Tires play a crucial role in automobiles by performing several functions, including holding the vehicle's weight, transmitting energy while accelerating & braking, changing or maintaining direction, etc. They also provide traction between the vehicle & road to absorb shocks. Usually made of rubber, tires comprise tread, beads, joint-less cap plies, & other materials, including synthetic rubber, polyester, carbon black, etc. Worldwide, tires are available in a wide range of sizes & styles to suffice the varied requirements of different vehicles & customers. The escalating sales of passenger & commercial vehicles in emerging economies worldwide are driving the global tire industry. Moreover, both developed & developing countries are witnessing a rapid rise in infrastructural activities, i.e., resulting in higher demand for construction vehicles and, consequently, tires.
The Global Tire Market is expected to grow at a CAGR of around 3.85% during the forecast period, i.e., 2023-28. With the emergence of more efficient vehicles and a smoother infrastructure, the global tire market is experiencing rapid growth & changes. The rise in vehicle production in developing countries and increased competition among tire manufacturers are the prime aspects projected to drive the market in the forecast years. Besides, since modern farming methods are becoming increasingly popular nowadays, there's a growing focus on mechanizing farming activities, which would result in a boom for the tire industry in the agriculture sector.
Considering the Covid-19 scenario, the import-export of essential raw materials required for manufacturing automotive tires reduced abruptly amidst the pandemic, resulting in decreased automobile usage. The steep decline in the production of new vehicles & stringent movement resulted in reduced production & delayed replacement of tires and has shaken the industry. However, in the later phase, new strategies are implemented by the players to sustain the market in any situation that comes unannounced.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Regions Covered||North America, South America, Europe, Middle East, Russia & CIS, Africa, Asia Pacific|
|Key Companies Profiled||
Bridgestone, Michelin, Goodyear, Continental, Pirelli, Sumitomo, Hankook, Yokohama, Cheng Shin, Zhongce Rubber, GITI, Toyo, Kumho, Apollo, CEAT, MRF, Others
|Unit Denominations||USD Million/Billion|
In fact, several tire manufacturers are actively working on countermeasures to minimize the impact by collaborating with global automotive OEMs (Original Equipment Manufacturers). Besides, they are also vigorously extending their services to online platforms with responsive customer service. In addition, their digital transformation to engage with potential buyers has further been a game-changer, resulting in a recovery of the tire market. Numerous vehicles worldwide are back on roads and are allowing the market to flourish & recover from revenue losses.
In addition, the introduction of rimless, airless, run-flat, & green tires shall also drive the Global Tire Market over the forecast years. Among these innovations, Run-flat tires allow you to continue driving your vehicle even they have got punctured, thereby giving you time to find a shop or a safe place to change them.
On the other hand, since the automotive industry has become increasingly interested in establishing sustainability strategies based on ESG management, green tires have been developed. These tires comprise only carbon black and offer lower rolling resistance, enhanced fuel efficiency, & better grip on wet roads than conventional tires.
Nevertheless, the rapidly expanding Electric Vehicle (EVs) industry due to various initiatives by governments of different countries worldwide to curb carbon emissions caused by ICE vehicles and the rapid depletion of fossil fuels, i.e., leading to the increasing adoption of EVs, is also contributing significantly to the overall growth of the global tire market. The most prominent factors driving tire sales for EVs include growing concerns over vehicle maintenance & safety, the longer average life of vehicles, and more kilometers driven per year.