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Tires - Global Market Trajectory & Analytics

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    Report

  • 618 Pages
  • July 2022
  • Region: Global
  • Global Industry Analysts, Inc
  • ID: 338787

Global Tires Market to Reach 2.5 Trillion Units by 2026


Serving as the only point of contact between the road and the vehicle, tires represent the most important part of an automobile that influences safety, performance and ride experience. Key functions of a tire include vehicle load bearing; ensure safe grip with the road to keep the vehicle in the intended direction; provide a cushion to absorb road shocks and vibration; safely transfer traction, braking and torque forces to the road surface; guide direction of the vehicle and ensure steering stability. Tires directly and indirectly influence comfort, mileage, fuel consumption, CO2 emissions, traction performance, driving experience, and vehicle braking performance, among others. Growth in the global market is governed and supplemented by automobile production and technological advancements. The global tire market has exhibited decent gains in the recent years due to rising demand for passenger vehicles, especially in emerging economies, along with increasing sales of commercial vehicles, SUVs and two-wheelers. The market growth is also fueled by increasing adoption of replacement tires, rising sales of low-rolling resistance tires, expansion of the automotive industry and increasing per person ownership of automobiles. Recent technological advancements have resulted in more efficient and quality tires. While increasing number of infrastructure projects in developing and developed countries are driving the demand for construction vehicles, economic growth in emerging nations like India, China, Brazil and South Africa is anticipated to push the automotive tire market. Trends like experiential traveling and transition of vehicle owners from traditional to high-performance tires for higher comfort, safety and durability are slated to bolster tire demand. The growing popularity of electric vehicles due to increasing prices of oil and gas and increasing number of environmentally conscious consumers is expected to augment the automotive tire market.

Amid the COVID-19 crisis, the global market for Tires estimated at 2.1 Trillion Units in the year 2022, is projected to reach a revised size of 2.5 Trillion Units by 2026, growing at a CAGR of 4.4% over the analysis period. Radial, one of the segments analyzed in the report, is projected to record 4.6% CAGR and reach 2.2 Trillion Units by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Bias segment is readjusted to a revised 3.6% CAGR for the next 7-year period. Radial tires, though expensive than bias tires, hold several advantages over them and hence they dominate the tire market in the developed countries such as Japan and the US. Bias tires on the other hand still constitute a significant percentage of the tire production in developing countries, but are increasingly being replaced by the more efficient and effective radial tires. Radial tires along with bias tires are anticipated to also gain from increasing sale of two-wheelers, three-wheelers, passenger cars, OTRs, and medium to heavy commercial vehicles.

The U.S. Market is Estimated at 562.8 Billion Units in 2022, While China is Forecast to Reach 497.1 Billion Units by 2026


The Tires market in the U.S. is estimated at 562.8 Billion Units in the year 2022. China, the world's second largest economy, is forecast to reach a projected market size of 497.1 Billion Units by the year 2026 trailing a CAGR of 7.3% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.4% and 3.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.2% CAGR. The rate of tire radialization is a barometer of the extent of road development and vehicle engineering improvements in an economy, not surprisingly, in North America and Europe, the rate of radialization has reached 100%. Emerging markets still hold potential for growth in demand for radial tires. In India, for instance, relatively higher penetration of radial tires in the passenger cars market is more than offset by the less than 50% penetration in the light and heavy commercial vehicles sector. In China, on the other hand, although truck tire radialization has made encouraging progress, in other automobile categories including passenger cars and other commercial vehicles, penetration rates continue to be significantly lower providing untapped opportunities for future growth.

Select Competitors (Total 168 Featured):

  • Apollo Tyres Ltd.
  • Avon Tyres
  • Bridgestone Corporation
  • CEAT
  • Cheng Shin Rubber Ind. Co. Ltd.
  • Continental AG
  • Cooper Tire & Rubber Company
  • Giti Tire Pte. Ltd.
  • Goodyear Tire & Rubber Company
  • Hankook Tire Co., Ltd.
  • JK Tyre & Industries Ltd.
  • Kumho Tire Co., Inc.
  • Maxxis International
  • Michelin
  • MITAS A.S.
  • MRF
  • Nexen Tire Corporation
  • Nokian Tyres Oyj
  • Pirelli & C. S.p.A.
  • Shandong Linglong Tire Co., Ltd.
  • Sumitomo Rubber Industries, Ltd
  • Techking Tires Ltd.
  • Titan International, Inc.
  • Toyo Tire & Rubber Co., Ltd.
  • Trelleborg Wheel Systems Americas, Inc.
  • Yokohama Rubber Co., Ltd.
  • Zhongce Rubber Group Co., Ltd.

What`s New for 2022?

  • Global competitiveness and key competitor percentage market shares
  • Market presence across multiple geographies - Strong/Active/Niche/Trivial
  • Online interactive peer-to-peer collaborative bespoke updates
  • Access to the digital archives
  • Complimentary updates for one year

Table of Contents

I. METHODOLOGYII. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • 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
  • Tires - Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
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 PERSPECTIVEIII. MARKET ANALYSIS
UNITED STATES
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • 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
CANADA
JAPAN
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)
  • Overview of Japanese Tire Industry
  • Japanese Production of Automotive Tires (in Million Units) for the Period 2011-2018
CHINA
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
  • 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
EUROPE
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • 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
FRANCE
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)
GERMANY
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)
  • A Brief Insight into German Automobile Market
  • Market Overview
ITALY
UNITED KINGDOM
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
SPAIN
RUSSIA
  • Market Overview
  • Leading Tire Manufactures Invest in Russian Market
  • Passenger Car and OTR Tires Boost Market Demand
REST OF EUROPE
ASIA-PACIFIC
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • Automotive Industry in Asia-Pacific to Witness Steady Growth Helping Sustain Demand for OEM Tires
AUSTRALIA
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Australia for 2022 (E)
INDIA
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2022 (E)
  • 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
SOUTH KOREAREST OF ASIA-PACIFIC
LATIN AMERICA
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2022 (E)
  • Overview of Automobile Industry in Latin America
ARGENTINABRAZILMEXICOREST OF LATIN AMERICA
MIDDLE EAST
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Middle East for 2022 (E)
IRANISRAELSAUDI ARABIAUNITED ARAB EMIRATESREST OF MIDDLE EAST
AFRICA
  • Tires Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Africa for 2022 (E)
IV. COMPETITION
  • Total Companies Profiled: 168

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Apollo Tyres Ltd.
  • Avon Tyres
  • Bridgestone Corporation
  • CEAT
  • Cheng Shin Rubber Ind. Co. Ltd.
  • Continental AG
  • Cooper Tire & Rubber Company
  • Giti Tire Pte. Ltd.
  • Goodyear Tire & Rubber Company
  • Hankook Tire Co., Ltd.
  • JK Tyre & Industries Ltd.
  • Kumho Tire Co., Inc.
  • Maxxis International
  • Michelin
  • MITAS A.S.
  • MRF
  • Nexen Tire Corporation
  • Nokian Tyres Oyj
  • Pirelli & C. S.p.A.
  • Shandong Linglong Tire Co., Ltd.
  • Sumitomo Rubber Industries, Ltd
  • Techking Tires Ltd.
  • Titan International, Inc.
  • Toyo Tire & Rubber Co., Ltd.
  • Trelleborg Wheel Systems Americas, Inc.
  • Yokohama Rubber Co., Ltd.
  • Zhongce Rubber Group Co., Ltd.