Two-Wheeler Brakes Market

Two-wheelers are the most common economic transportation mode compared to personal four-wheeled vehicles or shared mobility. The increase in per capita income and easy availability of loans at lower interest rates have fuelled the demand for two-wheelers in India and South East Asian countries. Higher fuel efficiency, easy maneuverability, lower emissions, and price competitiveness have increased two-wheeler sales. The major players of two-wheelers worldwide are concentrated in China, followed by India and Indonesia. With the increasing sales of two-wheelers around the globe, the demand in the brakes market is also growing. The two-wheeler market has reached its pre-COVID days very quickly, and during the projected period, it will grow at a promising growth rate. Some states of the USA had to phase out the use of copper from the brake pads along with limiting the use of copper percentage in the total weight from the brake pads according to governing norms and regulations. The high demand for electronic components in two-wheeler has been driving the market in recent years. The incorporation of wheel speed sensors has led to the compulsion of ABS braking systems in two-wheeler. The government has made ABS and combined braking compulsion in some Asian countries. Along with OE, the aftermarket of brakes in the two-wheeler industry also contributes a major share.

The global two-wheeler brake market size is expected to grow from USD 1.2 billion in 2022 to USD 1.7 billion in 2027 at a CAGR of 6.8%.

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Drivers: Advanced braking system for high-performance bikes

In recent years, the demand for high-performance bikes has increased. Sports, cruiser, and tourers bikes have high demand in North America, with good opportunities for key players. The demand for high-performance bikes will propel the market for the brake system. These high-performance vehicles need advanced braking systems for controlling the bike. The advancement in speed sensors has led to the implementation of ABS in two-wheeler for safety and smooth riding performance. On 26th September 2018, Continental demonstrated their ABS performance on the Buddha circuit in Greater Noida in the “Stop crash campaign” and showcased their MiniMAB one-channel ABS and MK 100 MAB for two-channel ABS for two-wheeler. On 17th July 2022, Bosch with Blubrake launched ABS for e-bikes. On 11th April 2022, Continental Engineering Services launched a customized brake system for two-wheeler that provides features like ABS, Integral brake, Motorcycle hold-and-go, Rear wheel lift-off protection, optimized curve brakes, etc. These factors will boost the sales of braking systems in two-wheelers.

Restraints: High Counterfeit two-wheeler brakes in aftermarket

The presence of counterfeit two-wheeler brake and its component in the aftermarket is a growing concern for organized suppliers. The counterfeit products in the market are cheap but are made of low-quality materials. Due to the low cost, customers purchase these products without checking the quality of the products. As these products do not adhere to OEM specifications, they can lead to severe mechanical problems and system breakdown. The Asian region is the largest supplier of counterfeit products, with 2/3rd of products manufactured in China itself. Along with China, the leading producers of counterfeit auto parts are Russia, India, Pakistan, and Uruguay. The counterfeiting of two-wheeler brake system may include fraudulent manufacturing of a product by copying a product that is patented, copyrighted, or trademarked. It may include alteration of an original product, distribution of a product that is cheaper than genuine part, and misrepresentation of two-wheeler brake system properties.

These counterfeit products are easily available in the market due to the presence of independent repair shops and workshops. These places are easily accessible and offer lower repair costs than authorized service centres. Hence, people prefer to go to these repair shops to buy replacement for two-wheeler brakes.

The original equipment suppliers (OES), who supply genuine two-wheeler brake only generate a key portion of their profits from the aftermarket, are concerned about the counterfeit market. A large chunk of this profit is lost to players operating in the counterfeit market. While cheaper products affect the OEM’s profit margin, they also harm the performance of the brake friction products and lead to safety concerns. Two-wheeler brakes system counter parts like brake shoes, brake discs, brake drums, brake rotors, brake cables, brake lever, and others are available in the counterfeit market at lower prices. Hence, the presence of counterfeit products poses a challenge for OES operating in the aftermarket. The availability of cheap counterfeit products hampers the market share and profitability of manufacturers. This is a serious challenge for the two-wheeler brake market.

Opportunities: Increased sales of electric vehicles will boost the brake market.

The demand for e-vehicles has increased rapidly around the world. The market has witnessed new emerging players in the production of electric vehicles, which has boosted the sales of brake systems globally. Increased customer awareness and government subsidies for utilizing electric vehicles have propelled the two-wheeler market along with brakes. EV charging stations are expected to propel infrastructure growth, ultimately increasing the sales of electric two-wheelers' sales. In July 2020, the Madrid government announced subsidies of around USD 2.58 million and USD 3 million in 2021 to encourage citizens to adopt non-polluting vehicles. Considering these subsidies according to the country's population, each person will receive up to USD 750 to purchase bicycles, bikes, or scooters, which will boost the market for brakes in the European region.

India has been the leading country in the world's two-wheeler market for many years. Being a dense country, it has attracted many key players and several start-ups to represent their new products, and ample opportunity has been created for the brake industry. Companies like OLA launched their S1 and S1 pro in August 2021, Ultraviolet announced their electric bike launch soon in January 2021, and Ather 2020 launched their 450X. These companies hold higher sales of electric vehicles in India, which will create a good opportunity to have a tie-up in the initial stage for the brake industry.

Challenges: Availability of low-quality products and parts tend to low the market growth

The maintenance cost of the braking system is expensive. For instance, any motorcycle, over its periodic brake maintenance, usually changes its brake fluid, brake shoe, brake pads, resurfacing rotors, new lubricator, and cleaning another brake mechanism, which is costly in terms of maintenance. Considering the ABS system, it becomes expensive while maintaining sensors mounted on each wheel, costing around hundreds of dollars. The average cost for replacing the ABS sensors of Yamaha is USD 30 – 80 dollars and USD 40 – 160 dollars for brake fluid replacement of Castrol oil. According to Reliable Auto if any further damage or wear out of any critical component like master cylinder, rotors, calipers, drums, pads, and cylinders costs around USD 200 – 450 dollars for a two-wheeler.

Key Players

Brembo S.p.A (Italy), EBC Brakes (England), SBS Friction A/S (Denmark), Nisshinbo Holdings (Japan), Tenneco Inc (USA), Endurance Technologies Limited (India) are the top players in the two-wheeler market. New product development, partnership, and joint venture strategy have been the most dominating strategy adopted by major players from 2019 to 2022, which helped them to innovate on their offerings and broaden their customer base.

Report Details:

Key Developments

• In September 2019, Brembo SPA launched its new brake pad, which has 60% weight reduction compared to its previous model. It also has an upgradation for eliminating capillary corrosion with low thermal conductivity.
• On 25th September, TVS launched its product named TVS Star City, which was equipped with SYNC braking system technology
• EBC Brakes will launch their all-new Endurance racing Brake Pads range in their upcoming Performance Racing Industry show, which will be held from 8th to 10th December 2022.
• Brembo and SBS Friction have come together to develop new brake pads for the motorcycle industry on 23rd November 2021.
• On 8th March 2022, Continental and Nisshinbo came together to localise India's ABS and ESC manufacturing.

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