Powerful braking systems have become critical to vehicle safety as the need for speed continually rises. As such, the automotive brake system market exhibits promising growth potential. Factors contributing to this growth include a surge in online vehicle sales, new product launches, and increasing concerns over road safety. In this environment, increased regulatory requirements, such as those implemented by the National Highway Traffic Safety Administration, are driving auto manufacturers to adopt robust safety systems.
Continued technology innovation, reducing vehicle weight and friction, along with escalating market awareness about safety are fueling market expansion. Additionally, the ascent of electric and autonomous vehicles presents even further commercial opportunities in this sector. Asia-Pacific is the frontrunner, showing the highest growth rates with key contributions expected from markets such as Japan, South Korea, and China. With this distinguished features, our automotive brake system market research report is an ideal tool for senior executives seeking to navigate and capitalize on these prevailing market trends.
The short-term impact of COVID-19 on the automotive sector has led to muted assembly plants, manufacturing interruptions, and ceased export of Chinese components in the face of the global lockdown situation. This resulted in a significant drop in vehicle sales in early 2020, fueled by oil price fluctuations and economic slowdown in various regions.
Over the medium term, a rise in the online sales of vehicles and new product launches shows positive signs to support demand in the market. In addition, concerns about road traffic collisions and the rising number of fatalities have prompted participants to incorporate robust safety systems. The automobile brake system market will continue to grow owing to the stringent safety rules imposed by regulatory organizations and governments. From 2022, the National Highway Traffic Safety Administration (NHTSA), a division of the U.S. transportation department, is planning to make automatic emergency braking mandatory in vehicles
Some other factors driving the market are growing awareness about the safe and smooth drive-in wake of increasing road accidents, advanced technology reducing weight and friction generated in vehicles, and R&D activities by major players. On the other hand, the increasing adoption of electric cars and the rising focus on autonomous vehicles are expected to boost the commercial growth potential of manufacturing companies in the near future.
Asia-Pacific is the major key player in the market, followed by Europe. Asia-Pacific is likely to possess the highest growth rate, whereas Japan and South Korea are expected to contribute significantly to the growth in terms of revenue in the global anti-lock braking system due to safety norms and firm government regulations. Due to an increase in the number of serious accidents and increased fleet, China is expected to emerge as one of the major regions, which is expected to contribute to business growth.
Automotive Brake System Market Trends
Growing Investments into R&D Activities by Key Players to Drive Demand in the MarketAutomobile companies are constantly producing new and enhanced products for the comfortable and safe driving of vehicles. Companies are providing anti-lock braking systems integrated with electronic stability control (ESC) to prevent skidding, thus bringing vehicles under control. Therefore, technological advancements in vehicle safety features are a potential driver for the growth of the automotive brake system market.
Products such as anti-lock braking systems, electronic stability control, brake by wire, and anti-collision devices are frequently developed by players to produce safer and better vehicles. For instance-
- In November 2021, Continental AG announced the MK C2, an updated version of MK C1 brake by wire technology. The MK C2 is more compact and lighter, allowing it to employ in small vehicles. Moreover, the number of components has been reduced, resulting in a lower overall cost.
- In January 2022, Several South Korean media sources reported that Mando Corporation won an Innovation Award at this year's CES technology show in Las Vegas, the U.S., held in January 2022 for Integrated Dynamic Brake for Highly Autonomous Driving (IDB2). Further, Mando also announced that it plans to introduce Brake by Wire (BbW) products that incorporate IDB2.
As brakes have become a crucial part of any vehicle to ensure safety when the demand for speed is increasing consistently, several key companies and automakers are inclined toward embedding high-quality brake systems in their vehicles. However, the automotive brake system market is now making leaps of technical advancement pertaining to increasing safety concerns and government regulations. For instance,
- In April 2022, Faraday Future Intelligent Electric Inc. announced Brembo as the main supplier of full brake caliper assembly for its ultimate intelligent techluxury FF 91 EV. Brembo will provide a specialized caliper assembly for the FF 91. This includes assembly, pistons, calipers, and pads, along with the electronic parking brake.
In the wake of the aforementioned developments and instances, the demand for automotive brake systems is expected to be aggravated by growing research and development activities during the forecast period
Asia-Pacific Region Anticipated to Grow at a Significant Level During the Forecast PeriodThe Asia-Pacific region continues to dominate the market, and the manufacturers in this region offer high-cost reductions, owing to the availability of low-cost labor and raw materials. Furthermore, the region comprises some high potential countries, such as China and India, which accounted for 21.4 million and 3.6 million, respectively, approximately 34% of the total global vehicle production. The increasing popularity of active braking systems boosts the sales of luxury and premium vehicles.
The companies are primarily focused on developing eco-friendly, reliable, and robust braking systems. The key players have made heavy investments in the field of research and development to increase their market shares and ensure healthy growth. For instance,
- In March 2022, Nisshinbo Holdings Inc. announced that it would establish a joint venture company with Continental AG (Continental) in Gurgaon, Haryana, India. The newly established company will produce and sell valve blocks, the main component of electronic brake systems (EBS). The joint venture will be capitalized at approximately JPY 1.9 billion, 60% of which will be owned by Nisshinbo HD and 40% by Continental. The plan is to begin its operation in April 2023.
- In January 2022, Advics Co., Ltd. (Advics) announced that its regenerative coordinated braking system and electric parking brake (EPB) had been selected for the GAC Group's GS8 Hybrid. This is the first time Advics products were supplied to a GAC Group model, and the adoption was based on the company's market experience and performance in electrification products.
Moreover, the rising number of accidents in India has increased safety features, especially in mid-segment vehicles. In order to minimize such incidents, the Indian government has made it mandatory for all automobile companies to install anti-lock braking systems in their vehicles by April 2019. Further, Several automakers and advanced AEB manufacturers are focusing on several growth strategies.
- In 2022, Hyundai announced its plans to keep up with the competition by offering the ADAS safety features in its premium lineup Hyundai Creta soon. The ADAS kit on offer in this segment would constitute Level 2 Autonomous driving assist aids comprised of Automatic Emergency Braking to bring the car to a standstill on obstacle detection and other ADAS features like Adaptive Cruise Control, Lane Keeping Assist, blind-spot monitoring system, etc.
Such developments drive demand in the market; hence, the Asia-Pacific region is expected to have enhanced growth during the forecast period.
Automotive Brake System Market Competitor AnalysisThe automotive brake system market is fragmented, with various players existing in the market. Advics Co. Ltd, Akebono Brake Industry Co., Brembo SPA, Continental AG, ZF TRW CO., etc., are some of the key players in the market. The market is driven by the vehicle production trend, aftermarket replacement rate, and acquisition activities among the key players. For instance,
- In March 2022, Nisshinbo Holdings Inc. announced that it would establish a joint venture company with Continental AG in Gurgaon, Haryana, India. The newly established company will produce and sell valve blocks, the main component of electronic brake systems (EBS). The company will be established to meet the increasing demand for valve blocks in line with the expected increase in the number of automobiles and motorcycles produced and the penetration of EBS in India.
- In March 2022, BOSCH announced the expansion of its plant in Aguascalientes, which will involve an investment of around USD 84 million in approximately 3,000 square meters of construction, which will generate the conditions to manufacture the new generation of brake systems for its customers in North America.
- In July 2021, ZF company stated that the company is working on the development of integrated brake control (IBC) system. This braking system is primarily designed for ADAS, semi-automated, and fully automated vehicles. ZF is one the biggest player in the automotive brake system market, followed by the acquisition of WABCO.
- In November 2021, Brembo announced that the company is working on the development of an active brake system, which is expected to be launched by 2024. The new system is drastically different from all other braking systems currently in use in automotive. Each axel in a car is individually controlled (whereas standard cars have all axels braking identically).
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.1 Disc Brakes
5.1.2 Drum Brakes
5.2 By Brake Pad Material Type
5.3 By Sales Channel
5.3.1 Original Equipment Manufacturers (OEMs)
5.4 By Vehicle Type
5.4.1 Commercial Vehicles
5.4.2 Passenger Vehicles
5.5.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.5.4 Rest of the World
184.108.40.206 South Africa
220.127.116.11 Other Countries
6.2 Company Profiles
6.2.1 Akebono Brake Industry Co.
6.2.2 Brembo SpA
6.2.3 Robert Bosch GmbH
6.2.4 Continental AG
6.2.5 Disc Brakes Australia (DBA)
6.2.6 Aptiv PLC (Delphi)
6.2.7 Federal-Mogul Holding Co.
6.2.8 Hella Pagid GmbH
6.2.9 Performance Friction Corporation (PFC) Brakes
6.2.10 TVS Brake Linings Co.
6.2.11 ZF TRW Co.
6.2.12 Advics Co. Ltd
6.2.13 Hitachi Automotive Systems
A selection of companies mentioned in this report includes:
- Akebono Brake Industry Co.
- Brembo SpA
- Robert Bosch GmbH
- Continental AG
- Disc Brakes Australia (DBA)
- Aptiv PLC (Delphi)
- Federal-Mogul Holding Co.
- Hella Pagid GmbH
- Performance Friction Corporation (PFC) Brakes
- TVS Brake Linings Co.
- ZF TRW Co.
- Advics Co. Ltd
- Hitachi Automotive Systems