Strategic Analysis of TMD Friction, 2025-2030

TMD Friction is Driving Transformational Growth through Advanced Friction Materials and EV-Centric Innovation to Lead the Future of Sustainable Braking

This profiling study highlights TMD Friction's evolution as a global leader in high-performance braking solutions, with a stronghold across the OE and aftermarket segments. The company's primary offerings encompass disc brake products and drum brake linings for both passenger vehicle and commercial vehicle segments. Backed by the trusted German industrial group, AEQUITA SE & Co. KGaA, TMD Friction brings together deep friction expertise with a diversified global presence. Additionally, its portfolio includes friction products for racing under different brands and industrial applications under the Cosid brand.

TMD Friction proactively addresses emerging industry needs by developing copper-free and low-emission pads, contributing to Euro 7 standards, and advancing EV-specific friction materials for regenerative braking. With the emphasis on sustainability and digitalization, the company invests heavily in materials innovation, clean manufacturing, and smart product development. This study examines TMD Friction's core capabilities, key innovation strategies, notable collaborations, and responsiveness to rapidly changing market conditions. As demand grows for sustainable and next-generation braking systems, TMD Friction's strong foundation and strategic direction position it well to capture value across the evolving mobility ecosystem.

Scope of Analysis

• This study investigates TMD Friction's key business strategies in the automotive market.
• The study explores TMD Friction's key business models, revenue streams, technology partnerships, growth partnerships, and market strategies in the global market.
• The research examines TMD Friction's product portfolio and provides a comparative analysis with market competitors.
• The study contains an in-depth analysis of current and potential challenges and the company's strategies for handling those challenges.
• The study analyzes potential growth opportunities for TMD Friction.

Vehicle Segments

Passenger vehicles

The Impact of the Top 3 Strategic Imperatives on TMD Friction

Transformative Megatrends

• Why: The accelerating global shift toward electric vehicles (EVs) and increasing regulatory demands for eco-friendly materials present both significant challenges and critical opportunities.
• Frost Perspective: This imperative is paramount for TMD Friction's long-term competitive viability. Success hinges on agile R&D cycles, effective commercialization of new materials, and securing deep integration with key original equipment manufacturer (OEM) platforms.

Customer Value Chain Compression

• Why: Digitalization and operational excellence are fundamental to enhancing efficiency, improving customer engagement, and strengthening supply chain resilience in a dynamic global automotive market.
• Frost Perspective: The company is in the process of implementing digitization strategies (e.g., virtual brake sets, Tektar Virtual Academy) and automating global supply chain processes for efficiency and responsiveness.

Innovative Business Models

• Why: Diversifying growth beyond traditional and mature markets into high-potential regions and new applications is vital for long-term revenue stability and reducing reliance on specific segments.
• Frost Perspective: Success will depend on executing nuanced regional strategies, building strong local distribution networks, and adapting products and marketing to varied competitive landscapes and consumer preferences.

Key Competitors

• OEMs
  • Robert Bosch GmbH
  • ZF Aftermarket (TRW)
  • Tenneco (Federal-Mogul)
  • ITT Corporation
  • MAT Holdings
  • Hitachi
  • Nisshinbo
  • Sangsin Brake
  • ADVICS
  • Shandong Gold Phoenix
  • GM (ACDelco)
  • Brake Parts Inc
  • BorgWarner (Delphi)
  • Fras-leAkebono
  • Continental (ATE)
  • Brembo
• Brake/Friction Systems
  • Brembo
  • Ferodo
  • ABS Friction
  • Raicam
• Specialized/Industrial
  • Cook
  • ProTec
  • CECO
  • ALL Frictions
  • American Friction
• Other Automotive Players
  • Centric
  • ZF
  • Aptiv
  • Hella Pagid
  • EBC

Competitive Environment

• Number of Competitors
  • 15+ competitors
• Competitive Factors
  • Quality, coverage, innovation, price, reliability, brand, locality
• Key End-User Industry Verticals
  • Passenger vehicles, commercial vehicles, racing and high performance vehicles, industrial applications
• Leading Competitors
  • Robert Bosch GmbH, ZF Aftermarket (TRW), Tenneco (Federal-Mogul), ITT, MAT Holdings, Hitachi, Nisshinbo, ADVICS, Brembo, ABS Friction, and BorgWarner (Delphi)*
• Revenue Share of Top 5 Competitors (2024)
  • 38%
• Other Notable Competitors
  • ABS Friction (Canada), Fras-Le (Brazil), Sangsin Brake (Korea), Shandong Gold Phoenix (China), and Brake Parts Inc
• Distribution Structure
  • Wholesale aftermarket distributors, OEM spares, racing teams, fleets
• Notable Acquisitions and Mergers
  • On 1 July 2025, TMD sold its Industrial Friction Materials division (including COSID(R)) to INNO FRICTION GmbH.

Growth Drivers

• Tightening Global Emission Norms (EU7, NA Regulations): Regulatory crackdowns on particulate emissions from brakes are accelerating OEM demand for copper-free, low-dust, and eco-compliant pads. TMD's R&D edge in green formulations positions it as a preferred partner.
• EV Penetration Driving Platform Shifts: Electrification is disrupting brake load cycles, requiring low-noise, corrosion-resistant, and thermally stable materials. TMD's EV-centric product innovation aligns with OEM shifts toward regenerative and hybrid braking systems.
• ESG-driven Procurement Strategies: Major OEMs are embedding environmental, social, and governance (ESG) metrics into their supplier selection processes. TMD's circularity initiatives (e.g., recycled backing plates, eco pads) enhance its appeal in an increasingly sustainability-driven procurement environment.
• Aftermarket Formalization in Emerging Markets: With increasing urban fleet density and tightening safety standards, aftermarket players are shifting toward branded, certified components-boosting demand for TMD's established product reliability and reach.

Growth Restraints

• Intensifying Price Competition: The aftermarket sector faces aggressive pricing pressures from both established competitors and low-cost new entrants that could erode company profit margins.
• CapEx-intensive R&D & Scaling: Development of copper-free, noise-reducing, and high-performance pads requires significant R&D investment and pilot testing infrastructure, which may constrain agility in responding to new demand trends.
• Supply Chain Disruptions: Unpredictable global logistics, geopolitical instability, and material shortages can delay production, impact customer satisfaction, and hinder growth objectives.
• Electrification/EV Adoption: The increasing market share of EVs reduces demand for traditional friction products due to regenerative braking systems, which could be a threat to brake friction suppliers such as TMD Friction.