Brake Fluids Market Trends

Statistics for the 2023 & 2024 Brake Fluids market trends, created by Mordor Intelligenceā„¢ Industry Reports. Brake Fluids trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of Brake Fluids Industry

Light Commercial Vehicles to Dominate the Market

  • In Light Commercial Vehicles (LCVs) like vans, trucks, and buses, brake fluid ensures safe and reliable stopping power. These vehicles, often handling heavy payloads and facing diverse driving conditions, depend on a robust braking system. The significance of brake fluid in this system is paramount.
  • Rising demand for brake fluids includes a growing appetite for lightweight, high-performance cars in emerging markets, the establishment of new automotive hubs, and an uptick in disposable income.
  • In 2023, global new vehicle sales saw a robust growth of 11.9% over 2022, totaling over 92.7 million units, as reported by the Organisation Internationale des Constructeurs d'Automobiles (OICA). Specifically, new commercial vehicle registrations worldwide rose to 27.5 million units in 2023, marking a notable 13.3% increase from the 24.2 million units recorded in 2022.
  • Additionally, light commercial vehicle production climbed to 21.44 million units in 2023, marking a 9% rise from the previous year, according to OICA data, further fueling the market's growth.
  • The countries in the Asia-Oceania region are strategically positioning themselves as the emerging automotive hub in the global market. The Asia-Oceania region registered the largest number of vehicles compared to other regions. Registration in this region is dominated mainly by China, Japan, South Korea, and India. In 2023, the region witnessed a 10.9% increase in new commercial vehicle sales compared to 2022, with 7.96 million units registered in 2023, compared to 7.17 million units in 2022.
  • However, in India, commercial vehicle (CV) sales are projected to dip in the financial year 2024-25 (FY25) after a modest 2-5% growth in FY24. The data from ICRA (Investment Information and Credit Rating Agency of India Limited) forecasts a 4-7% decline in FY25.
  • North America's motor vehicle production in 2023 hit 19.14 million units, a 7.8% increase from 2022's 17.75 million units, according to OICA. Light commercial vehicles constituted a significant portion, rising from 12.24 million units in 2022 to 13.30 million units in 2023.
  • Data from the Federal Motor Transport Authority indicates that Germany's motor vehicle count reached 53.50 million in 2023, up from 53.05 million in 2022. Furthermore, the Kraftfahrt-Bundesamt highlighted that car registrations in Germany saw a slight uptick, with 48.76 million in 2023 compared to 48.54 million the previous year.
  • According to OICA, Germany registered over 359 thousand commercial vehicles in 2023, up from 312 thousand units the previous year.
  • OICA data reveals that Brazil's light commercial vehicle production hit 422 thousand units in 2023, marking a 20% increase from the prior year. South Africa also saw a boost, with production reaching 263 thousand units in 2023, a 22% rise from the previous year, bolstering the market's growth.
  • Given these dynamics, the demand for brake fluids is poised for growth in the coming years.
Brake Fluids Market: Light Commercial Vehicle Production, in million units, Global, 2019-2023

Asia-Pacific to Dominate the Market

  • The Asia-Pacific region is expected to account for the largest brake fluid market due to the presence of leading automobile producers such as China, India, Japan, and South Korea. These countries are working hard to strengthen the manufacturing base for vehicles and develop efficient supply chains for greater profitability.
  • China's automotive industry stands out as the leading consumer of lubricants, reflecting its robust vehicle fleet growth and technological advancements. In 2023, both automobile sales and production in China reached a milestone, hitting 30 million units each, marking a double-digit increase from the previous year, as per the data from the China Association of Automobile Manufacturers (CAAM).
  • As per the data from OICA, China led in the production of light commercial vehicles in 2023, churning out approximately 2.30 million vehicles, with Thailand trailing at 1.26 million.
  • In India, data from the Society of Indian Automobile Manufacturers (SIAM) indicates that from January to March 2024, the production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycle reached 7.39 million units. Specifically, sales for passenger and commercial vehicles were 1.14 million units and 268 thousand units, respectively.
  • South Korea boasts a mature automotive industry with notable brands like Hyundai, Renault, Samsung, and Kia. Projections from the Automobile Manufacturers Association and The Korea Automobile Research Institute anticipate a 1.0% rise in domestic automobile production for 2024, reaching 4.36 million units. This growth is expected to drive demand in the studied market.
  • OICA data shows that in 2023, vehicle sales in the country reached 1.74 million units, up over 3% from 2022. Passenger vehicle sales climbed 4.8% to 1.4 million units, but commercial vehicles saw a slight dip, selling 0.26 million units, down 1.1% from the previous year.
  • Further, OICA reports that Japan's vehicle sales in 2023 touched 4.7 million units, marking a 13% uptick from 2022. Breaking it down, passenger vehicle sales rose over 15% to 3.9 million units, while commercial vehicles saw a modest 4% increase, totaling 0.78 million units.
  • Given these dynamics, the demand for brake fluids in the Asia-Pacific is set to rise.
Brake Fluids Market, Growth Rate, by Region, 2024 - 2029

Brake Fluids Market Size & Share Analysis - Growth Trends & Forecasts (2024-2029) (2024 - 2029)