Market Snapshot
Key Players
Continental AG
ZF Friedrichshafen
Brembo Spa
Hitachi Astemo
The capacity to slow or halt a vehicle lies with the vehicle's braking system. It allows the driver of the vehicle to stop or slow down the vehicle, which helps avoid human loss. The brake pedal, master cylinder, brake calipers, brake shoes, brake disc, brake rotor, brake drum, brake lining, and hoses are all brake system parts. End-user sectors, including automotive, construction equipment, agricultural equipment, mining equipment, and industrial vehicles, are dependent on the expansion of the brake system market. The automotive brake market is divided on the basis of technology, type, sales, end-user, and region.
The global automotive brake market is expected to grow at a CAGR of 4.77% during the forecast period (2021–2027).
Increasing Safety Regulations to Push Growth of Global Automotive Brake Market
With the increase in the adoption of vehicles, there is an increase in the possibility of road fatalities. Test results from the New Car Assessment Program (NCAP) provide consumers with crucial information about the new vehicles' safety features. The governing bodies in both developed and developing regions are adhering to NCAP. These have helped America drop its highway fatalities by 20%.
In consideration of this, automotive makers are introducing safety options in cars and are majorly investing in R&D activities. The growing demand for autonomous vehicles is pushing the need for safety regulations. These major advancements in technology concerning growing requirements for safety regulations are boosting the global automotive brake market growth.
Shift to Modern Vehicles to Hinder Global Automotive Brake Market Growth
Scalability and adaptability, serviceability, simplification, standardization, and manageability are some qualities of highly efficient electric brakes. Various braking technologies are trying to produce quality items and, at the same time, are trying to decrease the overall operational cost of an electric brake.
Current braking systems are complicated as compared to earlier systems. As modern vehicle technology shift to making electric vehicles, complications are bound to happen. The requirement for electric vehicles from the passenger, commercial, and agricultural sub-sectors has noticeably increased. These vehicles are very sensitive to extreme changes in temperature and humidity as these can cause damage to the braking mechanism, reduce performance or even decrease the working life of the brake pads and brake shoes. High cost of installation and maintenance is added to the overall cost of automotive brake expenses, which is also anticipated to hamper automotive brake market growth.
Introduction of New Technologies to Boost Global Automotive Brake Market Growth
Brake-by-wire poses a technology in which electronic sensors and controllers replace the mechanical and hydraulic components of conventional brake systems to carry out the braking function in a vehicle, that is, the brake pedal. As of 2021, brake-by-wire technology holds approximately 5% of the market share and is expected to have surged at a CAGR of 6.7%. The use of wire brake systems shows many advantages, such as lower weight and space savings, reduced operating noise and vibrations, and faster response times, which would result in shorter braking distances.
This technology is still in its initial stages and is limited to commercial use. Market giants, including Mercedes-Benz E-Class and SL and the Toyota Estima, have used wire braking systems that rely on Sensotronic technology and Electronically Controlled Brake (ECB), respectively. Nissan and BMW are planning to enter the game soon. The brake-by-wire technology will generate a good CAGR of 7.4% in Asia-Pacific and 6.3% in American continent during 2021–2027.
COVID-19 Impact and Challenges
The global automotive industry has shown resilience towards the COVID-19 pandemic with increasing vehicle sales in China and India. However, it is also observed that pre-COVID sales level is difficult to achieve in the US and the UK even by the end of 2022. The vehicle sales dropped nearly 80% in Europe and 52% in the US compared to the sales in 2019.
The pandemic effect on passenger vehicles' sales and consumer perception was a mix. Several consumers now prefer personal vehicles over public transport due to the high risk of spreading the virus. This resulted in a decline in the usage of public transportation. This mixed effect had a slightly negative impact on the automotive brake market due to supply chain delays, and manufacturers were facing difficulties in procuring the components and raw materials from across the globe.
The pandemic has allowed automotive manufacturers to re-align their products and services as per government regulations. This resulted in companies increasing more spending capacity on R&D. Due to various strict rules for drivers, passengers, and vehicle safety, consumers prefer high-rated vehicles in NCAP ratings.
Market Segments of the Global Automotive Brake Market
The global automotive brake market by technology is segregated into antilock braking systems, traction control systems, electronic stability control, electronic brake-force distribution, and brake-by-wire. Considering the ABS prevents the automotive wheels from locking completely while the driver's brakes are being applied, it is expected to dominate the market.
Brake-by-wire system uses one of the three types of technology, viz. Integrated electronic hydraulic brakes, electro-mechanical brakes, electronic hydraulic brakes. The brake-by-wire system is still in its initial stages of development and, thus, is limited to commercial use. Even though the antilock braking system dominated the market by 31%, the brake-by-wire system had the highest CAGR in 2021.
On the basis of type, the global automotive brake market is divided into disc brakes, drum brakes, hydraulic wet brakes, rheostatic brakes, and regenerative brakes. Drum brakes are the most used type of brakes and have 33.8% of the weightage in the global automotive brake market and are expected to upsurge at a CAGR of 4.6%.
Disc brakes are another type of brake that is most used after drum brakes. Disc brakes are mostly used in passenger vehicles due to their stable performance at higher speeds, and according to our research, it dominates the market by 29.8%. As discussed earlier, the mixed effects of COVID-19 have caused a decrease in the market of commercial vehicles but an increase in passenger vehicles sale. Thus, the automotive brake market is expected to grow at a CAGR of 4.8%.
The sales channel of global automotive brake market is categorized into OEM and aftermarket. The aftermarket segment dominated the market in 2020. Although, OEM is expected to have the highest CAGR during the forecast period. OEM or the original equipment manufacturers are the first makers of the parts of the vehicle in the market. Some buyers prefer OEM parts to replace the damaged part of their vehicles, which guarantees complete compatibility and quality of the parts. Considering 2021 as the base year, OEM upholds only around 35% of the market.
Compared to OEM, aftermarket parts are produced by other sellers and don't necessarily have the same reliability in accordance with the vehicle's quality or compatibility. The aftermarket develops parts for substitution, collision, appearance, and execution. Even though these aftermarket parts are mildly reliable in terms of quality and compatibility, they are sold at lower prices, which is why customers prefer them. This assures us that the aftermarket covers 64% of the global automotive brake market.
Based on end-user, the global automotive brake market is divided into automotive, construction vehicles, agriculture vehicles, industrial trucks, mining vehicles, and others. The automotive industry includes passenger vehicles, light commercial vehicles, and heavy commercial vehicles. The automotive segment is anticipated to grow by 4.91%. The construction vehicles segment, the second biggest end-user of automotive brakes systems, includes bulldozers, excavators, and mobile cranes. During 2021–2027, construction vehicles as end-user might see a tweak at a CAGR of 4.89%.
Regional Analysis of the Global Automotive Brake Market
The global automotive brake market spreads over various regions, including North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. The Asia-Pacific region has dominated the market by approximately 43%, followed by Europe at 25.7%. The technology that drives the Asia-Pacific market is antilock braking system. Drum brakes are the highest-selling type of brakes. The biggest end-users are the automotive and construction vehicle manufacturers.
Aftermarket is having a positive effect as the manufacturers of the parts from aftermarket make mildly reliable and cheaper parts of the vehicles. According to straits’ research, the Chinese market is expected to grow at a CAGR of 5.94% by the end of 2027.
Germany dominates 35% of the Europe automotive brake market. Industry giants such as Robert Bosch, Continental AG, and ZF Friedrichshafen originate from Germany, Europe.
Players and Competitive Analysis
The market is mainly dominated by Robert Bosch, Continental AG, ZF Friedrichshafen, Brembo Spa, and Hitachi Astemo. The automotive brake market needs high capital investment and changing technology, but the lack of standard guidelines makes it worse. Thankfully, strong R&D capacity and broader geographic presence come in handy when dealing with such issues. Rising sales of electric vehicles (EV) and regenerative brakes and government initiatives offer numerous opportunities for market growth.
Recent Developments
- March 2021: ZF announced the first delivery launch of its WABCO MAXXUS L2.0 air disc brakes fitted into Navistar International trucks to Schuster Co.
- May 2021: ZF announced the launch of its new brake actuator platform 4.0 that offers significant safety and cost efficiency benefits for the OEMs.
- September 2020: Brembo announced launch of its Greentive Brake Disc that features an additional layer of coating applied to its ring using High Velocity Oxy Fuel (HVOF) technology.
Global Automotive Brake Market: Segmentation
By Technology
- Antilock Braking System
- Traction Control System
- Electronic Stability Control
- Electronic-Brake Force Distribution
- Break-By-Wire
- Integrated Electronic Hydraulic Brake
- Electro-Hydraulic Brake
- Electro-Mechanical Brake
By Type
- Disk Brakes
- Drum Brakes
- Hydraulic Wet Brake
- Rheostatic Brakes
- Regenerative Brakes
By End-User
- Automotive
- Construction Vehicle
- Industrial Trucks
- Mining Vehicle
- Others
By Sales Channel
- OEM
- Aftermarket
By Region
- North America
- Europe
- Asia-Pacific
- SAMEA
