Automotive Carbon Ceramic Brakes Market: LCV and HCV Vehicle Type Segments Anticipated to Hold Minimal Market Share over the Forecast Period: Global Industry Analysis and Opportunity Assessment, 2016-2026
- REP-GB-1519
- 2017-04-03
- 185 Pages
- Format:
- Category: Automotive & Transportation
The Passenger Car vehicle type segment is expected to remain lucrative in the global automotive carbon ceramic brakes market throughout the forecast period
In terms of value, the passenger car vehicle type segment is estimated to hold a dominant share of the global automotive carbon ceramic brakes market throughout the forecast period. This segment is projected to gain more than 15 BPS over the forecast period and is estimated to account for close to 100% value share of the global automotive carbon ceramic brakes market by 2026 end. The passenger car segment is expected to witness high-value CAGR growth, followed by the LCV and HCV segments. The passenger car segment was valued at US$ 200 Mn by 2016 end and is projected to create an incremental $ opportunity of more than US$ 400 Mn between 2016 and 2026. This segment is expected to expand at a CAGR of 10.3% over the period of assessment.
Growing trend of customisation in developed countries is likely to fuel the growth in demand for passenger cars across the globe
Automotive carbon ceramic brakes cost four times more as compared to cast iron discs. These brakes are predominantly found in high-end luxury cars or sports cars such as Porsche, Audi, Bugatti, Bentley, Lamborghini, Mercedes, Ferrari, GM Corvette, and many others. An increasing purchasing power among people and increasing demand for high-performance vehicles is likely to drive revenue growth of the passenger car segment. An adoption of carbon ceramic brakes is increasing significantly owing to growth in demand for luxury car models and stringent norms regarding vehicle weight reduction. OEMs are launching models with integrated carbon ceramic brake systems for better vehicle performance and durability. As a result penetration of luxury cars has increased in Brazil, India, the U.K., Germany, China, and Japan. As per Future Market Insights analysis, the demand for automotive carbon ceramic brakes will be relatively high in Europe and the NAFTA region as compared to that in Asian countries, owing to the high demand for luxury and sports cars in these regions.
Stringent emission standards in countries such as Germany, the U.S., Canada, the U.K. and Mexico are compelling automotive manufacturers to make fuel-efficient vehicles. To achieve fuel economy, automakers are trying to reduce the weight of vehicles and their components, which will support the demand for automotive carbon ceramic brakes. These brakes are relatively light in weight and hence improve the durability and performance of vehicles. This factor is boosting the demand in the passenger car segment of the global automotive carbon ceramic brakes market.
Passenger car segment in the Latin America automotive carbon ceramic brakes market is expected to exhibit robust growth, owing to an increasing demand for luxury cars fitted with carbon ceramic brakes
The passenger car segment in the Latin America automotive carbon ceramic brakes market is estimated to be valued at more than US$ 15 Mn by 2017 end and is projected to represent an incremental $ opportunity of a little over US$ 20 Mn between 2016 and 2026, registering a CAGR of 8.6% in terms of value over the forecast period. In the Eastern Europe automotive carbon ceramic brakes market, the passenger car segment by vehicle type is projected to account for close to 100% market share by 2026 end. The passenger car vehicle type segment in the APEJ automotive carbon ceramic brakes market is estimated to be valued at more than US$ 100 Mn by 2026, expanding at a CAGR of 10.1% during 2016–2026. The passenger car segment in the MEA automotive carbon ceramic brakes market is projected to account for a little more than 99% value share by 2026 end.
North America and Western Europe are major consumers of automotive carbon ceramic brakes. Both the regions mark their dominance in the production of luxury and high-performance cars. From an aftermarket perspective, MEA is expected to remain a lucrative market for carbon ceramic brakes as the region witnesses huge sales of luxury and sports cars. These and much more useful market insights have been highlighted in a newly published report by Future Market Insights titled “Automotive Carbon Ceramic Brakes Market: Global Industry Analysis and Opportunity Assessment, 2016–2026.” Our expert team of analysts have observed that passenger cars are likely to remain major end users of carbon ceramic brakes in the automotive industry. LCVs and HCVs are estimated to collectively hold less market share. However, with advancements in technologies in LCVs and HCVs, a minimal upsurge in market share is expected over the predicted period. We have also found that the market for automotive carbon ceramic brakes is highly consolidated with a few players holding a major share of the market.
Leading brake manufacturers and OEMs are collaborating to invest in R&D to develop cost-effective manufacturing technologies. The global automotive carbon ceramic brakes market will witness the entry of a noteworthy number of new players over the next five to 10 years. We have observed that when mapped on a product life cycle, the global automotive carbon ceramic brakes market is still in the growth phase. Significant potential exists for players in the market with the escalation in the production of high-performance and luxury cars. High cost remains a major restraint to market growth, which is expected to be overcome by the development of new production technologies.
A structured research based on Porter’s Five Forces Analysis
According to Future Market Insights analysis, the bargaining power of suppliers in the global automotive carbon ceramic brakes market is moderate to high, owing to the fact that brake manufacturers possess special agreements and contracts with material suppliers, and thus can’t easily change material suppliers; and in some cases, customer approval to change their raw material suppliers is also necessary. Most of the OEMs provide carbon ceramic brakes to end users as an option against high performance cast iron brakes. However, high performance cast iron brakes are capable of providing equivalent performance as compared to carbon ceramic discs. Thus, the bargaining power of buyers is high as they could possibly threaten to cancel or reduce purchases of bulk brakes from manufacturers.
A suitable alternative is available in the market i.e. high performance cast iron brake system. Both the brake discs have the similar braking performance from a producer as well as customer point of view. Therefore, customers have an option to buy cast iron brakes if prices of carbon ceramic discs increase significantly. Consequently, carbon ceramics discs are currently constrained by high performance cast iron and are likely to continue at the same stage.
Prevailing stringent regulations coupled with the fuel economy of the automotive industry worldwide creates a favourable environment for the entry of new contenders in the global automotive carbon ceramic brakes market to manufacture high-performance brakes. Furthermore, as per sentiments collected from primary interviews conducted with key industry participants, major players in the brake market are willing to enter into carbon ceramics and are hence planning their capabilities so as to develop carbon ceramic brakes. Carbon ceramic brakes are used only in high-end luxury cars and sports models. Also, there are less number of players operating in the global automotive carbon ceramic brakes market.
Global Automotive Carbon Ceramic Brakes Market: Segmentation
By Vehicle Type
- Passenger Car
- Light Commercial Vehicle (LCV)
- Heavy Commercial Vehicle (HCV)
By Sales Channel
- Original Equipment Manufacturers (OEM)
- Aftermarket
By Region
- North America
- Latin America
- Eastern Europe
- Western Europe
- APEJ
- Middle East and Africa
- Japan
Research Methodology
Each interview we conduct is thoroughly analysed and average market volume is deduced and reconfirmed prior to incorporating in the report. The price of carbon ceramic brakes is deduced on the basis of the ceramic type, where the average price of each carbon ceramic type is inferred across all the seven assessed regions. The market value of the global automotive carbon ceramic brakes market is thus calculated from the data deduced from the average selling price and market volume.
For the 10-year forecast of the global automotive carbon ceramic brakes market, various macroeconomic factors and changing trends have been observed, giving an idea about the future of the market. Other important factors considered to arrive at market forecast include the size of the current market, inputs from the supply side and the demand side and other dynamics shaping the scenario of the global automotive carbon ceramic brakes market. In the compilation of the report, the forecasts are conducted in terms of CAGR, while other important criteria such as year-on-year growth and absolute dollar opportunity have also been incorporated, presenting the client with crystal clear insights and future opportunities likely to emerge in the global automotive carbon ceramic brakes market.