Influenced by major factors, including stringency in safety standards in countries such as China, India, Brazil, European Union, US, Canada, etc., and the anticipated increase in demand for premium and luxury cars, the market for brake systems will reach $ 26.5 billion by 2026.
In addition, the growing adoption of disc brakes in commercial vehicles due to its technical benefits in North America, Asia Pacific is expected to drive the market further. Therefore, the market for brake systems is
According to the new market research report - Brake System Market by type, technology, on & off-highway vehicle, OHV brake, actuation and region - Global Forecast to 2026, published by MarketsandMarkets, the brake system market is estimated to be $ 20.9 billion in 2021, will grow at a CAGR of 4.9% during the forecast period.
The market for brake system market is dominated by several players, including Robert Bosch GmbH, ZF, Continental, Aisin Seiki, Knorr-Bremse, Brembo and Advics.
Anti-lock brake systems (ABS) will grow faster
Stringency in safety standards has made ABS a mandatory feature in vehicle models as it prevents lockups and skidding and offers enhanced stopping power. In addition to technical benefits, it also provides advantages such as lower insurance costs and higher resale value.
ABS has become a mandatory feature in the US, Europe, Brazil, India, Japan, South Korea, and many more countries. Also, vehicles fitted with ABS have a lower risk of crash/accidents.
Asia Pacific is the largest ABS market, with the main markets being China and India. This is attributed to the implementation of regulations, making it a mandatory feature. For instance, in 2017, in India, the Ministry of Road Transport & Highways (MoRTH) released a notification, which makes ABS compulsory for all cars to be sold from April 2019. Thus, with increasing vehicle production globally, the ABS market is expected to witness constant growth.
Passenger car segment to be the largest
According to MarketsandMarkets, increasing electronic brakes' adoption is expected to drive the passenger car brake system market further. Although electronic brakes are popular in Europe and North America, the increasing penetration of such brakes in the Asia Pacific region is expected to boost the market. For instance, in 2017, ZF with Brakes India successfully started production of the first Electric Park Brake (EPB) system with a global OEM, marking it the first launch of its kind for the Indian market. Although electronic parking brakes have been a feature in European and North American cars, their adoption in cost-sensitive countries such as India and China is expected to drive the passenger car brake system market, the research agency said.
North America to lead the market during the forecast period
Due to changing consumer preferences, increasing disposable income of the middle-class population, and cost advantages for OEMs, the Asia Pacific region has emerged as a hub for automotive production in recent years. Automakers such as BMW (Germany) and Volkswagen AG (Germany) have already set up their manufacturing units in these countries on a large scale. In addition, the implementation of safety standards in China, India is expected to drive the adoption of electronic braking systems. On the other hand, Japan has the highest penetration of advanced electronic braking systems in its vehicles. This is due to the already implemented stringent safety regulations. For instance, ABS and ESC are mandatory in all passenger cars and LCVs. Furthermore, in 2019, the Japanese government implemented a new policy that requires all new cars, minicars, and minitrucks to be equipped with automatic braking systems (AEB) from fiscal 2021 to meet international standards and help prevent accidents. Considering the factors mentioned, the brake system market is expected to witness significant growth in the coming years, the research firm noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Continental.