The high-speed rail brake pad is a kind of friction material, and the vehicle decelerates through the friction between the brake pad and the brake disc. High-speed rail brake pads are an indispensable component of high-speed rail and have regular replacement requirements. Therefore, the existing high-speed rail stock is part of the source of increase in the high-speed rail brake pad market.
Rapid Construction of High-Speed Rail
The high-speed rail has won the recognition of the general public with its high-speed and convenient features. This can be reflected in the activeness of cooperation in land acquisition and house demolition. Compared with ordinary railways, the public has a higher acceptance of high-speed railways and showed higher enthusiasm in the process of land acquisition and demolition. At the same time, local governments have also shown a stronger tendency in the construction of high-speed rail.
From a market perspective, the demand for railway passenger transport is growing rapidly, especially for high-speed rail. As the income level of residents increases, consumption power increases accordingly. Tourism, as an important choice for mass leisure, has vigorously promoted the development of the high-speed rail industry. However, considering the domestic high-speed rail supply situation, it is still hard to find a ticket during holidays. The high-speed rail network in the central and western regions has not yet smoothly connected with each other, and the transportation supply capacity is still insufficient. Superimposed more passenger transport has been transferred to high-speed rail, and domestic demand for high-speed rail will continue to be released.
Data show that in 2019, China has laid 8,489 kilometers of new railway lines, of which 5,474 kilometers are high-speed railways. The operating mileage of national railways exceeds 139,000 kilometers, of which high-speed railways account for 35,000 kilometers.
High-Speed Rail Brake Pad Market Is Growing Rapidly
High-speed rail brake pads are consumables that require regular replacement. In 2019, the total demand for brake pads for China's high-speed rail reached 2,893,100. Among them, the demand for brake pads for newly-added high-speed rail trains was nearly 78,500, and there was a demand for more than 2.8 million brake pads. The higher the speed of the train, the higher the demand for brakes. The data shows that the scale of brake pads for high-speed rail with speeds of 250 and below is 1.725 billion yuan, and the scale of brake pads for high-speed rails with speeds of 300 and above is 5.445 billion yuan.
With the steady advancement of China's high-speed rail business, the high-speed rail brake pad market has seen rapid growth. Data show that China's high-speed rail brake pad supply has increased from 1.832 million in 2015 to 2.975 million in 2019. The rapid development of the industry has attracted many domestic and foreign capitals. Foreign brake pad manufacturers have realized the localization of the Chinese market through wholly-owned or joint ventures. With technological advantages and brand effects, they have become the main suppliers of China's high-speed rail brake pads market. Before 2012, because high-speed railway brake pads were in the technical protection period, China used foreign products. That is because Chinese companies have no influence in the global market.
In recent years, local companies have increased their independent research and development efforts and continuously improved their production capacity. They have increased significantly on the basis of their original production capacity. The number of domestic manufacturers and the scale of production capacity are increasing. Domestic high-speed rail brake products have gradually entered the era of low prices, and the localization process has continued. accelerate. But overall, foreign brands still dominate the Chinese brake pad market. Data show that in 2019, of the total supply of brake pads for China's high-speed rail, only 563,000 pieces were produced by local independent brands, with a domestic production rate of 18.9%. There is still a lot of room for local companies to grow.
With the advent of China's large-scale acceleration, the requirements for brake pads are increasing. Manufacturers with core braking technology are expected to increase their own interest rates and continue to enjoy the dividends of industry development.
Local Industry Optimization and Upgrading
The era of high-speed rail is an important symbol of modern railway transportation. China's high-speed rail industry is developing rapidly, but the construction of high-speed rail is still ongoing. Under the influence of the topography, the underdeveloped regions lack high-speed rail transportation plans, and the overall construction level is lagging behind. Some regions still remain in the slow traditional train mode. Therefore, the growth potential of China's high-speed rail market is still huge.
China's High-Speed Rail Has a Significant Competitive Advantage
Based on the rich technical experience accumulated abroad and the huge market volume, China's high-speed rail has a significant cost advantage. The data shows that the cost of constructing a one-kilometer high-speed rail in China is between 17 million and 21 million US dollars; in Europe, this figure will rise to 25 to 39 million US dollars; in California, it is as high as 52 million US dollars. At present, whether it is in the field of railway construction or equipment manufacturing, China is globally competitive in terms of price and technology, and has obvious late-comer advantages.
China's High-Speed Rail Goes Out
In 2009, China formally proposed a strategy of high-speed rail going global. In 2013, General Secretary Xi Jinping proposed “the Belt and Road”. To support it, China invested 40 billion U.S. dollars to establish the Silk Road Fund. Not only that, China also proposes to devote itself to infrastructure investment and construction in the Asian region, provide financial, technical and talent support.
Not long ago, China and Iran reached a 25-year comprehensive cooperation agreement to strengthen the all-round cooperation between the two countries in the fields of economy, trade, energy and security. During the agreement period, China will substantially increase its investment in Iranian railways, energy, power, and agriculture. This has effectively accelerated the pace of China's railways going global. China's high-speed railways will go out more and more firmly.
The increase in the mileage of high-speed rail and the strategy of high-speed rail going global will become a strong driving force for the growth of the domestic brake pad market, and the scale of China's brake pad market is expected to continue to grow.
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