The Global Market for Automotive Aftermarket Brake Friction Parts is Projected to Reach US$4.4 Billion by 2020
Rising Average Age of Vehicles Drives the Global Market
for Automotive Aftermarket Brake Friction Parts, According to a New Report by Global Industry Analysts, Inc.
GIA announces
the release of a comprehensive global report on Automotive Aftermarket Brake
Friction Parts. The
global market for Automotive Aftermarket Brake Friction Parts is projected to
reach US$4.4 billion by 2020, driven by the rising average age of light
vehicles.
The average life
of vehicles on the road stands at a record high of 10 to 11 years. Key factors
driving vehicle retention include engineering innovation, increase in useful
life of vehicles, and changes in consumer wealth structure and financial
choices. In the United States, consumer consumption, spending and income
continue to remain flat. Greater than expected sluggishness in the labor market
and lack of meaningful growth in wages and income are creating changes in consumer
wealth and spending patterns. Recovery in asset prices and household wealth to pre-recession
levels is seen as hugely unlikely. Another key reason for the relatively anemic
recovery of consumer spending in the country is the wealth inequality which has
been made even more disproportionate by the 2007-2009 economic recession. The
recession punctured the over 8 trillion dollar overvalued housing bubble and
crippled households across the country. The cumulative erosion in household
wealth averaged to over US$15 trillion in the year 2010. In Europe, overindebted
households represent a key bottleneck hindering consumer spending. With one in
every 9 households in Europe unable to meet financial commitments including recurring
expenses, spending on durable goods remains subdued. Against this backdrop,
cars are being retained for longer.
The longer
replacement cycle and the increase in the number of miles traveled per vehicle are
creating opportunities in the aftermarket. Vehicle maintenance and component replacements
are therefore receiving a boost. As the most critical safety system, brakes
represent the most often replaced auto part. High replacement frequency of worn
out brake components including rotors, brake pads, calipers and parts is
spurring growth in the market. Stringent safety norms, growing consumer
emphasis on personal safety, and focus on preventive maintenance, represent
other major factors driving growth in the market. Healthy gains in automotive
production in developing countries is also forecast to spur growth in the
long-run, since more number of vehicles manufactured creates a parallel
secondary market for auto parts including brake friction parts.
As stated by the
new market research report on Automotive Aftermarket Brake Friction Parts, Europe represents the largest market
worldwide. Asia-Pacific is forecast to emerge as the fastest growing
market with a CAGR of
6.8% over the analysis period. Growth in the region is led by the surge in car ownership
rates, and frequent wear and tear of the braking system due to heavy commuter
traffic in crowded cities in densely populated countries such as India and
China.
Major players
in the market include ABS Friction Inc., Advics Co. Ltd., Akebono Brake
Industry Co. Ltd., Continental AG, Delphi Automotive PLC, Dongying Xinyi
Automobile Fitting Co., Ltd., Federal-Mogul Corporation, Fras Le, Japan Brake
Industrial Co. Ltd., Meritor Inc., Nan Hoang Traffic Instrument Co., Ltd.,
Nisshinbo Holdings Inc., Nisshinbo Brake Inc., TMD Friction Holding GmbH,
Robert Bosch GmbH, and TRW Automotive, among others.
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