Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Automotive Carbon Ceramics Brakes Market 2017-2027
Carbon ceramic brakes also referred as ceramic composite brakes are used in supercars and high performance vehicles. Ceramic carbon brake pads do not wear down as fast as regular brake pads, due to their material composition. There are two types of brakes namely drum and disc brakes. Carbon ceramic brakes are typically used in disc brakes and are relatively lightweight, thus find applications in super and luxury cars. The carbon ceramic brakes offer various advantages such as it offers weight reduction up to 65%, less noise, easy maneuverability, less vibration, and resistant to corrosion.
The global automotive carbon ceramic brakes market is estimated to account for US$ 353.2 Mn in terms of value by the end of 2019
Market Dynamics- Drivers
- Growing demand for luxury and high performance vehicles is expected to drive growth of the Global Automotive Carbon Ceramics Brakes Market during the forecast period
Automotive carbon ceramic brakes are more expensive than conventional cast iron discs and cost around four times more. These brakes are majorly used in luxury cars such as Porsche, Bentley, Bugatti, Mercedes, Lamborghini, Ferrari, GM Corvette, and more. These brakes are efficient in dissipating heat, maintain consistent performance, and prevent deformation. For instance, the joint venture between SGL Carbon and Brembo S.p.A predicts that demand for carbon ceramic brakes is expected to increase once manufacturers find a way to reduce cost associated with its production. Brembo SGL venture provides carbon ceramic brakes to Aston Martin, Audi, Ferrari, Porsche, McLaren, Volkswagen, Lexus, and many others. According to Coherent Market Insights’ analysis, automotive carbon ceramic brakes are expected to witness significant demand in Europe and NAFTA region, owing to high demand for luxury and sports cars in the region.
- Significant advantages offered by carbon ceramic brakes over traditional brakes are expected to propel the Global Automotive Carbon Ceramics Brakes Market growth over the forecast period
Carbon ceramic brakes offer significant advantages over traditional brakes such as less weight. In fact, carbon ceramic brakes’ weight is around half of cast iron brakes, which when computed with four rotors equal to a difference of around 30 pounds. This reduced weight helps to improve performance of the vehicle and produces less noise while braking. Moreover, different parts of carbon ceramic brakes are not susceptible to wear & tear and corrosion as compared to regular brake pads, which in turn, is expected to boost the market growth in the near future.
North America region dominated the global automotive carbon ceramics market in 2019, accounting for 41.4% share in terms of value, followed by North America and Asia Pacific excluding Japan, respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
- High cost of carbon ceramic brakes is expected to hinder the Global Automotive Carbon Ceramics Brakes Market growth during the forecast period
Carbon ceramic brakes are relatively expensive as compared to regular cast iron brakes. Thus, it is expected to hinder its adoption. Moreover, high performance cast iron discs introduced by OEMs, which offer similar performance to carbon ceramic brakes is expected to hamper the market growth up to certain extent. Moreover, low purchasing power in emerging economies in Asia Pacific is expected to hinder the market growth over the forecast period.
- Requirement of high operating temperatures for effective functioning is expected to restrain the Global Automotive Carbon Ceramics Brakes Market growth over the forecast period
One of the common observations made by car owners is they feel less braking during the first part of pedal, which is due to ceramic rotors being cold. This is owing to optimal operating temperature of carbon materials being comparatively high than that of normal brakes. Moreover, under aggressive braking once the brakes heat up, their friction coefficient increases and they feel more normal. This, in turn, is expected to hamper the market growth over the forecast period.
- Establishment of new plants are expected to pose lucrative growth opportunities for market players
Key companies in the market are focused collaborating across value chain and other similar firms, in order to manufacture carbon ceramic brakes. This is expected to offer significant opportunities for market players to enhance their technology and customers to get competitive prices. Moreover, the joint ventures aim to efficiently utilize resources and reduce the development cost to avoid forgery in similar areas. For instance, in May 2016, Brembo SGL Carbon Ceramic Brakes acquired 66% stakes of ASIMCO Emiliano Braking Systems, a China-based braking discs manufacturer.
- Strict emission norms in Asia and NAFTA region is expected to offer excellent business opportunities in the near future
In order to curb pollution, regulatory bodies are imposing heavy fines on automotive manufacturers, which has compelled them to reduce the weight of vehicles. This could offer significant growth opportunities for market players by offering novel carbon ceramic brakes. For instance, India follows BS VI emission standards for SI (spark ignition) and CI (compression ignition). Moreover, Japan has implemented strict regulatory policies for emission on buses and trucks.
Source: Coherent Market Insights
In Global automotive carbon ceramics market, by vehicle type segment, passenger cars sub segment dominated the global automotive carbon ceramics market in 2018, accounting for 99.7% share in terms of value, followed by LCV, respectively.
Source: Coherent Market Insights
- Growing sales of luxury and sports cars
OEMs in the market are introducing luxury as well as sports car integrated with carbon ceramic brakes that yield better performance and durability. Penetration of luxury cars has increased in such as the U.K., Germany, India, Brazil, Germany, China, and Japan. Acceding to Germany Association of Automotive Industry, sports model production in Germany increased by 2.8% in 2015, to reach 172,466 units.
- Growing trend of custom-made vehicle in developed countries
There is a huge preference for customized vehicles in developed countries such as the U.S., Germany, Japan, and the U.K. Vehicle owners buy carbon ceramic brakes from aftermarket and upgrade the performance of vehicle, which is expected to boost the market growth in the near future.
Value Chain Analysis
Key players operating in the Global Automotive Carbon Ceramics Brakes Market are Brembo SGL Carbon Ceramic Brakes, Fusion Brakes LLC, Surface Transforms Plc, Akebono Brake Industry Co. Ltd., Carbon Ceramics Ltd, and Rotora Inc.
- Key companies in the market are focused on mergers and acquisitions, in order to gain competitive edge in the market. For instance, in May 2016, Brembo SGL Carbon Ceramic Brakes acquired 66% stakes of ASIMCO Emiliano Braking Systems, a China-based braking discos manufacturer.
- Key players in the market are involved in entering into contract, in order enhance market presence. For instance, in February 2017, Surface Transforms Plc entered into contract with Aston Martin to supply carbon ceramic brakes.