A recent study by the market research firm Frost and Sullivan Inc. showed a steady increase in brake pad sales over the past year resulting in over eighty-nine million units sold. The study predicts a rising average vehicle age and higher prices for new products entering the aftermarket will increase brake pad revenues by up to 4.3 percent annually through 2019, totaling more than $2.1 billion in revenue.

Here’s the breakdown on overall brake sales:

• Brake pads in the “good” segment (defined as those without a shim, lowest grade of friction materials and limited warranty) represented about 15 percent of manufacturer revenues in 2012.
• Brake pads in the “better” segment (defined as those including a shim plus hardware and higher grade of friction materials) represented about 43 percent of manufacturer revenues.
• Brake pads in the “best” category (those including a molded shim, platform-specific friction materials and limited lifetime warranty) made up 42 percent of manufacturer revenues.

According to the report new product development and the weak U.S. dollar will drive brake pad prices higher and generate revenue growth for manufacturers. The average price for a single brake pad last year was $17.

Resource and full story at: TireBusiness.com