Shimano set to profit from disc brake demand

Shimano’s stock value is at an all-time high, and is predicted to rise still further as the Japanese company is expected to cash in on the increasing demand for disc brakes now that the UCI, the sport's governing body, has relaxed its rules on disc brakes in the professional peloton, according to a report this week by the Financial Times.

According to the report, Shimano’s stock value has risen 500% since 2012, with the company enjoying a dominant 70% global market share for groupsets. It expected to receive a further boost from the 2016 Rio Olympics. In fact, the company has enjoyed a 10% revenue growth in every Olympics as far back as Atlanta in 1996.

- Disc brakes to be permitted in peloton in 2017

But it’s disc brakes that analysts suggest are a ‘roaring “buy” signal for Shimano’. Disc brakes have been tested in select professional road races this autumn, as the UCI has relaxed its rules regarding the use of disc brakes in a pro race, with a widespread roll-out predicted for 2017.

“The technology, say analysts, is then likely to eventually become standard in the amateur racing bike market — a boon for the handful of high-end disc brake suppliers, Shimano dominant among them,” reports the FT.

- Team Sky races with disc brakes for the first time

We’ve already seen the choice of disc-equipped road bikes explode in recent years, with most bike brands now offering at least one disc road bike, and some companies, like Giant, even making a wholesale change on key models.

Of the three big groupset manufacturers, currently only Shimano and SRAM offer a full hydraulic disc brake groupset, and it’s Shimano that is clearly the favourite choice with product managers and customers. Italian company Campagnolo has yet to show any sign of committing to a disc brake groupset, and risks being left behind.

- Review: Shimano BR-R785 road hydraulic discs