Brake Fluids - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Brake Fluids - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Brake Fluids Market size is estimated at 1.19 Billion liters in 2024, and is expected to reach 1.45 Billion liters by 2029, growing at a CAGR of 4.05% during the forecast period (2024-2029).

The COVID-19 pandemic harmed the brake fluids sector. Global lockdowns and severe rules enforced by governments resulted in a catastrophic setback as most production hubs were shut down. Nonetheless, the business is recovering since 2021 and is expected to rise significantly in the coming years.

Key Highlights

• The major factor driving the market studied is an increase in the production of electric vehicles and remarkable growth in automotive production in emerging economies.
• On the flip side, stringent safety standards associated with using brake fluids are hindering the market's growth.
• The technological development in the automobile sector is expected to act as an opportunity for the market studied.
• The Asia-Pacific region represents the largest market and is expected to be the fastest-growing market over the forecast period, owing to the consumption from countries such as China, India, and Japan.

Brake Fluids Market Trends

Increasing Demand from Light Commercial Vehicles

• Brake fluid is a type of hydraulic fluid used in all kinds of vehicles, such as passenger cars, light commercial vehicles, and others.
• Brake fluids are used in electric vehicles. The recent increase in the production of electric vehicles is driven by the initiatives taken by several governments toward zero-emission and eco-friendly vehicles, as well as growing consumer awareness is boosting the market demand.
• Many global automotive manufacturers, including Tesla, General Motors, Toyota, BME, Nissan, Ford, and Volkswagen, are significantly investing in electric cars. These investments are expected to show results in the next 5-10 years.
• In the first three quarters of 2022, around 50 million passenger cars were manufactured worldwide, which increased by nearly 9% compared to the same quarter in 2021. However, this was still less by around 5 million units from pre-pandemic levels in 2019, according to the European Automobile Manufacturers' Association (ACEA) report.
• As per the World Economic Forum (WEF), nearly 4.3 million new battery-powered EVs (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold globally in the first half of 2022. Additionally, BEV sales grew by around 75% yearly and PHEVs by 37%. Moreover, global electric car sales crossed the 5.7 million units mark in the first eight months of 2022, and the market share of plug-in electric cars increased to nearly 15%.
• As per data published by the International Organization of Motor Vehicles (OICA), the world production of light commercial vehicles (LCV) in 2022 accounted for 19,860,126 units, which increased by 7% compared to 2021.
• Thus, due to the factors above, the demand for brake fluids is expected to grow during the forecast period.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region is expected to account for the largest brake fluid market due to the presence of leading automobile producers such as China, India, Japan, and South Korea. These countries are working hard to strengthen the manufacturing base for vehicles and develop efficient supply chains for greater profitability.
• In the Asia-Pacific region, the governments adopted favorable policies toward adopting electric vehicles and expanding the manufacturing infrastructure of electric vehicles. It, in turn, is anticipated to provide a huge impetus to the brake fluids market in the Asia-Pacific region during the forecast period.
• According to the China Association of Automobile Manufacturers (CAAM), China includes the largest automotive producer in the world, with a total vehicle production of 27 million units in 2022, registering an increase of 3.4% compared to 26 million units produced last year.
• Moreover, in India, during FY 2021-22 (April 2021 to March 2022), according to the Society of Indian Automobile Manufacturers (SIAM), the country's automotive industry produced a total of 22,933,230 units of vehicles in 2022. Further, according to the Centre for Monitoring Indian Economy (CMIE), car production increased to 1,93,629 units in July 2022 from 1,69,519 units in June 2022. Such factors are likely to increase the demand for brake fluids.
• Further, according to OICA, in 2022, the total production of motor vehicles in Japan and South Korea accounted for 7,835,519 units and 3,757,049 units, respectively.
• The demand for brake fluids in Asia Pacific is expected to grow owing to the factors above.

Brake Fluids Industry Overview

The global brake fluids market is partially fragmented in nature. The major players (not in any particular order) include TotalEnergies, Robert Bosch LLC, CASTROL LIMITED, Exxon Mobil Corporation, and BASF SE.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support