Global Tire Market Size By Type (Radial and Bias), Application (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Two Wheelers), By Demand Category (OEM vs. Replacement), By Region (North America, Europe, Asia Pacific, South America, and the Middle East & Africa), (Trend Analysis, Market Competition Scenario & Outlook, 2016-2027.
- Published Date: October 2020
- Report ID: bwc20179
- Available Format: PDF
- Page: 178
Global Tire Market Size - Industry Trends & Outlook Report 2026
Global Tire Market is estimated to be USD 298.30 Billion by 2027 from USD 222.16 Billion in 2020, at a CAGR of 4.30% from 2020 to 2027. The global tire market is being determined by the growing production and request for vehicles due to the rising population and increasing one-use incomes. The increasing demand for lightweight vehicles is coming from developing economies like China, India, and East Europe, with South America continuing its rescue after the industry's losses in 2016. China is a top car market and is one of the leading markets for passenger vehicles in the country. The country's robust car industry is helping its tire market, making China the largest tire market in the world in 2017. It accounted for nearly half the industry. India, another primary tire market, is also seeing a rising demand for automobiles and is expected to be the third-largest automobiles market by 2021. The Indian tire industry is predictable to see a 7-9% growth in requests in the prediction period. It sees a rising demand not just from the domestic market but also from the growing overseas market. Thus, the surge in exports is also motivating the Indian tire market.
Global Tire Market: Market Outlook and Trends
The tire is the round vehicle constituent made of rubber used to shield the wheel's rim outwardly. The tire's main function is to defend the wheel rim and offer tractive force amid the road surface and the vehicle. Since it is manufactured from rubber, it also delivers a flexible cushion, thereby falling the influence of the vibrations and absorbing the vehicle's shock. Rubber tire consists of tread, jointless cap piles, beads, and other materials, including synthetic rubber, carbon black, and fabric. There is a growth in the demand for tires exponentially due to the rise in vehicle manufacturers' request to provide to the surge in the obligation of vehicles across all segments. Thus, the tired request is ultimately ruled by automobile production. The global tire market is driven by an increase in automotive production & sales across diverse vehicles segment and a rise in rivalry among tire manufacturers. Besides, the outline of progressive technology in the manufacturing process is expected to push the automotive tire market's development. However, factors such as unstable prices of raw materials and growths in the market of retreading tires are predictable to obstruct the market's development. Further, advancement in technology and fuel efficiency and safety worries joined with the government support is predictable to create many chances for the development and extension of the market.
Source : Blueweave Consulting
Global Tire Market
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.
Unstable Prices of Raw Materials
Raw materials to manufacture tires include petroleum strengthening materials such as nylon and polyester. Also, rubber (natural and synthetic) is the essential element mandatory to manufacture tires, which witnesses high-cost differences. The materials used to produce rubber tires are tread, textile cord ply, jointless cap plies, steel-cord for belt plies, Bead reinforcement, apex, and core. Also, it contains steel wire, synthetic rubber, natural rubber, and carbon black along with the petrochemical strengthening materials such as polyester, fabric, nylon, steel, and rayon. The valuing of these raw materials plays a vital role in determining the complete price of the tire. These metals' prices vary irregularly due to global economic ups and downs in the market, as these are operated on a community exchange basis. Inflation and surge in demand for these raw materials fuel their prices in the fresh past. Besides, players who serve in the automotive tire market require many raw materials to overcome the demand for the tire from the automotive industry. Ambiguity in the pricing of these raw materials proves to be a significant limitation for the development of the rubber tire market globally.
Impact of COVID-19 in industry
The automotive & transportation industry is among the barest verticals to the continuing COVID-19 eruption and is currently amidst unparalleled uncertainty. COVID-19 is predictable to significantly impact the supply chain and product requests in the automotive sector. The industry's worry has moved on from being placed on supply chain disturbance from China to the overall slump in the request for automotive products. The demand for commercial vehicles is predictable to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying conduct due to doubt nearby the pandemic may have severe consequences for the industries near upcoming growth. Meanwhile, liquidity shortfall and cash crunch have already impacted fleet operators' sales, which is further expected to widen over the next few months. We are unceasingly monitoring the COVID-19 pandemic and measuring its impact on the automotive & transportation industry's development.
Global Tire Market: Segmentation
Radial tire began as a dominant section in 2015 and accounted for over 75% of the same year's complete revenue. The radial tire controls the market due to several benefits such as lower fuel ingesting, less ground compaction and harm, greater output, decrease in replacement, and reduced machine upkeep costs.
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.
Global Tire Market: Regional Insights
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 are 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.
Source : Blueweave Consulting
The leading players in the Tire Market include Bridgestone Corporation (Japan), Goodyear Tire & Rubber Company (United States), Continental AG (Germany), Michelin (France), and Sumitomo Rubber Industries (Japan) and other prominent players.
· Tokyo (September 25, 2020) - Bridgestone Corporation announced that it plans to discontinue supply of kart tires* effective December 31, 2022.
· Hanover, October 21, 2020. JoinPlas, the joint venture between technology company Continental and system supplier aft automotive, impressed the 18th Materialica Design + Technology Award judges with a synthetic modular coupling system for thermal management in vehicles.
Scope of the Report
Historical data – 2016-2018
Base Year – 2019
Forecast – 2020 – 2027
Revenue in USD Billion
U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia .
By Type, By Application, By Demand Category, By Region
The leading players considered for market analysis are Bridgestone Corporation (Japan), Goodyear Tire & Rubber Company (United States), Continental AG (Germany), Michelin (France) and Sumitomo Rubber Industries (Japan) and many others.
· By Type
· By Application
ü Passenger Cars
ü Light Commercial Vehicles
ü Heavy Commercial Vehicles
ü Two Wheelers
· By Demand Category
· By Region
ü North America
ü Asia Pacific
ü South America
ü Middle East & Africa
The objective of the Study:
•To analyze and forecast the Global Tire Market size of the market in terms of value.
•To examine the careful market segmentation and forecast the market size, in terms of value, based on the region by segmenting.
•The Global Tire Market segmented into five regions, namely, North America, Europe, Asia Pacific, Middle East, South America, and their leading countries.
•To outline, categorized, and forecast the Global Tire Market based on By Type, By Application, By Demand Category and By Regional.
•To examine competitive developments like By Type, By Application, By Demand Category and by Regional within the Global Tire Market.
•To highlight the impact analysis of the factors affecting the market dynamics such as growth drivers.
•To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive landscape for market leaders.
Business Questions Answer by the Report
• How will the market drivers, restraints, and opportunities affect the market dynamics?
• What will be the market size in terms of value and volume and market statistics with a detailed classification?
• Which segment dominates the market or region, and one will be the fastest - growing, and why?
• A comprehensive survey of the competitive landscape and the market participant players
• Analysis of strategy adopted by the key player and their impact on other players.
Customization Scope for the Client
Client satisfaction is our first and last priority, and that is why BlueWeave Consulting offers customization according to Company’s specific needs. The following customization options are available for the report:
Additional Company Information
• With five additional company detail analysis
• Additional country analysis
• Detailed segment analysis
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