The emergence of self-driving/autonomous vehicles contribute substantially to the braking systems market and is projected to reach $ 20.02 billion by 2028.
According to the Insight Partners' new research study - Automotive Disc Brake Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by material type, vehicle and geography, the market size was $ 15.49 billion in 2021 and is expected to grow at a CAGR of 3.7% during 2021–28.
Insight Partners states that auto manufacturers and tech companies are involved in developing sophisticated technologies for self-driving vehicles. In the race of testing self-driving vehicles, Google is leading, followed by Audi, Toyota, and Mercedes-Benz. Moreover, it has been observed that self-driving vehicles will account for about 75% of vehicles on the road by 2040.
According to the industry research provider, the self-driving car industry is anticipated to benefit from the development cycle of braking technologies. In addition to the rising emergence of self-driving vehicles, changing government regulations and collaborations are among the major trends that would support transforming the automotive industry.
Due to government regulations for the safety of drivers and passengers, there are at least 47 cities globally that are piloting self-driving cars in the current scenario, finds the report.
Some of the key players in this space include Brembo, Continental, Delphi Technologies (BorgWarner); EBC Brakes; Haldex, Hitachi Automotive, Knorr-Bremse, Robert Bosch, WABCO and ZF.
APAC Leads The Market
The APAC held the largest share in the automotive disc brake market, followed by Europe and North America. APAC's automotive disc brakes market is expected to grow, owing to the growing population, rapid urbanisation, and heavy investments in automotive industries. In addition, countries such as China, India, South Korea, Malaysia, the Philippines, and Taiwan help make APAC a technologically advanced region. Stable economies and technological advancements support the growth of diversified industries and markets in APAC. As a global producer of automotive disc brakes, the report said APAC is expected to be one of the fastest-growing markets.
South Korea To Grow Faster
In APAC, South Korea is anticipated to grow at the fastest CAGR during the forecast period. This is because the country has a few largest passenger car manufacturers, such as Kia and Hyundai. This highlights the strength of the automotive sector in South Korea. The country produced a total of 350,6774 vehicles in 2020.
Strategic Alliance
In addition to the production of automotive disc brakes, the report stated that strategic alliance is another factor contributing to market growth. For instance, in July 2018, WABCO Holdings signed a contract with Hyundai Motor Company. Under this contract, WABCO provides their breakthrough MAXX single-piston air disc brake technology for production on Hyundai's new medium-duty trucks.
Self-driving/Autonomous Vehicles
Irrespective of constant technological developments, the foundation of any vehicle, be it autonomous or traditional cars, starts with brakes and, more with air disc brakes.
Anti-locking braking systems are witnessing a rise in their share in the commercial vehicle market. Nearly 20% of commercial vehicles and 15% of trailers are integrated with ADBs. This share is projected to grow and reach 30% of trucks and 25% trailers in the coming few years.
Moreover, with the advent of next-generation vehicles in the global market, the evolution of electronic brake systems is prevailing. In countries such as the US, the need to enhance the overall capability, safety, and performance of a truck are gaining popularity, contributing to advancement in electronic brake systems.
In addition, the evolution of electronic brake systems would assist the next-generation technologies such as automation and electrification. For example, in March 2021, ZF introduced 100 International LT Series trucks integrated with fifth-generation Wabco Maxxus L2.0 air disc brakes. With the integration of advanced disc brakes in vehicles, the scope of the market will continue to expand, the research firm stated.
Vehicle Type
Based on vehicle type, the automotive disc brake market is segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. The passenger car segment was heavily dominated the market in 2020. The rise in disposable income among the global population positively influences the demand for passenger cars across the globe. For instance, according to the Association des Constructeurs Européens d'Automobiles (ACEA) data, in May 2021, passenger car registrations in the European Union (EU) rose by 53.4% compared to last year, totalling 891,665 units. The European markets saw substantial volume gains, with Spain posting the biggest increase (77.8%). The EU's three other key car markets, i.e., France, Italy, and Germany, did well in May, posting an increase of 46.4%, 43%, and 37.2%, respectively. Thus, the rising demand for passenger cars across the globe is expected to boost the demand for automotive disc brakes in the coming years.
Courtesy: Insight Partners. NB: Photo is representational; courtesy: Brembo.