Press Release

A USD 384 Million Vietnam Truck and Bus Tire Market to Flourish at CAGR of Around 5.86% During 2024-30

The Vietnam Truck & Bus Tire Market size is valued at around USD 384 million in 2024 and is projected to grow at a CAGR of around 5.86% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The key factors that are driving the country’s truck and bus tire market consist of explosive growth in the tourism industry, hovering investments in infrastructure and construction industry, an increase in greenfield investments by foreign investors, etc. Moreover, the E-commerce business in Vietnam is growing, which is augmenting the growth of the country’s truck & bus tire industry. In 2024, the nation’s e-commerce enterprise is valued at around USD 26 billion, as per Vietnam Ministry of Industry and Trade’s E-Commerce and Digital Economy Department. The increase in digital media penetration and rising disposable earnings are the fundamental factors contributing to the growth of the e-commerce business.

Moreover, Vietnam's truck tire industry has been the main driver of the boom in the retread tire industry. As the retreading market grows, tires usually get much more mileage, which sooner or later lengthens the time among replacements and lowers the overall cost of possession. This has a direct effect on the country's tire suppliers' income. There is an inverse relationship between the expansion of the truck and bus tire industry and tire retreading activities. The growth and expansion of the Vietnam Truck & Bus Tire Market is consequently notably impeded by the growth of the tire retreading business.

The market size of the logistics industry of Vietnam was around USD 45 billion in 2023 and is anticipated to exceed USD 70 billion by 2030. This massive growth in the logistics industry is expected to drive the size & volume of the truck and bus tire industry during the forecast period, further states the research report, “Vietnam Truck and Bus Tire Market Analysis, 2024.”

Segmentation Analysis

Truck Tire Segment Holds a Major Market Share

Based on the vehicle type, the market is further bifurcated into truck, and bus. In 2023, the truck tire segment obtained more than 90% share of the Vietnamese truck and bus tire industry. The growing penetration of private cars which include two-wheelers, and passenger cars is leading to a decline in the revenue growth of the bus segment. The growth and improvement of ports resulted in the expansion of the truck fleet by way of greater than 200,000 units during 2019-2023, at the same time as the bus sales have been around 10% of the truck sales. The introduction of electric two-wheelers has similarly negatively impacted the overall market boom of the bus segment in the country. Therefore, the truck tire segment is anticipated to be a dominant force in the Vietnam Truck and Bus Tire Market in the coming years as well.

Aftermarket Segment Leads the Vietnam Truck and Bus Tire Market

Aftermarket demand grabbed more than 80% of the share of the Vietnam Truck and Bus Tire Market. The presence of manufacturing units of OEMs such as Isuzu, Hino, THACO, etc., has been generating the demand for truck and bus tires. However, the annual production of these companies is a fraction of the registered trucks and buses in the country. Despite Vietnam’s geographical proximity to China which is a global auto manufacturing hub and its large coastline on a busy trade route, no major transition in the demand is anticipated in the forthcoming years.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Bridgestone Corporation, Michelin, Casumina (Southern Rubber Industry Joint Stock Company), Sailun, Goodyear, Yokohama Rubber Co. Ltd., Zhongce Rubber Group Co., Ltd., Kumho Tire, Kenda, Hankook, DRC Tire, China’s Guizhou Tyre, Jinhu Tire and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?