South Korea Autonomous Vehicles Market Forecast and Company Analysis Report 2024-2033, Hyundai, GM, Renault Samsung and KG Mobility

Core Insights - The South Korean autonomous vehicles market is projected to grow from US$1.76 billion in 2024 to US$ 17.42 billion by 2033, reflecting a compound annual growth rate (CAGR) of 29.01% from 2025 to 2033 [2][19] - The market is driven by technological advancements, government support, and a strong automotive industry, positioning South Korea as a leader in autonomous vehicle development [6][8][10] Market Overview - South Korea's autonomous vehicles market is characterized by a strong emphasis on safety, efficiency, and sustainability, with autonomous cars expected to enhance road safety and reduce traffic delays [1][4] - The market is supported by the country's advanced 5G infrastructure, which enables real-time data analysis and communication essential for autonomous vehicle operation [7] Growth Drivers - Key growth drivers include advancements in AI, robotics, and V2X communication technologies, which are crucial for the safe operation of autonomous vehicles [6][10] - Government initiatives, including relaxed regulations and investments in smart infrastructure, are facilitating the growth of the autonomous vehicle sector [8][9] Market Segmentation - Level 2 automation currently holds the largest market share due to its affordability and safety features, making it accessible to a broader consumer base [15] - V2X software is anticipated to dominate the market, enhancing safety and performance through real-time communication [16] - Battery Electric Vehicles (BEVs) are the fastest-growing segment, driven by South Korea's push for electric mobility and advancements in battery technology [17][18] Industry Landscape - Major players in the South Korean automotive sector, such as Hyundai and Kia, are heavily investing in R&D for autonomous technologies, leveraging existing production capabilities to accelerate market penetration [10][11] - The automotive industry contributes significantly to the South Korean economy, accounting for 12% of jobs and 13% of manufacturing production [5] Challenges - Despite strong government support, regulatory and legal barriers remain, particularly concerning liability in accidents involving autonomous vehicles [13] - Public trust and acceptance are critical challenges, with safety concerns stemming from high-profile accidents affecting consumer confidence [14]