Electric Vehicle Brake Pads Market Size, Share & Trends Analysis Report 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) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

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).

Major original equipment manufacturers (OEMs) are constantly working to improve electric vehicles' efficiency, affordability, and safety. The automotive industry is changing due to technological advancements in electric vehicle accessories like batteries, cooling, braking, and other components. The braking system of an electric vehicle (EV) consists of brake discs, brake pads, brake fluid, etc. A vehicle's stability and safety depend on the brake pads, which play a significant part in the braking system.

Brake pads enable the safety of a vehicle at different speed levels and in driving conditions. The brake pad for an electric vehicle differs from that used in conventional vehicles because of regenerative braking. EV brake pads face problems like corrosion, noise, and wear, so manufacturers need to develop quality brake pads to resolve such issues. An EV needs less maintenance than conventional vehicles. Brake pad material particles are also responsible for increasing particle emissions.

Highlights

• Passenger cars dominate the vehicle type segment
• Battery electric vehicle (BEV) dominates the propulsion type segment
• OEMs dominate the sales channel segment
• Europe is the highest shareholder in the global market

Market Dynamics

Global electric vehicle brake pads market drivers

Rising demand for electric vehicles

Over the past ten years, the deployment of electric cars has increased, with the global stock of electric passenger cars exceeding 4 million in 2018, an increase of 63% from the previous year. Around 45% of on-road electric cars were in China in 2018 – 2.3 million – compared to 39% in 2017. In addition, Europe accounted for 24% of the global fleet, while the U.S. accounted for 22% in 2018. Electric mobility is swiftly expanding, where China remains the world's largest market for electric cars, followed by Europe and the U.S.

Leading nations in electric mobility use a variety of policies to close the cost gap between electric and conventional vehicles, including fuel-efficiency standards, incentives for zero- and low-emission vehicles, and economic instruments. Moreover, these countries also promote the implementation of charging infrastructure. Policy support is gradually being expanded to improve the supply chain for battery technology and secure the material used for EV production. Such factors drive the market's growth.

Government regulation and policies toward sustainable world encouraging customers

The global atmospheric scenario has played an essential role in the need for and subsequent sales of electric vehicles. Rapid urbanization and a sharp increase in gasoline-powered vehicle sales have led to alarming temperatures being recorded in countries worldwide. An increasing amount of carbon emissions in the atmosphere results in global warming, deteriorating the Earth's atmospheric condition. In addition, the concerns have prompted governments, environmental agencies, and automobile manufacturers to promote developing and selling electric vehicles to curb the alarming rise in temperature and pollution levels. The increased demand for electric vehicles is expected to boost market growth for EV brake pads.

Global electric vehicle brake pads market restraint

Service and maintenance

Due to the regenerative braking system, wear reduces on the brake pad in the electric vehicle. Brake pads provided by OEMs need replacement after a long time. An electric vehicle needs less maintenance than an ICE vehicle. Electric vehicle requires brake system change after 100,000 miles compared to IC engines, which need brake system maintenance at 30,000 miles. Likewise, some OEMs have introduced systems that do not require brake pads. For instance, Tesla's electric vehicle models are designed not to require brake pad replacement. Therefore, it is a challenge for the electric vehicle brake pads manufacturers as their aftermarket is affected, with less demand for the brake pads.

Global electric vehicle brake pads market opportunities

Development in materials used in brake pads

In an electric vehicle, lithium batteries occupy a significant weight. So, to facilitate the lightweighting of the vehicle as a whole, vehicle materials for automotive parts have to be chosen prudently. Ceramic, iron, steel, and asbestos are used traditionally in the automotive industry for brake pads. As electric vehicle numbers are increasing, the braking system also needs development. In addition, brake pad materials should provide corrosion resistance, strength, and friction for safe functioning. EV brake pad development must meet specifications prescribed by global safety bodies and be cost-effective.

Furthermore, demand for electric vehicles is expected to be high in the coming years. Choosing brake pad material is essential as it affects operation safety. Various research for the future automotive sector suggests electric vehicles' performance can be more efficient using abrasive and composite materials. Brake pads by NRS Brake are manufactured of galvanized steel for corrosion prevention and wear reduction. For instance, Ferodo developed Eco-Friction brake pads using copper, zinc, and metal sulfide to reduce weight and emissions. These factors are anticipated to create tremendous growth opportunities for the market players.

Regional Analysis

Europe dominates the global market

Based on region, the global electric vehicle brake pads market is bifurcated into North America, Europe, Asia-Pacific and Japan, the U.K., China, and Rest-of-the-World.

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. High disposable per capita income and a large population of high-net-worth individuals have made Europe a highly lucrative market for electric vehicles, thus driving the demand for the electric vehicle brake pads market. European Union has imposed a target for CO2 emission reduction by 15% by 2025, which has thus forced OEMs to switch to a greener approach for the automotive sector. Likewise, many governments in Europe have also levied regulations for the same. These regulations and knowledge dissemination to the public about the benefits of using new energy vehicles led to increased electric vehicle sales in the region, thereby driving the market's growth.

North America is estimated to exhibit a CAGR of 14.87% over the forecast period. The EV revolution has compelled big players in North America to invest in their R&D departments to seek advanced methods to increase electric vehicle production, which can indirectly ramp up the demand for lubricants and coolants for battery, motor, and drivetrain of electric vehicles. For instance, Ford invested USD 11 billion in 2017 to electrify and launch new models between 2018 and 2022. Similarly, Daimler AG committed USD 1 billion to a U.S. plant to produce EVs. The promotion of the adoption of electric vehicles in the region is aided by the alignment of strict emission regulations for both Canada and Mexico with the U.S. in the automotive sector. Moreover, rising concerns about reducing greenhouse gas emissions due to increased government initiatives are expected to drive the electric vehicle brake pads market by helping transition from ICE vehicles to EVs.

Asia-Pacific and Japan region is accountable for almost the entire production and distribution of electric vehicle batteries globally. The prominence of companies like LG Chem, CATL, Samsung SDI, and SK innovation has created a latent demand for EVs globally. The alarming rate of CO2 emission triggered by developing countries like India, China, and Malaysia, among others, due to overpopulation and industrial and mining activities, has attracted the adoption of electric vehicles to curb pollution levels. Therefore, the factors mentioned above drive the market growth in the region.

China's attempt to be self-sufficient has made them produce electric vehicles on a large scale, primarily to curb its dependence on foreign countries to import oil. Therefore, China needs to keep up with the production of electric vehicles to safeguard its energy security. China is home to companies such as Contemporary Amperex Technology Co., Ltd, BYD, Chaowei Power Holdings Limited, Tianneng Group, and China Shipbuilding Industry Corporation. These companies have a global presence and are responsible for supplying over 80% of batteries used in electric vehicles. Hence, they are responsible for generating demand for EVs all around the globe, thereby fueling the market's expansion.

The RoW electric vehicle brake pads market includes South America and the Middle East and Africa. The region accounts for a mere market revenue share in the global market. However, the market's growth is expected to accelerate during the forecast period. EV disruptions such as E-cab and E-buses pilot programs are popularizing the commercializing of electric vehicles in South America. This has led to companies acquiring several fleets by logistics companies, boosting the demand for electric vehicles in the region.

Furthermore, owing to the high monetary stability of the countries and their people in the Middle East, the price aspect of electric vehicles does not bother the people. Thus, brand offering plays a significant role in the propagation of electric vehicle sales in the region. For instance, the growing popularity of Tesla is due to its brand image and efforts to develop charging infrastructure in countries such as the U.A.E. and Jordan.

Segmental Analysis

The global electric vehicle brake pads market is segmented by vehicle type, propulsion type, sales channel, and type.

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. According to ACEA, the world output of passenger cars amounted to 79.3 million units in 2019, of which nearly 1% were BEVs and 6% were HEVs and PHEVs. On average, 5% of all passenger car brakes are drum pads, and 95% are brake pads. Typically, drum brakes are installed in smaller cars' rear or front wheels as they do not require high stopping force. Still, in the current scenario, OEMs are increasingly populating the idea of disc brakes on all four wheels of small passenger vehicles, which increases the demand for brake pads in electric vehicles.

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. The battery-electric vehicle is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs with no secondary source of propulsion. Government incentives, tighter regulations for carbon dioxide emissions, growth of the charging infrastructure, and falling EV battery prices are significant factors in the increasing demand for BEVs. In addition, BEVs are completely run-on batteries; therefore, regenerative braking forms a crucial part of the vehicle, providing an extra range to the vehicle, which leaves the engagement of the conventional braking system to a bare minimum for emergency cases. This eventually renders the braking pads exposed to corrosion and moisture, which makes them obsolete. As claimed by Tesla Inc., their EVs do not need to replace their brake pads even once in their lifetime due to the lack of usage.

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. Electric vehicle manufacturers or OEMs select their preferred type of stock or OEM brake pads on various grounds, including loudness, dust, and ability to stop and wear. Consequently, little noise and dirt, strong stopping power, and long pad life are the attributes of the above factors. As electric vehicles are built and produced by the OEMs from scratch while using these brake pads, buying an OE substitute is a straightforward approach to keep the automobile's original driving and breaking experience. The downside of OEM brake pads is the cost, which is generally higher.

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. A variety of fibers and materials such as rubber, carbon compounds, glass or fiberglass, and Kevlar make up organic brake pads, which find their applications typically for around 67% of new automobiles sold within the U.S. They are less dusty than some other brake pad kinds like metal pads and are relatively cheaply available. Unlike brake pads mainly employed in heavy and high-performance trucks, organic brake pads produce mild friction without heat, making them feasible for drivers who are driving daily nominally. Organic pads also have a quiet operation and do not stress the brake rotors much, as rotors can prove costly to repair or replace if impaired.

Recent Developments

• 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.

• 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.