Global Electric Vehicle Brake Pads Market Grows at a Staggering CAGR of 17.55%

Introduction

The automotive industry is evolving due to technological advances in electric vehicle components such as batteries, cooling, and braking. The electric vehicle (EV) braking system consists of brake discs, pads, fluid, etc. A vehicle's stability and safety depend on the brake pads, which play an important role in the braking system. In addition, brake pads enable a vehicle's safety at various speeds and under various driving conditions. Due to regenerative braking, an electric vehicle's brake pad differs from a conventional vehicle's. EV brake pads are also susceptible to corrosion, noise, and wear, so manufacturers must create high-quality brake pads to combat these issues.

Market Dynamics

Rising Demand for Electric Vehicles Drives the Global Market

In 2018, the global stock of electric passenger cars surpassed 4 million, a 63% increase from 2017. Electric mobility is expanding rapidly, with China continuing to be the largest market for electric vehicles, followed by Europe and the United States. Leading nations in electric mobility use a variety of policies, including fuel-efficiency standards, incentives for zero- and low-emission vehicles, and economic instruments, to close the price gap between electric and conventional vehicles. In addition, these nations support the implementation of charging infrastructure. The policy support for improving the supply chain for battery technology and securing the material used in the production of electric vehicles is gradually expanding.

Development in Materials Used in Brake Pads Creates Tremendous Opportunities

Brake pads have traditionally been used in the automotive industry. As the number of electric vehicles increases, improvements must be made to the braking system. Corrosion resistance, tensile strength, and friction must be present in brake pad materials for their safe operation. The development of EV brake pads must conform to specifications outlined by international safety organizations and be cost-effective. In the coming years, high demand for electric vehicles is anticipated. Material selection for brake pads is crucial, as it directly impacts vehicle safety. In addition, diverse studies on the future automotive industry indicate that abrasive and composite materials can improve the performance of electric vehicles. NRS Brake's brake pads are galvanized to prevent corrosion and reduce wear. For instance, Ferodo created Eco-Friction brake pads from copper, zinc, and metal sulfide to reduce weight and emissions.

Regional Analysis

Europe is the most significant global electric vehicle brake pads market shareholder and is anticipated to exhibit a CAGR of 21.40% during the forecast period. Europe's high disposable per capita income and large population of high-net-worth individuals have made it a highly lucrative market for electric vehicles, thereby driving demand for electric vehicle brake pads. The European Union has mandated a 15% reduction in CO2 emissions by 2025, which has compelled automotive manufacturers to adopt a greener approach. Similarly, numerous governments in Europe have imposed similar regulations. These regulations and public education about the advantages of using new energy vehicles led to increased sales of electric vehicles in the region, thereby driving the market's expansion.

North America is estimated to exhibit a CAGR of 14.87% over the forecast period. The EV revolution has compelled significant players in North America to invest in their R&D departments to seek advanced methods to increase electric vehicle production, which may indirectly increase the demand for lubricants and coolants for the electric vehicle battery, motor, and drivetrain. Ford, for example, invested USD 11 billion in 2017 to electrify and launch new models from 2018 to 2022. Daimler AG committed USD 1 billion to an EV manufacturing plant in the United States. The alignment of stringent emission regulations for Canada and Mexico with those of the United States in the automotive industry facilitates the adoption of electric vehicles in the region. In addition, rising concerns about reducing greenhouse gas emissions due to increased government initiatives are anticipated to drive the market for electric vehicle brake pads by aiding the transition from internal combustion engine (ICE) vehicles to EVs.

Key Highlights

• The global electric vehicle brake pads market was valued at USD 165.89 million in 2022. It is estimated to reach USD 689.54 million by 2031, growing at a CAGR of 17.55% during the forecast period (2023–2031).
• Based on vehicle type, the global electric vehicle brake pads market is divided into passenger cars and commercial vehicles. The passenger cars segment is responsible for the largest market share and is anticipated to exhibit a CAGR of 17.30% over the forecast period.
• Based on propulsion type, the global electric vehicle brake pads market is bifurcated into the battery electric vehicle (BEV), plug-in hybrid vehicle (PHEV), and hybrid electric vehicle (HEV). The battery electric vehicle (BEV) segment dominates the global market and is projected to exhibit a CAGR of 18.86% over the forecast period.
• Based on sales channels, the global electric vehicle brake pads market is divided into OEMs and aftermarkets. The OEMs segment is responsible for the largest market share and is anticipated to exhibit a CAGR of 17.51% over the forecast period.
• Based on type, the global electric vehicle brake pads market is segmented into organic, metallic, and ceramic. The organic segment owns the highest market share and is estimated to exhibit a CAGR of 16.21% during the forecast period.
• Europe is the most significant global electric vehicle brake pads market shareholder and is anticipated to exhibit a CAGR of 21.40% during the forecast period.

Competitive Players

Competitive Players

The key players in the global electric vehicle brake pads market are NRS Brakes, TRW Aftermarket, Shandong Zibo Yihaojia Auto Parts Co., LTD, ATE Brakes, Akebono, BorgWarner, Aisin, Bendix, Brembo S.p.A., TENNECO INC., Nanjing Jiu Long Auto Parts Co., Ltd., Robert Bosch GmbH, Heng Yu Friction Ltd., EBC Brakes, and Fujian Huari Automotive Parts Co., Ltd.

Recent Developments

Market News

• In November 2022, Continental, a global leader in technology and components, announced the development of a new brake design that increased the range of electric vehicles. The so-called "Green Caliper," a newly developed brake caliper for disc brakes, is considerably lighter and has a lower residual brake torque than previous designs.
• In March 2023, TVS Apache, a trademark of Brakes India, introduced ZAP brake pads for electric vehicles with improved friction technology. According to the manufacturer, ZAP is developed with better corrosion protection and quiet braking to meet the needs of electric vehicle customers.

Segmentation

Global Electric Vehicle Brake Pads Market: Segmentation

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Propulsion Type

• Battery Electric Vehicle (BEVs)
• Hybrid Electric Vehicle (HEVs)
• Plug-in Hybrid Electric Vehicle (PHEVs)

By Sales Channel

• OEMs
• Aftermarket

By Type

• Organic
• Metallic
• Ceramic

By Regions

• North America
• Europe
• The U.K.
• China
• Asia-Pacific and Japan
• Rest-of-the-World