Find Out What Trends are Driving the 2.7 Billion Opportunity Market Projected for Tires
The global market for Tires is forecast to reach 2.7 billion units by 2025, driven by continuous developments in tire engineering particularly innovations surrounding tire tread technology.
Global Industry Analysts, Inc. (GIA) launches comprehensive analysis of industry segments, market trends, growth drivers, market share, size and demand forecasts on the global Tires market. Report segmentation include Product Type (Radial, Bias); Vehicle Type (Passenger Cars, Trucks, Buses, Two-Wheelers, Off-The-Road); and End-Use (Replacement, OEM).
10 June 10:09 A.M., California/Marketwire/ - According to the new market research report, the global market for Tires is forecast to reach 2.7 billion units by 2025, driven by continuous developments in tire engineering particularly innovations surrounding tire tread technology. The market is expected to decline in the year 2020 before recovering to reach a revised market size and reset to a new normal which going forwards in a post COVID-19 era will be continuously redefined and redesigned.
Long term macro factors driving growth in the market include healthy upswing in agrarian economies focused on mechanization and the resulting strong demand for agricultural vehicle tires; healthy recovery in the global construction industry, increased spending on construction vehicles and a parallel increase in demand for construction tires in the OEM market; strong demand for commercial vehicle tires at the back of growing investments in fleet expansion in the logistics industry; government focus on smart transportation, increased investment in BRT (Bus Rapid Transit) systems and the ensuing healthy demand for bus tires; and rising vehicle density and a commensurate expansion of addressable market opportunities for replacement tires in the aftermarket. Poised to score the highest gains in the market in the coming years will be premium and specialty tires with high speed, low rolling resistance, high insulation to reduce road noise, additional cushioning, and innovative tread grooves and patterns. Replacement demand remains critical to the market's growth given that most tires wearing out well before they get old. Although an average car tire is built to last 30000 to 50000 miles, replacement often kicks in much earlier. Few of the factors responsible for premature wear and tear include uneven and accelerated tire wear is caused by wheel misalignment; worn-out suspension; and improper tire inflation. Overloading of goods vehicles is another reason for premature tire tread wear on trucks, trailers and vans. Smart tires with in-built sensors for improved tire management capability will grow in prominence in the coming years.
Tire recycling also represents an important theme in the market given that most of the tires, after the end of their life cycle, end up in land fill sites, which in turn pose a major threat to the environment and human health as stockpiling and tire build-up results in leakage of toxins into the ground under damp conditions. The EU leads the race in implementing effective tire recycling systems by introducing regulatory mandates. The tire recycling percentage in EU is around 95% and is followed by Japan with 89% and Canada with 80%. Further, EU has already banned landfills, a strategy which is being followed by various countries in the world. Recycling in Europe is a massive and lucrative business and companies continuously invest in the development of innovative new recycling technologies. Tire manufacturers in the region are either taxed for the environmental pollution caused by tires or are obligated to participate in the deposit-and-return approach developed for generating funds to meet collection and recycling costs. Against a backdrop of rising emphasis on waste management, extended producer responsibility (EPR) is growing in popularity as governments seek to integrate the environmental costs of a product's lifecycle into the market price of the product. Asia-Pacific including China is a major market led by factors such as growing population, transportation needs and a parallel rise in vehicle PARC; robust growth of the logistics industry and the resulting expansion of transport vehicle fleet; growing per capita car ownership among the expanding base of middle class population; strong aftermarket opportunities fed by bad road conditions in emerging Asian economies and the increased risk of punctures; falling oil prices, increase in vehicle miles travelled and wear and tear of tires and robust replacement demand; continued trend towards radialization of commercial vehicle and passenger car tires in most emerging southeast Asian countries; growing stringency of safety regulations and consumer awareness over the fact that healthy tires equals safe rides and the resulting demand for smart new tires upgrades; growing importance proactive maintenance and replacements; and rise in environmental awareness and emerging demand for green tires.
Key Competitors Covered in the Report
Apollo Tyres Ltd.
Cooper Tire & Rubber Company
Giti Tire Pte. Ltd.
Goodyear Tire & Rubber Company
Hankook Tire Co. Ltd.
Kumho Tire Co. Inc.
Nexen Tire Corporation
Nokian Tyres Oyj
Pirelli & C. S.p.A.
Sumitomo Rubber Industries Ltd.
Techking Tires Ltd.
Toyo Tire & Rubber Co. Ltd.
Zhongce Rubber Group Co. Ltd.
Geographies Analyzed in the Report
Europe (France, Germany, Italy, UK, Spain, Russia, Rest of Europe)
Asia-Pacific (India, Rest of Asia-Pacific)
Latin America (Brazil, Rest of Latin America)
Rest of World
This latest edition of the research study is conducted and published by Global Industry Analysts, Inc., in close collaboration with senior executives in the industry driving strategy, business development, marketing, sales, product management, technology and operations. All analysis and findings published in the report are based on validated engagements from a total executive pool size of 1786. Among this pool, 321 direct interactions with domain experts were carried out via our proprietary market research platform, MarketGlass. Among the 71 unique participations, a total of 32 validated responses were received as part of this report's primary research outreach program. We are unique in the industry to provide our clients with the validated list executive engagements and the complete project data stack.
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