Published on: January 17, 2020
A brake sensor is mounted on the brake pad and helps to warn the driver when the life of the brake pad is declining. The global brake sensor market is a part of the global semiconductor market, within the overall global semiconductors and semiconductor equipment market. The parent, global semiconductor market covers manufacturers of semiconductors and related products. We have defined semiconductor manufacturers as the companies that are involved in the production of integrated circuits (ICs) such as memory, logic, analog, and micro components; optoelectronics; sensors; and discrete semiconductors.
Our report encompasses a holistic analysis, market size and forecast, trends, growth drivers, challenges, as well as vendor analysis. The brake sensor market is estimated to grow at a CAGR of 6.5% between 2020-2024. North America is the largest market for brake sensors, but APAC is expected to have the highest growth rate during the forecast period owing to the increasing sales of passenger and commercial vehicles in the region. Similarly, based on vehicle type, the passenger car segment dominates the global brake sensor market owing to the increasing adoption of advanced features and electronics in passenger cars with the aim of increasing safety, security, and connectivity.
Global brake sensor market can be segmented into the following:
Many factors are expected to drive growth in the brake sensor market during the forecast period. Our analysis identifies the following factors to be driving the growth of the brake sensor market:
The automotive industry has seen an increase in the consumer demand for safety, fuel-efficiency, and reduction in emission levels in the interest of promoting a better commute and travel experience. An increase in the income level of consumers in developing regions has made personal mobility a necessity rather than a luxury. Also, stiff competition among manufacturers has resulted in penetration of sensor technology from the premium segment to the low- and mid-end segment. These factors have significantly impacted the automotive sensors market in a positive manner and are expected to further propel the market growth of brake sensors during the forecast period.
The range of consumer needs and OEM offerings have widened to include safety, performance, stability, and comfort. These parameters are being refined and improved constantly. This evolution has outgrown the utility of conventional mechanical components and fostered the growth of the automotive electronics market. The addition of special features in automobiles has become a way of showcasing product differentiation for sustaining competition and integration of electronic components plays a vital role in enhancing the features of an automobile. Advances in technology and the growing adoption of the same by end-users will further boost the penetration of electronic components in automobiles, thereby expanding the scope of brake sensors during the forecast period.
Advanced Driver Assistance System is an electronic system that aims to increase passenger safety. The continuous innovation in technology and rising consumer awareness about road safety have resulted in the increasing adoption of the ADAS system in vehicles. The governments are also investing in improving the communication infrastructure across the globe that assist the adoption of ADAS technology. For instance, in 2017, the US Transportation Secretary announced a new FHWA vehicle-to-infrastructure guidance to accelerate the deployment of V2I communication systems and help reduce crashes on highways with real-time data transfer among vehicles as well as between vehicles and elements of roadway infrastructure. The V2I communication infrastructure development in developing countries and improvements in existing technology in developed nations can assist the growth of the ADAS system in the coming years. The increasing adoption of the ADAS system will in turn positively influence the demand for brake sensors during the forecast period.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
The increasing availability of counterfeit products in the brake sensor market results in an uneven competitive scenario due to a lack of price standardization, thereby leading to market share erosion. Counterfeit products, which lack durability and quality, are sold at lower costs when compared with the products of original international brands. Therefore, key market competitors find it difficult to achieve optimum market penetration. Moreover, counterfeit products have a subsequent effect on the dilution of original brands, as the consumers cannot differentiate between counterfeit products and original ones.
The development of the automobile industry, in terms of technology and design, is dynamically changing based on customer preferences. The competition between auto manufacturers is a major reason to optimize operational costs and maximize profits. As there is an increase in the number of electronic components in an automobile, the overall manufacturing cost of the vehicle increases. Since, the auto manufacturers are making efforts to increase the company’s profits, OEMs are facing immense pressure to reduce costs. The pressure from the auto manufacturers is challenging OEMs to introduce advanced features without hiking the sticker price. This will affect the global brake sensors market in the low-end car segment during the forecast period.
The braking system is a vital component of an automobile and must be checked on a regular basis to ensure the proper functioning of the vehicle. As the vehicle operates at extreme conditions, such as hot and cold weather and up-hill and downhill terrains, repair and maintenance must be performed on a regular basis. But, the replacement cost of brake sensors is high due to factors such as high labor and service cost as experienced personnel is required to carry out the maintenance activity. Therefore, high maintenance and replacement cost of brake sensors may act as an impediment for its growth during the forecast period.
Our report on the global brake sensor market covers several large and small vendors active in the market including Bosch, Continental, DENSO, Sensata Technologies, TE Connectivity, and Hitachi Automotive Systems.
The following are some of the key developments mentioned in our global brake sensor market report:
Backed with competitive intelligence and benchmarking, our brake sensor market research reports are designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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