Automotive Brake Pad Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Automotive Brake Pad Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The automotive brake pad market was valued at USD 13.43 billion and is expected to reach USD 19.03 billion, registering a CAGR of 7.2% during the forecast period.

Key Highlights

• The COVID-19 pandemic hindered the growth of the market in 2020, owing to lockdowns and the shutdown of manufacturing facilities across the world. Further, the decline in vehicle production resulted in a slowdown in demand due to the pandemic. However, post-pandemic, as restrictions eased, the market witnessed significant growth.
• Over the medium term, factors such as individual vehicle manufacturers incorporating innovative brake pads in their vehicles so as to improve the braking efficiency and industry players offering a wide range of products that includes environmentally friendly brake pad materials are further expected to drive the market growth during the forecast period. Further, rising investments into R&D activities to manufacture a lightweight and eco-friendly braking system likely to enhance demand in the market.
• In addition, the growing focus by the premium and luxury car manufacturers to manufacture new products with enhanced features and growing demand for passenger car sales in developed nations is further expected to drive the automotive brake pads market growth during the forecast period.
• However, increases in the prices of raw materials and stringent regulations such as toxic substances control are likely to restrain the market's growth. Further, industry players frequently launching new products with customized braking designs for trucks and SUVs is expected to accelerate the market growth during the forecast period.
• Asia-Pacific region is expected to dominate the market owing to increasing vehicle sales coupled with increasing disposable income of consumers across emerging economies during the forecast period. China and India are the growth engines of the region, contributing to the growing demand for the product during the forecast period.
• Europe and North America are also expected to offer substantial growth opportunities during the forecast period as factors such as the establishment of new industry players in the region and increasing manufacturing of passenger cars, and fleet size are further expected to fuel the market growth over the forecast period.

Automotive Brake Pad Market Trends

Increase in awareness about safety among consumers as well as government authorities

• Some of the major factors driving the growth of the market are the growing emphasis on safety features and the rise in demand for and sale of passenger cars and commercial vehicles.​With the rise in the number of accidents across the world, governments, and international organizations, have enacted stringent safety norms, which have made the inclusion of safety systems such as anti-lock braking systems (ABS) compulsory in every new vehicle that is being sold.​
• Governments in developing countries like India have also made the inclusion of ABS a compulsion in every new vehicle, which will be sold in the country. In India, from April 2019, all the new passenger cars will come equipped with ABS.​ ABS prevents brakes from locking up when they are suddenly applied on a slippery road.
• In 2014, California Motor Vehicle Brake Friction Material law prohibited brake pads containing heavy metals and asbestos in more than trace amounts, and in 2021, brake pads containing more than 5 percent copper were also banned. By 2025, the law will almost eliminate copper in brake pads. Manufacturers must comply with laboratory testing and use a mark to certify their products comply with the restrictions set for brake pads.
• In the United States, all models that are new in 2022 come with it, although compliance is voluntary, pending formal rulemaking. Similar rules are also going into effect this year and in the coming years across several countries.
• UN Regulation No. 131, adopted in November 2012, became compulsory in the European Union in 2013 for new trucks and coaches. Subsequently, with UN Regulation No. 152 adopted in February 2019, the automated emergency braking system (AEBS) was extended to cars, set to become mandatory in the EU by July 2022. Building on the experience gained from AEBS implementation, these new measures are expected to notably decrease accidents and fatalities in traffic jam situations
• In the future, factors such as technological advancements and the growing inclusion of ABS and AEBS, owing to the implementation of stringent safety norms, are expected to offer numerous opportunities for the growth of the market, especially in developing countries like India.​

Asia-Pacific Region Likely to Witness Significant Growth During Forecast Period

• The Asia-Pacific region is anticipated to witness significant growth during the forecast period, owing to the increasing production and sales of vehicles in this region. Furthermore, the presence of major countries like India, China, and others, with large production facilities and strong supplier networks, is expected to drive demand in the market.
• For instance, in April 2022, around 210,000 commercial vehicles and 996,000 passenger cars were produced in China. During that month, the industry produced a total of 1.2 million vehicles, a decrease of 46.2 percent from the previous month and 46.1 percent year-over-year. China's production accounted for about 32.5 percent of global car production. In the passenger car market, China’s annual production exceeded that of Japan, Germany, India, and South Korea combined. China was also the world's largest automobile sales market in 2022.
• Manufacturing companies in this region are focusing on producing advanced brake pads, which would help reduce the size of the brake pads and improve the heat dissipation capacity. Moreover, the aftermarket segment of the market is also likely to see positive trends across the Asia-Pacific region due to several favorable government measures.
• For instance, in January 2019, the government unveiled numerous measures to increase car sales. The National Development and Reform Commission (NDRC) announced that restrictions would be loosened on the second-hand auto market, and appropriate subsidies would be provided to boost rural sales of some vehicles, as well as the purchase of new energy vehicles.
• Additionally, major countries across the region have been witnessing a rise in luxury car sales due to increasing demand for SUVs and crossovers. Luxury carmakers, like JLR, have been investing in the country, which will aid in boosting the country’s automotive industry and propelling the brake system market.
• For instance, as many as 24,009 luxury cars were sold in India in 2021, up 45 percent from the year-ago period, according to data from the Federation of Automobile Dealers Associations. Meanwhile, total retail sales increased by 21% last fiscal year to 2,21,50,222 units, up from 1,83,27,326 units in FY22. Passenger vehicle registrations increased by 23% to 36,20,039 units, up from 29,42,273 units in 2021-22. The trend boosted the fortunes of luxury carmakers across the board, including Audi, Lamborghini, Mercedes, BMW, Jaguar, Volvo, Porsche, Rolls Royce, Bentley, and Ferrari.
• Europe is expected to be the second-largest market in the automotive brake pads market. The increase in demand for passenger cars and stringent regulations for vehicle safety are the factors responsible for driving the automotive brake pads market.

Automotive Brake Pad Industry Overview

The Automotive Brake Pads market is moderately consolidated owing to the majority share occupied by key players in the market. Some of the prominent players in the market are focusing on adopting strategies like expansion, product development, etc., to improve their presence in the market. In addition, increasing investments by the premium and luxury car manufacturers to manufacture new products with enhanced features and growing demand for passenger car sales in developed nations are encouraging players to actively focus on growth strategies.

For instance, in March 2023, ZAP brake pads with superior friction technology were introduced by Brakes India for electric vehicles. The ZAP brake pads with better corrosion protection and silent braking have been specifically designed and produced to meet the needs of battery-powered car consumers.

In April 2022, ZF Aftermarket announced the full line availability of its TRW Electric Blue brake pads. The first full aftermarket brake pad line for electric and hybrid vehicles, TRW Electric Blue, supports ZF Group’s sustainability goals by offering high-quality, copper-free replacement pads that reduce noise, vibration, and dust emissions on carbon-reducing vehicles.

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