U.S. Ceramic Brake Disc Market Size, Share & Trends Analysis Report By Sales Channel (OE Market (Passenger Cars, Supercars), Aftermarket), Competitive Landscape, And Segment Forecasts, 2019 - 2025

Industry Insights

The U.S. ceramic brake disc market size was estimated at USD 89.1 million in 2017. It is anticipated to expand at a CAGR of 2.6% over the forecast period. Reduction in unsprung mass in a vehicle and high durability and low maintenance of the product is anticipated to drive adoption of ceramic brake disc over the forecast period. Demand for fuel-efficient vehicles, enhanced performance, and low emissions are witnessing a surge owing to the stringent standards laid down by the governments. Therefore, to comply with these regulations, Original Equipment Manufacturers (OEMs) are reducing the vehicle weight, which in turn is expected to bolster the demand for ceramic brake disc owing to their lighter weight compared to the standard variant.

Technology plays a vital role in driving the market. Selection of proper raw materials is crucial for manufacturing ceramic brake discs, as the manufacturing processes and application environments are characterized by extreme pressures and temperatures. The manufacturing process is also complicated. Besides, ceramic brake discs are significantly lighter than cast iron discs and can withstand very high temperatures, thereby, drastically improving the vehicle’s performance.

Brake discs are exposed to frequent friction, which damages the discs and causes the brakes to fade. Cast iron discs are prone to abrasion and corrosion if exposed to extreme heat and temperature. A corroded and abraded cast iron brake disc can affect the braking power and increase the brake fade after prolonged use. On the contrary, ceramic discs tend to have a much longer operational life than that of cast iron discs as they are resistant to heat, corrosion, and abrasion. They require low maintenance and do not require frequent replacement. Therefore, the ceramic disc brake market is anticipated to observe high growth potential over the forecast period.

However, the product very expensive. Although several vehicle manufacturers are offering ceramic disc brake in their vehicles as an optional feature, the price associated with it is considerably high. For example, in 2014, Mercedes-Benz was offering carbon ceramic brakes at an additional cost of USD 13,000, which was close to 13% of the base model price of an E63 AMG Wagon (USD 103,400). Several online retail channels are offering single ceramic brake disc/rotor for prices ranging from USD 1,500 to as high as USD 11,000 for high-priced vehicles.

Moreover, manufacturers sell ceramic disc brakes to OEMs as well as end-users/car owners via various distribution channels. Since ceramic brakes are less prone to abrasion, they do not require frequent replacements. Luxury passenger cars are equipped with ceramic disc brakes as these products tend to be expensive. Thus, the need to address the growing demand for enhanced braking capabilities is expected to drive the U.S. ceramic brake disc market.

Sales Channel Insights

On the basis of sales channel, the market can be categorized into the OE market and aftermarket. The former led the market in 2017. The segment is primarily driven by the sale of luxury passenger cars and supercars. Over the past few years, prominent brands such as Mercedes Benz, Jaguar, Maserati, and Porsche among others witnessed a significant dip in the vehicle sales for the U.S. For instance, Mercedes Benz saw a decline of 11% from 2015 to 2016, and a further reduction of 4% from 2016 to 2017.

The incorporation of ceramic brake discs in vehicles tends to increase the overall vehicle cost. Consequently, they are exclusive to luxury passenger cars and supercars, where the price of the vehicle is a secondary concern for the buyer. Ceramic brake discs are offered by vehicle manufacturers as an optional feature rather than a standard one.

The aftermarket segment is anticipated to exhibit a CAGR of 2.0% from 2018 to 2025. A lack of the product’s adoption by premium car owners is hampering the segment growth. For example, ceramic brake discs are generally offered as an optional feature for cars which are priced over USD 50,000. The feature incurs an additional cost of approximately USD 8,000 to USD 10,000. These brake discs account for over 10% of the overall vehicle cost, which makes the customers reluctant toward making such investments. Moreover, considering the average life of a ceramic brake disc, the regular usage of brakes, and the annual miles driven, the replacement cycle of ceramic brake disc is estimated to be over seven years. It significantly reduces the addressable market for aftermarket distributors and suppliers.

U.S. Ceramic Brake Disc Market Share Insights

Prominent industry participants include Brembo SGL Carbon Ceramic Brakes, Akebono Brake Industry CO., Ltd., ROTORA, and Surface Transformers PLC among others. Also, the primary key strategies undertaken by the companies include collaboration, new product development, expansion of production capabilities, merger and acquisitions, partnerships and agreements, and R&D investments, among others.

The companies prefer partnerships to maintain their strong foothold and global presence. For instance, Brembo and SGL group partnered through a joint venture to form Brembo SGL Carbon Ceramic Brakes to expand their customer base.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. ceramic brake disc market based on sales channel:

• Sales Channel Type Outlook (Volume, Units; Revenue, USD Million, 2015 - 2025)

  • OE Market

    • By Vehicle Type

      • Passenger Cars

      • Supercars

  • Aftermarket

    • By Vehicle Type

      • Passenger Cars

      • Supercars