Automotive Brake System Market Trends

Growth Drivers

• Boom in electrification of vehicles: The swiftly expanding automotive market is driving significant opportunities for component manufacturers. The electrification of vehicles is estimated to increase the application of advanced braking technologies. In 2023, the electric vehicles captured 18.02% of the total car sales globally, states the International Energy Agency (IEA). The same source also estimates that this is anticipated to record a 35.3% rise by 2030. The continuous innovations in the electronic control units, EVs, and brake recovery systems are projected to attract investors in the automotive brake system trade.

• Strict safety regulations: The strict and mandatory transportation regulations are set to fuel the demand for automotive brake systems. Autonomous emergency braking (AEB) and electronic stability control (ESC) are gaining traction in many jurisdictions. The U.S. National Highway Traffic Safety Administration (NHTSA) is set to make autonomous emergency braking technologies mandatory in all light-duty vehicles from 2029. Such initiatives are expected to drive a high demand for sensor-integrated braking solutions in the years ahead.

Challenges

• Cross-border trade restrictions: The evolving tariff barriers are expected to hamper the sales of automotive brake systems in the coming years. The high import costs in the form of tariffs hinder the cross-border supply chains. The changing certification rules in each region are other types of cross-border trade restrictions witnessed by the automotive brake system manufacturers. Delays in product launches are directly affecting the revenue growth of key market players.

• Infrastructure gaps: The poor infrastructure in the price-sensitive markets is challenging the growth of the automotive brake system market. The unavailability of vehicle-to-infrastructure (V2I) and 5G networks delays the implementation of new brake systems. However, industry giants are estimating these markets as high-earning opportunities. They are expanding their manufacturing plants in these regions and are collaborating with public entities to lead the automotive brake system sales.