Electric Parking Brake Market Analysis

Electric Parking Brake Market (Global, 2024)

Introduction

Electric Brake System Market - The electric parking brake market is experiencing a major transformation, driven by technological developments in the automobile industry and an increasing focus on safety and comfort in the design of cars. The shift from traditional mechanical systems to more sophisticated electrical systems is now underway. This is a consequence of the growing demand for better performance, more space and the integration of smart technologies that enable automated driving. Furthermore, the rising importance of the environment and the reduction of vehicle weight are driving the use of electric brake systems, which contribute to improved fuel efficiency and lower CO2 emissions. This is also reflected in the increasing diversity of applications in passenger cars, commercial vehicles and electric vehicles.

PESTLE Analysis

Political

In 2024 the regulations relating to the safety and emissions of motor cars are becoming increasingly strict, particularly in the European Union. The European Commission has decided that by 2025 all new cars must conform to a specified standard of safety. This includes the installation of advanced braking systems such as electric handbrakes, which are to be found in 80 per cent of new cars sold in the EU. Furthermore, the governments of many countries are encouraging the manufacturers to switch to electric vehicles. The US government, for example, has earmarked a budget of $ 7 billion for the development of electric vehicles and their charging stations.

Economic

By 2025 the world's automobile industry is expected to invest about $300 billion in electric vehicle technology, which will include the development of electric parking brakes. This investment is based on the growing demand for electric vehicles, which are expected to make up about 30 percent of all new vehicle sales in the United States by 2025. Also, the average cost of electric vehicle systems is expected to rise to about $200 per unit as the market moves towards automation and greater safety features.

Social

The public’s tastes are shifting towards more technically advanced and environment-friendly vehicles. A recent survey revealed that 65% of consumers would prefer a vehicle with advanced safety features, including electric reversing aids, to one with the traditional mechanical reversing system. Younger consumers are even more in favour of this trend, with 75% of those aged between 18 and 34 preferring a vehicle with advanced safety features. So to meet this demand, manufacturers are concentrating more and more on fitting their new models with electric reversing systems.

Technological

Electric braking is a rapidly developing field, with innovations such as brake-by-wire systems and improved control systems and controls. In 2024, it is estimated that 50% of new cars will have fully integrated electric handbrakes, which can communicate with the rest of the vehicle's systems and thus improve both safety and efficiency. In the same period, it is expected that the development of smart parking solutions will continue, with an estimated 20% of urban areas having introduced such solutions by 2025.

Legal

In 2024, various countries began to impose stricter regulations on car safety, including the compulsory installation of stability control systems which often included electric hand brakes. For example, the National Highway Traffic Safety Administration in the United States proposed that all new vehicles be fitted with advanced braking systems by 2025. Moreover, the fine for not complying with the regulations could be as much as one million dollars. As a result, manufacturers adopted electric hand brakes to meet the regulations.

Environmental

The electric car is also a matter of concern for the environment. Governments all over the world are trying to reduce carbon emissions. The European Union has set a target of reducing greenhouse gas emissions from transport by 55% by 2030. This is where the electric vehicle comes in. By reducing energy consumption and increasing the efficiency of the car, it reduces the use of fuel. It is estimated that the use of electric brakes would lead to a saving of up to 10% in braking energy. This is in line with international efforts to promote sustainable transport.

Porter's Five Forces

Threat of New Entrants

The Electric Brake Market in 2024 Presents a Moderate Threat of New Entrants. The market is growing, and advanced car technology is in great demand. However, the high cost of R & D and the strict regulatory environment will limit the emergence of new entrants. The strong brand and distribution network of the old companies will have a strong competitive advantage.

Bargaining Power of Suppliers

Suppliers in the market for electric hand brakes have low bargaining power. There are many different suppliers in the market and therefore no one supplier is in a dominant position. The increasing number of manufacturers and the availability of substitute materials further increase the competition between suppliers, which enables manufacturers to obtain better terms and prices.

Bargaining Power of Buyers

The buyers of electric reversing devices have a strong bargaining power. With a wide range of different brands and types, the customers can easily change suppliers. The growing importance of safety and performance of vehicles also gives the buyers the right to demand higher quality and more sophisticated products, which further increases their bargaining power against the manufacturers.

Threat of Substitutes

The threat of substitutes in the electric servo-brake market is moderate. Mechanical handbrakes are still in use, but consumers are increasingly turning to electric servo-brakes because of technological developments and their preference for comfort and safety. However, other braking systems and other new technology could appear that could compete with electric servo-brakes, especially if they offer better performance or are more cost-effective.

Competitive Rivalry

Competition in the Electric Brake Market is high as there are many established players and new entrants. The rapid development of technology and the demand for improved safety features are intensifying competition. The companies are investing heavily in R & D to differentiate their products from others. This is leading to aggressive marketing strategies and price competition, which is escalating competition in the market.

SWOT Analysis

Strengths

• Enhanced safety features reducing the risk of rollaway accidents.
• Increased convenience for drivers with automatic engagement and disengagement.
• Growing adoption in electric and hybrid vehicles aligning with industry trends.

Weaknesses

• Higher initial cost compared to traditional mechanical brakes.
• Potential for technical failures leading to safety concerns.
• Limited consumer awareness and understanding of the technology.

Opportunities

• Rising demand for advanced driver-assistance systems (ADAS) in vehicles.
• Expansion in emerging markets with increasing vehicle production.
• Technological advancements enabling integration with smart vehicle systems.

Threats

• Intense competition from traditional braking systems and alternative technologies.
• Economic downturns affecting automotive sales and investments.
• Regulatory changes impacting manufacturing and safety standards.

Summary

Electric braking is characterized by the significant advantages of safety and convenience and by the disadvantages of higher costs and the possibility of technical failure. Threats are posed by competition and by economic fluctuations. Opportunities can be turned into risks by strategic focus on consumer education and technological integration.