LONDON--(BUSINESS WIRE)--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.
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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