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Automotive Tires Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 100 Pages
  • April 2021
  • Region: Global
  • Mordor Intelligence
  • ID: 4771826
The automotive tires market was valued at USD 102 billion in 2020 and is anticipated to reach USD 122 billion by 2026, at a CAGR of more than 3% during the forecast period.

The COVID-19 pandemic has a significant effect on the automotive tires market directly in the short term as the production and sales of new vehicles witnessed a decline in 2020. Moreover owing to restrictions vehicle owners reduced the amount of driving that resulted into delayed visits for maintenance or tire replacement.

Growing focus toward fuel economy, rising demand for convenience and high maintenance or replacement costs of conventional tires is driving the growth of the automotive tires market. Another factor that is responsible for the growth of the industry is the adoption of cutting-edge manufacturing technology by OEMs to offer product differentiation through sustainability, durability and affordability.

The demand for retreading of tires is increasing at a significant rate. The retreading of tires helps to reduce the operating cost significantly in the aftermarket, as it helps to prevent the tires from a complete replacement, and thereby, is a cost-effective option. The casings can help to provide multiple life cycles, resulting in significant cost saving, especially for the commercial fleet operators.

Tire makers are turning to the utllize green energy in their production as companies are working to achieve carbon neutrality by 2050, with investments in the diresction into zero-carbon technology, energy efficiency and green energy. For instance, in February 2021, Michelin Group announced that it is working toward making its tires 100% sustainable by 2050. For that Michelin partnered with various organizations like Axens, IFP Energies Nouvelles, Pyrowave, Carbios , Enviro and BlackCycle.

Key Market Trends

Increased demand for high performance tires

The automotive high-performance tire market is expected to witness high growth during the forecast period. The growth is driven by numerous factors such as the increasing inclination of people towards sports like car and bike racing and extreme terrain rallies. OEMs use these events as a platform to market their products and increase brand visibility. Increasing disposable income of customers living in emerging economies is leading to a growth in demand for higher capacity vehicles such as SUVs and crossover vehicles. Rapid infrastructure development in developing economies, especially India and China, has caused a growth in sales of commercial vehicles and construction vehicles. The replacement and aftermarket tire market presents a huge opportunity for vehicle manufacturers to generate revenue. Customers are choosing high-performance tires over traditional rubber tires because rubber tires are subjected to wear and tear easily.

Europe has shown a strong demand for high-performance tires due to the presence of a large number of OEMs such as BMW, Volkswagen, Ferrari, Daimler, and Renault. These OEMs regularly participates in motor sports events held in the continent and showcase their new line of innovative products that caters to the customer’s need of safe, cleaner and cost-effective vehicles and components.

Various major players in the market are investing in new product for the high performance tires. For instance, In March 2021, Versalis, Eni's chemical company and Bridgestone EMIA signed a joint development agreement for the research, production and supply of synthetic rubber and new elastomer grades, including Styrene Butadiene Rubber (SBR), for the production of high-performance tires.

Asia Pacific is Expected to grow at the fastest rate in the Market

The world’s largest automotive market shrank for a third straight year as Chinese car sales declined by more than 6% in 2020. Automakers in China sold 19.29 million passenger vehicles in 2020. Whereas in April 2021, the China Association of Automobile Manufacturers (CAAM) announced that according to aggregated data of sales figures for major companies, cumulative sales from January to March reached 6.344 million units.

India is other major market in the region with its passenger vehicle sales improved after third quarter of the year with passenger vehicle sales reached 3,10,294 units in October 2020, compared with 2,71,737 units in same month last year, registered a 14.19% growth. As per the Federation of Automobile Dealers Associations (FADA), whereas passenger vehicles sales in November 2020 were 2,91,001 units, compared with 2,79,365 units in November 2019, with a 4.17% growth.

Whereas, according to the "2020 Domestic Demand for Automobile Tires" released by the Japan Automobile Tyre Manufactures Association (JATMA), the sales of new automobile tires for vehicles in 2020 was 36,439,000 down, a 17% decrease year-to-year. The first half of 2020, was affected due to the influence of COVID-19, however demand for new vehicle tires began to recover in the second half of the year due to strong new vehicle productions.

Moreover major players in the region are introducing new tires for dedicated segment in the market to gain advantage from their competitors. For instance, In March 2021, Apollo Tires introduced Apterra Cross tires for the compact SUV segment in India. The Apterra Cross tires is an outcome ofcompany's research to understanding of the exact usage patterns of CSUV. The new range of tires is being launched in India with plans to introduce in the ASEAN and SAARC markets later.

Competitive Landscape

Major players such as Bridgestone, Continental, Michelin, Pirelli, etc. dominates the global market for automotive tires. However, when it comes to supplying to the developing markets, such as China and India, the market is fairly fragmented with the presence of regional players.

The demand for high-quality and safe tires was the main reason for the automakers and end users to prefer products from renounced manufacturers than the smaller regional players. Furthermore, these big players have increased their R&D spending exponentially to integrate innovation with performance excellence. This, in turn, has resulted in the production of premium quality tires for off-road and on-road applications.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Tire Type
5.1.1 Winter Tires
5.1.2 Summer Tires
5.1.3 Other Tire Types
5.2 By End User
5.2.1 OEM
5.2.2 Aftermarket
5.3 By Vehicle Types
5.3.1 Passenger Cars
5.3.2 Commercial Vehicles
5.4 By Manufacturing
5.4.1 Radial Tire
5.4.2 Bias Tire
5.5 Geography
5.5.1 North America United States Canada Rest of North America
5.5.2 Europe Germany United Kingdom France Italy Rest of Europe
5.5.3 Asia-Pacific China Japan India South Korea Rest of Asia-Pacific
5.5.4 Middle East & Africa South Africa Saudi Arabia United Arab Emirates Rest of Middle East & Africa
5.5.5 South America Brazil Argentina Rest of South America
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Bridgestone Corp.
6.2.2 Continental Automotive AG
6.2.3 Cooper Tire & Rubber Company
6.2.4 Goodyear Tire & Rubber Company
6.2.5 Hankook Tires Group
6.2.6 Michelin Tires
6.2.7 MRF (Madras Rubber Factory Limited)
6.2.8 Pirelli & C SpA
6.2.9 Apollo Tires
6.2.10 Yokohama Rubber Co. Ltd

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Bridgestone Corp.
  • Continental Automotive AG
  • Cooper Tire & Rubber Company
  • Goodyear Tire & Rubber Company
  • Hankook Tires Group
  • Michelin Tires
  • MRF (Madras Rubber Factory Limited)
  • Pirelli & C SpA
  • Apollo Tires
  • Yokohama Rubber Co. Ltd