MarkNtel Advisors, in their recent research study, has cited that the Global Tire Market is projected to register around 3.85% CAGR during the forecast period, i.e., 2021-26. With rapid urbanization across both developed & developing countries, passenger & commercial vehicles are witnessing significant demand worldwide. Additionally, various ongoing & upcoming infrastructural projects are leading to the increasing demand for construction equipment. As a result, this surge in vehicle sales is driving the global tire market, which, especially in recent years, has experienced rapid growth & changes due to the introduction of more efficient vehicles & improved infrastructure.
Besides, the introduction of low-profile, run-flat, rimless, & green tires across various regions worldwide is also expected to boost the market in the coming years. The automotive industry has developed green tires owing to its growing interest in sustainability strategies based on Environmental, Social, and Governance (ESG) management. Unlike conventional tires, these tires contain only eco-friendly carbon black and offer reduced rolling resistance, increased fuel efficiency, & better traction on wet road conditions.
Furthermore, the rapidly expanding Electric Vehicles (EV) industry is also contributing to the burgeoning demand for EV tires due to various initiatives of governments worldwide to curb carbon emissions caused by Internal Combustion Engine (ICE) vehicles, coupled with the devouring fossil fuels. Hence, with the surging vehicle production & increased competition among tire manufacturers worldwide, the global tire market would continue expanding over the forecast years, further states the research report, "Global Tire Market Analysis, 2021."
Passenger Cars to Remain a Significant Growth Contributor to the Global Tire Market through 2026
The burgeoning production & sales of passenger cars, especially across Asian countries like China & India, are driving the Global Tire Market. Modern passenger cars have tires manufactured using materials like Natural Rubber (NR), Synthetic Rubber (SR), & thermoplastic elastomers (TPE). They are experiencing immense demand worldwide since they offer several benefits, including high mileage, low rolling resistance, & a good grip on wet roads.
Besides being more durable, these materials also offer better wear resistance than earlier passenger car tire materials like steel-belted radials. Furthermore, the rapidly rising production & sales of passenger cars, particularly SUVs & CUVs, owing to the increasing consumer interest toward these luxury vehicles, shall drive the Global Tire Market for passenger cars in the coming years.
Asia-Pacific to be the Largest Tire Market Worldwide during 2021-26
Of all regions globally, Asia-Pacific is projected to lead the Tire Market during 2021-26. The regional market growth attributes to various factors, including automotive manufacturers like BMW AG (Germany) & Volkswagen Group (Germany), which, by establishing manufacturing facilities in the region, have made it a hub for automotive manufacturing. Further, the mounting sales of passenger & commercial vehicles owing to rapid urbanization & burgeoning industrial activities in emerging economies like China & India are also driving the regional market. As a result, the automakers & tire manufacturers worldwide are strategically collaborating and extending their presence through the region by establishing several production plants, thereby contributing the market growth across Asia-Pacific.
Additionally, the automotive sector in the region has observed massive investments due to cheap production costs, easy availability of economic labor, flexible emission & safety regulations, and various government initiatives for foreign direct investments. Countries like South Korea, Japan, & India are heavily investing in their agricultural sectors, which, in turn, is surging the demand for agricultural equipment & tires and fueling the regional market growth, reveals MarkNtel Advisors in their research report, "Global Tire Market Analysis, 2021."
According to MarkNtel Advisors, the key players in the Global Tire Market include Bridgestone, Michelin, Goodyear, Continental, Pirelli, Sumitomo, Hankook, Yokohama, Cheng Shin, Zhongce Rubber, GITI, Cooper, Toyo, Kumho, Apollo, CEAT, & MRF.
Key Questions Answered in the Study