Automotive Brake Pad Market Research Report and Outlook by 2028

The global market for automotive brake pads is projected to expand from US$ 2,580.57 million in 2021 to US$ 3,342.58 million by 2028, reflecting a compound annual growth rate (CAGR) of 3.8% during this period.

The automotive brake pad sector is experiencing notable growth, driven by the rising demand for passenger vehicles and the enforcement of more stringent vehicle safety standards globally. In response to these regulations, manufacturers of brake pads are enhancing their braking systems to minimize stopping distances and incorporate various sensors aimed at preventing pedestrian injuries, utilizing technologies such as visible light and infrared. This shift has prompted the establishment of new guidelines that emphasize shorter stopping distances during emergency braking, thereby influencing the overall brake pad market. Consequently, manufacturers are concentrating on advancing disc brake technologies to comply with these updated stopping distance requirements, which has further fueled the expansion of the automotive brake pad market. Key industry players are making substantial investments in research and development to create environmentally friendly, dependable, and long-lasting braking systems, aiming to boost their market presence and ensure ongoing growth. For example, Continental North America, a subsidiary of Continental AG located in the United States, has allocated nearly US$ 40 million to enhance its Morganton auto plant, receiving a US$ 1.6 million job development incentive grant from North Carolina. This increased production capacity will be dedicated to the manufacturing of MK C1 braking systems.

Effects of the COVID-19 Pandemic on the Automotive Brake Pad Market

The automotive brake pad sector faced a considerable decline in both demand and supply during the initial half of 2020 due to government-imposed lockdowns across the globe. Additionally, the downturn in vehicle sales led to a reduced need for brake systems, which ultimately affected the sales of automotive brake pads. However, as 2021 commenced, the automotive brake pad market began to recover, driven by a surge in demand for passenger vehicles in developing nations. As the automotive sector continues to rebound, brake pad manufacturers are resuming operations at their production facilities, which is anticipated to enhance the automotive brake pad market in the forthcoming years.

The COVID-19 pandemic had a profound effect on the automotive parts and components industry in 2020, causing disruptions in supply chains and consumption patterns due to lockdowns and trade limitations. Nevertheless, the market is expected to witness growth during the forecast period from 2021 to 2028, supported by government incentives, rising regional demand, and the availability of raw materials. For instance, the Indian government's Automobile Mission Plan FAME-II focuses on providing support to the automotive and component manufacturing sectors in the country. The industry has become increasingly competitive in recent years, marked by significant renovations and innovations in the manufacturing of automotive parts and accessories.

The size of the automotive brake pad market has been assessed through a combination of primary and secondary research methodologies. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also facilitated the generation of market forecasts and an overview of industry growth across various segments. Furthermore, primary interviews were conducted with industry experts and commentators to validate the data and obtain deeper analytical insights. Participants in this process included business development managers, vice presidents, market intelligence managers, national sales managers, external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the automotive brake pad market. Additionally, an overview and forecast for the market were developed based on the segmentation across North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Prominent players in the automotive brake pad market, as highlighted in the research study, include ACDelco, AKEBONO BRAKE INDUSTRY CO., LTD., Brake Parts Inc. LLC., Brembo S.p.A., Hebei Huahua Friction Material CO., Ltd., Nisshinbo Holdings Inc., Robert Bosch GmbH, SANGSIN BRAKE, Util Industries S.p.A., and ZF Friedrichshafen AG.