According to our latest market study, titled "Automotive Brake Pad Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Material Type, Vehicle Type, and Geography," the automotive brake pad market is expected to grow from US$ 2,580.57 million in 2021 to US$ 3,342.58 million by 2028. It is estimated to grow at a CAGR of 3.8% from 2021 to 2028.
At present, the emphasis of vehicle manufacturers is on utilizing lightweight components to enhance the performance and fuel efficiency of vehicles. The significant weight reduction achieved through the replacement of traditional steel springs with thinner and more compact composite springs has resulted in a substantial increase in the demand for these materials.
Moreover, the current surge in the sales of SUVs and trucks worldwide has resulted in an unprecedented demand for composite spring leaves to enhance the vehicles' performance. For instance, China has recorded a 27% increase in SUV sales on a year-on-year basis. Furthermore, several prominent players in the market are concentrating on the research and development of composite leaf springs, primarily for heavy-duty vehicles. Kordsa, for example, has created heavy-duty composite leaf spring materials that lower carbon emissions and enhance fuel efficiency. Nevertheless, the adoption of composite leaf springs in the global automotive industry remains relatively low as steel leaf springs have lower production costs and are less complex to manufacture.
The automotive industry holds immense importance in Europe as it makes a significant contribution to the GDP of European nations and generates employment opportunities for millions of people in the region. Thanks to the presence of numerous top automakers, Europe has emerged as a leading producer of motor vehicles worldwide. This sector is the primary private investor in R&D in Europe and also receives government assistance, including funding for research and development.
Europe is home to some of the biggest names in the automotive industry, including Volkswagen Group, BMW AG, ŠKODA AUTO, Audi AG, and Porsche AG. As various countries in Europe experience economic growth, the demand for passenger cars, premium cars, and commercial vehicles is rising, leading to an increase in the production of automotive brake pads by vehicle component manufacturers. These developments are contributing to the growth of the global automotive brake pad market.
Impact of COVID-19 Pandemic on Global Automotive Brake Pad Market
The COVID-19 pandemic had a significant impact on the automobile parts and components business in 2020, as trade restrictions and consumption disruptions caused by government lockdowns around the world disrupted supply chains. However, as of the beginning of 2021, the automotive industry has regained its momentum and made significant progress due to the rising demand for passenger vehicles in emerging countries. With the growing automotive industry, brake pad manufacturers have resumed their operations at manufacturing units, which is expected to lead to an increase in the uptake of automotive brake pads in the coming years.
The COVID-19 outbreak had a major impact on the automobile parts and components business in 2020, causing disruptions in supply chains due to government lockdowns and trade restrictions. However, during the projected period of 2021-2028, the market is expected to expand due to government incentives, increasing regional demand, and the easy availability of raw materials. These factors are expected to drive the growth of the market in the coming years.
Automotive Brake Pad Market - Key Findings of Study
The global automotive brake pad market is categorized based on material type, vehicle type, and geography. The material type segment includes metallic brake pads, semi-metallic brake pads, ceramic brake pads, asbestos brake pads, and non-asbestos organic brake pads. In 2020, the non-asbestos organic brake pad segment held the largest share of the market. During the forecast period, the semi-metallic brake pad segment is projected to grow at a faster pace in the automotive brake pad market.
Based on vehicle type, the automotive brake pad market is segmented into commercial vehicles and passenger vehicles. In 2020, the passenger vehicle segment accounted for the largest share of the market. The selection of raw material for brake pad manufacturing depends on several factors such as vehicle type, driving habits, requirements, and performance capabilities. For instance, organic brake pads are ideal for compact vehicles due to their affordability and minimal noise production. Low metallic NAO brake pads are suitable for medium-sized cars that require extra power to stop. Sports cars, on the other hand, require a powerful braking system, which can be achieved by using semi-metallic or high-performance ceramic brake pads.
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