Abstract
Growth in Unit Shipments of Imported Rotors Poses Strategic Challenges for the North American
Suppliers
North American manufacturers of rotors and drums are facing stiff competition due to the low-cost
imports from Asian and Latin American countries. Given the substantial cost advantages, prices for
economy or entry-level rotors and drums from these regions are about half the price of those
manufactured in North America. North American manufacturers would therefore, find it more
advantageous to offer rotors and drums for the premium segment while importing low-cost components
from overseas to supplement their product lines. In fact, in the long term, the focus is expected to
shift from low-cost to higher-priced rotors and drums that offer longer product life.
This Frost & Sullivan research service examines the North American brake system parts
aftermarket for rotors and drums. It also discusses the various market trends and opportunities
while providing in-depth analysis of market share, revenue forecasts, market drivers, and
restraints. Revenue projections and unit shipments help participants in targeting high growth areas
for maximum return on investment.
Demand for Rotors and Drums to be Supported by Growth in Aging Vehicle Population and Increased
Replacements
With the aging vehicle population in North America, demand for rotors and drums is expected to
show steady and incremental growth over the long term. In addition as brake system parts have become
increasingly lighter and thinner to support cost-saving efforts and reduce the overall weight of
vehicles, rotors and drums are expected to wear more quickly and therefore increase replacement
rates.
Another major trend that is likely to drive up replacements for rotors and drums is the shift
toward ceramic friction materials for brake components. "Ceramic friction parts are shown to be
slightly more abrasive on rotors and drums than the more traditionally used semi-metallic and
non-asbestos organic friction parts," explains the analyst of this research service. "As
ceramic friction continues to gain market share, the unit shipments of rotors and drums is expected
to show a steady increase."
Opportunities Expected in Premium Rotors and Drums Segment
With installers and vehicle owners showing increasing willingness to pay higher prices for
longer-lasting quality products, the premium rotor and drums segment is expected to emerge as the
key revenue generator. "Despite the impact of economy-line imports from overseas on price and
product life, quality is re-emerging as a competitive factor in the North American rotors and drums
aftermarket," reiterates the analyst. "Manufacturers will have more opportunities to
differentiate their products to attract new customers as in the case of drilled-and-slotted rotors
that have won a loyal following among racing enthusiasts."
The renewed interest in rear drum brakes, which are less expensive and lighter than disc brakes
and resolve automakers cost and fuel efficiency issues, is also expected to drive growth in the
future.
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