Automotive Brake Fluid Market

• Increasing demand from light commercial vehicles is driving the market growth

All types of vehicles, including motorcycles, tractors, light and large commercial vehicles, and passenger cars, employ brake fluid, a form of hydraulic fluid. Electric cars make use of brake fluid. The current rise in the manufacture of electric vehicles is mostly due to government programs supporting low-emission and environmentally friendly automobiles as well as rising consumer awareness. Furthermore, car customers are finding it simpler to finance electric vehicles because to falling battery prices and government incentives.

Tesla, General Motors, Toyota, BME, Nissan, Ford, and Volkswagen are just a few of the international automakers making investments in electric vehicles. In the following five to ten years, these investments are anticipated to pay off. Due to the slowdown in the automobile industry during the course of the forecast period, the demand for brake fluids is anticipated to increase significantly.

There is a rising need for high performance fluids for automotive applications due to ongoing innovations and technological improvements in the automotive sector. Leading businesses strive to provide cutting-edge solutions that adhere to industry standards and requirements. For instance, BASF's HYDRAULAN® braking fluids are created to balance the strict safety standards needed by customers with the industry's present and future needs. High thermal stability, enhanced metal corrosion prevention, very low viscosity at low temperatures, improved elastomer compatibility, and superior lubrication are all features of the solution.

Valvoline announced the introduction of XEV in 2021, the company's first hybrid, plug-in hybrid, and pure electric car product line to be based in China. A collection of hybrid and electric vehicle fluids known as XEV includes brake fluids along with engine oil, battery protection fluid, and gearbox fluid. A product line for electric vehicles, including Valvoline EV Brake Fluid, was introduced by Valvoline in 2019.

The formulations were designed for modern anti-lock brake systems (ABS), electronic stability programs (ESP), and advanced driver assistance systems (ADAS), and they had high wet and dry boiling points, brake fade reduction, noise elimination, and low viscosity at low temperatures. Thus, driving the Automotive Brake Fluid market revenue.

The Global Automotive Brake Fluid Market Industry is likely to experience growth due to the rising production of vehicles worldwide. As manufacturers ramp up production to meet consumer demand, the need for brake fluid becomes paramount. In 2024, the market is projected to reach 1.36 USD Billion, driven by the increasing number of vehicles on the road. This trend is further supported by government initiatives promoting automotive manufacturing, particularly in emerging economies. The expansion of electric vehicles also contributes to this growth, as they require specialized brake fluids, thereby enhancing the overall market landscape.

The expansion of aftermarket services is likely to play a crucial role in the Global Automotive Brake Fluid Market Industry. As vehicle owners increasingly seek professional maintenance services, the demand for brake fluid changes and replacements is expected to grow. This trend is particularly pronounced in regions with a robust automotive service industry, where consumers prioritize quality and reliability. The availability of specialized brake fluid products in the aftermarket can also enhance consumer choice, further driving market growth. This shift towards professional maintenance services indicates a potential increase in brake fluid consumption, contributing to the overall market dynamics.

The Global Automotive Brake Fluid Market Industry is significantly influenced by stringent regulatory standards and safety norms imposed by governments. These regulations mandate the use of high-quality brake fluids to ensure vehicle safety and performance. Compliance with these standards often requires manufacturers to invest in superior brake fluid formulations, which can enhance market growth. As safety becomes a priority for consumers and manufacturers alike, the demand for compliant brake fluids is likely to increase. This trend is expected to contribute to a compound annual growth rate of 4.26% from 2025 to 2035, reflecting the ongoing commitment to vehicle safety.

An increasing awareness of vehicle maintenance among consumers is anticipated to bolster the Global Automotive Brake Fluid Market Industry. As vehicle owners become more informed about the importance of regular maintenance, including brake fluid replacement, the demand for high-quality brake fluids is expected to rise. This trend is particularly evident in regions where vehicle ownership is on the rise, leading to a greater focus on vehicle upkeep. Educational campaigns and workshops by automotive associations further emphasize the significance of brake fluid maintenance, potentially driving market growth. This heightened awareness aligns with the projected market expansion to 2.15 USD Billion by 2035.

Technological innovations in brake systems are poised to drive the Global Automotive Brake Fluid Market Industry forward. Advanced braking technologies, such as anti-lock braking systems (ABS) and electronic stability control (ESC), necessitate high-performance brake fluids. As these technologies become standard in modern vehicles, the demand for specialized brake fluids is expected to rise. The integration of smart technologies in braking systems may also lead to the development of new formulations of brake fluids, further expanding the market. This evolution indicates a shift towards more efficient and safer braking solutions, aligning with the projected growth to 2.15 USD Billion by 2035.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Automotive Brake Fluid market, dominated this market in 2022 (45.80%), due to the increased production of vehicles and the presence of key players in the area. A second factor boosting the expansion of the automobile sector in the region is the swift urbanization and economic development occurring in nations like China and India. The governments have implemented policies that are supportive of the use of electric vehicles and the development of the industry supporting them.

Consequently, it is projected that throughout the forecast period, this will significantly boost the market for electric vehicles in the Asia-Pacific region. Moreover, China’s Automotive Brake Fluid market held the largest market share, and the Indian Automotive Brake Fluid market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Automotive Brake Fluid Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The North America Automotive Brake Fluid Market is expected to register significant growth from 2023 to 2032. The growth of the North American automotive brake fluid market is being driven in large part by the rising demand for vehicles with sophisticated safety features. Government rules governing minimum vehicle safety standards are also essential in fostering industry expansion. Further, the U.S. Automotive Brake Fluid market held the largest market share, and the Canada Automotive Brake Fluid market was the fastest growing market in the North America region.

Europe Automotive Brake Fluid market accounts for the second-largest market share, Due to the high rate of automotive brake fluid adoption and the growth of the automotive industry in the area, there has been a surge in the manufacture of automobiles using automotive brake fluid, particularly in Germany and the U.K. Further, the German Automotive Brake Fluid market held the largest market share, and the U.K Automotive Brake Fluid market was the fastest growing market in the European region

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Brake Fluid market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Automotive Brake Fluid industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automotive Brake Fluid industry to benefit clients and increase the market sector. In recent years, the Automotive Brake Fluid industry has offered some of the most significant advantages to medicine.

Major players in the Automotive Brake Fluid market, including Robert Bosch GmbH, The China National Petroleum Corporation, Castrol, Exxon Mobil Corporation, Fuchs Petrolub SE, Royal Dutch Shell plc, China Petroleum & Chemical Corporation, Total S.A., Chevron Corporation, and Qingdao Copton Technology Company Limited, are attempting to increase market demand by investing in research and development operations.

Brakes India Private Limited is a pan-Indian corporation that serves all important clients, including several large international players in the automobile industry. Brakes India Private Limited, a member of the TVS-Santhanam group with more than 50 years of history and extensive experience, is preparing for the future to take advantage of opportunities. Since its founding in 1962, Brakes India has developed into India's top provider of brake systems.

With characteristics such a higher boiling point (over 255 degrees Celsius), low viscosity (above -40 degrees Celsius), and compliance with SAE J1704, FMVSS 116, and IS 8654 requirements, DOT 4+ brake and clutch fluid was introduced by Brakes India in 2019. The corporation claims that the solution was developed using substantial internal expertise and that fluids were tested in accordance with stringent guidelines.

Automobile component manufacturer Dexko Global Inc. The company provides shock absorbers, gas springs, trailer parts, axles, brakes, chassis, gear components, and systems. Worldwide clientele are served by Dexko Global. The company supplies axles, chassis, and other parts to manufacturers of trailers, recreational vehicles, and towable equipment all over the world through its two main subsidiaries (Dexter in the United States and AL-KO Vehicle Technology in Europe). Dexko announced plans to purchase Fluid-Press Group in July 2022.