Global Brake Pad Market Segmented By Material Type (Semi-Metallic, Non-Asbestos Organic, Low-Metallic, Ceramic), By Vehicle Type (Passenger Cars, Commercial Vehicle), By Sales Channel (OEM, Aftermarket), By Position Type (Front, Rear) By Region, By Competition Forecast & Opportunities, 2018-2028F

Market Overview

Global Brake Pad Market has valued at USD 6.5 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 7.2% through 2028. Brake pads are components of a vehicle's braking system that provide the friction required to bring the vehicle to a stop. They are an essential component of car disc brakes. When the brakes are applied, these brake pads press on the moving disc to stop the vehicle's motion and reduce its speed. Brake pads are included in the brake calliper, which presses them against the rotors and aids in the conversion of the vehicle's kinetic energy into heat energy.As public and government awareness of car safety grows, various ABS (anti-lock braking system) and autonomous braking systems are now standard features in the majority of new automobiles. These innovations propel the global automotive brake pad market forward.

Key Market Drivers

Increased demand for environmentally friendly and sustainable brake pads

The braking system is critical for vehicle safety. For the braking system to function properly, it is critical to consider both the durability and quality of the brake pads. Harmful asbestos is a raw material that has been frequently utilised as an additive in the production of brake pads. Other natural options for making brake pads, such as coconut fibre, wood or wheat flour, bamboo fibre, and shell powder, have seen a surge in demand. Natural fibres are utilised to make eco-friendly brake pads because they offer numerous benefits over synthetic fibres such as low density, abundance, cheap cost, recyclable, biodegradable, renewable, and relatively high strength and stiffness. Furthermore, the increased usage of organic materials to substitute carcinogenic compounds in the development of eco-friendly brake pads is likely to boost the automotive brake pad market forward. For example, in 2021, In the United States, the sale and use of friction material goods containing 5% or more copper will be outlawed beginning in 2021, and environmental rules will be reinforced beginning in 2025, prohibiting copper content of 0.5% or more. As a result, Nisshinbo Brake Development has created low-copper/copper-free friction compounds to provide eco-friendly brake pads that are highly regarded by automotive manufacturers. Natural fibre reinforced composite brake pads are gaining popularity because they are renewable, use less energy, and are biodegradable.

Smart pad creation

The majority of accidents are caused by the driver braking too late or by driver irresponsibility. Manufacturers want to create brake pads that employ modern sensors based on relay circuits and a few adjustments to the classic braking system to function automatically and apply the brakes in an emergency. The resultant device may give high precision readings as well as better close range measurements. This distance measurement is utilised to regulate intelligent braking systems for safety purposes. The brake pads are designed to satisfy the important present and future technical developments in the automobile industry. The smart pads are being produced as a step towards defining the future of mobility.For example, in December 2019, GALT, an ITT startup, released innovative integrated and linked sensor brake pads that turn the ubiquitous friction technology of passive automotive components into an active system that gathers real-time data to improve driving safety and efficiency. The sensors incorporated into brake pads actively assess temperature, pressure distribution, torque, residual torque, vibration, noise, and wear in real time. The integration of proprietary sensors and algorithms in the brake pad system makes the entire vehicle safer, more efficient, greener, and linked. Researchers are pushing the boundaries of existing microsensors and electrical technologies in brake pads. Smart brake pads can survive the severe conditions, high pressures, and temperatures to which brake pads are normally subjected.

Increased stringency of laws and regulations

Governments throughout the world are primarily focused on the standard, which is projected to contribute to enhanced driver and passenger safety. As a result, regulatory agencies have enacted tough requirements aimed at improving active safety in automobiles. For example, the National Highway Traffic Safety Administration (NHTSA) and Insurance Institute for Highway Safety (U.S.), along with 20 prominent vehicle manufacturers, announced that automatic emergency braking (AEB) systems will be standard in all new cars beginning in September 2022. From September 1, 2018, to August 31, 2019, 12 manufacturers installed more than 75% of their new passenger cars with automated emergency braking systems, which need the use of brake pads to improve braking systems.

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Key Market Challenges

Regulatory Compliance and Environmental Concerns

The automotive industry is witnessing stricter emissions and safety regulations worldwide. Brake pad materials, particularly those containing hazardous elements like asbestos and heavy metals, face scrutiny due to environmental and health hazards. Manufacturers are compelled to develop eco-friendly and low-emission brake pad formulations that meet regulatory requirements while maintaining performance standards.

Material Innovation and Performance Balance

As vehicles become more sophisticated, there's a constant need to strike a balance between braking performance and reducing noise, vibration, and harshness (NVH). Innovating brake pad materials that deliver optimal braking power while minimizing noise and vibration is a challenge. Manufacturers must also consider factors like thermal stability and longevity under varying conditions.

Technological Advancements and Integration

The automotive industry is rapidly adopting advanced driver-assistance systems (ADAS) and autonomous technologies. Brake systems are now integrated with these technologies, requiring brake pads to meet new demands such as regenerative braking and adaptive braking. Manufacturers must keep pace with these technological advancements while ensuring safety and compatibility.

Global Economic Volatility

The brake pad market is significantly influenced by macroeconomic trends, including fluctuating oil prices, exchange rates, and consumer spending patterns. Economic uncertainty impacts vehicle sales and aftermarket demand for brake pads. Manufacturers need agile strategies to navigate such volatility and maintain a steady market presence.

Intense Competition and Pricing Pressures

The brake pad market is highly competitive, with numerous global and local players vying for market share. This competition often leads to pricing pressures, forcing manufacturers to strike a delicate balance between maintaining profitability and offering competitive prices.

Counterfeit Products and Quality Assurance

The prevalence of counterfeit brake pads poses a serious threat to market players. These low-quality products compromise safety and performance, eroding consumer trust. Ensuring genuine and high-quality products through effective quality control and authentication measures is imperative.

Complex Supply Chain Management

The brake pad market's global nature involves complex supply chains, often spanning multiple countries and suppliers. Ensuring a reliable supply of raw materials, components, and finished products while managing logistical challenges can be a significant hurdle.

Changing Consumer Preferences and E-Commerce

Consumers' preferences are shifting towards online platforms for purchasing automotive parts, including brake pads. Traditional distribution networks are adapting to this trend, and manufacturers must develop efficient e-commerce strategies to remain accessible and competitive in the digital landscape.

Vehicle Electrification and Weight Considerations

The rising adoption of electric vehicles (EVs) and hybrid vehicles presents unique challenges for brake pad manufacturers. EVs utilize regenerative braking, which reduces traditional brake pad wear. However, manufacturers must develop pads optimized for regenerative braking while accounting for the potential increased wear on mechanical braking components. Additionally, EVs' weight distribution and characteristics require tailored braking solutions.

Key Market Trends

Advancements in Friction Material Technology

The evolution of friction material technology has been a key trend in the brake pad market. Manufacturers are continuously working on developing new and improved friction materials that offer enhanced performance, durability, and reduced noise levels. Advanced materials like ceramic, semi-metallic, and organic compounds are being used to create brake pads with better heat dissipation, fade resistance, and improved braking efficiency. These advancements cater to consumer demands for safer and more reliable braking systems.

Electric and Autonomous Vehicles Influence

The rise of electric vehicles (EVs) and autonomous vehicles (AVs) has been instrumental in shaping the brake pad market. EVs, with their regenerative braking systems, put less traditional wear on brake pads. This has led to a shift in manufacturing towards specialized brake pads that cater to the specific requirements of EVs, such as reduced dust generation and longer lifespan. Additionally, the development of AVs is driving the need for brake pads that can seamlessly integrate with advanced driver-assistance systems (ADAS) and offer improved control and safety in automated driving scenarios.

Environmental Considerations

Environmental concerns have prompted a trend towards more sustainable and eco-friendly brake pad solutions. Traditional brake pads can release harmful particulate matter and heavy metals during braking, contributing to air and water pollution. As a response, there is a growing demand for low-copper and copper-free brake pad formulations to reduce environmental impact. Regulatory bodies are also enforcing stricter limits on the amount of copper allowed in brake pads, pushing manufacturers to innovate and develop copper alternatives.

E-commerce and Direct-to-Consumer Sales

The digital revolution has affected the distribution and sales channels in the brake pad market. E-commerce platforms have enabled consumers to research and purchase brake pads online, leading to a shift away from traditional brick-and-mortar stores. This trend is driven by the convenience of online shopping, price transparency, and access to a wider range of products. As a result, manufacturers and retailers are adapting their strategies to cater to the growing trend of direct-to-consumer sales and online marketing.

Stringent Regulations and Standards

Regulatory bodies around the world are imposing stricter safety and environmental standards on automotive components, including brake pads. These regulations focus on improving vehicle safety, reducing brake dust emissions, and minimizing noise pollution. For instance, the European Union's ECE R90 standard establishes requirements for brake pad performance and safety. Compliance with such standards is pushing manufacturers to invest in research and development to create brake pads that meet or exceed these stringent requirements.

Segmental Insights

Material Type Analysis

According to the brake pad market segmentation, brake pads are formed of metallic, ceramic, and organic materials. Ceramics had a substantial market share in 2022, owing to their better stability and ability to work in temperature fluctuations. Ceramic brake pads are commonly used in high-performance vehicles because they are quieter and produce less dust. Ceramic brake pads are widely used in hybrid and electric cars due to their durability, which allows them to maintain excellent heat resistance while adhering to environmental regulations. During the estimated period, the ceramic material type is expected to lead the worldwide electric vehicle market in terms of revenue creation. Ceramic brake pads last longer and emit less dust than organic brake pads.

Vehicle Type Analysis

The passenger cars sector accounted for a significant market share in 2022, thanks to the debut of multiple passenger vehicle models and the introduction of different offers to stimulate sales. Demand for fuel-efficient automobiles is also driving category growth. Commercial vehicle demand is expected to rise dramatically in the near future as the e-commerce, logistics, and industrial sectors expand. Heavy-duty vehicles are typically used to deliver bulky items and supplies. As a result, reliable and effective braking systems are essential in such vehicles.

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Regional Insights

The Asia-Pacific area is expected to develop significantly throughout the projected period, owing to increased car production and sales in this region. Furthermore, the existence of key nations with significant manufacturing facilities and strong supplier networks, such as India, China, and others, is projected to increase market demand. The availability of low-cost labour and raw materials helps Asian Pacific manufacturers to lower vehicle costs. Key global car corporations are concentrating on expanding their footprint in Asia by relocating their corporate headquarters or manufacturing operations to countries such as China and India, which are automotive hubs of the area. For example, in April 2022, China manufactured around 210,000 commercial vehicles and 996,000 passenger automobiles. During that month, the industry produced 1.2 million automobiles, a 46.2 percent reduction from the previous month and a 46.1 percent decrease year over year. China contributed for around 32.5 percent of worldwide vehicle manufacturing. China's yearly passenger automobile output topped that of Japan, Germany, India, and South Korea combined. In 2022, China was also the world's largest vehicle sales market. Manufacturing firms in this region are concentrating on creating advanced brake pads, which will assist lower the size of the brake pads and enhance heat dissipation capacity. Furthermore, the aftermarket section of the market is expected to show growth across the board.

The North American brake pad market is experiencing growth due to several key factors that are shaping the region's automotive industry. The increasing demand for vehicles, including passenger cars, trucks, and SUVs, has contributed to the growth of the brake pad market. North America has a significant automotive culture with a large population of vehicle owners and a strong emphasis on personal mobility. As the number of vehicles on the road continues to rise, the need for brake maintenance and replacement, including brake pads, grows in tandem. Technological advancements are playing a crucial role in the growth of the market. The adoption of advanced driver assistance systems (ADAS) and safety features in vehicles is driving the demand for high-performance brake pads that can integrate seamlessly with these systems. Additionally, the rise of electric vehicles (EVs) and hybrid vehicles has led to the development of specialized brake pads that cater to the unique braking characteristics of these vehicles, further fuelling market growth.

Recent Developments

• Brembo debuted their new Aftermarket range of brake pads for heavy-duty cars in April 2022. In addition, the business has completed its replacement discs offering with new Co-Cast and Splined options designed specifically for these vehicles.
• First Brands Group enhanced its Raybestos brake component line in February 2021 by adding over 200 product numbers, including greater coverage for luxury car applications in areas such as brake callipers and brackets, brake pad sets and brake rotors.
• FERODO announced revolutionary vehicle brake pads in April 2022 to bridge the gap between exceptional braking performance and high-end comfort. The new FERODO Fuse+ Technology brake pads feature a highly advanced new friction material that combines the trusted, high-performance braking power of low-steel formulations with the comfort-intensive characteristics of non-asbestos organic (NAO) materials. They are engineered and manufactured exclusively in the brand's class-leading sites in Europe.
• Brakes India released TVS Apache Elite high-performance brake pads in February 2022 to provide improved braking at high speeds and in steep terrain. According to a release, the brake pads are also stripe coated with the company's patented Abracoat technology, a unique abrasive coating that enables superior initial friction performance.
• Konfi Brakes and Automotive Products Pvt. Ltd., a new brand formed in the Indian automotive sector, was launched in Pune in January 2022. Premium friction material developed to give cutting-edge high-temperature stability, low-metallic content for longer disc life, and specialised tailored fibres to enable efficient, silent braking at high speeds and longer rotor and pad life are all features of Konfi brake pads.

Key Market Players

• Brembo S.p.A.
• Nisshinbo Brake Inc
• Continental AG
• Robert Bosch GmBH
• Tenneco Inc
• Akebono Brake Company
• ACDelco Corporation
• ZF Friedrichshafen AG
• Brakewel Automotive Components India Pvt. Ltd
• SANGSIN BRAKE Company

Report Scope:

In this report, the Global Brake Pad Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Brake Pad Market, By Material Type:

o   Semi-Metallic

o   Non-Asbestos Organic

o   Low-Metallic

o   Ceramic

• Brake Pad Market, By Vehicle Type:

o   Forklift

o   Skid Steer

o   Truck

o   Trailers

o   others

• Brake Pad Market, By Application Type:

o   Industrial

o   Construction Machinery

o   Military Vehicle

o   Others

• Brake Pad Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe & CIS

§  Germany

§  Spain

§  France

§  Russia

§  Italy

§  United Kingdom

§  Belgium

o   Asia-Pacific

§  China

§  India

§  Japan

§  Indonesia

§  Thailand

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  Turkey

§  Iran

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Brake Pad Market.

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Global Brake Pad Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

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