How ABS Has Contributed As
An Useful Trend In Automobile Industry
Automobiles are a boon to modern-day travel, facilitating easy transportation over long distances in a cost-effective manner on a daily basis. Brakes can be considered as the most basic part of any vehicle, and braking systems have evolved with the anti-lock braking system (ABS) emerging as the best standard for safety.
ABS is a system for anti-skid braking that is designed to enable vehicles to brake smoothly, even on wet and slippery surfaces by preventing the vehicle wheels from locking and therefore maintaining sufficient traction with the road surface. While earlier it was the onus of the drivers to avoid skidding on slippery roads, ABS boosts automobile security significantly, providing the vehicle drivers with greater control over the road.
Role Of ABS In Automobile Industry
The global ABS market outlook is immensely positive, and the market is expected to reach a value of $23 billion by 2021, with the global ABS demand estimated to be growing at a compound annual growth rate (CAGR) of 2.4 percent till 2022. The demand for ABS is driven by the automobile, electronics and smart consumer appliances sectors, with the automobile market growing at an overall rate of 5-6 percent, and the electronics and smart consumer appliances markets growing at a rate of 7 percent.
- The concept for the ABS, in the form of an anti-skid system, was developed in the early 1900s, but at the time the idea was developed for aircraft wheels. The value of having an anti-skid braking system in other vehicles, such as automobiles and motorcycles, evolved over the years and in 1978 the first production car using ABS was manufactured. Since then, the ABS market has grown at an exponential pace, from being promoted as a premium feature to becoming a necessary component of automobiles, mandated by the EU, the U.S., and India.
- ABS plays an integral role in promoting the safety of an automobile and the people inside the vehicle, especially where cars drive at high speeds, and regions with heavy rain, snowfall or any other form of slippery surface. In any case when the friction on the road is reduced, there is a greater risk for skidding. ABS promotes proper traction by serving as a traction control system between the vehicle tire and road surface. Regardless of whether the driver is experienced or a beginner, with ABS there is better control, reducing the risk of accidents.
- An automobile with ABS is more cost-effective than one without, due to several reasons. Since ABS is trusted for safety and is known to help prevent accidents, insurance companies tend to offer lower premiums for vehicles with ABS installed. An automobile with ABS is also considered to have better resale value because the benefits of ABS increase the appeal of the vehicle for the seller. As multiple governments around the world are moving towards mandatory ABS installation in vehicles, having an ABS-equipped vehicle reduces the risk of any penalty or additional installation costs. ABS is compatible with the recent trend of lightweight vehicles that are designed to reduce fuel consumption by having a lower vehicular weight.
- At a global level, ABS consumption is driven by the increase in disposable income for the middle-class populations in Asia, with China expected to continue to be a key driver for the ABS market in production and consumption. The demand for ABS from the automobile industry can be witnessed from across the world, in accordance with the growth of the automobile industry due to the importance of ABS. Supplier power is high in North America and the EU, and low in Asia, and the buyer power is low in North America, medium in the EU and high in Asia. Top global suppliers are Chi Mei, LG Chem, Styrolution, CNPC, and Formosa.
- Raw material accounts for 82 percent of the cost of manufacturing of ABS in North America, 80 percent in the EU and 86 percent in Asia. For buyers procuring lesser volumes of ABS, fixed margin-based pricing is the preferred model, with manufacturers aiming to maintain a 15-20 percent profit margin. Based on the change in raw material styrene prices and overall manufacturing costs, suppliers adjust the final prices. In index-based pricing, the changes in raw material prices are added at the time of review.
Apart from typical automobiles, ABS has been invaluable for motorcycles, making a major improvement in the safety of the other-wise considered to be dangerous two-wheelers. While automobiles have enough wheels for stability even if they do skid, if motorcycles skid, they risk falling down, dangerously harming the rider/s. ABS can be installed on one or both wheels and has helped in making two-wheelers safer.
Anti-lock braking systems, commonly known as ABS, have become an important part of the safety and security of automobiles, making an important contribution as a useful trend in the automobile industry. As the use of automobiles increases and the speed limits at which they can be driven, it’s more important than ever that all security precautions are taken. By preventing wheels from locking while braking, ABS makes it easier for drivers to maintain control over the vehicle.