Asia Pacific Automotive Brake Market

Market Overview

An automotive braking system is an important aspect of vehicle safety technology. It is a sophisticated system that is designed to either prevent or slow the speed of a moving vehicle in the event of a collision with another vehicle, a person, or an object of some sort.

These systems use sensors like radar, video, infrared, and ultrasonic to scan for potential obstacles in front of the car and then use brake control to avoid a collision if the object is found. Automotive brakes are one of many automobile safety features, and they're frequently combined with another tech like pre-collision systems and adaptive cruise control. The brake system components include the brake pedal, master cylinder, brake calipers, brake shoes, brake disc, brake rotor, brake drum, brake lining, and hoses.

The global automotive brake market is expected to grow at a CAGR of 4.77% during the forecast period (2021–2027). By 2030 with an expected valuation of USD 19345 million Asia Pacific will be the largest market for Automotive Brakes and its CAGR for the period of 2022 to 2030 is 5.65%.

Market Dynamics

Asia Pacific Automotive Brake Market Drivers

Due to the availability of low-cost labour and raw materials, the Asia-Pacific area continues to dominate the industry, and manufacturers in this region offer significant cost reductions. Furthermore, the region includes countries like China and India, which together account for roughly 34% of global automobile production. Active braking systems are becoming more popular, which helps luxury and premium vehicle sales.

In terms of growth rate, Asia-Pacific is the most rapidly expanding market. Because of strict government rules and strict safety standards, Japan and South Korea are likely to contribute considerably to revenue growth in the worldwide anti-lock system. China is predicted to emerge as one of the primary regions, contributing to the expansion of this sector, as a result of a rise in the number of significant accidents and an increasing fleet.

The urbanization trend is accelerating, resulting in an increase in the average disposable income of the urban population, allowing them to improve their lifestyles. The changing lifestyles are driving the rising demand for passenger automobiles, forcing manufacturers to increase production in order to best serve customers. In the post-recession era, that is, since 2010, the region's vehicle output, especially passenger cars, has grown steadily. Lowered loan interest rates have also aided the vehicle industry's expansion. In the last 7–8 years, the annual growth rate of passenger automobile production has been reduced to 2%. Consumer attitudes on intercity and intracity transit have shifted significantly in recent years. Vehicle production has increased exponentially as individuals' disposable money has increased and countries' economic structures have remained steady. The expanding demand for vehicles has had a favorable impact on car production, which has increased the demand for braking systems. Automobile production will continue to drive demand for automotive brakes in the APAC regions.

Furthermore, as the incidence of incidents in India has increased, safety features, particularly in mid-level automobiles, have increased. The Indian government has made it necessary for all automobile firms to put anti-lock braking systems in their vehicles by April 2019 in order to reduce such tragedies. Due to the lack of ABS and strict government emissions and safety regulations, 2-wheeler models like the Hero Karizma and Bajaj V15, as well as automobile models like the Hyundai Eon, Honda Brio, Fiat Punto, Tata Bolt, and others, have been discontinued.

Regional Analysis

Asia Pacific Automotive Brake Market Restraints

In the face of the global shutdown, the short-term impact of COVID-19 on the automobile sector has resulted in the closure of assembly plants, industrial disruptions, and the cessation of Chinese component exports. This resulted in a major reduction in vehicle sales in early 2020, owing to oil price volatility and a global economic slowdown.

Several markets in 2020 have experienced negative growth trends in the first half of the year. India, Japan, and South Korea, among others, are currently fighting the virus, which is a major driver in the vehicle disc brake market's slow growth. The regional automotive industry has been severely impacted by the lockout. Vehicle sales in Japan reached 326,000 units in August 2020, down 16 percent year over year. Similarly, new car sales in South Korea from the top five automakers, including Hyundai, Kia, SsangYong Motor, Renault, and General Motors, have fallen by over 6% to around 112,000 units. As a result of dropping vehicle sales in APAC, demand for automobile disc brakes are expected to fall in 2020.

Moreover, some of the Asian countries are facing the problem of Stagflation in their economies like Sri Lanka, and Pakistan, etc. This ultimately affects the manufacturing and automotive sector of these economies resulting in a decline in the automotive brake systems market.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Segmental Analysis

Asian countries are gradually recognizing electric and environmentally friendly mobility as a viable mode of transportation in the future. The need for regenerative brakes will expand exponentially as the use of electric vehicles grows, which will have an impact on the production cycle of automotive disc brakes.

Recent Developments

Nissan's Electric Driven Intelligent Brake (EDIB) uses a motor that transforms kinetic energy into electrical energy during deceleration to provide enough braking force and aid in regenerative braking.