Market Overview:

Executive Summary

The braking system market size was projected to be US$ 24.0 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of US$ 25.3 billion. During the forecast period, the global market for braking system is expected to garner a 5.6% CAGR and reach a size US$ 43.7 billion by 2034.

Due to increased demand for passenger and commercial vehicles in nations like India and China, the automotive brake systems market is anticipated to expand substantially. Additionally, market expansion is being propelled by stringent safety regulations, the rising popularity of luxury automobiles, and the expanded use of disc brakes in commercial vehicles. Additionally, brake component tenure is limited to a certain number of kilometres, which stimulates the replacement market.

Furthermore, participants have implemented advanced safety systems in response to apprehensions regarding road traffic collisions and the escalating fatality toll. The market for automobile brake systems will continue to expand because of governments and regulatory agencies imposing increasingly stringent safety regulations. The National Highway Traffic Safety Administration (NHTSA), a division of the United States Department of Transportation, has intended to mandate automatic emergency braking in vehicles beginning in 2022.

Involvement of market participants in the development of research and development devoted to the introduction of new technologies and the introduction of new and enhanced systems also contribute to market expansion over the forecast period. Conversely, the growing prevalence of electric vehicles and the intensifying emphasis on autonomous technology are anticipated to augment the commercial expansion prospects of manufacturing firms in the foreseeable future.

Brakes have evolved into an essential component of every vehicle in an era of steadily increasing speed requirements, ensuring safety. Despite this, the market is currently undergoing technological advances due to rising safety concerns and government regulation. The Indian government, for example, has mandated that all large vehicles be equipped with an advanced braking system.

In a similar vein, twenty key vehicle manufacturers, the Insurance Institute of Highway Safety, and the National Highway Traffic Safety Administration (NHTSA) have joined factors to mandate Automatic Emergency Braking (AEB) as a standard equipment package in all newly manufactured automobiles beginning in September 2022. Furthermore, the market will be propelled by advancements and progress in advanced driver assistance systems (ADAS) because of investments in Level 4 and Level 5 autonomous vehicles.

Automobiles operating at Levels 4 and 5 autonomies require human intervention. Therefore, technologically sophisticated braking systems will be crucial for the safe and secure operation of autonomous vehicles. Automobile manufacturers are perpetually innovating to create safer and more enjoyable driving experiences. To produce safer and more effective automobiles, industry leaders including Web Co., ZF Friedrichshafen AG, Advics Co. Ltd., and Haldex routinely develop electronic stability control, anti-collision technologies, and advanced anti-lock braking systems. As an illustration, Continental AG has created an anti-lock braking system (ABS) of the third generation, which regulates vehicle speed and delivers optimal, safer, and more regulated braking performance.

Rapid progress in vehicle technology and aerodynamic design has facilitated the optimization of engine power utilization, thereby enabling the attainment of higher velocities. In addition, sophisticated braking systems, including Electronic Stability Distribution (EBD), Traction Control (TC), and Electronic Stability Control (ESC), are being developed. Globally, manufacturers are allocating resources towards research and development (R&D) to introduce cutting-edge technologies. This suggests that manufacturers and suppliers may experience expansion over the course of the forecast period.

Definition

The brake system in a vehicle is a critical component designed to slow down or stop the vehicle safely. It works by converting the kinetic energy of the moving vehicle into heat through friction. There are several types of brake systems, but the two most common ones are disc brakes and drum brakes.

Market Dynamics:

Trend

Globally augmenting safety regulations to promote market development.

The New Car Assessment Program (NCAP) furnishes essential information to consumers concerning the safety attributes of newly manufactured automobiles. Developed and developing regulatory authorities alike adhere to this standard, which has contributed to a 20% reduction in traffic fatalities in the United States. Because of this, manufacturers are substantially investing in R&D and integrating safety features into their vehicles. The growing market demand for autonomous vehicles requires the implementation of safety protocols.

The growth of the worldwide automotive braking market is driven by significant technological advancements associated with the implementation of stricter safety regulations. A growing apprehension regarding road traffic collisions and the escalating loss of life has motivated significant stakeholders to establish resilient safety systems. Governments and regulatory agencies' rigorous safety standards will continue to propel the automotive brake system market's expansion. A division of the U.S. Department of Transportation, NHTSA (National Highway Traffic Safety Administration) has proposed requiring the use of Automatic Emergency Braking Systems (AEB) commencing in 2022.

Drivers

Market-driving strategies to increase stopping distance for passenger and commercial vehicles.

Market-driving strategies that target the augmentation of stopping distance for commercial and passenger vehicles are significantly contributing to the expansion of the brake system market. Actively investing in research and development to improve braking performance, automotive manufacturers and suppliers place a significant emphasis on safety and regulatory compliance. A primary area of emphasis has emerged as the integration of sophisticated technologies, including electronic braking systems (EBS) and regenerative braking. These advancements not only aid in the enhancement of halting distances but also effectively mitigate environmental issues through the optimization of energy efficiency.

Moreover, the increasing market demand for autonomous vehicles has expedited the requirement for state-of-the-art braking systems. To guarantee dependable performance across diverse driving conditions, these vehicles necessitate sophisticated safety attributes. In response, market participants are devising intelligent braking systems that incorporate functions such as emergency braking assistance and predictive braking. This market-driving strategic transition toward increased stopping distances is consistent with consumer demands for safer and more dependable automobiles. Moreover, as the significance of braking efficacy in averting collisions and safeguarding passengers increases, manufacturers are compelled to prioritize and allocate resources towards advancements in braking systems. This cultivates a competitive environment that propels market expansion.

Restraints

Expanding modern vehicle adoption will restrain market expansion

Scalability, adaptability, serviceability, simplification, standardization, and manageability are all characteristics of high-performance electric brakes. A variety of braking technologies are currently striving to produce electric brakes of superior quality while simultaneously reducing their operational expenses.

Braking systems of the present day are more intricate than those of the past. The transition from conventional vehicle technology to electric vehicle production inevitably gives rise to challenges, given the substantial surge in demand for electric automobiles across commercial, agricultural, and passenger sectors. Adverse temperature and humidity fluctuations have the potential to inflict harm upon the braking mechanism, reduce its operational efficiency, and elongate the lifespan of the brake pads and brake shoes installed on such vehicles. The inclusion of substantial expenses for installation and upkeep in the overall cost of automotive brakes is anticipated to impede the market expansion of this sector.

Opportunities

Implementation of innovative technologies is serving as a market growth opportunity

The emergence of metaverse immersion is poised to provide promising prospects for market expansion in the foreseeable future. The trend at hand is quite unique and unconventional. The metaverse holds immense promise for the gaming industry and brands alike, offering users the opportunity to fully immerse themselves in a thrilling and lifelike virtual world. Interestingly, this technology shows great promise and is causing a slowdown in the progress of traditional consoles. UCAM braking system is at the forefront of these initiatives. The Universidad Católica de Murcia has created a gaming environment using VR headsets.

It offers a comprehensive experience, including a dedicated space for participants to socialize during breaks.  Looking ahead, the braking system industry is poised for a remarkable transformation in the years to come. Developers, IT firms, players, and viewers are all gearing up for what lies ahead. Thanks to the ongoing commitment to modernization, we expect the previously impressive figures to establish new standards.

In addition, virtual reality and the upcoming metaverse are becoming more accessible to consumers through the introduction of headsets by various tech companies such as Sony, Meta, and Apple. While it may require some time to fully develop this integrated virtual experience, businesses that seize the opportunity early on will gain a competitive edge in the market and pave the way for future growth.

Challenges

Supply chain disruptions affecting brake system production

The brake system market faces significant challenges due to supply chain disruptions, including shortages of raw materials, delays in production, and logistical issues. These disruptions, often exacerbated by global events such as the COVID-19 pandemic or geopolitical tensions, can lead to increased costs and hinder the timely delivery of brake components to manufacturers. The automotive industry's dependency on a complex network of suppliers makes it susceptible to disruptions, impacting the overall production of brake systems and contributing to uncertainties in meeting market demands. Manufacturers are continually adapting strategies to enhance resilience and mitigate the effects of these disruptions on brake system production.

Impact of COVID-19

The advent of COVID-19 abruptly disrupted the supply chain of the worldwide automotive industry. The export of Chinese components came to a halt because of the manufacturing disruptions caused by the concurrent shutdown of assembly factories. Furthermore, the implementation of travel bans by governments in Europe, Asia, and North America has caused significant disruptions to opportunities for commercial collaboration and partnerships.

The pandemic-imposed limitations on the mobility of individuals between different locations. Furthermore, the automotive brake system experienced supply-side repercussions because of the personnel limitations imposed at the manufacturing facility. As a result of the lockdown being lifted, the market has started to acquire momentum. In pursuit of innovative technologies like regenerative braking and anti-lock brakes (ABS), the automotive brake market is anticipated to expand substantially over the forecast period.

Segmentation Analysis:

Segmentations:

By System Type

In 2023, the disc brake segment dominated the market with a 62.0% share. The practical implementation of disc brakes has experienced substantial expansion in recent times. The capacity of disc brakes to function in inclement weather without experiencing overheating or degrading has contributed to their widespread adoption. Compatibility with additional sophisticated systems is an additional factor driving the expansion of the disc brake market segment.

The drum brake segment, which consists primarily of multiple gas extractors, is anticipated to grow at a substantial CAGR of 4.0% during the period of forecast. Enclosed drum brakes utilize circular components, known as brake shoes, to generate the requisite friction for the purpose of decelerating velocity. On the contrary, disc brakes halt wheel motion via a slender caliper and rotor. Consequently, efficacy is compromised. Even though disc-based systems offer greater braking factor than drum-based systems, drums are preferred by manufacturers due to their lower cost.

• Disc Brakes
• Drum Brakes
• Hydraulic Wet Brake
• Rheostatic Brakes
• Regenerative Brake
• Others

By Vehicle Type

In 2023, mid-sized passenger cars held the largest revenue share of the market at 73.0%. The proliferation of passenger vehicles can be attributed to urbanization, disposable income, and population expansion. Automobile manufacturers typically prioritize the efficiency of braking systems when incorporating additional safety features. The ADAS is the most influential factor on the development and market share of passenger cars. Additionally, the market for brake systems is anticipated to be impacted by rising ADAS expenditures, as the demand for electromagnetic induction braking systems in automobiles, motorcycles, and other vehicles is anticipated to increase throughout the forecast period.

Throughout the forecast period, the heavy commercial vehicles segment is anticipated to expand at a substantial CAGR of 5.0%. Trucks, buses, are among the commercial vehicles whose demand has increased consistently on a global scale. The expansion of e-commerce, rising logistics and transportation demands, and the expansion of industries such as construction and mining have all contributed to this expansion. The expansion of the commercial vehicle fleet corresponds to an increased need for dependable and effective braking systems.

• Mid-Sized Passenger Cars
• Compact Passenger Cars
• Luxury Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Premium Passenger Cars
• Others

By Technology

In 2023, Electronic Stability Control (ESC) held the largest revenue share of the market at 34.0%. The perceived advantages of electronic stability control technology in restoring vehicle control during emergency situations are driving its increasing adoption. As a result, it is anticipated to propel market expansion throughout the period of forecast.

With a CAGR of 7.0%, the Traction Control System (TCS) sector is anticipated to experience substantial expansion. Traction control system (TCS) technology enhances safety by guaranteeing traction in challenging driving conditions. Generally, TCS is combined with an anti-lock braking system to increase productivity. Traction control halts the rotation of the tire through the application of brake pressure via ABS and throttle regulation. Consequently, the incorporation of advanced braking systems could result in improved New Car Assessment Program (NCAP) ratings for automobiles produced by manufacturers.

• Anti-Lock Brake System (ABS)
• Traction Control System (TCS)
• Electronic Stability Control (ESC)
• Electronic Brake-Factor Distribution (EBD)
• Others

By Component

The Master Cylinders component segment is a key driver in the brake system market, playing a pivotal role in ensuring effective braking performance in vehicles. Master cylinders convert mechanical factor applied through the brake pedal into hydraulic pressure, facilitating the distribution of brake fluid to the calipers or wheel cylinders. With the growing emphasis on safety and advancements in automotive technologies, there is an increasing demand for master cylinders that offer improved responsiveness, reliability, and precision in braking systems

The brake pads component segment is a significant driver in the brake system market, experiencing growth due to several factors. The increasing emphasis on vehicle safety and regulations mandating advanced braking technologies have led to a rising demand for high-performance brake pads. Innovations in brake pad materials, such as ceramic and low-metallic formulations, contribute to improved durability, reduced noise, and enhanced braking efficiency. Additionally, the expanding global automotive fleet, coupled with the aftermarket demand for brake pad replacements, further propels the growth of the brake pads segment.

• Master Cylinders

• Brake Pads
• Brake Shoes
• Brake Calipers
• Brake Disc Rotors
• Others

By Brake Pad Material Type

The metallic segment is anticipated to experience substantial growth soon due to the numerous advantages that these products provide. A wide range of metallic brake pad compounds are commercially available, and each provides distinct advantages for a variety of applications, including track racing and daily commuting. Consequently, the extensive application of these brake pads in the automotive industry contributes to the expansion of the market.

The organic brake pad material segment is playing a pivotal role in driving the brake system market, driven by a growing emphasis on environmental sustainability and increased consumer awareness. Organic brake pads, often composed of materials like Kevlar, rubber, and glass, offer eco-friendly alternatives to traditional brake pad materials containing metal and synthetic compounds. The demand for organic brake pads is rising as consumers prioritize products that reduce environmental impact and contribute to greener automotive solutions.

• Metallic
• Organic
• Ceramic

By Actuation

The hydraulic segment is a driving factor in the brake system market due to its superior performance and efficiency. Hydraulic brake systems leverage fluid pressure to transmit factor, providing responsive and reliable braking. These systems offer precise control and quick response times, contributing to enhanced safety and driving experience. Additionally, hydraulic actuation is widely adopted in advanced braking technologies, such as anti-lock braking systems (ABS) and electronic stability control (ESC), further fueling its demand.

The pneumatic segment to grow at a robust CAGR during the forecast period, offering advantages such as quick response times, precise control, and improved efficiency. Pneumatic brake systems leverage compressed air to actuate brakes, particularly in heavy-duty vehicles and industrial applications. The growing demand for commercial vehicles, such as trucks and buses, along with the need for robust braking solutions in industrial settings, has fueled the adoption of pneumatic actuation systems.

• Hydraulic
• Pneumatic

By Sales Channel

Throughout the forecast period, the original equipment manufacturer (OEM) is anticipated to generate the maximum CAGR. Original equipment manufacturers, also known as true equipment manufacturers, are the initial producers of automobile components. Certain consumers favor replacing damaged auto components with original equipment manufacturer parts (OEM) due to the assurance that such parts are compatible and of superior quality. Assuming 2022 as a reference point, the original equipment manufacturer controls a market share of approximately 36.0%.

Aftermarket segment, in contrast to original equipment manufacturer (OEM) elements, are produced by external entities and may not exhibit equivalent standards of quality or compatibility. Aftermarket manufacturers produce functional, collision, aesthetic, and replacement components. Consumers opt for these aftermarket components due to their discounted pricing, notwithstanding their only moderate reliability about compatibility and quality. This assures that 64 percent of the global vehicle braking industry is covered by the aftermarket.

• Original Equipment Manufacturers (OEMs)
• Aftermarket
• Others

By End-User

The automotive segment is a key driver of the brake system market, with advancements in vehicle safety standards and the integration of innovative technologies. The increasing demand for enhanced safety features, such as anti-lock braking systems (ABS), electronic stability control (ESC), and autonomous emergency braking (AEB), has fueled the growth of the brake system market. Additionally, the rise in electric and hybrid vehicles has led to the development of regenerative braking systems, further contributing to market expansion. As automakers focus on improving fuel efficiency and reducing emissions, the demand for advanced and efficient brake systems continues to grow, making the automotive segment a pivotal factor shaping the evolution of the brake system market.

The construction vehicle segment to grow at a robust CAGR during the forecast period, fueled by the growing global construction industry. With increasing infrastructure development projects and the rising demand for heavy-duty construction equipment, there is a parallel need for robust and efficient brake systems to ensure safety and optimal performance. Construction vehicles, including excavators, loaders, and bulldozers, operate in challenging and demanding environments, requiring reliable braking systems to handle heavy loads and ensure precise control. As construction activities expand globally, the demand for advanced brake technologies, such as disc brakes and electronic braking systems, is on the rise within the construction vehicle segment, contributing significantly to the overall growth and evolution of the brake system market.

• Automotive
• Construction Vehicle
• Others

Geography Chapter

Increasing research and development expenditures by major players in the region will fuel the market demand.

In 2023, the global market for automotive brake systems was dominated by North America. North America comprises 26.0% of the global market in terms of market share. Increasing awareness regarding safe and comfortable driving because of a rise in road accidents, the implementation of cutting-edge technologies that reduce vehicle weight and friction, and the R&D efforts of key participants in the region all contribute to the expansion of the North American market. The proliferation and development of electric vehicles, as well as their acceptance in the region, are factors driving the expansion of the automotive brake system market. Additionally, government grants for research and development are contributing to the expansion of the automotive brake system industry in this region.

It is probable that the United States will attain 28.2% of the value share in the North American market. The automotive brake system market is anticipated to sustain its expansion due to the rigorous safety regulations enforced by governmental bodies and regulatory organizations. The National Highway Traffic Safety Administration (NHTSA), a division of the United States Department of Transportation, intends to mandate automatic emergency braking in all vehicles beginning in 2022.

The accessibility of inexpensive labour and raw materials in Asia-Pacific will project the market development during forecast period.

The Asia-Pacific region maintains its market dominance, and its manufacturers provide substantial cost reductions due to the accessibility of inexpensive labour and raw materials. Moreover, the region encompasses several nations with considerable potential, including China and India, whose respective vehicle production figures of 21.4 million and 3.6 million represented an estimated 34% of the overall worldwide output. The rising prevalence of active braking systems contributes to the expansion of the prestige and premium vehicle market.

Significant investments have been made by the major market players in research and development to expand their market shares and guarantee robust growth. For instance, Nisshinbo Holdings Inc., and Continental AG (Continental) announced in March 2022 that the two entities would form a joint venture company in Gurgaon, Haryana, India. The recently formed organization will manufacture and distribute valve blocks, which serve as the primary constituent of electronic brake systems (EBS). The joint venture is expected to have a capitalization of around JPY 1.9 billion, with Nisshinbo HD owning 60% and Continental the remaining 40%. Its initiation of operations is scheduled for April 2023.

Company Landscape

Prominent companies in the global braking system market are Continental AG, AKEBONO BRAKE INDUSTRY CO., LTD., ZF Friedrichshafen AG, ADVICS CO., LTD., others. Manufacturers are actively investing in product development and innovation, strategically launching their products in emerging countries to tap into a vast market share. Partnerships and collaborations are increasingly being adopted by market players to enhance their offerings and promote better interoperability.

Some of the prominent developments by the important companies in this domain are

• In June 2023, EBC Brakes Racing debuted its most recent product, high-performance brake pad options for fully-floating two-piece discs that were specifically designed for the new G87 BMW M2. EBC Brakes Racing establishes itself as a pioneering provider of aftermarket performance components for this highly anticipated vehicle with the introduction of this product.
• In March 2023, SSAB and MENETA jointly declared a momentous achievement in the automotive sector in March 2023 with the introduction of the initial automotive brake components and sealing materials produced entirely from fossil-free steel. The partnership established between MENETA, a leading provider of braking solutions, and SSAB, a prominent international producer of high-strength steel, serves as evidence of their shared dedication to the mitigation of carbon emissions and the adoption of more environmentally friendly materials.
• In September 2022, Brembo introduced the ENESYS Energy Saving System, an aftermarket product tailored for Light Commercial Vehicles (LCVs). By reducing wear and strain on brake pads and discs, this innovative system provides increased durability and longevity. Brembo has responded to the unique requirements of light commercial vehicles (LCVs) by introducing the ENESYS Energy Saving System, which optimizes brake performance and reduces maintenance expenses.
• In July 2022, subject to local and antitrust regulations, Gold Phoenix and Brembo entered into a joint venture agreement to establish Shandong BRGP Friction Technology Co., Ltd. The primary objective of the newly established facility will be to manufacture sophisticated brake pads that meet the requirements of vehicles of the next generation, thereby guaranteeing outstanding performance, comfort, and longevity.
• In April 2022, Brembo was identified by Faraday Future Intelligent Electric Inc. as the principal provider of the complete brake caliper assembly for its cutting-edge FF 91 electric vehicle (EV). Faraday Future's collaboration with Brembo serves as a testament to its dedication to incorporating premium braking systems into its high-end FF 91 electric vehicle.

Company Profile

Continental AG, widely recognized as Continental or informally as Conti, is a German multinational corporation that excels in producing automotive parts. Their expertise lies in manufacturing tires, brake systems, vehicle electronics, automotive safety, powertrain, chassis components, tachographs, and other essential parts for the automotive and transportation sectors. Continental is organized into six different divisions, each specializing in a specific area of expertise. These divisions include Chassis and Safety, Powertrain, Interior, Tires, ContiTech, and ADAS (Advanced Driver Assistance Systems). The headquarters are in Hanover, Lower Saxony. Continental holds a prominent position as a global player in the automotive industry, being one of the top automotive suppliers and tire manufacturers worldwide.

Conclusion:

In conclusion, the brake system market is undergoing dynamic changes influenced by various factors. The industry's evolution is driven by advancements in technology, regulatory requirements, and shifting consumer preferences. The transition towards electric vehicles poses both challenges and opportunities for brake system manufacturers. On one hand, the reduced reliance on traditional braking systems in electric vehicles impacts the market share of conventional brake components. On the other hand, the increasing demand for regenerative braking systems in electric vehicles opens new avenues for innovation. Furthermore, the construction vehicle end-user segment plays a pivotal role in propelling market growth, given the expansion of global infrastructure projects.

Supply chain disruptions, including raw material shortages and production delays, present significant challenges to the brake system market. Manufacturers are compelled to enhance resilience and streamline their supply chains to ensure uninterrupted production and timely deliveries. The adoption of advanced safety features, such as Anti-lock Braking Systems (ABS) and electronic stability control, remains a focal point, driven by an increasing emphasis on vehicle safety standards globally.

In the coming years, the brake system market is expected to witness continued evolution, with a focus on sustainability, efficiency, and safety. As the automotive industry embraces electric and autonomous technologies, brake system manufacturers will need to adapt, innovate, and collaborate to meet the evolving needs of the market while navigating challenges posed by supply chain dynamics and changing industry landscapes.

Scope of the report:

By System Type

• Disc Brakes
• Drum Brakes
• Hydraulic Wet Brake
• Rheostatic Brakes
• Regenerative Brake
• Others

By Vehicle Type

• Mid-Sized Passenger Cars
• Compact Passenger Cars
• Luxury Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Premium Passenger Cars
• Others

By Technology

• Anti-Lock Brake System (ABS)
• Traction Control System (TCS)
• Electronic Stability Control (ESC)
• Electronic Brake-Factor Distribution (EBD)
• Others

By Component

• Master Cylinders
• Brake Pads
• Brake Shoes
• Brake Calipers
• Brake Disc Rotors
• Others

By Brake Pad Material Type

• Metallic
• Organic
• Ceramic

By Actuation

• Hydraulic
• Pneumatic

By Sales Channel

• Original Equipment Manufacturers (OEMs)
• Aftermarket
• Others

By End-User

• Automotive
• Construction Vehicle
• Others

By Key Player

• Continental AG
• AKEBONO BRAKE INDUSTRY CO., LTD.
• ZF Friedrichshafen AG
• ADVICS CO., LTD.
• Hitachi Astemo, Ltd.
• Brembo S.p.A
• Robert Bosch GmbH
• AISIN CORPORATION
• Haldex
• The Web Co
• NISSIN KOGYO Co., Ltd
• Other Major Players