Market Research Report
Global Tire Cord Market - 2021-2028
|Global Tire Cord Market - 2021-2028|
Published: October 6, 2021
Content info: 269 Pages
Delivery time: 1-2 business days
The tire cord market size was worth US$ XX billion in 2020 and is estimated to reach US$ XX billion by 2028, growing at a CAGR of XX % during the forecast period (2021-2028).
Tire cords are reinforcement for the tired used for maintaining the shape of a tire. Tire cords are primarily made of polyester, steel, nylon, aramid, rayon and hybrid. These materials offer several beneficial properties: high tensile strength, controlled deformation, and abrasion resistance, contributing to their use as core components. These tire cords are generally made by fiber, yarn twisting process, weaving process or dipping process. The tire cords are crucial for passenger cars, heavy commercial vehicles, light vehicles, and others.
The global tire cord market growth is driven by growing demand for eco-friendly manufacturing, demand for high-performance tires and increasing sales of hybrids, electric vehicles, and hydrogen cars.
The demand for eco-friendly manufacturing is expected to drive the global tire cord market. Leading companies have been working on various sustainable practices for the manufacturing of eco-friendly tires for sustainability and the environment and adhere to the regulatory bodies. For instance, French tire company Michelin has approved the use of polyester tire cord recycled from Waste PET bottles, the Carbios' enzymatic recycling technology is used for PET plastic waste as a reinforcing fiber in the tires, creating a long-term end-use application for waste plastic from PET bottles.
The increasing research and developments are being conducted to create new opportunities from waste with continuous government support. In 2019, Continental A.G. and Kordsa Technik Teksil A.S. developed a sustainable technology for bonding textile reinforcing materials with rubber compounds. The technology is aimed at use in tire cord materials. Moreover, Kordsa Teknik Tekstil A.S. has launched its product green tire cord fabric based on its sustainable and innovative approach without toxic chemicals that affect human health.
The tire cord market is impacted by the fluctuating prices of raw materials used to produce tires. The availability and cost of raw materials are vital factors for the manufacturers to decide on cost structure. Raw materials such as nylon and polyethylene in tire cord are manufactured from petroleum-based derivatives and are susceptible to fluctuations in prices. There has been high volatility of oil prices in the past with increasing demand across the globe, affecting the cost structure of the tire cord market.
Moreover, the market has been adversely impacted due to the prevailing pandemic scenario; creating uncertainty in the market is one of the major factors responsible for restraining the market.
Due to the pandemic, stakeholders across the tire cord industry have seen a notable impact as all the production work, factories and other activities were closed. As a result, production was hindered by halts and supply chain disruption globally. Furthermore, after the pandemic, the governments still impose various restrictions, such as working with half the workforce and fewer operating hours hindering the production cycle of the market. As a result, the losses are incorporated with less demand from the automotive industry. According to the industry analysis, global car sales declined between 20 and 30%. However, the market is expected to recover after the pandemic, with sectors aiming to complete the existing projects with higher production rates to recover from the incorporated losses.
By material type, the tire cord market is broadly classified into nylon, rayon, aramid, steel, polyethylene terephthalate and hybrid.
The nylon tire cord is expected to hold the largest market for tire cord market and are expected to continue their dominance in the forecast period. The nylon tire cord has been emphasizing the market due to its high tenacity, toughness, superior fatigue resistance and good adhesion to rubber. The increasing demand for high-strength tire cords from numerous vehicle types is owing to the market growth. Nylon tire cords are widely used in the production of high wear resistance tires require for commercial applications. Nylon Cord is used in agricultural tires, Aircraft tires, truck tires and others.
Moreover, steel cord has also been significantly used in heavy commercial vehicles. For instance, in 2020, Bridgestone Corporation introduced a revolutionary MasterCore off-the-road tire line in Tokyo. The tire is engineered durability, based on a combination of unique technologies, which include a new type of steel cord and other advanced materials.
Asia Pacific region holds the largest market share for the tire cord market globally and is expected to continue its dominance in the forecast period with expanding automotive and electronics industry in the region. The growing demand for automobiles in the region, mainly in China and India, will boost the tire cord market. Moreover, China holds the largest market worldwide, both in terms of supply and demand. The increasing civil aircraft and heavy commercial vehicles steadily boost the demand for tire cords in the region.
With the growing demand, leading players have been strengthening their market position with expansions and acquisitions. For instance, in 2021, Kolon Industries has decided to expand its polyester tire cord plant in Vietnam to boost its annual capacity by 19,200 tons. The company has a PET tire cord plant with an annual capacity of 16,800 tons located in Binh Duong Province of Vietnam in 2018. Moreover, Indorama Ventures has acquired Czech tire cord producer Kordarna Plus and Glanzstoff tire cord Segment. The acquisitions will boost the market position for Indorama Ventures.
The tire cord market is consolidated with the local player's presence, followed by the global companies, contributing to the major share in the market growth. In addition, some of the key players contributing to the growth of the market are Indorama Ventures, SRF Limited, Kolon Industries Inc, Teijin Ltd., Tire Cord USA, Hyosung Corporation, Kordsa Teknik Tekstil A.S., Toroy Hybrid Cord Inc, Century Enka Limited, Kolon Industries, Inc and others. The major players are adopting various new strategies to dominate the market, such as product launches, expansions, acquisitions and collaborations, contributing to the growth of the Graphene battery market globally.
The global tire cord market report would provide access to an approx: 69 market data table, 66 Figures and 225 pages.