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Higher Average Vehicle Age Unleashes Growth Opportunities for Brake Pads and Rotors in the European Automotive Aftermarket Finds Frost & Sullivan - The rising prices of brake pads will drive the total revenue of the brakes aftermarket, finds Frost & Sullivan - Frost.com
Higher Average Vehicle Age Unleashes Growth Opportunities for Brake Pads and Rotors in the European Automotive Aftermarket Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2016/03/24 - The rising prices of brake pads will drive the total revenue of the brakes aftermarket, finds Frost & Sullivan - Frost.com.

   
 
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The current average vehicle age of 9.4 years has placed more vehicles in the prime replacement range for a brake job, giving a huge boost to the aftermarket demand for brake pads and rotors. The ageing of vehicles in operation has been backed by the decreasing service life of brake components, particularly the rotors, further aiding the aftermarket suppliers.

New analysis from Frost & Sullivan, 2015 European Category Management Report: Brake Pads and Rotors Aftermarket, finds that the market earned revenue of €2.76 billion in 2015 and estimates this to reach €3.26 billion in 2018.

While the customer pool for brake pad and rotors has expanded, the Euro financial crisis has caused a drop in the number of miles driven, as people are reluctant to purchase petrol for their daily commute. Additionally, the growing use of other mobility solutions such as high-speed trains and car-sharing is lowering the miles driven and causes an increased need for parts replacement.

“This dip in demand will be offset by the escalating prices of brake pads, particularly in the imported budget line, as their synthetic components are becoming increasingly expensive,” statesFrost & Sullivan Intelligent Mobility Research Analyst Oindrila Bhar. “The rising costs of raw materials and transport will contribute to a moderate price hike for brake pads. Besides, as pads have a higher level of differentiation than rotors, their advanced friction formulations can be priced higher, while the prices of brake rotors are expected to remain flat.”

Almost all rotors and a significant percent of brake pads sold in the European automotive aftermarket are manufactured in China. This means that the decline in the value of the Chinese yuan will make these products less expensive to procure in due course.

“Manufacturers can widen their profit margins on brake components by revising the distribution structure and recruiting new channel partners,” notes Bhar. “Partnerships between market participants will help guard against competition from direct importers and offshore manufacturers and thus, allow the domestic companies to optimally tap market demand,” she continues.

2015 European Category Management Report: Brake Pads and Rotors Aftermarket is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan’s related studies include: 2016 Outlook for the Global Automotive Industry, Technology in the Bay: How Tablets, Mobile Apps, and Augmented Reality are Changing the Automotive Service Industry, 2015 US Auto Technicians' Choice Replacement Parts, Impact of the Emission Scandal on the Volkswagen Group, and 2015 North American Category Management Report Wiper Blades. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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2015 European Category Management Report: Brake Pads and Rotors Aftermarket / NE8A-18.

 
 
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Higher Average Vehicle Age Unleashes Growth Opportunities for Brake Pads and Rotors in the European Automotive Aftermarket Finds Frost & Sullivan

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Frost & Sullivan | Brake Pads and Rotors
Contact: Jana Schöneborn - Frost.com 
+49(0)69 77033 43 jana.schoeneborn[.]frost.com
 
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