The Global Brake System Market was valued at USD 28.92 Billion in 2020 is expected to reach USD 39.89 Billion by 2027, with a growing CAGR of 4.90% during the forecast period.
The increase in sales & production of commercial vehicles and off-highway trucks are the major factor that propels the growth of the brake system market. The brake system is the main part of automobiles, thus an increase in commercial vehicles production and sales directly impact the brake system industry. For instance, as per the data of the International Organization of Motor Vehicle Manufacturers (OICA), the sales of commercial vehicles estimated around 27 million units in 2019, which registered a growth of 3.8% as compared to the previous year.
The growth of the brake system market is mainly attributed to the stringent regulation by the government for safety requirements. The governments across the globe are mainly focusing on the standard that will result in improved safety of the driver and passengers. Therefore, the regulatory authorities have set up stringent guidelines aiming to enhance active safety in vehicles. For instance, according to the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) and Insurance Institute for Highway Safety (U.S.), together with 20 key automobile manufacturers, introduced to include automated emergency braking (AEB) systems as a standard function in all new vehicles from September 2022.
Based on end-use, the brake system market is segmented into automotive, construction equipment, agricultural equipment, industrial trucks, and mining equipment. The automotive segment accounted for around USD 25 billion or nearly 55% of the global revenue share. Growing population and improved economic conditions have further boosted the demand for automobiles. As a result, the segment is projected to register a compound annual growth rate of roughly 7%
Government regulations related to loading carrying capacity and air brakes installation may create lucrative opportunities for the progress of the brake system market. Increased goods transportation by road has led to an increase in load-carrying capacity. To ensure the safety of these heavy-load commercial vehicles, the government has mandated the use of air brakes ensuring further market growth. The need to reduce emission levels and weight has led to the development of the brake-by-wire system. Furthermore, the additional requirement to improve vehicle mileage has introduced regenerative braking. The benefits of using the brake-by-wire and regenerative brake systems create additional opportunities for the brake system market to flourish. However, the development cost of these brakes is high which hamper the growth of the brake system market.
Global Brake System Market by Region Outlook (Revenue, USD Billion, 2021-2027)
In terms of geography, Asia-Pacific is expected to grow at the highest CAGR during the forecast period. The growth in the region is attributed to the growing Chinese economy, soaring demand for automobiles in the region, the surge in construction activities, and low production costs have favoured the growth of the market in China.
The Global Brake System Industry Segmentation:
Global Brake System Market by Product Type Outlook (Revenue, USD Billion, 2021-2027)
Global Brake System Market by End-use Outlook (Revenue, USD Billion, 2021-2027)
Global Brake System Market by Distribution Channel Outlook (Revenue, USD Billion, 2021-2027)
The key players operating in the brake system market are: