightened by high-profile accidents employing the technology, both locally and internationally. Consumer concerns regarding self-driving cars' capacity to handle challenging road conditions, respond effectively in emergency situations, or prevent collisions are exacerbated by these instances, which are frequently extensively reported in the media. Widespread customer adoption of driverless vehicles will continue to be a major obstacle until these issues are sufficiently resolved.
Level 2 automation holds the highest share in South Korean market
Level 2 automation or L2, dominates the South Korean autonomous vehicles market size, normally because of its vast improvements in safety functions. These systems include advanced drive-assistance technologies like adaptive cruise management and lane-keeping help, making them more low-cost and reachable to a wider range of consumers. Also, regulatory help and industry investment in L2 technologies have played a pivotal role in its market dominance, making it the preferred choice for customers and manufacturers in South Korea.
V2X software is set to dominate South Korea's autonomous vehicles market
V2X (Vehicle-to-Everything) software is primed to steer in the South Korea autonomous cars market size, enhancing protection and performance through real-time communication with the surroundings. The call for seamless, consistent connectivity within the dynamic, autonomous vehicles market is important, supported by South Korea's advanced telecom infrastructure and 5G recognition. V2X's position in permitting automobile-to-vehicle and automobile-to-infrastructure communication pivotal for safe, efficient and self-reliant transportation, solidifying South Korea's dominance in the global autonomous vehicles market.
In South Korea, BEVs are the fastest-growing segment in autonomous vehicles
By propulsion, the South Korea autonomous vehicle market is divided into Battery Electric Vehicle, Fuel Cell Electric Vehicles, Hybrid Electric Vehicle, Internal Combustion Engine, and Plug-in Hybrid Electric Vehicles. Battery electric-powered cars (BEVs) take the lead because they are the fastest-growing section in the South Korea autonomous car market size. South Korea's proactive stance in promoting electric-powered mobility, using incentives and infrastructure development, positions BEVs as the natural desire for autonomous packages.
Furthermore, BEVs resonate with the worldwide shift towards sustainability and reduced emissions, aligning with the eco-conscious customer base in South Korea. Advancements in the battery technology and charging infrastructure support BEVs' boom. Their silent, clean, and efficient operation complements autonomous vehicles, making BEVs the frontrunners in reshaping South Korea's urban and intercity transportation panorama.
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