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"Overview of Automotive Tire market"
The Market for Automotive Tire Market is projected to register a CAGR of 6.3% during 2020-2028. This market is expected to be valued at approximately USD 685.6 Bn by 2028.
The growth of the automotive tire market is impacted by macroeconomic factors including consumer spending, GDP of country, currency conversion rates, automotive production and distribution market, and disposable income of consumers and export market. Moreover, the market is also influenced by the factor such as taxation on the foreign tire, policies on environmental considerations and cost inured on raw materials. The demand for the tire has been considerably increased due to rise in automobile purchases across the world.
Currently, there is a high competition among the tire manufacturers offering various types that are driving its market growth. Companies are also adopting advanced technologies to offer highly differentiated tire products to the end-users rising consumption levels. Automotive sold having a good life span thus, driving tire market during the after-sales period of vehicles. There is also a surge in the retreading market of a tire which is contributing to this industry's growth. The continuous fluctuation of rubber prices is impacting the production capabilities of tire companies. Such influence of raw materials prices is demanding for the technologically advanced tire that could overcome such issues.
Therefore, the contribution of advanced tire manufacturing of nanotechnology is contributing to a decrease in wear and tear surging its market growth. Such technology is being used in high-performance tires and regular tires that are in high demand in the industry. There are another kind of low-tech tires in demand recent times having a feature of discoloration when a tire is at its threshold limit of wear and tear. Such technological advancements have contributed to the growth potential of the tire market. Currently, the tire industry is surging its growth by the usage of bio-oils in manufacturing that could have a less ecological impact. Such advancements in the tire manufacturing process are boosting the demand for such an eco-friendly market. This is being observed because of governments’ policies reconsideration that is inclined with the policies.
Radial tire segment is expected to have a greater market demand during the forecast period
Depending on the design the tire is categorized into biased and radial among which radial is projected to be having higher demand in the industry. Because of the flexibility and durability of the radial tire the market has substantial growth during the forecast period. The technology it has enshrined allows for optimized power consumption by the vehicle because of which radial tires are considered as one of the highly demanded offerings in the market.
Biased tire constitutes of layers of rubbers over one other and hence it's heating during a ride is low allowing it to be at a moderate demand. There is a substantial amount of possibility for slipping of the tire because of layers present on a tire which is also a factor for its moderate demand among others. It has been observed that the demand for the biased tire segment is moderate whereas it is consistent in growth in light vehicles for heavy vehicles.
There is a good demand for retreading tires in the segment of light commercial vehicles contributing to the market growth. Retreading tires are also accounted to have similar benefits such as replaced tires at a low cost when compared to both. Moreover, the market for the retreading tires is procured with almost 30%-40% lesser and also has a similar warranty as of new tires in the market. There is a substantial amount of less oil consumption for retreading of used tires in the market impacting the demand for new tires. It has been accounted that the prices for the new tires are double to the retreaded tires in the market.
Asia-Oceania to have a substantial growth of Tires for Original Equipment:
There is a substantial growth of the tire market for original equipment due to increased disposable income, vehicle sales and changing in customer preference along with the advantages of cost reduction to the original equipment manufacturers. This region is significant in the low cost of production and labor costs along with the latest safety norms and government policies are forging tire market at a good market level. Asia-Oceania also has a substantial amount of foreign direct investments being boosted which are not only contributing to the tire industry but also automotive. Due to such reasons, the market for Asia-Oceania is estimated to be having a considerable amount of growth in contrast to developed regions of the world. In some regions such as North-America has stringent end of life vehicle policies enforced leading to limiting the growth of the tire market. There are also some proposals of giving incentives to the owners of vehicles who scrap after a specified period of vehicle lifetime. Such an initiative shall restrain the growth of the market tire retreading in recent times.
One of the world's largest players in tire manufacturing market is Bridgestone Corporation, headquartered in Tokyo, Japan. It is expanding its market presence in India with an investment of about Rupees 350 Crore boosting its production capability to 20,000 times a day.
Some of the key players in tire manufacturing industry are Continental AG, Pirelli & C. S.p.A., Michelin, The Goodyear Tyre & Rubber Co. Sumitomo Rubber Industries Ltd., Madras Rubber Factory Limited, The Yokohama Rubber Co. Ltd., JK Tyre & Industries Ltd., CEAT Ltd., among others are also having vital role in the automotive segment worldwide.
Key segments of Automotive tire market
- Radial Tire
- Bias Tire
By Vehicle Type
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- North America
- Asia Pacific
- Latin America
- Middle East & Africa