Automotive Brake Pad Market size worth $14.7 Bn by 2026
Published Date: July 29, 2020 Authors: Kiran Pulidindi, Sayan Mukherjee
Automotive Brake Pad Market size will exceed USD 14.7 billion by 2026, according to a new research report by Global Market Insights, Inc.
Rising adoption of advanced friction materials for braking system will result in an increased demand of automotive brake pads
High motorization rate in developing nations will augment industry growth. High-performance vehicles are adopting advanced friction materials in brake pads in order to minimize noise, reduced temperature and generation of less dust. Further, brake pad manufacturers are introducing products that enhances braking performance and offer substitute to low metallic material brake pads. For instance, in May 2019, Dynamic Friction Company launched premium ceramic brake pads that are lightweight, efficient and enable faster recovery after the stop.
The growing infrastructure development projects and rising mining activities in Latin America will escalate the demand for commercial vehicles. Several governments entities are upgrading their mining policies to attract the investment in mining sector. Manufacturers are establishing manufacturing plants in the region to cater to the automotive brake pad market demand.
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Increasing vehicle’s brake components import in Europe will supplement brake pads utility. The region is creating opportunities for exporting superior quality product at competitive cost by importing number of brake components & parts from emerging economies. Germany is the biggest importer of brake parts in Europe followed by UK, Italy, Spain and Netherland.
Growing awareness regarding and vehicle efficiency and passenger safety will propel automotive market growth in coming years. However, increasing raw material prices owing to the strict norms for using eco-friendly resources will restrain the automotive brake pad market expansion. In addition, coronavirus pandemic has severely affected the automotive business. The pandemic has led to disruption in supply chain, reduced production and sales due to shutdown of day to day operations.
Light commercial vehicle to attain high growth
Light commercial vehicle (LCV) will hold more than USD 3.4 billion revenue in 2026. The rise in the production of light commercial vehicles will escalate the brake pads demand. Continuous expansion of private and public transportation in developed and emerging nations to safeguard sustainable development is expected to boost the automotive brake pad market growth.
Light commercial vehicle manufacturers are employing disc braking systems to ensure low maintenance cost and extended service life. According to OICA, in 2018, the production statistics of light commercial vehicles in Asia Pacific region rose to 21,072,296 units with a rise of 4.2% compared to previous year.
Browse key industry insights spread across 455 pages with 653 market data tables & 12 figures & charts from the report, “Automotive Brake Pads Market Size By Vehicle (PCV, LCV, HCV, Two-wheelers), By Material (Semi-Metallic, Non-Asbestos Organic (NAO), Low-Metallic NAO, Ceramic), By Sales Channel (OEM, Aftermarket), By Position (Front, Front & Rear), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Ceramic brake pad material will foresee high acceptance in near future
The ceramic brake pads segment is expected to witness a decent growth rate of around 5.8% through 2026 owing to consistent performance and high stability in a wide range of temperature. Automotive brake pads that are fabricated using ceramic materials, are durable and denser compared to any brake pads manufactured using any other material. Ceramic brake pads have fine copper fibers that are embedded within the brakes. This helps in increasing the friction and heat conductivity in the brakes.
Aftermarket sales channel will generate promising automotive brake pad market growth
Aftermarket sales channel accounts for more than USD 4.5 billion revenue. Aftermarket will foresee considerable growth owing to periodic replacement to ensure vehicle safety along with availability of cost-effective product portfolio. The growing usage of disk braking systems for vehicle operating in wet conditions will provide new opportunities for product penetration. Additionally, product manufacturers are strengthening their distribution network with development of third-party distribution.
Europe is expected to be among the leading regional markets
Europe automotive brake pad market share will constitute over 17.2% in 2026. The increasing trend in Europe is attributed to flourishing automobile sector with increasing share of automobile and automotive parts manufacturers. Standards and regulations by United Nations Economic Commission of Europe like ECE R90 has set some minimum technical standards for brake pads which must be followed. This has improved the quality of the brake pads and increased the level of competition among the marketplace to provide better quality products with more features apart from ECE R90.
Strategic collaborations and new product development strategies adopted by players
Component manufacturers are involved in expansion of their production facilities to enhance their regional presence. For instance, in March 2019, Brembo S.p.A. announced the inauguration of new manufacturing plant in China. This production base will manufacture and supply aluminum brake knuckles and calipers. The company will supply these brake components to customers with improved operations and distribution service.
Automotive brake pad market players are also focusing on expanding their product portfolio with multiple options for escalating their customer base across the globe. For instance, in April 2018, Wagner showcased its new product lineup including brake pads, rotors & drums and hydraulics. The new offerings will support the company to supply products for several vehicles in North America, Europe and Asia Pacific These measures will strengthen the competitive position and provide competitive edge to market players.