April 21, 2024

Automotive Brake System Market is driven by increasing commercial vehicle production globally

 

The automotive brake system is an essential component in every vehicle that stops the vehicle safely during driving. The advanced brake systems have anti-lock braking systems (ABS), electronic brake-force distribution (EBD),traction control systems (TCS), and electronic stability control (ESC) that improve braking efficiency and vehicle control during emergency braking situations. Advance brake systems also provide safety, comfort, and convenience to the drivers and passengers. The global Automotive Brake System Market is estimated to be valued at US$ 50 Billion in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024.

Market Key Trends:

One of the key trends in the automotive brake system market is the growing adoption of electric parking brakes. Electric parking brakes are gaining traction as they replace the conventional handbrake or mechanical parking brakes. Electric parking brakes are easier to use compared to mechanical brakes. They can be engaged or disengaged automatically or remotely using buttons in the cabin. They also free up interior space by eliminating the need for a handbrake lever. The self-applying and self-releasing function of electric parking brakes improves convenience. Leading automakers are incorporating electric parking brakes as standard fitting in their new vehicle models which is expected to drive the demand over the forecast period.

Porter’s Analysis
Threat of new entrants: The automotive brake system market requires large investments in brake manufacturing technology and R&D. Established players enjoy economies of scale and have strong relationships with automakers.

Bargaining power of buyers: Automakers have considerable bargaining power as they can choose from various brake system suppliers. However, stringent safety regulations reduce the negotiability of buyers.

Bargaining power of suppliers: A few large companies dominate brake component manufacturing. However, suppliers have relatively low bargaining power due to availability of substitute materials and parts.

Threat of new substitutes: Alternatives to traditional brake systems like regenerative braking have limited capabilities and high costs, restricting their use.

Competitive rivalry: The market is moderately competitive with top players like Continental, ZF, Aisin, and Advics holding major shares. Players compete on product quality, innovation, and pricing.

Key Takeaways
The global automotive brake system market is expected to witness high growth driven by increasing vehicle production and rising demand for advanced safety features.

Regional analysis: The Asia Pacific region accounts for over 50% share of the global automotive brake system market led by China, India, and Japan. Booming automobile sales in these countries is a key factor for the regions large share. Government mandates on safety and emission control have also boosted demand for sophisticated brake technologies in the region.

Key players: Key players operating in the automotive brake system market are Continental, ZF, Aisin, and Advics. Continental is one of the largest brake system suppliers globally while ZF and Aisin have a significant presence in the lucrative commercial vehicle brake components segment. Advics is expanding its product portfolio through heavy investments in brake-by-wire technologies.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it