Global Automotive Brake Fluid Market -Growth Market Report

Global Automotive Brake Fluid Market-Growth Market Reports

Market Outlook: The global Automotive Brake Fluid market was valued at USD 2,690.4 Million in 2019 and is projected to reach USD 2,692.9 Million by 2027, expanding at a CAGR of 2.0% during the forecast period. The global automotive brake fluid market is driven by factors such as growing number of automotive original equipment manufacturers (OEMs) and car service providers, product innovations in automotive brake fluids, increasing demand for commercial vehicles, and emerging vehicle financing. Conversely, frequent need to change automotive brake fluid and replacement of traditional hydraulic braking systems by brakeby-wire are likely to restrain the market.

Automotive brake fluid is primarily used in the automotive industry to lubricate and avoid the deterioration of moving parts. Automotive brake fluids are renewed or modified every 1 to 2 years and every month in automotive racing to boost the reliability and performance of the vehicle, catering to the demand for automotive brake fluids. Glycol-based brake fluids are the latest development, and the DOT 3, 4 and 5.1 requirements define the criteria that must be followed. Silicone-based fluids have been the most recent advancement in the evolution of brake fluids; however, they are not commonly used.

Prominent car manufacturers such as Maruti Suzuki, General Motors, Hyundai, Ford, and Toyota are establishing new manufacturing facilities to increase sales volume by contributing to the growth of the authorized car service center industry. For example, in March 2019, Toyota planned to invest USD 13 billion in its automotive operations in the US. Moreover, rising acceptance of innovative technologies in smart cars, including the Advanced Driver Assistance Systems (ADAS) and Internet of Things (IoT), has compelled car garages to upgrade their existing car service systems, fueling the market growth.

Authorized car service centers are brand outlets or independent service centers of manufacturers that perform a variety of repair and maintenance activities for an automotive brand. These service providers are increasing rapidly among vehicle owners due to growing concerns about counterfeit spare parts and the growing implementation of advanced fuel, ignition, and in-car entertainment systems, which are driving them to opt for authorized car repairs. Increasing number of OEMs and car service providers is projected to boost the demand for automotive brake fluid.

Market Dynamics In the last decade, the automotive industry has made tremendous progress due to the extreme production of highly automated digital vehicles. Automotive manufacturers and OEMs are deploying new technology to extend its customer base through its products. Manufacturers are offering a wide range of fluid technologies to ensure that the engine braking, air conditioning, and engine systems work safely and efficiently. Most of the automotive brake fluid manufacturers offer a complete line of DOT 3, DOT 4, DOT 5.1, and racing brake fluids. Manufacturers are considering safety, reliability, and comfort factors to innovate the automotive brake fluids. Brake systems are increasingly complex and need greater reliability, as the automotive industry explores revolutionary technology to achieve a fuel efficiency benefit. Properties such as wet and dry boiling point, lower temperature viscosity, corrosion resistance, braking systemcompatibility, and long-term stability are considered in brake fluid innovation.

This, in turn, increases the demand for automotive brake fluid during the forecast period.

Digitization and increased infrastructure spending are expected to increase the demand for commercial vehicles during the forecast period. The demand for heavyduty commercial vehicles is anticipated to increase during the forecast period due to rising tourism and growing construction, mining, and logistics activities across several countries worldwide; therefore, automakers have introduced plans to expand its HCV business in potential regions to meet the increasing demand for HCVs at the global level. Rise in commercial vehicle leasing and rentals due to the growing demand for operating efficiencies and achievement of economies of scale by companies in various sectors are increasing the demand for automotive brake fluid during the forecast period.

Segmental Outlook On the basis of product types, the automotive brake fluid market is segmented into castor oil-based (preDOT, DOT 2), glycol-based (DOT 3,4,5.1), and silicone-based (DOT 5). The glycol-based (DOT 3,4,5.1) segment is expected to hold a significant share of the market, while the silicone-based (DOT 5) segment is projected to expand at a substantial CAGR during the forecast period. The DOT is classified as DOT 2, 3, 4, 5, and 5.1 in automotive brake fluids by its boiling point and chemical composition. Several grades of glycol fluids are utilized in majority of the motor vehicles. Moreover, maximum vehicles run on DOT 3. It has low water content, as the fluid marks corrosion in the brake system. The expense of substituting any component is important and replacing brake fluid is expected to help save costs. Brake fluids differ from vehicle to vehicle and factors such as vehicle production year, model, and type of braking system. Brake

pistons and cylinders experience wear and tear, increasing the need for frequent improvements in brake fluid, which is a key factor boosting the demand for automotive brake fluids during the forecast period.

The Glycol-based (DOT 3,4,5.1) segment was valued at USD 2,175.2 Mn in 2019 and is anticipated to reach USD 2,512.6 Mn by the end of year 2027. The Silicone-based (DOT 5) segment is expected to showcase growth at a CAGR of 1.8% during 2020-2027 to reach at USD 139.0 Mn by the end of the year 2027.

Silicone-based brake fluids are non-hydroscopic and do not absorb water. Also used in classic and antique cars and military vehicles, since silicone-based brake fluid does not corrode internal brake parts or damage paintwork.

Segmental Outlook On the basis of product types, the automotive brake fluid market is segmented into castor oil-based (preDOT, DOT 2), glycol-based (DOT 3,4,5.1), and silicone-based (DOT 5). The glycol-based (DOT 3,4,5.1) segment is expected to hold a significant share of the market, while the silicone-based (DOT 5) segment is projected to expand at a substantial CAGR during the forecast period. The DOT is classified as DOT 2, 3, 4, 5, and 5.1 in automotive brake fluids by its boiling point and chemical composition. Several grades of glycol fluids are utilized in majority of the motor vehicles. Moreover, maximum vehicles run on DOT 3. It has low water content, as the fluid marks corrosion in the brake system. The expense of substituting any component is important and replacing brake fluid is expected to help save costs. Brake fluids differ from vehicle to vehicle and factors such as vehicle production year, model, and type of braking system. Brake pistons and cylinders experience wear and tear, increasing the need for frequent improvements in brake fluid, which is a key factor boosting the demand for automotive brake fluids during the forecast period.

The Glycol-based (DOT 3,4,5.1) segment was valued at USD 2,175.2 Mn in 2019 and is anticipated to reach USD 2,512.6 Mn by the end of year 2027. The Silicone-based (DOT 5) segment is expected to showcase growth at a CAGR of 1.8% during 2020-2027 to reach at USD 139.0 Mn by the end of the year 2027.

Silicone-based brake fluids are non-hydroscopic and do not absorb water. Also used in classic and antique cars and military vehicles, since silicone-based brake fluid does not corrode internal brake parts or damage paintwork.

Regional Outlook On the basis of regions, the automotive brake fluid market is categorized as North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific accounts for a significant share of the market and is projected to expand at substantial pace during the forecast period due to the increasing rate of adoption of automotive braking fluid, rising production of automotive brake fluid in China and India, and rapid expansion of the automotive industry in the region. The market in North America and Europe is expected to grow at a significant pace during the forecast period due to the increasing demand for passenger vehicles in these regions. Latin America constitutes as key share of the market due to improving mineral mining practices and high investments in the mining industry. Chile and Peru are home to a large number of copper and gold mines, which is increasing metal exploration activities in the region. Favorable mining regulations are increasing the number of overseas investors, particularly in Peru, Chile, and Colombia. These, in turn, increase the demand for off-road vehicles, which drives the market in the region.

Asia Pacific was valued at USD 1,194.1 Mn in 2019 and is anticipated to reach USD 1,215.9 Mn by the end

of year 2027. The largest share of Asia Pacific region is attributed to the presence of some major automobile manufacturers who have partnered with automotive brake fluid manufacturing companies to market brake fluid products specific to one brand.

Competitive Landscape 

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The prominent manufacturers operating in the Automotive Brake Fluid market include BASF SE, Exxon Mobil Corporation, Chevron Corporation, China FAW Group Co., Ltd., China National Petroleum Corporation, Robert Bosch GmbH, Lubrication Engineers, COPTON Technology Co.,Ltd, Guangdong Delian Group Co., ltd., China Petrochemical Corporation, Kuwait Petroleum Corporation, Honda Motor Co., Inc, Prestone Products, DuPont, Gulf Oil L.P., Clariant, Motul, Castrol Limited and Knorr-Bremse AG. The global automotive brake fluid market is moderately consolidated in nature with the presence of key manufacturers located in North America, Europe and Asia Pacific. The threat of new entrants is expected to remain moderate during the forecast period. Opportunities for new players is moderate, as they need to adhere to a series of regulatory standards and inspections before product establishment.

In 2020, BASF SE unveiled a one-liter packaging of its premium brake fluid Hydraulan 404 for the aftermarket in China. The packaging is bilingual to directly address local consumer needs and provides comfort for China body shops. The braking system is one of the vehicle's most critical safety features. It needs to meet the high standards needed by automobile manufacturers, the automotive industry and the regulations on safety in the automotive sector.

Key Benefits for Industry Participants & Stakeholders       

In-depth Analysis of the Global Automotive Brake Fluid Market Historical, Current and Projected Market Size in terms of Value (USD Million), Volume (Tons) Potential & Niche Segments and Regions Exhibiting Promising Growth Covered Industry Drivers, Restraints and Opportunities Covered in the Study Recent Industry Trends and Developments Competitive Landscape & Strategies of Key Players Neutral Perspective on Global Automotive Brake Fluid Market Performance

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