Brake pads are one of the key elements of an automotive braking system. These pads are situated inside the caliper and are the part of the system that clamps down on the rotor. Brake pads are categorized into four major segments.
- Semi-metallic brake pads: These are 40-50% metal and very durable. It may not function well in extreme, low temperatures. These brake pads are less expensive and easier on the rotors than ceramic brake pads. Semi-metallic brake pads are majorly used on racecars.
- Ceramic brake pads: These are the most expensive brake pads. It produces less noise compared to other materials. Ceramic brake pads last longer than semi-metallic brake pads.
- Low-metallic, non-asbestos organic (NAO): These brake pads are noisy and known to let off a lot of brake dust. The copper or steel that is used in these pads helps with heat transfer.
- Non-asbestos organic: These brake pads are majorly made from organic materials including fiber, glass, rubber, and Kevlar. Non-asbestos organic pads can wear faster and produce a lot of brake dust.
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Demand Outlook
The global automotive brake pads market was valued at USD 12 billion in 2020 and it is expected to grow at a CAGR of 7-8% from 2020 to 2027. With the growing automotive market in developing countries, the demand for brake pads is expected to grow during the forecast period. APAC is leading the global automotive brake pads market with more than 35% revenue share followed by North America and Europe. Based on material type, ceramic brake pads are estimated to hold the largest share in the global market over the forecast period due to their high stability and property to work in fluctuating temperatures. The demand for ceramic brake pads majorly comes from high-performance vehicle manufacturers as it produces less dust and minimum noise.
Cost Drivers
Raw material costs are the major cost driver of automotive brake pad manufacturing. Automotive brake pads are made from a blend of 10-20 types of raw materials. Some of the key raw materials include phenol resin, steel fiber, copper fiber, iron powder, tin powder, aramid pulp, synthetic graphite, etc. The cost of raw material accounted for more than 60% of the overall cost of production. Many manufacturers have shifted their production base to APAC due to efficient supply of raw material and low production cost.
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Key Players:
- ACDelco
- Akebono Brake Industry
- ATE. Bosch Auto Parts
- Brakes India Pvt.Ltd.
- G.U.D Holdings
- Hindustan Composites Limited
- Makino Auto Industries Pvt.Ltd
- MAT Holdings
- Nisshinbo Group Company
- Ranbro
- Brakes India Limited
The global automotive brake pads industry features a highly fragmented landscape with leading players contributing less than 30% of the market share. Industry leaders are strengthening their presence through multiple mergers and acquisitions.
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