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Tires - Global Market Trajectory & Analytics

  • ID: 338787
  • Report
  • September 2020
  • Region: Global
  • 618 Pages
  • Global Industry Analysts, Inc
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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. 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.

Competitors identified in this market include, among others:
  • Apollo Tyres Ltd.
  • Bridgestone Corporation
  • Continental AG
  • Cooper Tire & Rubber Company
  • Giti Tire Pte. Ltd.
  • Goodyear Tire & Rubber Company
  • Hankook Tire Co., Ltd.
  • Kumho Tire Co., Inc.
  • Maxxis International
  • Michelin
  • 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. (China)
Note: Product cover images may vary from those shown
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I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Impact of Covid-19 and a Looming Global Recession
  • Automotive Tires: An Introduction
  • Definitions of Key Tire components
  • Elements of Tire Designing
  • Dynamics of Design Element of Tires
  • Trade-Off between Fuel-Efficient and Non-Fuel-Efficient Tires
  • Developments in Design
  • Tire Composition: Percentage Breakdown of Components by Weight for Passenger Car and Truck Tires
  • Types of Automotive Tires
  • Radial Tires
  • Bias Tires
  • Belt Cord Construction for Passenger Tires for Replacement and OEM Market: Percentage Composition by Material Type
  • Body Cord Construction for Passenger Tires for Replacement and OEM Market: Percentage Composition by Material Type for Radial and Bias Ply Tires
  • Advantages of Radial Tires over Bias Tires
  • Wide-Base Tires
  • Tire Classification and Segmentation by Vehicle Type
  • Passenger Car Tires
  • Bus Tires
  • Truck Tires
  • Two Wheeler Tires
  • Off-The-Road Tires
  • Tire Recycling
  • Growing Volumes of Reclaimed Rubber Highlights the Progressive Improvements Made in Scrap Tire Recycling: Global Reclaimed Rubber Market (in Kilo Tons) for the years 2014, 2016 and 2022
  • Tires: The Most Important Part of the Automobile
  • Rising Automobile Production and Technological Advances Set Perfect Stage for Growth of Global Tire Market
  • Recent Market Activity
  • China and Other Developed Regions Exhibit Faster Growth Pace
  • World Tires Market by Region: Percentage Breakdown of Revenues for China, Other Emerging Regions and Developed Regions for the Years 2019 & 2025
  • World Tires Market: Geographic Regions Ranked by Value CAGR for 2018-2025
  • Stable Economic Scenario to Positively Influence Automotive Tires Market
  • Global Economic Outlook: Real GDP Growth Rates in % by Country/Region for the Years 2018 through 2021
  • Key Growth Drivers in Nutshell
  • Anticipated Increase in Vehicle Production
  • Increasing Automotive Sales
  • Rising Adoption of High-Performance Tires
  • Rising LCV Sales to Benefit Radial Tires
  • Extended Operating Lifespan of Vehicles
  • Increasing Competition and Sophisticated Manufacturing Processes
  • Coronavirus Outbreak Catches Automotive and Tire Industries Off-Guard
  • Competitive Landscape
  • Bridgestone & Next Door Rival Michelin Fight It Out for Market Supremacy: Market Share Breakdown of Leading Players in the Global Tires Market for the Year 2019
2. FOCUS ON SELECT PLAYERS
  • Apollo Tyres Ltd. (India)
  • Avon Tyres (UK)
  • Bridgestone Corporation (Japan)
  • CEAT (India)
  • Cheng Shin Rubber Ind. Co. Ltd. (China)
  • Continental AG (Germany)
  • Cooper Tire & Rubber Company (USA)
  • Giti Tire Pte. Ltd. (Singapore)
  • Goodyear Tire & Rubber Company (USA)
  • Hankook Tire Co., Ltd. (South Korea)
  • JK Tyre & Industries Ltd. (India)
  • Kumho Tire Co., Inc. (South Korea)
  • Maxxis International (Taiwan)
  • Michelin (France)
  • MITAS A.S. (Czech Republic)
  • MRF (India)
  • Nexen Tire Corporation (South Korea)
  • Nokian Tyres Oyj (Finland)
  • Pirelli & C. S.p.A. (Italy)
  • Shandong Linglong Tire Co., Ltd. (China)
  • Sumitomo Rubber Industries, Ltd (Japan)
  • Techking Tires Ltd. (China)
  • Titan International, Inc. (USA)
  • Toyo Tire & Rubber Co., Ltd. (Japan)
  • Trelleborg Wheel Systems Americas, Inc. (USA)
  • Yokohama Rubber Co., Ltd. (Japan)
  • Zhongce Rubber Group Co., Ltd. (China)
3. MARKET TRENDS & DRIVERS
  • Bad Road Conditions & Increased Risk of Punctures Drive Demand for Run-Flat Tires & Self-Sealing Tires
  • Hitting Saturation in Developed Countries, Radialization Continues to Bulldoze Growth in Tire Markets in Emerging Countries
  • China Leads Tire Radialization Growth in terms of Domestic Consumption and Exports: Chinese Production of Passenger Car Radial (PCR) and Light Truck Radial (LTR) Tires (In Million Units) for the Years 2012, 2015, 2018, 2020 and 2025
  • Airless Tires Emerge Over the Horizon
  • Tire Replacement Needs among the Growing Global Vehicle Population Drives Opportunities in the Aftermarket
  • Rising Vehicle Density Expands the Addressable Market for Replacement Tires in the Aftermarket: Global Passenger Car & Commercial Vehicle Population (In Million Units) for the Years 2017 and 2020
  • Tire Aftermarket, a Cyclical Market Dependent on the Replacement Cycle: Automotive Tire Replacement Cycle (in Number of Years) by Region for the Year 2019
  • Retreaded Tires: An Important Niche in the Aftermarket
  • Automobile Production Trends Dictate Growth in the OEM Tires Market
  • Surplus Automobile Production Capacity Especially in China Bodes Well for Tire Demand in the OEM Market: Global Production Capacity of the Automobile Industry (In Million Units) by Region for the Years 2017 and 2022
  • Growing Investments in Fleet Expansion in the Logistics Industry Against the Backdrop of Improving Trade to Benefit Demand for CV Tires
  • Improving Outlook for Intra-Regional & Inter-Regional Trade Expands Establishment of Inland Logistics Hubs
  • A Futuristic Eco-Friendly Tire Concept, Airless Tires Continue to Elicit Development Focus from Leading Tire Manufacturers: Global Market for Airless Tires (In US$ Million) for the Years 2018 and 2024
  • eCommerce Catalyzes Urban Logistics
  • What Does it Mean for the CV Tires Market?
  • Projected Expansion of Vehicle Fleet Supported by the Growth in E-Commerce Logistics to Benefit Demand for Commercial Vehicle Tires: Global E-Commerce Logistics Market (In US$ Million) for the Years 2018 and 2023
  • Focus on Smart Transportation & Increased Investments in BRT to Benefit Demand for Bus Tires
  • Popularly Referred to as Rail on Rubber Tires, BRTs to Generate Strong Demand for Bus Tires: Global Number of Heavy Duty Transit Buses (In 000) by Country for the Year 2018 and 2022
  • Need for Convenient & Affordable Urban Mobility in Developing Markets Drives Demand for Two Wheelers & Two-Wheeler Tires
  • As the Smart Choice for Urban Mobility in Crowded Cities, Projected Gains in Sales of Two Wheelers Catalyzes Demand Opportunities for OEM Two Wheeler Tires: Global Spending on Two Wheelers (In US$ Billion) by Geographic Region for the Years 2018 and 2022
  • An Overview on Off-The-Road (OTR) Tires Industry - The Niche Market Segment
  • Strong Demand Cues and Rising Mechanization to Impel Off-The-Road Tire Market
  • New Tire Materials Present Expansion Opportunities
  • Construction & Mining Equipment Segment to Post Fastest Growth
  • Healthy Recovery in Global Construction Industry Bodes Well for Tires for Off-Road Construction Vehicles
  • As a Key Underlying Demand Driver, the Stable Outlook for the Construction Industry Strengthens the Baseline Growth Forecasts of Construction Vehicle Tires: Global Construction Spending (In US$ Billion) for the Years 2019, 2022, and 2025
  • Projected Need for Construction Vehicles in line With the Expected Recovery in the Industry’s Outlook to Expand the Market Opportunity for Construction Tires in the OEM Market: Global Spending on Construction Vehicles (In US$ Billion) by Vehicle Type for the Years 2017 & 2020
  • Strong Demand for below 31-Inch Tires
  • Original Equipment Continues to Hold Major Share
  • USA and Asia: The Key Markets
  • Technological Advancements Augment Market Growth
  • Product Innovation & Capacity Expansion Remain Key Strategies
  • Healthy Upswing in Agrarian Economies Drives Demand for Agricultural Vehicle Tires
  • Continuous Innovation in Farm Tires Targeted to Improve Performance to Benefit Growth Patterns
  • Projected Growth in CAPEX Spending on Agricultural Vehicles & Machinery Provides the Cornerstone for Growth of OEM Agricultural Tires: Global Sales of Agricultural Vehicles (In US$ Billion) by Type for the Years 2016 and 2020
  • High Performance Advanced Tires: Rising Automotive Production and Favorable Regulations Fuel Growth
  • Increasing Focus on Safety & Fuel Economy
  • Stringent Regulations for Fuel Economy & Vehicular Emission
  • Middle Class Population: An Indirect Growth Driver for Tires
  • As the Key Demographic Driver of Automobile Growth, Middle Class Population in Asia Represents the Most Prominent Indirect Demand Driver for Tires : Global Middle Class Population (In Million) by Geographic Region for the Years 2017, 2022 & 2030
  • Breakdown of World Middle Class Spending (In US$ Trillion) by Region for the Years 2017 & 2030
  • Technology Developments in Tire Cords Remain Crucial to the Tire Market
  • Strong Growth of the Tire Cord Market Bodes Well for the Tire Industry: Global Consumption of Tire Cord (In Metric Tons) By Material Type for the Years 2018, 2022 and 2024
  • Engineering Tire Tread Patterns, the Most Complex Part of Tire Engineering
  • Growing Role of Nanotechnology Offers Benefits That Cover the Entire Life-Cycle of Tires
  • Climate Change and Harsher Winters Drive Demand for Winter Tires
  • With Melting Oceans Causing Cold Winter Storms & Snowfalls, Demand for Winter Tires Receives a Major Boost: Global Sales of Winter Tire (In US$ Billion) for the Years 2015, 2017 and 2022
  • Innovation in Green Tire Construction, Vitally Important For Sustainable Growth of the Tires Market
  • Raw Material Pricing Scenario: A Major Determinant of Manufacturer Profitability
  • Natural Rubber (NR) Prices Begin to Strengthen After 4 Years of Price Erosion
  • Tight Supply of Synthetic Rubber (SR), Higher Prices Squeeze Manufacturer Profit Margins
  • Accounting for Over 45% in Total Cost of Tire Production, Rubber Prices Remain the Prime Determinant of Competitive Tire Pricing Capabilities: Percentage of Tire Raw Material Cost Breakdown by Material Type
  • Firming Up of Rubber Prices, Price Sensitivity in the Retail Tires Market & the Resulting Inability to Pass on Increased Cost to the Customer to Deflate Tire Manufacturers’ Profit Margins: Thailand and Malaysian Natural Rubber Prices (In US$ Per Kg) for the Years 2012, 2014, 2016, 2017 and 2018
  • EU Tire Regulations to Give Established Players a Much Needed Boost
  • Key Market Restraints and Challenges
  • Rising Adoption of Retreading Tires
  • Volatile Prices of Raw Materials
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

GEOGRAPHIC MARKET ANALYSIS

UNITED STATES
  • Market Facts & Figures
  • United States: An Important Market for Tires
  • Onshoring of Tire Manufacturing to Infuse New Optimism
  • A Glimpse of Recent Tire CAPEX Announcements in the US
  • US Tire Market (2019): Percentage Share Breakdown of Consumer Sales by Brand Type
  • US Truck Tire Replacement Market (2019): Percentage Breakdown of Annual Revenue by Category
  • Market Analytics
CANADA

JAPAN
  • Overview of Japanese Tire Industry
  • Japanese Production of Automotive Tires (in Million Units) for the Period 2011-2018
  • Market Analytics
CHINA
  • Market Overview
  • Presence of Huge Automotive Manufacturing Industry Makes China a Lucrative Market for Tires
  • Challenges Imposed on Chinese Tire Manufacturers by the EU Labeling System
  • Will Automotive Manufacturing Including Tires Shift From China to the United States?
  • Chinese Ministry to Push for Achieving Optimum Radialization
  • Market Analytics
EUROPE
  • A Major Regional Market for Tires
  • Factors Influencing the European Tires Market
  • Major Trends in Tire Manufacture
  • Low Rolling Resistance Truck and Bus Radial Tire Market
  • Small Companies Dominate in Specialized Niches
  • Government Laws Push Demand for Winter Tires
  • Upward Brand Mobility to Benefit in the Long Term as Grading System for Car Tires Take Effect in EU
  • Market Analytics
FRANCE

GERMANY
  • A Brief Insight into German Automobile Market
  • Market Overview
  • Market Analytics
ITALY

UNITED KINGDOM

SPAIN

RUSSIA
  • Market Overview
  • Leading Tire Manufactures Invest in Russian Market
  • Passenger Car and OTR Tires Boost Market Demand
  • Market Analytics
REST OF EUROPE

ASIA-PACIFIC
  • Automotive Industry in Asia-Pacific to Witness Steady Growth Helping Sustain Demand for OEM Tires
  • Market Analytics
AUSTRALIA

INDIA
  • Automobile Industry in India
  • Radialization Gains Prominence in India
  • Indian Tires Market (2019): Percentage Breakdown of Volume Production by Vehicle Segment
  • Percentage Penetration of Radial Truck and Bus Tires in the Indian Market for the years 2012, 2017 and 2020 by Category
  • India to Emerge as a Hub for Radial Tire Manufacturing
  • High Rate of Luxury Car Adoption Drives Demand for Radial Tires
  • Two Wheeler Tire - A Growing Market
  • TBR Tires Gain Consumer Attention
  • India: A Niche Market for Tire Materials
  • Competition
  • Market Analytics
SOUTH KOREA

REST OF ASIA-PACIFIC

LATIN AMERICA
  • Overview of Automobile Industry in Latin America
  • Market Analytics
ARGENTINA

BRAZIL

MEXICO

REST OF LATIN AMERICA

MIDDLE EAST

IRAN

ISRAEL

SAUDI ARABIA

UNITED ARAB EMIRATES

REST OF MIDDLE EAST

AFRICA

IV. COMPETITION
  • Total Companies Profiled: 119
Note: Product cover images may vary from those shown
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