Summary

South Korea Autonomous Vehicles Market Size

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.


South Korea Autonomous Vehicles Industry Overview

An autonomous vehicle (AV), sometimes known as a driverless car, is able to operate on its own without assistance from a human. In order to sense its environment and make navigational judgments, it uses a combination of sensors, cameras, and an advanced driver assistance system (ADAS). Enhancing road safety by preventing collisions and lowering the probability of accidents is the main goal of AV technology. Additionally, by communicating with other vehicles and optimizing routes, it helps to enhance traffic flow and lessen traffic congestion. With shorter journey times and less fuel usage, the use of AV technology is essential to reducing the negative environmental effects of transportation. At the moment, AV is becoming more well-known for its capacity to increase productivity by allowing travelers to work, unwind, and do other things while traveling.

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. 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. Because typical insurance models do not adequately handle the particular hazards created by self-driving technology, insurance plans for autonomous vehicles are likewise still in their infancy. 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. Because of this, many people are still reluctant to adopt autonomous vehicles out of concern for possible hazards. Thorough testing, openness about safety procedures, and unambiguous communication about the technology's capabilities are all necessary to bolster public trust. 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. This level of automation complements protection, reduces driving fatigue, and represents a stepping stone toward complete autonomy. 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.


Hardware retains the highest share in the South Korea autonomous vehicles market

The South Korea autonomous vehicles market keeps hardware supremacy because of its crucial function in self-sufficient car improvement. Hardware components embody sensors, processors, cameras, and communication systems critical for perception and decision-making, ensuring protection and overall performance. The commitment of important companies in hardware research and development further solidifies its dominance, making hardware the cornerstone of autonomous generation and reinforcing South Korea's management of this burgeoning industry.


Electronics and architecture are expected to grow fastest in South Korea's autonomous vehicle market.

Due to their pivotal role as the backbone of autonomous structures, superior technology, such as software, connectivity solutions, and vehicle structure, are poised for the fastest growth in the South Korea autonomous vehicle market. As automobiles become increasingly sophisticated, software is pivotal in decision-making, connectivity, and real-time records processing. South Korea's prowess in electronics and software program improvement, coupled with the demand for current vehicle architectures, positions these segments for rapid enlargement. Moreover, the convergence of artificial intelligence, cybersecurity, and network infrastructure in autonomous cars further fuels the increase of other electronics and architecture, making them imperative to South Korea's management of autonomous technology.


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.


Passenger vehicles are projected to lead South Korea's autonomous vehicles market

Passenger cars are poised to lead in the South Korea autonomous car market size. With a developing emphasis on improving city mobility and addressing visitor congestion, those motors provide realistic solutions for day-by-day commuters. They also gain from non-stop studies and development efforts to ensure passenger protection and comfort, making them frontrunners in shaping the future of self-sufficient automobiles in South Korea, particularly within the state's focus on smart city initiatives and infrastructure development.


Civil applications are the fastest-growing segment in South Korea's autonomous vehicles market

Civil application is the fastest-growing sector in the South Korea automobile car market size. The surge in the need for self-sufficient automobiles in public transportation, delivery services and logistics, and efficient and sustainable city mobility is a major motive. This trend is bolstered by South Korea's commitment to smart city tasks and eco-friendly transportation solutions. Civil applications embody many use cases, from self-sufficient shuttles to transport robots and smart logistics solutions, rendering them adaptable to numerous city situations. The strong infrastructure, government backing, and technological innovation in South Korea, in addition, boost the fast growth of civil self-sufficient applications, addressing vital challenges in current city environments.


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.


Level of Driving – Market breakup from 5 viewpoints:
1. L1
2. L2
3. L3
4. L4
5. L5



Technology – Market breakup from 2 viewpoints:
1. Hardware
2. Software



Hardware – Market breakup from 13 viewpoints:
1. Passive Components
2. Embedded Modems
3. Ultrasonic Sensors
4. Odometry Sensors
5. Other Electronics and architecture
6. Actuators
7. HMI Hardware
8. Mapping Hardware
9. Embedded Controls Hardware
10. V2X Hardware
11. Cameras
12. Radar
13. Lidar


Software – Market breakup from 5 viewpoints:
1. HMI Software
2. Data Security Software
3. Mapping Software
4. Embedded Controls Software
5. V2X Software


Vehicle Type – Market breakup from 2 viewpoints:
1. Commercial vehicles
2. Passenger vehicles


Application – Market breakup from 4 viewpoints:
1. Civil
2. Defence
3. Transportation & Logistics
4. Construction


Propulsion – Market breakup from 5 viewpoints:
1. Battery Electric Vehicle
2. Fuel Cell Electric Vehicles
3. Hybrid Electric Vehicle
4. Internal Combustion Engine
5. Plug-in Hybrid Electric Vehicle


All companies have been covered from 3 viewpoints:
• Overview
• Recent Development
• Revenue


Company Analysis:
1. Hyundai Motor Company
2. GM Korea Company
3. Renault Samsung Motors
4. KG Mobility Corporation

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Table of Contents

1. Introduction


2. Research & Methodology


3. Executive Summary


4. Market Dynamics
4.1 Driving Factors
4.2 Challenges


5. South Korea Autonomous Vehicles Market


6. Market Share
6.1 By Level of Driving
6.2 Hardware vs. Software
6.3 By Technology – Hardware Components
6.4 By Technology – Software Components
6.5 By Vehicle Type
6.6 By Application
6.7 By Propulsion


7. Level of Driving
7.1 Level 1
7.2 Level 2
7.3 Level 3
7.4 Level 4
7.5 Level 5


8. Technology
8.1 Hardware Components
8.2 Software Components


9. Hardware Components
9.1 Passive Components
9.2 Embedded Modem
9.3 Ultrasonic Sensors
9.4 Odometry Sensors
9.5 Other Electronics & Architecture
9.6 Actuators
9.7 HMI Hardware
9.8 Mapping Hardware
9.9 Embedded Controls Hardware
9.10 V2X Hardware
9.11 Cameras
9.12 Radar
9.13 Lidar


10. Software Components
10.1 HMI Software
10.2 Data Security Software
10.3 Mapping Software
10.4 Embedded Controls Software
10.5 V2X Software


11. Vehicle Type
11.1 Passenger Vehicle
11.2 Commercial Vehicle


12. Application
12.1 Civil
12.2 Defense
12.3 Transportation & Logistics
12.4 Construction


13. Propulsion
13.1 Battery Electric Vehicle
13.2 Fuel Cell Electric Vehicles
13.3 Hybrid Electric Vehicle
13.4 Internal Combustion Engine
13.5 Plug-in Hybrid Electric Vehicle


14. Porter’s Five Forces
14.1 Bargaining Power of Buyers
14.2 Bargaining Power of Suppliers
14.3 Degree of Competition
14.4 Threat of New Entrants
14.5 Threat of Substitutes


15. SWOT Analysis
15.1 Strengths
15.2 Weaknesses
15.3 Opportunities
15.4 Threats


16. Company Analysis
16.1 Hyundai Motor Company

16.1.1 Overview
16.1.2 Recent Development
16.1.3 Revenue Analysis

16.2 GM Korea Company

16.2.1 Overview
16.2.2 Recent Development
16.2.3 Revenue Analysis

16.3 Renault Samsung Motors

16.3.1 Overview
16.3.2 Recent Development
16.3.3 Revenue Analysis

16.4 KG Mobility Corporation

16.4.1 Overview
16.4.2 Recent Development
16.4.3 Revenue Analysis