The global market for brake fluids is expected to register a CAGR of about 2% during the forecast period. The major factor driving the market studied is an increase in the production of electric vehicles. On the flip side, slow down in the global automotive production, and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- The commercial vehicle segment is expected to dominate the global brake fluids market over the forecast period.
- The Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period, owing to the consumption from countries, such as China, India, and Japan.
Key Market Trends
Increasing Demand from Light Commercial Vehicles
- Brake fluid is a type of hydraulic fluid used in all kinds of vehicles, such as passenger cars, light, and heavy commercial vehicles, tractors, and motorcycles, among others.
- Brake fluids are used in electric vehicles. The increase in the production of electric vehicles in recent times is basically driven by the initiatives taken by several governments toward zero-emission and eco-friendly vehicles, as well as growing consumer awareness.
- Furthermore, with the decreasing battery costs and subsidies from the governments, car buyers are finding it easier to afford electric vehicles.
- Many global automotive manufacturers, including Tesla, General Motors, Toyota, BME, Nissan, Ford, and Volkswagen, are investing in electric cars. These investments are expected to show results in the next 5-10 years.
- The demand for brake fluids is expected to grow moderately, owing to the slowdown of the automotive industry during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to account for the largest market for brake fluids during the forecast period.
- In the Asia-Pacific region, the governments have adopted favorable policies toward the adoption of electric vehicles and expanding the manufacturing infrastructure pertaining to electric vehicles. This, in turn, is anticipated to provide a huge impetus to the electric vehicle market in the Asia-Pacific region, during the forecast period.
- Even though the Chinese automotive market declined in 2019, the electric vehicle segment witnessed a huge growth.
- According to Autocarpro, the total electric vehicle sales in India in FY 2019 have been more than 480,000 units. This includes electric two-wheelers, electric three-wheelers, and electric passenger vehicles. This growth is majorly a result of the government's announcement in April 2019, about the FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme.
- However, the slowdown in the automotive industry in countries of the Asia-Pacific region is expected to hamper the growth of the market studied during the forecast period.
The global brake fluids market is partially fragmented. The major companies of the market studied include Total, Robert Bosch (France) SAS, Castrol Limited (BP), Exxon Mobil Corporation, and BASF SE, among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support