-- Currently confined to the premium segment, EPB systems are expected to trickle down to economy and non-premium segments by 2021
SHANGHAI, Sept. 26, 2014 /PRNewswire/ -- The influx of world-class vehicles in the Chinese passenger vehicle space along with the rising purchasing power of Chinese consumers is propelling the electric parking brakes (EPB) market in the country. The integration potential of EPB systems with electronic stability control and advanced driver assistance systems will further steer EPB uptake.
New analysis from Frost & Sullivan, Analysis of the Chinese Market for Electric Parking Brakes, expects the market to register a compound annual growth rate (CAGR) of 13.3 percent to reach over €257.9 million in 2021. Unit sale volumes will near the 7 million mark. The non-premium vehicle segment is likely to account for two of every three Euros spent on EPB. Multi-purpose and B segment vehicle segments, in particular, will record a CAGR of more than 40 percent. The caliper integrated EPB is likely to be the most preferred, while the cable puller EPB is expected to witness five-fold growth in terms of volume uptake.
"Despite low awareness among consumers on the benefits of EPB systems, diligent efforts by OEMs to educate end users on state-of-the-art convenience features is paving the way for EPB adoption in China," said Frost & Sullivan Automotive and Transportation Research Analyst Kamalesh Mohanarangam. "OEMs are also pressurizing suppliers to develop low-cost EPB systems to cater to the price-sensitive Chinese passenger car market."
Even if Chinese OEMs offer EPB on rebadged vehicle models from their global OEM joint-venture partners, it is highly improbable that consumers will purchase bolt-on EPB options despite the decreased domestic cost of ownership. This is perhaps because buyers tend to opt for such optional packages based on brand equity and the aura of exclusivity that can be associated with premium brands. This aura will be missing from lower-priced domestic offerings.
"Hence, global suppliers must innovate with product lines engineered to suit both ends of the spectrum, covering low-cost Chinese vehicle platforms and top-of-the-line premium vehicles," advised Mohanarangam. "This will also insulate their product lines from being imitated by competitors or market miscreants."
To that end, global suppliers are actively investing to expand their operations as they recognize the immense potential for EPB in the country. Global OEMs and their local partners will account for 85 percent of EPB sales in 2021 in the competitive Chinese market.
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Analysis of the Chinese Market for Electric Parking Brakes is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Commercial Vehicle Telematics Market in China, Chinese Market for Passenger Car Advanced Driver Assistance Systems, and 2014 Automotive Outlook for China. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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