Market Overview

Global Automotive Disc Brake Market 2017-2021: Drivers and Forecasts by Technavio

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Technavio
market research analysts forecast the global
automotive disc brake market
to grow at a CAGR of 4%
during the forecast period, according to their latest report.

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Technavio has published a new report on the global automotive disc brake market from 2017-2021. (Gra ...

Technavio has published a new report on the global automotive disc brake market from 2017-2021. (Graphic: Business Wire)

The market study covers the present scenario and growth prospects of the
global automotive
disc brake
market for 2017-2021. Based on the application
type, the global automotive disc brake market is divided into three
segments: passenger cars, LCVs, and M&HCVs, of which the passenger cars
segment accounted for 91% of the market share in 2016.

The global automotive disc brake market is driven by the fact that
automotive manufacturers are providing a lot of emphases to the safety
of passengers as well as the pedestrians under city and highway driving
conditions. Disc brakes reduce the time and effort of the driver to
bring the vehicle to a stop while avoiding any injuries or fatalities,
says
Praveen Kumar, a lead analyst for automotive
components
research at Technavio.

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Technavio analysts highlight the following three market drivers that are
contributing to the growth of the global automotive disc brake market:

  • Low car penetration in APAC
  • Resurgence in US economy
  • Increased government regulation on stopping distance requirement in US

Low car penetration in APAC

Passenger car penetration in APAC is low compared with other regions. As
a result, APAC is a favorable market for OEMs as this region has great
potential for growth. In 2016, the average car penetration levels in
India was 17 cars per 1,000 people, which is one of the lowest in the
world. In China, the average car penetration is 102 cars per 1,000
people and in Brazil it is 203 per 1,000 people. In the matured
economies, such as the US, car penetration reached 800 per 1,000 people.
With the high rate of population growth in this region and increase in
wealth, the overall motorization rate in APAC is likely to increase in
by 2025.

Resurgence in US economy

The economy in the U.S is recovering from the banking crisis that
destroyed the global economy. As a result, the confidence among the
consumers is rebuilding. Since 2012, there is a slow and steady rise in
the employment rate in the US. The interest rates are continuously being
lowered to increase the consumer spending, which will boost the economy
of the US. Even the recent increase in the production of oil and gas
provided a boost to the US economy. It has made the US less reliant on
overseas oil production, building more confidence in the consumers.

In 2015, the labor market was robust, and approximately 12 million jobs
were added into the mainstream. The unemployment rate significantly came
down to 5% in 2016 from a peak of 10% in 2009. All these factors have
led to an increase in vehicle sales in the US, which augurs well for the
growth of the automotive disc brake market.

Increased government regulation on stopping distance requirement in US

The US is emphasizing on the minimum stopping distance requirements for
the M&HCVs and the passenger cars to ensure increased road safety. In
the US, the National Highway Traffic Safety Administration (NHTSA)
stated that the time taken by M&HCVs to stop in cases of panic stop
braking is approximately twice the time taken by passenger cars. NHTSA
proposed a legislation to reduce the minimum stopping distance
requirement by 20%-30%, to bring in line with the passenger cars. This
reduction in the stopping distance will lead to less fatalities and less
damage to the property. As a result, legislations were passed to reduce
the stopping requirement in M&HCVs from 355 feet to 250 feet.

"The incremental benefit will be significantly greater than the cost
of implementing the reduction in the stopping distance requirement in
terms of a number of lives saved, prevention of accidents, and damage to
property. The stopping distance requirement will be implemented in two
phases depending on the vehicle type,"
says Praveen.

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