Driven By New Energy & Brake-by-Wire, Safety & Environmental Standards Upgraded

In early 2026, China's automotive brake pad industry is undergoing a resonance of technological iteration, market expansion and stricter standards. Driven by the popularization of new energy vehicles (NEVs), accelerated intelligent connected vehicles and the advancement of CHINA 7/EU 7 emission regulations, the industry is transforming from traditional friction components to lightweight, intelligent, low-emission and high-safety products. The market scale is growing steadily, while domestic substitution and global layout are accelerating simultaneously.

Steady Market Growth, NEVs Become Core Engine

According to industry research, China's brake pad market reached approximately 28 billion RMB in 2025, and is expected to maintain an annual growth rate of 4.8%-5.5% in 2026. Benefiting from 390 million vehicle ownership, the aftermarket grows at a CAGR of 8.2%. NEVs have become the core growth engine: high-end NEVs are equipped with ceramic composite brake pads as standard, whose friction coefficient decay rate under continuous braking is only 8.3%, far better than 21.7% of semi-metallic products. Carbon-ceramic brake pad installations are expected to reach 52,000 sets this year, with a CAGR exceeding 62%.

Export market keeps booming. Products from leading domestic enterprises are exported to more than 80 countries and regions, with strong demand along the Belt and Road. The proportion of compliant and high-end export products has increased significantly, and the overall profit margin of the industry rises steadily.

Accelerated Technological Innovation, Breakthroughs in Brake-by-Wire & Materials

2026 is regarded as the mass production year of EMB (Electro-Mechanical Brake). The new national standard GB 21670-2025 was officially implemented on January 1, clarifying EMB technical specifications, promoting the braking system to bid farewell to hydraulic pipelines, achieving millisecond-level response (<85ms) and supporting L3 and above autonomous driving. The penetration rate of EHB (Electro-Hydraulic Brake) in NEV passenger cars will exceed 50% within the year, with lightweight and high integration as standard features.

Material upgrading is accelerating: carbon-ceramic composites, copper-free NAO formulas and ceramic-based friction materials have become R&D priorities. Lightweight design meets vehicle weight reduction needs, with passenger car brake pad weight reduced by about 20% compared with 2025. Low dust, low noise and high wear resistance fully adapt to NEV energy recovery conditions. Domestic high-end formulas break foreign monopolies and supporting mainstream models such as BYD and NIO.

Meanwhile, intelligent sensing technology is applied. Wear monitoring sensors are embedded in brake pads to realize real-time status early warning, integrating into the vehicle health management ecosystem and improving active safety capabilities.

Stricter Policies & Standards, Accelerated Industry Restructuring

Safety and environmental regulations are tightening, forcing high-quality development of the industry:

• Full coverage of CCC compulsory certification, uncertified products are prohibited from production and sales, with laser-engraved unique codes for full-process traceability;

• The new national standard for truck disc linings tightens the friction coefficient decay rate after 100,000 brakings to ≤8.5%, with durability increased by 40%;

• CHINA 7 and EU 7 emission regulations promote the popularization of low-emission braking technology. Copper-free and green manufacturing have become rigid demands, and the proportion of recycled materials used by leading enterprises has risen to 41%.

Driven by policies, small and medium-sized production capacities are accelerating to exit, industry concentration is improving. Leading enterprises with core formulas, intelligent manufacturing and global certification highlight their advantages, with digital workshops and AI quality control as standard configurations.

Foreign Investment Increases in China, Deepened Domestic Substitution

In 2026, international braking giants accelerate their layout in China. TMD Friction (Germany) launched its China headquarters and Asian R&D center in Jiaxing, Zhejiang, focusing on R&D for NEV brake pads; companies such as AISIN are promoting localized ABS production to deepen the Chinese market.

Domestic enterprises exchange technology for market, achieving breakthroughs in ceramic formulas, sintering processes and brake-by-wire supporting. High-end brake pad shipments surge. Domestic substitution extends from the aftermarket to OEM supporting, from passenger cars to commercial vehicles and NEV-specific models, continuously enhancing the independent controllability of the industrial chain.

Industry Outlook: Safety, Environmental Protection & Intelligence Become Main Themes

In the next 3-5 years, the brake pad industry will deepen development around safety, environmental protection and intelligence: carbon-ceramic materials will continue to increase penetration, brake-by-wire will deeply integrate with autonomous driving, and green manufacturing and circular economy will be implemented across the chain. With the implementation of new regulations and technological maturity, the industry will bid farewell to low-price competition and enter a new stage of competition in technical barriers, brand value and global supply chains, providing core support for the safe, efficient and low-carbon development of the automotive industry.