According to our latest market study on "Automotive brake friction products Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Disc Materials, Product Type, and Vehicle Type," the market is expected to grow from US$ 10,387.3 million in 2021 to US$ 13,203.7 million by 2028; it is estimated to grow at a CAGR of 3.5% from 2021 to 2028.
In the pre-COVID-19 era, significant demand for commercial vehicles was driven by the expansion of the industrial sector in emerging markets and the development of commercial operations in logistics. Furthermore, due to recovering economies in both developing and developed regions, the demand for automotive brake friction products market is expected to continue to rise in the coming years, driving the market. As the number of construction and e-commerce projects grew, the need for material transportation also rose, further increasing the demand for commercial vehicle sales worldwide. Over the coming years, this factor is likely to drive the commercial vehicle market. The surge in the number of construction and e-commerce activities has resulted in a rise in demand for material transportation, which is expected to drive the market's growth over the coming year. Additionally, the shift to electric vehicles is expected to provide opportunities for the automotive brake friction products market to expand. Automobile manufacturers (OEMs) have shifted to electric vehicles due to stringent emission regulations. Furthermore, several other companies, including Daimler, Toyota, and Volvo, are moving toward electric vehicles, likely resulting in future growth opportunities for the automotive brake friction products market.
Impact of COVID-19 Pandemic on APAC Automotive brake friction products Market
In APAC, during the first quarter of the fiscal year 2020 operations in plants were suspended due to the COVID-19. Many companies in the automotive brake friction products market partially recovered from the outbreak of pre-COVID-19 crisis. However, orders from some of the major automobile manufactures were declining due stringent lock downs and sales of the vehicles were slow down thus, the sales of the vehicles did not recover to the same levels as the previous fiscal year 2018-2019. As a result, automotive brake friction products market net sales fell significantly. Although, despite positive effects associated with social insurance premium exceptions from the APAC local governments and cost reductions, many companies operating in automotive brake friction products were significantly impacted by the reduction of sales resulting in negative impact on operating profit. In addition to the slowdown of economic growth and sluggish automobile sales due to the impact of COVID-19 in APAC, the US, Canada, Germany, France, and the UK automakers withdrew from the APAC automotive brake friction products market; thus, orders for products for overseas markets declined.
The slowdown of economic growth in APAC, due to stricter regulations related to automobile loans and the withdrawal of some Japanese automakers from developing economies such as India, China, and Australia, resulted in a significant drop in vehicle production by automakers. Consequently, orders for automotive brake friction products from the domestic and the European market declined, resulting in a substantial fall in net sales of automotive brake friction products that slowed the growth of APAC automotive brake friction products market. In addition to rationalizing production and purchasing, automobile companies transitioned from the external procurement of castings, a key component in brakes, to in-house production, contributing to greater added value automotive brake friction products market. However, automobile companies were significantly impacted by an unfavorable sales mix and a reduction in sales. Many companies have implemented rationalization measures such as reducing labor costs by optimizing human resources, passing on cost increases of raw materials, improving productivity, shifting from purchasing components externally to in-house production, and switching to local suppliers. With the growing trend toward environmental sustainability, there is a high demand for electric vehicles, which has created numerous lucrative opportunities for the automotive brake friction products market's key players. Further, rising disposable income and the adoption of metal-free brake pads technology in electric vehicles have created numerous lucrative opportunities for key players in the APAC automotive brake friction products market.
On the basis of disc materials is divided into metallic, ceramic and composites. In 2021, the composites segment led the automotive brake friction products market, accounting for a larger share in the market. On the basis of products, the global Automotive Brake Friction Products is divided into brake shoe, brake pad, brake disc, brake liner and drum brake. In 2021, the brake liner segment accounted for the largest market share. Based on vehicle type, the automotive brake friction products market is segmented into passenger vehicles and commercial vehicles. In 2021, the passenger vehicles segment led the automotive brake friction products market, accounting for the largest share in the market. By geography, the automotive brake friction products market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, APAC accounted for a significant share of the global automotive brake friction products market.
Key Findings of Study:
The global automotive brake friction products market includes companies operating in a wide range of product portfolios. Each market category has a few well-established key players, and due to the different markets in which they operate and compete, it is not feasible to determine key five players in the overall automotive brake friction products market. However, based on parameters such as overall revenue, brand image, current automotive brake friction products product portfolio, geographic reach, customer base, technology adoption & integration, new product/service/feature launches, partnerships, mergers & acquisitions, and other market-related activities, we have listed these five key players operating globally.
ABS Friction, Akebono Brake Industry Co., Ltd., Bendix Spicer Foundation Brake, LLC, Bosch Limited, and Carlisle Brake & Friction, Inc., are the key market players operating in the global automotive brake friction products market. Delphi Auto Parts, Japan Brake Industrial Co., Ltd., Aisin Corporation, Miba AG, and Nisshinbo Brake Inc. are a few other notable players profiled in this market study. Several other global, regional, and local market players; emerging companies; market disruptors; and niche market players have been analyzed to understand the global automotive brake friction products market.
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