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 brake system, one of the vital parts of an automobile, consists of components such as a master cylinder, brake pedal, brake callipers, shoes/disc, hoses, lining, etc. The system could consist of either a mechanical, electrical, or electromechanical device that assists in the deceleration or speed modulation of the vehicle. A faulty brake system can result in a severe injury or loss of life.
The growth of the logistics industry is estimated to propel the surge in commercial vehicle sales. This increase in commercial vehicle production and sales has directly resulted in the appreciation of the brake system market. The rising number of infrastructural projects and the increase in investments in the mining industry will further help grow the brake system market. An upsurge in accidents has indirectly coerced various authorities to implement stringent regulations to improve safety in vehicles. These active safety norms generate massive demand for brake systems. The New Car Assessment Program (NCAP) on electronic brake systems is ensuring the mandatory implementation of braking technologies like ABS and EBD across the world. This, in turn, is projected to thrust the brake system market towards growth.
By Product Type
By Distribution Channel
Based on product type, the drum brakes segment in brake system market captured the major market share in 2019 of over 50% due to their cost-effectiveness
The brake system market is segmented based on product type into drum brakes, disc brakes, hydrostatic brakes, hydraulic wet brakes and regenerative & dynamic braking. Drum brakes captured a little under 50% of the market share and nearly USD 20 billion in revenue in 2019. The extensive use of drum brakes is largely driven by cost-effectiveness. On the other hand, the shift in focus towards energy-efficient solutions is motoring the regenerative & dynamic braking segment forward. The segment is estimated to witness a staggering compound annual growth rate of 9% during the forecast period.
Based on end-use, the automotive segment accounted for the largest revenue share in brake system market of close to 55% and is expected to show its dominance during the forecast period due to the growing population and increased per capita income boosted the demand for automobiles
The end-use of the brake system market include automotive, construction equipment, agricultural equipment, industrial trucks and mining equipment. The requirement for automobiles is comparatively significant as opposed to the demand for the other segments. Thus, the automotive segment accounted 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%.
Based on the distribution channel, the OEMs segment accounted for the largest revenue in brake system market of over USD 20 Bn in 2019 owing to the demand generated from OEMs
There are two types of distribution channels for the brake systems market i.e., Original Equipment Manufacturers (OEMs) and aftermarket. The OEM segment accounted for approximately USD 20 Bn of the market in terms of revenue in 2019. Since brakes are a critical component of the vehicle, manufacturers cannot afford to ignore the brake system. The dominance of this segment is, therefore, attributed to the demand generated from OEMs. The aftermarket segment makes up for the remainder of the market share and is estimated to expand at a compound annual growth rate of around 6% during the forecast period.
Based on region, the Asia-Pacific region is expected to grow at the highest CAGR during the forecast period due to soaring demand for automobiles
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 favored the growth of the brake system market in China. Stringent regulations set by the Indian government regarding the mandatory implementation of anti-lock braking systems have significantly impacted the market. Home to large-scaled auto manufacturers such as Toyota, Honda, Subaru, Kawasaki, Mitsubishi, and more, Japan is estimated to boost the regional market.
North America is anticipated to further fuel the expansion of the market. The region generates the second-highest demand for brake systems after Europe. The presence of well-established players like Fiat, Chrysler, Ford, General Motors, etc. will push for the expansion of the brake system market.
The report also provides an in-depth analysis of brake system market dynamics such as drivers, restraints, opportunities, and challenges:
COVID-19 Impact on the Brake System Market Analysis:
The COVID-19 pandemic impacted various industries such as oil & gas, manufacturing, retail and others due to the strict lockdown imposed by the government in 2020. The short-term effect of COVID-19 on the automotive sector has caused the shutting down of assembly plants, production interruptions, and ceased export of Chinese components in the face of the lockdown scenario across the globe. This led to a substantial drop in automobile sales in early 2020, fueled by oil price fluctuations and the economic slowdown in numerous regions. However, with the widespread effect of the COVID-19 pandemic on the automotive industry, there has been an upward thrust in the online sales of automobiles and new product launches to expose positive signs of growth in the long term. A more detailed analysis specific to brake system market will be provided in the report.
The report also provides an in-depth analysis of key trends in the brake system market:
The report also provides an in-depth analysis of recent news developments and investments:
The unique insights provided by this report also include the following:
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Market Overview & Competitive Landscape
Market Segmentation (Market Size and Share Analysis)
COVID – 19 Opportunity Mapping
Regional Market Analysis