Report ID: PMRREP34512
Report Type: Ongoing
Format: PPT*, PDF, EXCEL
Industry: Automotive
Over the forecast years 2024 - 2031, the progression of the global market for automotive brake pads is expected at a steady CAGR of 4.3%. From revenue of US$3.9 Bn attained in 2023, the market size is likely to reach US$6 Bn by 2031-end.
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Report Attribute |
Details |
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Market size value in 2023(E) |
US$3.9 Bn |
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Revenue forecast in 2031(F) |
US$6.0 Bn |
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CAGR (2024-2031) |
4.3% |
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CAGR (2019-2023) |
4.1% |
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With a consistent rise in the number of road accident fatalities, stringent regulatory measures have been implemented by governments from around the globe. The regulatory measures eye security and safety of drivers, passengers, and pedestrians, critically important automotive components like brake pads serve importantly to reduce the negative impact of vehicles on the environment.
Stringent safety regulations, and growing consumer awareness regarding vehicle safety are collectively driving the demand for advanced brake pads. The market also gains largely from the greater emphasis on research and development to introduce novel materials, and designs that enhance durability, performance, and safety of brake pads.
The market report shows passenger cars segment stands the largest due to their higher parc on road, rising demand for upgrades, and technological advancements in braking systems.
The Asia Pacific region is expected to dominate the market due to its booming automotive industry, fueled by rising disposable income and readily available resources, with China and India being key growth drivers.
Historic Growth and Course Ahead
The automotive brake pad market experienced steady growth between 2019 and 2023. The market size was approximately US$3.9 Bn in 2023 and saw a steady growth trajectory thereafter, mainly attributing to the rising vehicle production, and increasing safety regulations.
The market is expected to maintain this positive momentum in the upcoming years as well. Moderate growth projections can be clearly attributed to factors like market saturation in developed regions, and volatility of raw material prices.
Key Market Trend
Increasing use of lightweight and technologically advanced materials like ceramic, and non-asbestos organic composites
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Heightening demand for automotive brake pads is directly influenced by the rising spending power of consumers, and growing willingness to spend on premium vehicles – especially in developing economies drives the rate of car ownership higher.
While this remains a continuous driving force for passenger car sales, its also highlights the significance of regular brake pad replacements to ensure maintenance and safety. This primarily creates a significant and consistent wave of demand surge in the automotive brake pad market.
Safety Regulations, and Growing Consumer Awareness
Governments worldwide are implementing stricter safety regulations, particularly regarding braking systems. This, coupled with a growing focus on car safety among consumers, is driving demand for advanced brake pads.
Automotive brake pad manufacturers are compelled to invest in R&D for features like superior heat dissipation and shorter stopping distances, leading to a market surge for these enhanced brake pad technologies.
Evolving Vehicle Landscape
The rise of electric vehicles (EVs), and high-performance vehicles puts a unique challenge in front of the braking system. Traditional brake pads may not be suitable for the regenerative braking used in EVs or the increased braking power needed for high-performance vehicles.
This creates a demand for innovative brake pad materials like ceramic composites that offer better durability, noise reduction, and overall performance, propelling the market towards these specialized solutions.
Fluctuating Raw Material Prices
The automotive brake pad market faces challenges due to the volatility of raw material prices. Essential components like steel, copper, and resins are susceptible to global market fluctuations.
These price swings can significantly impact production costs for manufacturers, squeezing profit margins and potentially leading to price hikes for consumers. This can deter some consumers from necessary replacements, hindering overall market growth.
Stringent Environmental Regulations
Environmental concerns are driving stricter regulations on automotive brake pad materials. The phasing out of certain materials like asbestos has already impacted the industry. Developing and implementing environmentally friendly alternatives often requires significant investment in research and development.
Additionally, complying with stricter regulations regarding dust and noise emissions from brake pads can add complexity and cost to the manufacturing process, potentially hindering market growth.
Mass Shift Towards Non-Asbestos Organic Brake Pads
The non-asbestos organic brake pads recorded top preference over the years and the yearly growth has been steady if not promising. While this organic brake pad material surges ahead on the back of the highly toxic nature of asbestos, its noiseless attribute will earn growing preference in the years to come. However, the use of these pads is currently limited to premium vehicles.
Upsurge in Ceramic Brake Pad Sales in the Light of EV Industry’s Growth
Ceramic brake pads are gaining excellent traction in electric and hybrid electric vehicles for their ability to help with maintenance of high thermal resistance in compliance with environmental protocols.
As ceramic brake pads have lesser replacement cycles and account for lower dust production than their organic counterparts, the wear and tear also take longer. The preference will thus be higher despite prohibitive manufacturing costs.
Passenger Cars Dominant in Demand Generation
Passenger cars represent the largest portion of vehicles on the road compared to commercial vehicles. This directly translates to higher demand for brake pads, as each car needs them to function safely and the replacement rate remains afloat.
Passenger vehicles tend to travel more frequently and over shorter distances when compared to commercial vehicles. This leads to more wear and tear on the brake pads, necessitating more frequent replacements. This is expected to drive the demand for brake pads up.
The automotive brake pad technology for passenger cars constantly keeps on evolving as automakers are to meet the necessary safety regulations. In addition, consumer preferences inclining towards features like shorter stopping distances, and quieter operation further bolster the demand.
While commercial vehicles are also crucial for the transportation industry, their sheer number and replacement frequency are overshadowed by those within the passenger cars segment in the market for automotive brake pads.
Ceramic Brake Pads Account for a Leading Revenue Share
The market comprises four segments by material type, viz., low-metallic, semi-metallic, non-asbestos, and ceramic. Among these, ceramic brake pads currently are equivalent to around US$1.8 Bn and will double in size by the end of 2031.
Ceramic brake pads are predominantly made from a combination of ceramic fibers, binding agents, and filler materials, which makes it highly durable and efficient when it comes to stopping a vehicle in motion.
These brake pads, unlike traditional brake pads that are made from organic materials like metal, carbon, or rubber, possess a higher melting point. The ability to withstand extreme temperatures, endurance, superior performance, and lower dust production thus account for their popularity.
The environmental sustainability of ceramic brake pads further raises the market attractiveness of this segment among both vehicle manufacturers, and drivers. The segment will maintain a dominant position in the automotive brake pad market revenue generation.
Asia Pacific Boasts the Largest Market Share
The largest market for automotive brake pads has been existing in the Asia Pacific region, led by China. Asia Pacific continues to stand out and the dominance will be fueled by the presence of the world’s largest auto market in China.
China Takes the Lead
While China recorded more than 23.5-million-unit sales alone in the year 2022, the growth ensures a direct boost to auto components like brake pads. The country remains a powerhouse of investments for major players from across the globe.
With noise reduction, superior braking performance, and an extended lifespan stretching the boundaries of the brake pad technology, China remains at the forefront, driving dominance of Asia Pacific in the global automotive brake pad market.
India’s Aftermarket Pivotal
As far as the other Asian markets are concerned, India also boasts a burgeoning automotive sector, especially the robust aftermarket segment that presents a solid growth prospect within the region. Sales in the aftermarket specifically gain from regular brake pad replacements that are paramount for road safety, and vehicle upkeep.
Besides, Japan represents the next important market expecting a strong double-digit growth rate annually.
Developed Regions Near Saturation
On the other hand, the developed western markets like Europe, and North America are nearing saturation. While the demand for replacement remains steady, further growth potential is restricted.
Automotive brake pad manufacturers in US, and other key areas are thus engaged in exploring newer markets with premium, innovative, high-performance brake pads.
Recent Industry Developments
February 2024
Brake pad maker Allied Nippon launched a new line, EV+, specifically designed for electric vehicles. This caters to the growing EV market and addresses the unique challenges of EVs, like heavier weight and quicker acceleration. EV+ uses a new, heat-treated friction material for better stopping power and quieter operation, aiming to maintain the quiet driving experience EVs are known for.
October 2023
Brembo and SGL Carbon's joint venture is building two new facilities totaling 8,500 sqm for high-performance brake discs. These factories will be operational in January 2025 and create 80 new jobs, boosting the automotive industry.
September 2023
Brake disc maker Brembo is ramping up production of carbon ceramic discs for cars and trucks. They're investing $169.5 million to expand factories in Germany and Italy by 70% to meet rising demand.
August 2023
Japanese parts maker Totachi broadens its offerings with high-quality brake pads designed specifically for various passenger car models.
July 2023
US regulators proposed mandatory automatic emergency braking (including for pedestrians) on new light vehicles. This is expected to save 360 lives and prevent 24,000 injuries per year.
May 2023
In a move to elevate the braking performance of TVS Apache motorcycles, Robert Bosch GmbH introduced the Elite brake pads in May 2023. These innovative pads feature a groundbreaking stripe-coating imbued with Bosch's proprietary ABRACOAT technology. This advanced technology promises to revolutionize braking for TVS Apache riders.
March 2023
Indian brake supplier Brakes India launched ZAP pads specifically designed for electric vehicles. These new pads offer better corrosion protection and quieter braking to meet the unique needs of EVs.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
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The global automotive brake pad market size is approximately US$16.8 billion as of 2024, with steady growth expected in the coming years.
Some of the key drivers for market growth include increasing vehicle production, rising demand for high-performance and low-noise brake systems, and stringent safety regulations.
The most common automotive brake pad types include semi-metallic, ceramic, and organic (non-asbestos organic or NAO) brake pads, each favored for their specific performance characteristics and applications.
The major players in this market include companies like Robert Bosch GmbH, Brembo S.p.A., Akebono Brake Industry Co., Ltd., Federal-Mogul LLC, and Aisin Seiki Co., Ltd.
The emerging market trends include the development of eco-friendly brake pads, advancements in materials for better performance and durability, and increased adoption of electric vehicle (EV)-compatible brake pads.
