KSA Air Brake System Market Outlook to 2030

KSA Air Brake System Market Overview

• The KSA Air Brake System Market has experienced notable growth, this is reflected by the global Air Brake System market reaching a valuation of USD 3 billion in 2023. This growth is primarily driven by the increasing demand for commercial vehicles and the stringent safety regulations implemented by the Saudi government. The ongoing development in infrastructure and the expansion of the logistics sector also contribute to the market's growth.
• The key players in the KSA air brake system market include Knorr-Bremse AG, WABCO Holdings Inc., Meritor, Inc., Haldex AB, and ZF Friedrichshafen AG. These companies have established a strong presence in the market through continuous innovation, strategic partnerships, and extensive distribution networks.
• In 2023, Knorr-Bremse and Nexxiot announced the launch of smart products to enhance rail connectivity starting in 2024. These include the Knorr-Bremse Node, Hub, and cloud services for new and existing trains. Smart analytics will improve train efficiency and punctuality. Knorr-Bremse expects significant growth, with Rail division revenues reaching the lower double-digit million-euro range by 2025.
• The Riyadh, dominates the KSA air brake system market. In 2023, Riyadh is dominating due to its strategic location, well-developed infrastructure, and high concentration of commercial activities. The region's robust logistics network and ongoing construction projects further contribute to its dominance in the market.

KSA Air Brake System Market Segmentation

The KSA Air Brake System Market can be segmented into three major segmentations which are as follows: 

By Product Type: The KSA air brake system market is segmented by product type into disc brakes, drum brakes, and combination brakes. In 2023, disc brakes held a dominant market share due to their superior performance and reliability in heavy-duty vehicles. The increasing demand for commercial vehicles equipped with advanced safety features drives the growth of this segment.

By Vehicle Type: The KSA air brake system market is segmented by vehicle type into trucks, buses, and trailers. In 2023, trucks dominated the market due to their extensive use in logistics and transportation. The growing e-commerce sector and infrastructure projects in KSA drive the demand for trucks equipped with reliable air brake systems.

By Region: The KSA air brake system market is segmented by region into North, South, East, and West. The Northern region is dominating the market due to its strategic location and concentration of commercial activities. In 2023, this region held the largest market share, driven by its robust logistics network, ongoing construction projects, and the presence of key manufacturing hubs. Additionally, significant investments in infrastructure development and transportation sectors further boost the demand for air brake systems.

KSA Air Brake System Market Competitive Landscape

KSA Air Brake System Market Major Players

• ZF Friedrichshafen AG: ZF's new brake system first showcased in 2023, eliminates the need for brake fluid. A combination of electric and hydraulic brake systems is also available. ZF offers the most comprehensive product portfolio of by-wire technologies for chassis systems in software-defined vehicles. For over 50 years, more than three billion ZF brake components have enhanced road safety. The electric vehicles benefit from up to a 17% increase in range through enhanced recuperation of braking energy.
• Meritor Inc.: In August 2023, Cummins acquired Meritor, a global leader of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. Under the terms of the agreement, Cummins paid $36.50 in cash per Meritor share, for a total transaction value of approximately $3.7 billion, including assumed debt and net of acquired cash.

KSA Air Brake System Market Analysis

KSA Air Brake System Market Growth Drivers:

• Increase of Commercial Registration: In 2024, the KSA air brake system market has seen significant growth, driven by a 59% year-on-year surge in commercial vehicle registrations, totaling over 104,000 in Q1 alone. This increase in demand underscores the expanding commercial vehicle sector, boosting the need for reliable air brake systems across the country.
• Stringent Safety Regulations: In 2024, the Saudi government is set to implement stricter safety regulations for commercial vehicles. All new commercial vehicles will be mandated to have advanced air brake systems to enhance road safety and reduce the risk of accidents. This regulatory push is expected to result in the installation of new air brake systems across the commercial vehicle fleet, driven by the government's commitment to improving traffic safety standards.
• Increase in Logistics and Transportation Activities: The logistics and transportation sector in Saudi Arabia is forecasted to grow continuously in 2024. This growth is propelled by the rise in e-commerce activities and the expansion of industrial zones. The heightened demand for efficient and safe transportation of goods will necessitate the use of reliable air brake systems, thereby driving the market growth.

KSA Air Brake System Market Challenges

• High Cost of Advanced Air Brake Systems: The cost of advanced air brake systems is expected to rise in 2024 due to increasing raw material prices and supply chain disruptions. This price hike can be a significant challenge for small and medium-sized enterprises (SMEs) in the logistics sector, making it difficult for them to adopt these systems.
• Supply Chain Disruptions: In 2024, the global supply chain is anticipated to face challenges due to geopolitical tensions and trade restrictions. These disruptions can affect the availability of essential components for air brake systems, leading to delays in production and delivery. The expected shortage of semiconductor chips, crucial for the manufacturing of advanced braking systems, will further exacerbate this issue.

KSA Air Brake System Market Government Initiatives

• Infrastructure Investment: From 2023, the government is investing heavily in infrastructure projects, with a total commitment exceeding $1 trillion, aimed at enhancing transportation networks and logistics capabilities. This investment is expected to increase the demand for commercial vehicles, including those equipped with advanced air brake systems.
• Public Transport Expansion: The overarching investment plan for the transport sector involves a substantial commitment of $147 billion over the next decade, aimed at various transport and logistics projects, including metro systems and improved public transport infrastructure.

KSA Air Brake System Market Future Outlook

The KSA air brake system market is projected to grow continuously by 2028, driven by continuous infrastructure development and the growing adoption of advanced braking technologies. The government's focus on enhancing road safety standards and the anticipated increase in commercial vehicle production will further propel market growth.

KSA Air Brake System Market Trends

• Increasing Adoption of Electric Commercial Vehicles: Over the next five years, the adoption of electric commercial vehicles in Saudi Arabia is expected to rise significantly. By 2028, this is driven by government incentives and the global shift towards sustainable transportation. This trend will necessitate the development of advanced air brake systems specifically designed for electric vehicles.
• Integration of IoT and Advanced Analytics: The integration of IoT (Internet of Things) and advanced analytics in air brake systems is projected to increase by 2028. These technologies will enable real-time monitoring and predictive maintenance, enhancing the safety and efficiency of commercial vehicles. This trend is supported by ongoing investments in smart transportation solutions as part of the Vision 2030 initiative.