Global Tire Market to witness a surge in its valuation with a 4.30 % CAGR by 2027

Published | 05 October 2020

According to BlueWeave Consulting, Global Tire Market is estimated to be USD 298.30 Billion by 2027 from USD 222.16 Billion in 2019, at a CAGR of 4.30% from 2020 to 2027. 

Tires form a vital component of the automobile industry. They deliver traction between the vehicle and the road while providing a flexible cushion that absorbs shock. They are factory-made using various materials, including natural and synthetic rubber, carbon black, polyester, rayon, steel, silica, and vulcanization accelerator. Nowadays, there is a wide-ranging variety of tires accessible globally, which caters to the necessity of different kinds of vehicles. Factors driving request for automobile tires include rising tire sales from OEMs on the back of increasing production of cars with many technological progressions in the automotive industry, shifting demand towards better lifespan, lightweight, environmentally friendly tires, coupled with growing tire sales in the spare segment across the globe owing to the continuous rise in the vehicle fleet size. Macro reasons which are driving the growth of the market include a healthy upswing in rural economies, focused on mechanization and the resultant strong demand for agricultural vehicle tires, beneficial retrieval in the global construction industry, increased expenses on construction vehicles, and a parallel increase in request for construction tires in the OEM market. Strong demand for commercial vehicle tires at the back of rising investments in fleet growth in the logistics industry; government focus on smart transportation, increased investment in BRT (Bus Rapid Transit) systems drive the market growth.

“Passenger Cars dominates the Application Segment”

The passenger Cars (PC) segment dominated the industry with over 40% revenue share in 2015. Requests for passenger cars are mainly particular to economic circumstances dictated by variation in exchange rates, GDP development, inflation levels, and government policy changes. Besides, volatile fuel prices and the transportation infrastructure also tend to influence demand for passenger cars. The universal need for PC is predictable to increase traction over the future, driven by the refining economic outlook in the U.S. and emerging markets such as China and India.

Growth Drivers 

Increase in Automotive Production & Sales 

Recently, the automobile industry has been undergoing rapid evolution owing to speedy progress, which has led to a growth in the sale of profitable vehicles such as trucks, tractors, and trailers. Besides, the rise in one-use income of people and developments in the standard of living are the factors that surge the sale of luxurious passenger cars and premium segment bikes. Furthermore, electric vehicle sales are predicted to rise throughout the forecast period. Also, a decrease in electric vehicle parts such as a battery, transmission, and alternators propel the sale of electric vehicles. Thus, a surge in demand for vehicles across all segments among consumers leads to a rise in automobiles and tires associated with it. Moreover, the global alliance of the automotive sector that results in mergers and acquisitions among international and domestic vehicle manufacturers boosts the development of the automotive industry, inducing the automotive tire market. Therefore, the development of the automobile sector is expected to rise the overall demand for tires.   

“Asia-Pacific dominates the Global Tire Market”

Asia-Pacific is the leading player and holding more than half of the market share. China is the central hub for business through industries and one of the firmest rising economies in the world. The request for materials like coal, iron ore, gold, and copper is growing. As a result, the demand for mining truck tires has gone up as well. Besides, investments in the mining sector are predictable to help as a good opportunity for heavy-duty tire manufacturers. The country started feeling recovery in mining production, with the help of advanced technologies, in 2016. The surge in the mining production is likely to push demand for new building machinery in fields by replacing old machinery, which is additionally powering the mining tires' demand.

Global Tire Market: Competitive Landscape

Some of the leading players operating in the Global Tire Market are Bridgestone Corporation (Japan), Goodyear Tire & Rubber Company (United States), Continental AG (Germany), Michelin (France), and Sumitomo Rubber Industries (Japan) and other prominent players.

Do not miss the business opportunity of the Global Tire Market. Consult our analyst, gain crucial insights, and facilitate your business growth. 

The in-depth analysis of the report provides the growth potential, upcoming trends, and statistics of the Global Tire Market size & forecast. The report promises to provide state-of-the-art technology of Global Tire Market and industry insights, which help decision-makers to make sound strategic decisions. Furthermore, the report also analyzes the market drivers, challenges, and competitive analysis of the market. 

About Us

BlueWeave Consulting is a one-stop solution for market intelligence regarding various products and services online & offline. We offer comprehensive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solution. BWC has built its reputation from the scratches by delivering quality performance and nourishing long-lasting relationships with its clients. We are one of the promising digital market intelligence generation company providing unique solutions for blooming your business and making the morning, more rising & shining.