PORTLAND, Ore., Nov. 9, 2020 /PRNewswire/ -- Allied Market Research published a report, titled, "Brake System Market by Product Type (Disc Brake, Drum Brake, Hydrostatic Brake, Hydraulic Wet Brake, and Regenerative & Dynamic Braking), Distribution Channel (Original Equipment Manufacturers (OEMs) and Aftermarket) and End Use (Automotive, Construction Equipment, Agricultural Equipment, Industrial Trucks, and Mining Equipment): Global Opportunity Analysis and Industry Forecast, 2020–2027." According to the report, the global brake system industry generated $41.62 billion in 2019, and is expected to reach $61.20 billion by 2027, witnessing a CAGR of 7.0% from 2020 to 2027.
Rise in production & sales of commercial vehicles and off-highway trucks, surge in stringency of automotive active safety regulations, and initiatives of new car assessment program (NCAP) on electronic brake systems drive the growth of the global brake system market. However, huge development cost of electronic brake systems and high maintenance costs restrain the market growth. On the other hand, regulations regarding load carrying capacity, mandates on air brakes installation, and emergence of the brake-by-wire system and regenerative braking create new opportunities in the coming years.
Many original equipment manufacturers (OEM) have stopped production of brake systems due to lockdown enforced by governments. The supply of raw materials has been disrupted. Concerns related to inventory management, reduction in manufacturing, and ban on shipping, also affected the production.
Moreover, the demand from the automotive industry has been decreased significantly due to shutdown of production facilities of electric vehicles. The R&D activities have been stopped due to closure of factories.
Manufacturing activities have been coming on track as factories are opened during the post-lockdown period. The demand would increase steadily from end-use industries.
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The drum brakes segment to continue its leadership status during the forecast period
Based on product type, the drum brakes segment accounted for the highest market share in 2019, contributing to nearly half of the total share of the global brake system market, and is estimated to continue its leadership status during the forecast period. This is due to cost-effective solutions and high compatibility. However, the regenerative & dynamic braking segment is estimated to grow at the fastest CAGR of 9.8% from 2020 to 2027, owing to surge in adoption of electrical vehicles across the globe.
The automotive segment to maintain its highest share during the forecast period
Based on end use, the automotive segment contributed to the largest market share, holding more than half of the total share of the global brake system market in 2019, and is projected to maintain its highest share by 2027. Moreover, this segment is projected to maintain the highest CAGR of 7.6% during the forecast period. This is due to the optimistic outlook toward the transportation and logistics industry and penetration of the electrical vehicles. The report also offers a detailed analysis of segments including construction equipment, agricultural equipment, industrial trucks, and mining equipment.
Asia-Pacific to offer lucrative opportunities, North America to grow steadily
Based on region, Asia-Pacific contributed to the largest share in terms of revenue of the global brake system market, accounting for more than two-fifths of the total share in 2019, and will maintain its lead position throughout the forecast period. Moreover, this region is expected to portray at the highest CAGR of 8.0% from 2020 to 2027. This is attributed to wide presence of the end-use market players and implementation of cost-effective manufacturing solutions in the region. However, North America is projected to register a CAGR of 5.7% during the forecast period.
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