The concept of Electric Vehicles (EVs) came into the picture principally to address the rapidly increasing carbon emission levels & depleting fossil fuels. These vehicles are well-equipped with exceptional features as well as batteries that require minimal maintenance & do not impact the environment. Therefore, governments of different countries worldwide are making active efforts toward encouraging people to adopt EVs and, in turn, contribute to environmental sustainability.
As a result of the growing traction of EVs globally, the need for robust & reliable tires is rapidly surging. It, in turn, is instigating the leading players to introduce EV-compatible tires, which projects lucrative growth prospects for the global tire industry in the coming years.
The Global Electric Vehicle Tire Market is projected to grow at around 7.5% CAGR during 2021-26. The growth of the market is likely to be fueled by the growing adoption of EVs across different countries worldwide on account of the various government initiatives for reducing the alarming carbon emission levels. Since fossil fuels are becoming a prominent cause of air pollution and are deteriorating the environmental conditions, there's a burgeoning need for fuel alternatives, which, in turn, is promulgating the EV adoption and encouraging the leading tire companies to manufacture EV-compatible tires.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, The UK, France, Italy, Spain, Others|
|Asia-Pacific: China, India, Japan South Korea, Australia Others|
|South America: Brazil, Other|
|Middle East & Africa: UAE, Saudi Arabia, South Africa Others|
|Key Companies Profiled||Continental AG, Bridgestone Corporation, Yokohama Rubber Company Ltd., Hankook Tire & Technology Group, The Goodyear Tire & Rubber Company, Michelin Group, Kumho Tire Company Inc., Pirelli & C. S.p.A, Toyo Tire Corporation, GITI Tire etc.|
|Unit Denominations||USD Million/Billion|
Besides, as heavy batteries used in EVs increase their overall vehicle weight & put extra strain on tires, it is crucial to deploy tires with such load-carrying capacities that promote the overall vehicle performance. Moreover, growing consumer awareness about the various benefits of EV tires like lower rolling resistance, enhanced durability, improved tread patterns, & enhanced load capacity is playing a crucial role in driving their demand worldwide. Furthermore, other capabilities like greater average vehicle life, longer range, low maintenance, & high safety, among others, are also contributing to the notably expanding Electric Vehicle Tire Market.
Impact of Covid-19 on the Global Electric Vehicle Tire Market
The Covid-19 pandemic in 2020 had significant impacts on the automotive & tire industries, which introduced several unprecedented challenges for the Global Electric Vehicle Tire Market as well. Governments of different countries worldwide imposed lockdowns & stringent movement restrictions and suspended all business operations associated with the market to curb the spread of this dreadful disease.
Consequently, the leading players faced massive financial losses owing to supply chain disruptions, shortage of raw materials, delivery & production delays, & fluctuations in the price of raw materials & tires amidst the crisis.
Due to these factors, several market leaders had to temporarily halt the research & development activities associated with EV tires. To sustain themselves in the market, they adopted online platforms to sell their products via e-commerce websites and provide door-step delivery & installation to their customers. Later, with the decline in Covid-19 cases, lockdowns & other restrictions were uplifted, which enabled EV tire manufacturers to resume their usual business operations & cater to different end-user requirements.