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The automotive brake fluid market size is forecast to increase by USD 317.14 million at a CAGR of 2.95% between 2023 and 2028.
The market growth hinges on several factors, notably the increasing number of vehicles in operation, particularly in the Asia-Pacific region. This surge in vehicle ownership drives the demand, especially in APAC markets. Additionally, there's a growing emphasis on safety measures aimed at reducing injuries and fatalities resulting from accidents. As awareness regarding road safety intensifies globally, the demand for reliable brake fluid to ensure efficient braking systems rises correspondingly. APAC's burgeoning automotive market, coupled with the region's focus on safety regulations and measures, propels the demand. This convergence of factors underscores the pivotal role it plays in ensuring vehicle safety and underscores its significance in the automotive industry's growth trajectory. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018 - 2022, besides analyzing the current market scenario.
Study Period |
2024-2028 |
Base Year For Estimation |
2023 |
CAGR |
2.95% |
Forecast period |
2024-2028 |
Fastest Growing Region |
APAC at 49% |
Largest Segment |
Channel |
In the market, products like engine oil are crucial components for hydraulic braking systems found in passenger cars. They typically exhibit a clear or light yellow color and are often formulated with polyethylene glycols for optimal performance. These fluids ensure proper operation of various components, including brake liners, main hydraulic cylinder, wheel cylinder, and brake caliper. As technology advances, there's a growing demand for high-performance fluids to address challenges like metal corrosion prevention and the integration of hydraulic brakes with falling battery prices in electric vehicles. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The growing number of vehicles in use is the key factor driving the market. The market is growing owing to numerous factors. One is the increasing number of vehicles (or vehicles-in-use) across the world, which is leading to high consumption in the market during the forecast period. Global automotive sales were slightly higher in most regions across the world in 2022. For instance, in 2022, the number of registered passenger cars in the EU reached almost 253 million, which was an increase of 7% over 2017, according to the European Union. In addition, the increasing lifespan of vehicles is also playing a crucial role in driving the number of vehicles on the road and is increasing the demand for automotive brake fluid.
For instance, modern vehicles with more rigid construction and durable braking systems need to undergo regular maintenance at certain intervals, which was not the case with previous generation vehicles. This is leading to an increase in the lifespan of vehicles, as consumers can keep their vehicles in operation for a longer time, thereby driving the demand for automotive brake fluids. Therefore, owing to an increase in the number of vehicles in operation, the global demand is increasing, which, in turn, will drive the growth of the market during the forecast period.
The growing popularity of EVs is the primary trend shaping the market. The demand for EVs has increased significantly in the last couple of years, driven by emerging economies. This acts as a driving force for the growth of the market in focus during the forecast period. The outlook for the market in the EV (including plug-in hybrid) segment looks promising at present. The share of EVs in total sales in the overall automotive sector has more than tripled in three years, from around 4% in 2020 to 14% in 2022.
Additionally, in 2023, EV sales in China reached 8 million units, according to the International Energy Agency. Such developments are expected to increase the adoption of special brake fluids like DOT 5.1 fluids. The adoption of EVs for public transportation is becoming popular globally, and there has been a rising demand for electric buses as well. Thus, the growing demand for EVs is expected to increase the demand for specialized automotive brake fluids, which, in turn, is anticipated to propel the growth of the market in focus during the forecast period.
Volatility in raw material prices is the major challenge that affects the market growth. Ethylene oxide is the main raw material used in the production of ethylene glycol, which is the major raw material for manufacturing such fluid. Ethylene is the major raw material used for the production of ethylene oxide. The oil and gas industry is one of the major suppliers of ethylene for the production of ethylene glycol. Therefore, fluctuations in crude oil prices will affect the prices of petroleum fraction products, including that of ethylene glycol, which will subsequently have a negative impact on the overall cost of production.
For instance, the global crude oil price was around USD 75 per barrel in January 2022. In July 2022, global crude oil prices reached USD 104 per barrel and, thereafter, declined to USD 72 per barrel in June 2023. Such wide fluctuations in the global prices of crude oil have led to uncertainty in demand for ethylene glycol that is required to manufacture. Therefore, the heavy dependence of the market on crude oil prices is expected to hinder market growth during the forecast period.
The market serves automotive applications by providing vital lubrication for hydraulic braking system and clutches. It must withstand corrosive conditions and high temperatures, boasting a boiling point crucial for safety. Typically clear or light yellow in color, it operates within passenger car and other vehicles' mechanical elements, such as brake pads and rotors. Key players like Valvoline offer high performance fluids, ensuring metal corrosion prevention and optimal hydraulic brake function.
The market share growth by the OEM segment will be significant during the forecast years. The OEM segment is experiencing increased adoption of brake fluid due to the global rise in passenger and commercial vehicle production. Automotive OEMs oversee brake system installation and maintenance, driving demand for high-quality brake fluids.
The OEM segment accounted for USD 1.09 billion in 2018. Furthermore, factors such as low lifecycle costs contribute to the segment's growth. Leading manufacturers like BASF and DuPont collaborate closely with OEMs to ensure brake fluid quality and compliance with safety standards. This tight control over production and testing assures superior product quality, fostering growth in the OEM segment and the overall market during the forecast period.
The passenger cars?segment will account for the largest share of this segment.?The growth of the passenger vehicles segment is fueled by the extensive use of brake fluids worldwide. Their replacement intervals vary based on vehicle type and OEM specifications. Mineral-based brake fluid is common in gasoline and flex-fuel vehicles, while synthetic brake fluid is favored in high-performance vehicles. Leading vendors like BP, Exxon Mobil, and Chevron offer a range of brake fluids that meet regulatory standards. Strict regulations, like the Federal Motor Vehicle Safety Standard in the US, further drive passenger vehicle brake fluid adoption.
APAC is estimated to contribute 49% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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In APAC, market growth is primarily fueled by developing economies like India and China, as well as established automotive markets such as Japan and South Korea. Increased sales of passenger vehicles in these regions are boosting demand, especially synthetic varieties. Government support for electric vehicles (EVs) in India and China, with plans to deploy thousands of electric buses and increase EV market share, further drives demand. The region's rapid economic development, rising per-capita income, and preference for vehicles from local manufacturers like Toyota, Nissan, and Honda contribute to sustained market growth, alongside safety concerns and the expanding vehicle fleet.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
AutoChemie Bitterfeld GmbH, BASF SE, BP Plc, Chevron Corp., China Petroleum and Chemical Corp., Clariant International Ltd., DuPont de Nemours Inc., Exxon Mobil Corp., FUCHS PETROLUB SE, Granville Oil and Chemicals Ltd., Guangdong Delian Group Co., Ltd., Hinduja Group Ltd., HKS Co. Ltd., Indian Oil Corp. Ltd., Lubrex FZC, Saudi Arabian Oil Co., Shell plc, TotalEnergies SE, and ZF Friedrichshafen AG
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Automotive brake fluid is a type of hydraulic fluid that is used as a fuel in braking systems in automobiles. It is responsible for stopping a vehicle when the brakes are applied.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is essential for ensuring vehicle safety and compliance with stringent vehicle safety standards. It comprises various types such as DOT 3 Glycol, DOT 4 Glycol, and DOT 5 Silicon, each with unique chemical compositions tailored for specific applications. These fluids, often containing glycol ethers or silicon, are crucial for maintaining optimal brake performance by lubricating pistons and cylinders while minimizing brake fade and noise. They find use in diverse vehicles, from antique cars to heavy-duty trucks and race cars. With the advent of brake by wire and advanced driver assistance systems, the demand for brake fluids that ensure deterioration resistance and brake fade reduction is increasing. This market serves various distribution channels, including automobile service centers, workshops, and retailers, catering to both professional and DIY consumers.
Further, the market encompasses a vital component in vehicle safety and performance. It consists of various types, such as glycol fluid and silicon-based fluid, each tailored with specific chemical compositions like borate compositions to meet diverse automotive needs. From collector cars to heavy-duty vehicles and delivery trucks, brake fluid ensures optimal braking performance across a wide range of vehicles. Weekend cars and medium to large-sized cars rely on high-quality brake fluid to maintain safety on the road. The market caters to both professional and DIY consumers, offering products through automobile service centers, general retailers, and gasoline retailers. Advanced technologies such as anti-lock brake systems and electronic stability programs further drive the demand for brake fluids that prioritize noise elimination and water content resistance, exemplified by products like Valvoline EV Brake Fluid.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.95% |
Market Growth 2024-2028 |
USD 317.14 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.31 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADVICS, AutoChemie Bitterfeld GmbH, BASF SE, BP Plc, Chevron Corp., China Petroleum and Chemical Corp., Clariant International Ltd., DuPont de Nemours Inc., Exxon Mobil Corp., FUCHS PETROLUB SE, Granville Oil and Chemicals Ltd., Guangdong Delian Group Co., Ltd., Hinduja Group Ltd., HKS Co. Ltd., Indian Oil Corp. Ltd., Lubrex FZC, Saudi Arabian Oil Co., Shell plc, TotalEnergies SE, and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Channel
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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