The automotive industry is expanding due to increased foreign direct investment (FDI). For instance, in July 2021, Waaree Energy Storage System collaborated with Zypp Electric to provide lithium batteries. The COVID-19 pandemic also prompted governments to reconsider their investment facilitation and promotion policies, which could help boost FDI in the coming years. However, the onset of the COVID-19 outbreak has disrupted many countries’ investments in automotive sectors; thus, governments primarily focus on increasing the number of new infrastructure projects while completing past projects. As a result, this will increase the demand for commercial vehicles, resulting in rising construction activities, which is expected to positively impact the automotive brake friction products market. Further, intraregional connections, environmental issues, and the green economy are also receiving more attention.
When compared to the global average, the COVID-19 pandemic had more severe consequences in the EU (European Union), with inward FDI falling by 71% from US$ 365.47 billion (€335 billion) in 2019 to US$ 107.71 billion in 2020, according to the annual report on the screening of foreign direct investments into the Union on November 23, 2021. The FDI inflow shows the recovery of various industries, further supporting the automotive brake friction products market growth. A decrease in COVID-19 cases, an increasing number of vaccinated citizens, and the upliftment of stringent governments’ regulations are expected to grow the economy in 2022. Brake systems, made of various brake friction products, are installed in every vehicle. Disc brake systems, for instance, have rotors and pads, whereas a drum brake has a brake shoe and a brake drum. The growing demand for comfort and convenience is increasing vehicle production. Furthermore, the rising population and improving economic conditions increase vehicle production in many countries across the region, boosting the brake friction product market. Further, increased consumer purchasing power, rising disposable income, increased demand for personal vehicles, and the growth of e-commerce are contributing to the increase in production. An increase in government mandates for vehicle safety features is aiding the market growth. Thus, these factors are driving the automotive brake friction products market growth.
The Europe automotive brake friction products market is segmented into disc materials, product type, vehicle type, and country. Based on disc materials, the Europe automotive brake friction products market is segmented into metallic, ceramic, and composite. In 2020, the composite segment held the largest market share. Based on product type, the market is segmented into brake shoe, brake pad, brake disc, brake liner and drum brake. In 2020, the brake liner segment held the largest market share. Based on vehicle type, the market is bifurcated into passenger vehicles and commercial vehicles. In 2020, the passenger vehicles segment held a larger market share. Similarly, based on country, the Europe automotive brake friction products market is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. Further, Germany contributed a substantial share in 2020.
AISIN SEIKI Co.Ltd.; AKEBONO BRAKE INDUSTRY CO., LTD; Bendix Spicer Foundation Brake LLC; BOSCH Auto Parts; Carlisle Brake Friction; Delphi Auto Part; Japan Brake Industrial Co. LTD; MIBA AG; and Nisshinbo Holdings Inc are among the leading companies operating in the Europe automotive brake friction products market.