Automotive Brake System Market

[327 Pages Report] The automotive brake system market size was valued at USD 23.5 billion in 2023 and is expected to reach USD 30.1 billion by 2028 at a CAGR of 5.1% during the forecast period. Factors such as the rollout of stringent safety regulations, the adoption of high-end and luxury cars, and the growing adoption of air disc brakes in commercial vehicles are expected to drive the demand for the automotive brake system market.

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Automotive Brake System Market Dynamics

Driver: Inclusion of advanced brake systems such as ABS and EBD to enhance vehicle safety

The implementation of electronic braking systems, including Anti-lock Brake Systems (ABS), Brake Assist (BA), and Electronic Brakeforce Distribution (EBD), plays a crucial role in minimizing stopping distances. ABS contributes to vehicle stability and directional control, effectively reducing stopping distances in situations of intense braking, presenting a significant advantage over traditional braking systems. As per the Royal Society for the Prevention of Accidents (ROSPA), ABS ensures achieving the shortest possible stopping distance for a vehicle. BA is closely linked to ABS technology, is commonly employed in conjunction with ABS and is recognized for reducing stopping distances by 45%. Thus, in coming years the adoption of ABS and Brake Assist (BA) is expected to increase due ti regulatory mandates regarding vehicle safety. EBD, an extension of ABS, ensures an even distribution of force to each wheel, offering benefits such as improved stability, reduced stopping distance, enhanced traction, and optimized braking efficiency. Recognizing these benefits, developing countries like India and Mexico have expressed their commitment to incorporating advanced braking systems such as Electronic Brakeforce Distribution (EBD), and Electronic Stability Control (ESC) in new vehicle models. The Indian automotive industry has already adopted ESC and is slated to make EBD mandatory from 2023. Similarly, in 2021, the Mexican government announced its plan to install ESC and EBD in selected vehicles manufactured in 2022.

Country-wise advanced braking system regulations

Restraint: High development and maintenance costs of advanced braking technology

Maintaining the brake system incurs substantial expenses, as routine service involves replacing brake fluid, brake shoes, brake pads, resurfacing rotors, and performing the cleaning, adjustment, and lubrication of other braking mechanisms, all of which are costly procedures. The upkeep of an Anti-lock Brake System (ABS) is also a financial consideration, given that the sensors on each wheel can carry a price tag in the hundreds of dollars. For instance, Repair Smith reports that an average cost of USD 150 to USD 400 for ABS sensor replacement and USD 90 to USD 200 for brake fluid replacement. Moreover, the replacement of crucial components such as master cylinders, rotors, calipers, drums, pads, and wheel cylinders can amount to approximately USD 750 to USD 1,000.

In cost  sensitive countries like India and Brazil, the integration of advanced electronic systems is predominantly limited to high-end vehicles. Furthermore, the additional expenses associated with maintenance and repair serve as a deterrent to the widespread adoption of such systems.

Opportunities: Government regulations to make advanced emergency braking systems mandatory

In 2019, over 40 countries reached a consensus on a preliminary United Nations Regulation aimed at implementing Advanced Emergency Braking (AEB) systems in cars and light vehicles to mitigate vehicle crashes. As part of this initiative, the European Union has revised its Regulation No. 152-00 concerning AEB systems for both light passenger and commercial vehicles. The regulation mandates that vehicle manufacturers must incorporate AEB as a compulsory feature in new vehicles. Additionally, it stipulates the testing of vehicles at a speed of 60 MPH to ensure the effective deployment of AEB systems.

The Advanced Emergency Braking (AEB) system has gained widespread acceptance due to government directives making it obligatory in vehicle models. AEB plays a pivotal role in preventing potential collisions, reducing the impact of collisions, enhancing braking force, and proving effective in both urban and highway settings. In 2016, 20 major automakers voluntarily committed to making advanced emergency braking a standard feature in nearly all their new vehicles by September 1, 2022. By December 2021, more than 12 major automakers in China had equipped almost all their 2021 vehicles with AEB. Numerous manufacturers are planning to fulfill a voluntary commitment to integrate AEB into almost all their vehicles by September 1, 2022. The Insurance Institute for Highway Safety (IIHS) estimates that if all automakers adhere to this agreement, it could prevent 42,000 crashes and 20,000 injuries by the year 2025.

Challenges: Air brake freeze-ups

Freezing of air brakes is a common issue observed in heavy-duty vehicles like trucks and trailers. The prevalent cause of trailer brake freezing is the presence of moisture in the brake lines or brake shoes. These air brake freeze-ups are more prone to occur during winter conditions and demand extensive efforts for resolution. In cases where the vehicle is equipped with Anti-lock Brake Systems (ABS), the impact of moisture on the braking system becomes more significant. The presence of moisture can lead to complications as ABS valves may trap moisture, causing them to freeze and resulting in brake malfunctions. With stability control becoming a standard feature in new trucks across developed regions in Europe and North America, effectively managing moisture in trailer brake lines has become critically important. Consequently, air brake freeze-ups pose a considerable challenge, particularly during the winter season, especially for heavy-duty vehicles.

In March 2021, Bendix Commercial Vehicle Systems, LLC notified the National Highway Traffic Safety Administration (NHTSA) that the company would recall 2,090 Bendix SC-3 check valves, which are part of an air-brake system, mainly due to manufacturing problems.

Market Ecosystem

The ecosystem analysis highlights various players in the automotive brake system market ecosystem, primarily represented by brake system manufacturers, component manufacturers (tier I)/technology providers, OEMs, regulatory authorities, dealers & distributors, service and repair centers, and fleet owners & operators.

Automotive Brake System market Ecosystem

Passenger Car brake systems market is estimated to hold the largest market for automotive brake system market

The passenger cars segment will lead the automotive brake system market during the forecast period. This is mainly due to the regional government regulations to comply with UNECE guidelines, increasing the penetration of electronic braking systems such as ABS and ESC in passenger cars. Further, Global and local New Car Assessment Program (NCAP) safety standards have encouraged governments and regional OEMs around the globe to adopt and implement advanced braking systems. It aims to make braking technologies such as anti-lock braking systems (ABS), electronic brakeforce distribution (EBD), and electronic stability control (ESC) mandatory across the world. This will also fuel the demand for advanced brake systems to be included in cars below the Class C segment.

Further, the growing adoption of ADAS functionalities to improve vehicle automation will increase the demand for automatic emergency braking (AEB) worldwide. Asia Pacific is the largest passenger car market, with the main markets being China and India. China is estimated to lead in global passenger car production, with a market share of about 50-53% in Asia Pacific in 2022. Further, medium & premium range sedans and SUVs with all four-wheel disc brakes are gaining popularity in countries like India, Japan, South Korea, and other technologies like ABS, EBD, etc. China, along with other Asian countries, will continue to remain the largest passenger car-producing nation with dynamic customer requirements for improved safety, creating a huge opportunity for automotive brake system manufacturers in the global market.

Battery Electric vehicles to projected to grow at the highest CAGR during the forecast period

The BEVs segment holds the largest market and is expected to witness a higher CAGR than the PHEVs segment during the forecast period. All of these electric vehicles are installed with regenerative braking technology. A regenerative braking system is crucial for higher energy efficiency and extended driving range. Further, the penetration of advanced and connected technologies in EVs is higher, and demand for luxury and premium electric cars is on the rise, supported by advancements in fast charging and high voltage batteries to deliver improved driving range. Luxury brands such as Mercedes-Benz, Tesla, Audi, and other OEMs are fighting to gain significant market share in luxury EV sales. They also plan to add new models to their luxury EV product lineups. With more power, improved performance, and better drivability, regenerative braking systems are undergoing several advancements to deliver the desired results. One such innovation in regenerative braking technology is predictive energy regeneration algorithms, which Tesla introduced. These algorithms anticipate driving conditions and adjust regenerative braking accordingly, optimizing energy recovery. Thus, the government's push to increase the widespread adoption of electric vehicles and growing medium- to high-range electric vehicle ranges installed with advanced technologies with more power would consequently push the demand for regenerative braking systems.

Asia Pacific is expected to lead the market during the forecast period.

The Asia Pacific market is estimated to account for the largest value due to the higher production of light and heavy-duty vehicles. Major countries such as China and India have a higher demand for economy & mid-range cars (including Class A, B, and C), contributing to nearly 50% and 90% in 2022. These cars are usually offered with two front disc brakes and two rear drum brakes. Further, to attract more consumers and showcase focus on enhanced safety, major regional automotive OEMs such as Toyota, Hyundai, Honda, and Suzuki have started offering all disc brakes with ABS in most of their newer Class C model cars. However, these markets are witnessing a growing demand for luxury and high-end cars installed with all 4-disc brakes for better stopping distance. These luxury cars are employed with advanced disc brake systems, thereby driving the market. The penetration of air disc brakes is also growing in heavy commercial vehicles, mainly in Japan and China. Stringency in safety regulations is driving the adoption of advanced safety features such as ABS, ESC, and TCS. For instance, the Indian government has made ABS mandatory for all mini-buses and cars from April 2019. Other countries of the region, like Japan and South Korea, have a high demand for premium vehicles employed with disc brakes in all 4-wheels. Thus, with stringency in safety standards, the market for advanced electronic braking systems is expected to grow in the region. Many European and North American OEMs have expanded their presence in emerging economies and launched new vehicle models. These OEMs are more inclined towards passenger safety and offer all disc brakes in either lower or mid-variant of their vehicle models. All these factors are expected to boost the demand for automotive brake systems in the Asia Pacific region. The Asia Pacific automotive brake system market's growth is also attributed to advancements in brake systems and expansions made by brake system manufacturers to cope with the increasing demand for disc brakes in passenger cars and light commercial vehicles. Companies such as Aisin Seiki Co., Ltd. (Japan), Akebono Brake Corporation (Japan), Mando Corporation (South Korea), and Hitachi Automotive Systems Ltd. (Japan) have a strong presence in the region.

Asia Pacific: Automotive Brake System Market

Key Market Players

The automotive brake system market is non-fragmented and dominated by a few global players and several regional players. Some of the key players in the brake system market are Robert Bosch GmbH (Germany), ZF Friedrichshafen AG (Germany), Continental AG (Germany), Aisin Seiki Co, Ltd. (Japan), Knorr-Bremse AG (Germany), Brembo S.p.A (Italy), Haldex AB (Sweden), Mando Corporation (South Korea), and Hitachi Astemo, Ltd. (Japan). These companies have strong distribution networks at a global level and offer an extensive product range. They have adopted new product development strategies, acquisitions, and contracts & partnerships to sustain their market position.

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Scope of the Report

This study categorizes the automotive brake system market based on brake type, vehicle type, technology, actuation, component, off-highway brake type, off-highway brake system market by application, regenerative brake system by electric vehicle type, all-terrain brake system by region,  and region.

By Brake Type

• Disc Brake
• Drum Brake

By Technology

• Anti-lock braking system (ABS)
• Electronic Stability Control (ESC)
• Traction Control System (TSC)
• Electronic Brakeforce Distribution (EBD)
• Automatic Emergency Braking (AEB)

By Actuation

• Hydraulic
• Pneumatic

By Component

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

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles (LCVs)
• Trucks
• Buses

Off-Highway Brake System, By Brake Type

• Hydrostatic Brake
• Hydraulic Wet Brake
• Dynamic Brake
• Others

Off-Highway Brake System, By Application

• Construction Equipment
• Mining Equipment
• Agricultural Tractors

Regenerative Brake System, By Electric Vehicle Type

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)

All-Terrain Vehicle Brake System, By Region

• Asia Pacific
• Europe
• North America
• Rest of the World.

By Region

• Asia Pacific
• Europe
• North America
• Rest of the World

Recent Developments

• In October 2023, Brembo S.p.A. launched a future-oriented brake kit called Greenance for light commercial vehicles. This kit will reduce particulate emissions by more than 80% with a life of more than three times compared to existing aftermarket products. The Greenance Kit offers an ideal blend of efficiency and robustness, delivering a notably reduced environmental footprint during braking, resulting in a substantial decrease in particulate emissions: a remarkable 83% reduction in PM10 and an impressive 80% reduction in PM2.5.
• In May 2023, Continental AG introduced its new conventional electronic brake system, MK 120 Electronic Stability Control. The company started supplying its MK 120 ESC brake system to Chinese car manufacturer Changan.
• In March 2023, ZF Industrial Technology division introduced its new brake-by-wire system. With safe and efficient brake technology, ZF supports customers in the heavy-duty, off-highway, construction, mining, and agriculture sectors. The latest brake-by-wire system from the company represents a significant advancement, offering vehicle manufacturers the capability to manage deceleration through an electronic signal that adapts brake pressure as required. This eliminates the necessity for hydraulic lines within the vehicle cabin and facilitates a transition towards remote and autonomous operation.
• In October 2023, Continental AG and DeepDrive formed a technical, strategic partnership to develop core technologies for electric vehicles. Under the partnership, the two companies will collaborate to create an integrated module that includes drive and brake components designed for direct installation on a vehicle's wheel.
• In February 2023, Knorr-Bremse AG and Team Hahn Racing extended their 20 years of successful partnership. The new contract will enable Knorr-Bremse to continue to support team Hahn Racing through the 2023 racing season. Knorr-Bremse will be responsible for equipping the Iveco S-Way race truck with a range of series products, including a pneumatic braking system, air supply system, brake calipers, and steering system.
• In April 2021, Haldex AB and FAST Group revealed their collaborative intent to establish a joint venture company dedicated to the manufacturing and sale of ADB (Automatic Drain Brake) systems, alongside providing comprehensive aftersales services for trucks and buses, with a primary emphasis on serving the Chinese market. The primary goal of the newly formed joint venture is to introduce a comprehensive lineup of Haldex ModulT Air Disc Brakes designed for both trucks and buses. This endeavor will capitalize on Haldex's innovative capabilities, intellectual property, and technology while harnessing the strong market presence of the FAST Group in China.

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