|Base Year Market Size
|USD XX Billion
|Forecast Year Market Size
|USD 1070 Million
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 callipers, 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 1070 million Latin America is one of the least developed markets for Automotive Brakes and its CAGR for the period of 2022 to 2030 is 2.15%.
The automotive business in South America is booming, thanks to improved credit availability, economic success, and cheap interest rates. According to estimates, Latin America's automotive industry exported 5.72 million vehicles in 2019, increasing 4.3% over the previous year. The industry's rise is partly due to the restoration of the Brazilian economy and the significant performance of the SUV sector; following the launch of new models and restyling, the SUV segment is predicted to account for 25.4% of the market. Demand for automotive disc brakes will rise as a result of the region's expanding vehicle manufacturing. Brazil's automobile sector is one of South America's most active, as the country has established itself as a prominent player in the global automotive and auto parts markets. In recent decades, the country has garnered the interest of some of the world's biggest automobile corporations, with many of them constructing production operations there. As a result, demand for automotive disc brakes rises in lockstep with the number of vehicles manufactured, propelling the industry forward.
In 2021, with the uplifting of lockdowns and vaccination process, the shipment of raw materials needed for disc brake manufacturing and the manufacturing of passenger vehicles & commercial vehicles has started again. Thus creating a positive impact on the growth of the automotive disc brake market in the region.
With the rise in urbanization in Latin American countries like Brazil, Argentina, Chile, Ecuador, Peru, etc., the demand for commercial, industrial and private vehicles has been increasing which fuels the growth of the automotive brake systems market.
The growth of the brakes industry in the region is being fueled by increased sales of both passenger and commercial vehicles. The growing demand for automobiles is having a favorable impact on the region's car production cycle. As the demand for automobiles grows, so does the need for legislative measures to make them safer. As a result, demand for brakes is skyrocketing. Automotive brakes and electronic stability control are becoming more widely used. As a result, governments throughout the region have begun to regulate safety-critical components in commercial and passenger vehicles, resulting in an increase in demand for anti-lock braking systems. Furthermore, fatalities caused by car accidents are one of the factors motivating government bodies to enact new vehicle and road safety regulations that will aid in the reduction of fatalities. Because one of the causes of road accidents is a malfunctioning braking system, adequate guidelines for the use of friction materials and braking systems must be established. Several of the aforementioned restrictions governing the use of friction materials and disc brakes are assisting in the expansion of the South American market.
|On the basis of Product Type
|On the basis of Brake Pad Material Type
|On the basis of Technology
|On the basis of Sales Channel
|On the basis of Vehicle Type
|Brembo S.p.A. EBC Brakes Haldex Group Hitachi Astemo Americas, Inc. Hyundai Mobis Knorr-Bremse AG Mando Corporation Nissin Kogyo Co., Ltd.
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.
South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.
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.