Automotive Brake Pads Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Automotive Brake Pads Category Overview

The automotive brake pads category is expected to grow at a CAGR of 5.53% from 2023 to 2030. The North American region accounts for the largest share, while the Asia-Pacific region is anticipated to be the fastest-growing region in the forecast period. Factors such as constant innovation in braking technology, road accidents due to carelessness, concerns regarding driver safety, and stringent norms from the government are driving the growth of the category. One of the key trends is the increasing demand for electric and hybrid vehicles that utilize the use of developed brake pads such as ABS- Anti-lock braking systems and anti-collision techniques. Such technical advancements as electronically controlled brake-by-wire systems and EV-specific unique techniques of regenerative braking are driving market trends.

Automotive brake pad manufacturers have developed organic brake pads named as Non-Asbestos which are made up of organic materials like high-temperature resins, kevlar, cellulose, and fiberglass. Pertaining to its property of being noiseless and soft in nature, it is widely used in vehicles. More than 55 countries including European Union, Japan, and Australia have ordered a ban on Asbestos pads as being harmful to the respiratory system due to their toxic nature and even the braking function cannot perform well at high speeds. This has surged the demand for organic pads which in turn has increased the volume of production in the braking category. The market for organic pads has seen a CAGR of 3.6% in the last 3 years and is expected to grow with a CAGR of 4.5% from 2023-2030.

Ceramic brake pads are being heavily used in electric and hybrid vehicles due to their robust characteristics that help to preserve high heat resistance while adhering to environmental norms. During the forecasted period, the global market for electric vehicles is expected to generate the most income from the ceramic material type. In September 2022, sales of EVs had doubled from the last year, marking 6.6 million units sale. These pads produce comparatively less dust as compared to organic and are less frequently needed to be changed often. Owing to its property, it tears down at a very slow rate. Europe accounts for the largest overall share of ceramic brake pads due to the existence of large key players such as the Akebono Brake company and increasing demand for sports and luxury vehicles.

Organic materials, graphite lubricant, and metals including steel, copper, iron, and other composite alloys, are the primary raw materials used in the production of the category. Post covid-19 pandemic recovery, the Russia-Ukraine war has led to economic sanctions on the majority of countries, resulting in a surge of commodity prices, inflation, and supply chain disruptions. In 2022, due to the wake of the 15% export levy imposed by the Indian government, steel prices followed an upward trend and grew by 40% to reach USD 960 in the Indian markets. Russia and Ukraine being the major producer of base metals, 112 countries rely on metal imports from them. More than 77% of the global GDP depend on metal import from these countries. Due to supply chain disruption, the price of the base metal rose by copper (12-15%), zinc (30-42%), and nickel (57-64%), increase in raw materials of these metals has significantly affected the prices of the category.

With several local and foreign businesses participating in the industry, the automotive brake pads competitive environment is highly fragmented. To achieve a competitive edge, category participants are putting their attention on product innovation, developing new product segments that have a longer shelf life, and enhanced performance, and establishing alliances and partnerships. To strengthen their market position and broaden their customer base, they are rapidly expanding the services being offered through technological advancements. Some of the major players operating are using a variety of strategies, including increased product life cycle, product launches, and partnerships. For instance, in 2023, Brakes India Pvt Ltd announced ZAP brake pads which are equipped with advanced friction technology for use in EVs. 

Automotive Brake Pads Procurement Intelligence Report Scope