As the automotive industry expands across the world, particularly in developing countries, the demand for friction products grows higher. Even though the market is expected to trend upward as a whole, vendors are likely to encounter many hindrances to their individual growth. One of the most significant of these challenges is the threat of low-cost competitors.
Presently, the competitive market for friction products is extremely fragmented between many vendors, including the following key players:
- ADVICS
- Akebono
- Brembo
- Carlisle Companies
- Federal
This dense competition makes it very difficult for any single vendor to dominate the market or experience any significant expansion.
Adding to this issue, the past few years have seen an increase in the number of low-cost products coming out of the APAC region. This availability of cheaper friction products overseas has a negative impact on the sales of international competitors.
Manufacturers can no longer rely on product-demand for sales growth. Instead, it is vital that they find new ways to differentiate themselves in order to maintain their position. With this in mind, a number of market trends have emerged to promote differentiation amongst vendors, including:
- Customized products to meet end-users specific requirements
- Next-generation products using latest technologies
- Developments of strategic alliances with OEMS
TechNavio reports that this more competitive than ever, and although it’s safe to expect a CAGR of 7.26 percent between the 2012-2016 period, there’s a good chance that we will see a rearranging of the market’s top ten key-players in the next few years. Simply put, times are changing in the Global Friction Products Market, and vendors must revisit and revamp their current strategies if they want to keep up.
Other Related Reports:
Global Automotive Turbocharger Market 2012-2016
Global Automotive Connectors Market 2012-2016
Global Automotive Interiors Market 2012-2016
