Market Research Report
|Published by||Global Industry Analysts, Inc.||Product code||225247|
|Published||Content info||618 Pages
Delivery time: 1-2 business days
|Published: September 1, 2020||Content info: 618 Pages||
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,