Market Trends of Dual Circuit Brakes System Industry
Passenger Vehicle Segment Expected to Observe Significant Growth
- Rising passenger car sales have been a prominent factor bolstering the demand for dual-circuit brakes. In 2023, major international passenger car markets saw a notable uptick in new registrations. This surge can be attributed to a marked improvement in vehicle availability compared to the previous year, which positively influenced car sales. According to OICA, global sales of passenger cars reached 65.27 million units in 2023, compared to 64.80 million units in 2019.
- According to the German Association of the Automotive Industry, the European car market (including the E.U., EFTA, and the U.K.) witnessed 12.8 million new vehicle registrations in 2023, a 14% increase from the previous year. Last month, major European markets, including France, Spain, the United Kingdom, and Italy, saw an upward growth trend, while new vehicle registrations declined in Germany.
- Similarly, 25.8 million new cars were registered in China in 2023. Meanwhile, in the U.S., light vehicle sales experienced a double-digit rise of 12%. India also saw an 8% increase in car sales for the year, totaling 4.1 million new registrations.
- However, this rising demand for passenger cars, especially SUVs, poses a significant challenge regarding road safety and environmental concerns. For instance, according to NCAP, a pedestrian or cyclist struck by a vehicle with a 90 cm high bonnet faces a 30% higher risk of fatal injury than if hit by a car with a bonnet just 10 cm lower. Hence, the recent growth witnessed in the sales of SUVs, especially in countries like India, Brazil, and China, among others, also creates a favorable ecosystem for the studied market's growth as dual-circuit brakes can significantly reduce the chances of complete brake lockdown or failure.
- These concerns are likely to boost the demand for dual-circuit brake systems. The use of two circuits to connect the wheels of a passenger vehicle ensures that if one circuit fails, the other can still provide braking, stabilizing the car and preventing spinning through a negative scrub radius, thus minimizing the chances of road accidents.
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Asia-Pacific Expected to Rise at a Significant Rate
- As urbanization accelerates, economies flourish, and populations swell, Asian nations are witnessing a surge in mobility demands for people and goods. While the need for passenger transport is on the rise, vehicle ownership lags. This disparity presents a golden opportunity for mobility service providers eyeing the Asia-Pacific (APAC) market, especially with its youthful demographic. Armed with substantial spending power and a keen sense of value, this demographic seeks to optimize their time on the road and find ways to monetize assets like their vehicles.
- Take China, for example; the country has emerged as the global frontrunner in the automotive and mobility arena, buoyed by a robust domestic market and vast potential. The Chinese Ministry of Industry and Information Technology has set ambitious targets, forecasting domestic vehicle production to hit 35 million by 2025. This projection cements China's status as the world's premier car manufacturer, fueling rapid advancements across its automobile sectors and creating a favorable ecosystem for the studied market's growth, as dual-circuit brake systems are widely used in automobiles.
- Moreover, the International Trade Administration data highlights Japan's stature as the world's fourth-largest automotive market, trailing only China, the US, and India. Giants like Toyota, Honda, Nissan, Mazda, and Suzuki dominate Japan's automotive landscape. Contributing 2.9% to the nation's GDP, the automotive sector is a cornerstone of Japan's economy, prompting the country to enforce stringent vehicle safety and pollution regulations. Hence, the country is anticipated to drive significant growth opportunities in the studied market.
- The demand for dual-circuit brake systems is surging as the automotive sector thrives in APAC nations. This trend highlights the growing preference for vehicles with advanced safety features, driven by an increasing emphasis on vehicle safety. The dual circuit system, with its two separate brake mechanisms, significantly diminishes the risk of complete brake failure, thereby witnessing a notable uptick in adoption across major automotive markets of the Asia Pacific region.
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