South Korea Autonomous Vehicle Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Software and Services), By Level of Automation (Level 3, Level 4, Level 5), and South Korea Autonomous Vehicle Market Insights, Industry Trend, Forecasts to 2035

South Korea Autonomous Vehicle Market Insights Forecasts to 2035

• The South Korea Autonomous Vehicle Market Size was estimated at USD 1.59 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 29.33% from 2025 to 2035
• The South Korea Autonomous Vehicle Market Size is Expected to Reach USD 26.92 Billion by 2035

According to a research report published by Spherical Insights & Consulting, the South Korea Autonomous Vehicle Market is anticipated to reach USD 26.92 Billion by 2035, Growing at a CAGR of 29.33% from 2025 to 2035. The country's reputation as a technologically advanced and inventive society is largely being bolstered by the numerous transportation, safety, and sustainability innovations made by major players.

Market Overview

The South Korea autonomous vehicle market refers to the creation, testing, and implementation of autonomous vehicles. For real-time navigation and decision-making, these cars combine sensors, cameras, artificial intelligence (AI), and advanced driver-assistance systems (ADAS). Additionally, 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. Moreover, The South Korean government is primarily responsible for driving the market for autonomous vehicles, vigorously promoting its expansion through a variety of legislative initiatives and financial incentives. The government has relaxed requirements to expedite testing and implementation. Allowing autonomous vehicles to go on public roads and in designated areas is one such policy.

Report Coverage

This research report categorizes the market for the South Korea autonomous vehicle market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea autonomous vehicle market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the South Korea autonomous vehicle market.

Driving Factors

The dominance of South Korea in AI, robotics, and 5G technology is one of the key elements driving the development of autonomous vehicles. The country is making significant strides in the development of advanced sensors, machine learning algorithms, and vehicle-to-everything (V2X) communication networks for the safe and efficient operation of self-driving automobiles. Artificial intelligence (AI) is used to enhance decision-making, while machine learning uses data analysis to enable cars to continuously improve their driving abilities. V2X connectivity improves traffic flow and safety by permitting real-time communication between vehicles and infrastructure.

Restraining Factors

The absence of robust cybersecurity laws leaves AVs vulnerable to potential hacking, posing significant risks to public safety and data privacy. 

Market Segmentation

The South Korea autonomous vehicle market share is classified into component and level of automation.

• The hardware segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea autonomous vehicle market is segmented by component into hardware and software and services. Among these, the hardware segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Demand for sophisticated sensors, LIDAR, RADAR, and AI-powered computer systems that facilitate autonomous driving is what's driving this. Hardware components are the market leader because they are crucial to vehicle perception, navigation, and safety.

• The level 3 segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea autonomous vehicle market is segmented by level of automation into level 3, level 4, and level 5. Among these, the level 3 segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Level 3 automated vehicles can operate on their own in certain circumstances, but human assistance is still needed when needed. This segment is expanding quickly due to advancements in AI-powered navigation, driver assistance systems, and regulatory support for semi-autonomous driving technologies.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea autonomous vehicle market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Hyundai Motor Company
• Kia Corporation
• Samsung Electronics
• LG Electronics
• SK Telecom
• 42dot
• Others

Recent Developments:

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at South Korea, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South Korea autonomous vehicle market based on the below-mentioned segments:

South Korea Autonomous Vehicle Market, By Component

• Hardware
• Software and Services

South Korea Autonomous Vehicle Market, By Level of Automation

• Level 3
• Level 4
• Level 5