The Automobile Brakes Manufacturing industry has experienced improved demand over most of the five years to 2021.
Brake manufacturers supply brakes and braking systems to two primary markets, including original equipment manufacturing (OEM) industries, which purchase braking systems for new automobiles; and aftermarket industries, which retail braking components to consumers for maintenance.
Gains in household income and consumer confidence, combined with low interest rates and pent-up demand, has supported increased car demand and production.
However, these trends reversed in 2020 due to the COVID-19 (coronavirus) pandemic and its effect on the economy.
As a result, automobile manufacturers have drastically cut production to avoid the accumulation of unsellable inventory, causing industry revenue to drop sharply and offset other gains experienced during the period.
Therefore, industry revenue has decreased at an annualized rate of 0.3% to $12.1 billion over the five years to 2021, including an expected increase of 5.1% in 2021 alone.